Nevro Corp., a global medical device company that is delivering comprehensive, life-changing solutions for the treatment of chronic pain, announced that it has acquired Vyrsa Technologies (“Vyrsa”), a privately held medical technology company focused on a minimally invasive treatment option for patients suffering from chronic sacroiliac joint (“SI Joint”) pain.
Under the terms of the transaction, which signed and closed on November 30, 2023, Nevro paid $40 million at closing and agreed to pay up to an additional $35 million in cash or stock tied to achievement of certain development and sales milestones.
The US SI joint fusion market is valued at over $2 billion and expected to grow by double digits over the next several years1. Vyrsa, established in 2021, is the only SI joint company that manufactures and supports a complete portfolio of FDA-cleared, state-of-the-art sacroiliac joint fusion devices.
Nevro CMO David Caraway, M.D., stated, “Vyrsa’s comprehensive product suite allows physicians to tailor therapy to specific patient needs. Their innovative implants provide optimal stability and enhance the opportunity for the SI joint to fuse, providing relief to patients suffering from chronic SI joint pain.”
The Vyrsa portfolio of SI joint devices allows physician utilization of the established SI joint fusion Category I CPT codes at all approved sites of service for SI joint fusion procedures.
Nevro CEO Kevin Thornal commented, “The acquisition of Vyrsa leverages Nevro’s ability to drive long-term shareholder value by accelerating our key strategic initiatives of commercial execution, market penetration, and profit progress. Vyrsa offers differentiated implants to our current call point of physicians that will help drive growth. We are ecstatic to be able to bring long-term pain relief to the 15-30% of people suffering with chronic low back pain associated with the SI joint2.”
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Vyrsa is projected to be accretive to Nevro in 2024 for both revenue and AEBITDA.
Closes $200 Million Term Loan Credit Facility and Refinances Portion of 2025 Convertible Notes
Nevro also announced the closing of a 6-year, $200 million term loan credit facility, the proceeds of which will be used to repurchase the majority of its 2025 Convertible Notes and for working capital and other general corporate purposes. Interest on the term loans accrues at a per annum rate of SOFR + 5.25%. At Nevro’s election, certain portions of the interest may be paid-in-kind. Nevro also issued the lender a warrant to purchase approximately 2.6 million shares of Nevro common stock at a $23.19 exercise price, representing a 40% premium to Nevro’s trailing 5-day VWAP.
Nevro CFO Rod MacLeod noted, “We are excited to be able to diversify our product offering and drive growth with Vyrsa. We are also pleased to refinance a majority of our debt and push the maturity out to 2029. We evaluated multiple financing options and chose this path to limit equity dilution to 2.6 million warrant shares versus a typical convertible offering that would have been much more dilutive. Nevro has had a strong, long-term relationship with Braidwell, an investor in our company and our lender for this transaction, and we look forward to having their continued support for years to come.”
“We are delighted to expand our existing investment in Nevro,” said Narendra Nayak, Partner at Braidwell. “Over the years, Nevro has done the hard work of scaling its commercial infrastructure and is now poised to offer its customers a growing portfolio of complementary technologies to drive the company’s top and bottom lines.”
SOURCE : PRNewswire