Dear Mr. Berko: My mother-in-law suffered with a bad back for over 20 years, resisting spine surgery because many of her contemporaries had rotten luck with it. However, one of her friends had a spine procedure six months ago and is still bragging about the good surgeon who performed it. The surgeon used a surgical platform developed by a company called NuVasive. This persuaded her to give surgery a try, although with tremendous reluctance. Her success was beyond anything she had expected. I figure God had to be on our side, because my mother-in-law is truly a harridan and complains at the drop of a hat. Please, what can you tell me about NuVasive? I’m thinking of buying 300 shares of the stock, and my mother-in-law would probably buy 1,000 shares.
— J.R., Rochester, Minn.
Dear J.R.: I know the stock, and I know folks like your mother-in-law. Please don’t allow her to stretch her luck. This scold may have enjoyed an unexpectedly good outcome, but if the stock were to drop after her purchase, I suspect that her back problems would come back — probably worse than before.
NuVasive (NUVA-$47.60) is one of those ubiquitous surgical product firms that saturate the market. Sometimes such firms offer stinky products. Others provide new and practical products. Very few give us exceptionally innovative products. NUVA is one of the latter, having developed several exceptionally impressive materials for bone grafts that have numerous spine surgeons licking their lips. This medical device company focuses on applications for spinal fusion surgery, including the biologics used in the spinal fusion process. NUVA’s principal product, MAS posterior lumbar interbody fusion, is a minimally disruptive approach to back surgery that includes a software-driven nerve detection and avoidance system, plus an intraoperative monitoring services and support system.
NUVA has been in the back business since 1997, with its headquarters in San Diego. And NUVA’s recently built facility to house its 3-D printing capability is the envy of some of the big boys at Orthofix, Globus Medical and Exactech.
