Nevro Corp. ( NVRO Quick Quote NVRO - Free Report) recently announced that UnitedHealthcare — one of the businesses of UnitedHealth Group ( UNH Quick Quote UNH - Free Report) — will offer coverage for Nevro’s high-frequency 10 kHz Therapy for treating PDN (Painful Diabetic Neuropathy) for dates of service on or after Mar 1, 2022. Interestingly, UnitedHealthcare is the largest private health insurance company in the United States. It is worth mentioning that UnitedHealth Group is a diversified health care company, offering coverage for above 39 million commercial health care members. This announcement is likely to provide a boost to Nevro’s already robust position in the spinal cord stimulation (SCS) market. More on the News
Per management at Nevro, UnitedHealthcare’s speedy coverage decision comes following Nevro’s submission to the latter’s medical policy team in late 2021. For Nevro, this marks a huge milestone as it will facilitate access to its proprietary 10 kHz Therapy for PDN patients.
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According to management, on the back of the only SCS system that is FDA approved for the treatment of PDN, the company is well-poised to treat numerous patients suffering from the impact of PDN with a proven non-drug option.
When it comes to future coverage decisions by other major health plans in 2022 and further, management believes that its solid and growing body of published, peer-reviewed clinical and real-world data will play a crucial role. Market Prospects
a report by Research and Markets, the global PDN market was worth $4.81 billion in 2017 and is anticipated to reach $8.96 billion by 2026, witnessing a CAGR of 6.6% during the forecast period (2018-2026). An ever-increasing pool of geriatric population with diabetes is the primary factor driving this market’s growth. Thus, this announcement comes at an opportune time for Nevro. Recent Notable Development
In November 2021, the company announced three important clinical data publications for treating PDN with 10 kHz Therapy, including 12-month data from the landmark SENZA-PDN RCT published online in Diabetes Care. The company announced real-world evidence and a comparative literature review of high versus low-frequency SCS evidence, both published in the Journal of Diabetes Science and Technology. Findings from all three studies highlight the significant benefits of HFX for PDN in clinical and real-world settings.
Shares of the Zacks Rank #3 (Hold) company have lost 46.7% in the past year against the
industry’s growth of 8.6%. Stocks to Consider
Some better-ranked stocks in the broader medical space include
Thermo Fisher Scientific Inc. ( TMO Quick Quote TMO - Free Report) and Abiomed, Inc. ( ABMD Quick Quote ABMD - Free Report) . Thermo Fisher surpassed earnings estimates in each of the trailing four quarters, the average surprise being 9.02%. The company currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Thermo Fisher’s long-term earnings growth rate is estimated at 14%. The company’s earnings yield of 3.7% compares favorably with the industry’s (3.6%). Abiomed beat earnings estimates in each of the trailing four quarters, the average surprise being 5.8%. The company currently carries a Zacks Rank #2. Abiomed’s long-term earnings growth rate is estimated at 20%. The company’s earnings yield of 1.2% compares favorably with the industry’s (3.6%).