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Nevro Stock Up On Appointment Of Keith Grossman As CEO; Suspends FY19 Outlook

Nevro Corp.'s (NVRO) shares gained around 9 percent in the extended trading on Tuesday after the medical device company announced the immediate appointment of Keith Grossman as President and Chief Executive Officer, and a Board member. Nevro further said it is suspending fiscal 2019 revenue guidance while it assesses the business under its new leadership.

Grossman succeeds Rami Elghandour, who has stepped down as President, CEO and a director of the Company. Nevro also appointed two new independent directors, Elizabeth Weatherman and Kevin O'Boyle, effective immediately. The company has accepted the resignation of Ali Behbahani as a director.

The leadership appointments follow constructive engagement with Broadfin Capital, LLC, a significant Nevro stockholder. Pursuant to the agreement between Broadfin and Nevro, Broadfin will vote all of its shares in favor of each of the Company's Board nominees at the 2019 Annual Meeting

Following the latest changes, the Nevro Board consists of nine members.

The company noted that Grossman brings over 30 years of experience in the medical device field. He served most recently, and for the second time, as the President, Chief Executive Officer and director of Thoratec Corp., leading up to its 2015 sale to St. Jude Medical.

Prior to Thoratec, he served as President, Chief Executive Officer and director of Conceptus, a women's health medical device company, leading up to its sale to Bayer Healthcare.

Under Grossman's direction, Nevro expects to capture a burgeoning market opportunity with its pioneering spinal cord stimulation or SCS technology to treat chronic pain.

On the NYSE, Nevro shares settled Tuesday's regular trading at $44.77, up 0.83 percent. In the after hours trading, shares gained 9.34 percent to trade at $48.95.

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