Initiate at OP: Synergies Ahead, Margins Expanding, and Flywheel Accelerating

研报英文原文证据摘录

Initiate at OP: Synergies Ahead, Margins Expanding, and Flywheel Accelerating

ecruiting new sales personnel and implementing enhanced

training protocols. Management expects Nevro to return to historical revenue run rates by the second

half of 2026 as these new associates complete their training. Despite the short-term lumpiness in

revenue as the business is integrated, Globus management maintains that the acquisition expands their

continuum of care and provides a clinically superior solution for chronic pain that is complementary to

their spinal portfolio.

Globus also recognized a $110.6 million bargain purchase gain primarily driven by $141.5 million in

deferred tax assets (federal net operating loss carryforwards) acquired from Nevro that Nevro could not

previously utilize because it was not profitable. These assets are expected to generate cash tax savings

for Globus over the next 40 to 50 years. Management has also highlighted Nevro's clinically superior

high-frequency technology and strong patent portfolio as key drivers.

Globus also intends to explore new applications for Nevro. Beyond its core application in spinal cord

stimulation (SCS) for chronic pain, Globus Medical is leveraging Nevro’s high-frequency technology and

patent portfolio to expand into several new clinical areas:

• Painful Diabetic Neuropathy (PDN): This is a key growth area where Nevro's high-frequency

stimulation is used to treat patients suffering from chronic pain associated with diabetes.

• Parkinson’s Disease: Globus is exploring applications of electrical stimulation to treat gait

disorders and tremors in patients with Parkinson’s disease.

• Peripheral Nerve Applications: Management has identified peripheral nerve stimulation as an

area for future product development and clinical focus.