NuVasive is reducing executive and board member compensation and taking other temporary cost-cutting measures during the COVID-19 pandemic, which has significantly lowered elective procedure volumes.
Five things to know:
1. The spine device company had a strong cash position at the end of the first quarter, with more than $500 million in cash on hand, according to preliminary results released April 14.
2. Its first-quarter revenue is estimated to fall in the range of $259 million to $261 million, representing a year-over-year decline of 5 to 5.7 percent.
3. NuVasive anticipates a "significant negative impact" on finances in the second quarter of 2020 due to elective procedure bans and stay-at-home orders across the U.S. It has withdrawn its 2020 financial guidance.
4. To control costs during the pandemic, NuVasive is controlling discretionary spending and adjusting manufacturing capacity based on demand and government directives. However, NuVasive intends to maintain its current levels of investment in research and development.
5. The company is preparing its distribution and commercial teams to support spine surgeons performing essential surgeries now, as well as those who will reintroduce elective surgeries in the future.