REDWOOD CITY, Calif., Sept. 14, 2020 /PRNewswire/ --Nevro Corp.(NYSE:NVRO), a global medical device company that is providing innovative, evidence-based solutions for the treatment of chronic pain, today announced that it will establish global manufacturing operations in Costa Rica to invest in and support the Company's future growth expectations.
"Nevro has been successful through its early years with outsourced manufacturing and highly supportive supply chain partners," said D. Keith Grossman, Chairman, CEO and President of Nevro. "As part of our growth plans moving forward, Nevro is establishing insourced global manufacturing for its pipeline of future products to ensure that we have the most efficient cost structure and flexible capacity, while maintaining the highest level of quality control as we scale."
Nevro has entered into a 10-year lease for a 35,000 square foot manufacturing facility in Costa Rica. Total capital expenditures are expected to be approximately $11 million from 2020-2023 with an additional $10 million of implementation costs over the same period. The Company expects the new manufacturing facility to be validated and approved in 2022, after which the Company believes it will realize cost efficiencies and gross margin improvements from this initiative.