Nevro Corp. (NYSE: NVRO) shares surged by 31.4% on Wednesday morning after the Company appointed a new Chief Executive Officer and new board member. Effectively immediately, Keith Grossman will succeed Rami Elgahandour, who stepped down as President, Chief Executive Officer, and a director of the Company.
Nevro also appointed two new independent directors to the board, Elizabeth Weatherman and Kevin O’Boyle, which is also effective immediately. Ali Behbahani also accepted his resignation and will step down.
The management changes follows after a constructive engagement with Broadfin Capital, a significant Nevro shareholder.
Grossman has over 30 years within the medical device field. Grossman most recently served as President and Chief Executive Officer of Thoratec Corporation, leading up to the Company’ sale in 2015 to St. Jude Medical. Prior to Thoratec, Grossman served at Conceptus, Texas Pacific Group, Outset Medical, ViewRay, Surgical, Kyphon, as well as many other private medical device makers.
“On behalf of the Board and our entire company, I am excited to welcome Keith Grossman to the Nevro team,” said Michael DeMane, Chairman of the Nevro Board. “Keith brings over 30 years of experience in leading innovative medical technology companies through periods of strategic change to deliver growth and enhanced value for stockholders. As we look to the future, I am confident that under Keith’s direction, Nevro will be well positioned to capture a burgeoning market opportunity with its pioneering spinal cord stimulation (SCS) technology to treat chronic pain.”
“I am excited by this opportunity to join such a talented team at a pivotal moment in Nevro’s history,” said Grossman. “Over the past several years, Nevro has leveraged the strength of its technology to enhance patient care and drive overall industry growth. Nevro is now at an inflection point, and I am confident in our ability to continue delivering value not only to our patients and customers, but importantly, to our stockholders. I look forward to working closely with the Board and the full Nevro team to advance the Company into its next phase of growth.”
Nevro also noted in its release that its 2019 revenue guidance will be suspended until the Company assesses the business under its new leadership.
Following the announcement. BMO Capital analysts upgraded the stock from a market perform to outperform.