Nuvectra11.14.19
Nuvectra Corporation, a neurostimulation medical device company, has elected to file a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Texas (the “Court”). The company intends to use this Court-supervised process to continue its review of a range of options to maximize value and address its financial obligations. The Board of Directors and management team continue to believe that the company and its assets have considerable value and are exploring a range of options, including a sale of the company as a whole, of the Algovita Spinal Cord Stimulation System (“Algovita”), of Virtis or of specified assets.
Furthermore, Nuvectra is committed to supporting existing patients using Algovita, as well as the physicians, clinicians and facilities treating patients with Algovita. The safety and functionality of Algovita will not be impacted by the Court-supervised process. The company is currently suspending its support of future implants until the company’s path forward is determined and recommends physicians cease any new implantations, as well as trial procedures and clinical studies in progress, until that time.
Dr. Fred Parks, Nuvectra’s CEO, commented, “Since launching as an independent company, Nuvectra has been investing in our mission to help physicians improve the lives of people with chronic conditions. We were successful in bringing Algovita to market and have opportunities in our pipeline, including Virtis, which we believe will generate value in the future. To fund our innovation and commercialization efforts, the company took on substantial debt. We have been working to achieve an alternative path forward through our extensive review of options for our business over the past several months. Following constructive discussions with our lenders, the Court-supervised process we are starting will provide us the time and flexibility we need to continue our review of options, maximize the value of our assets and address our financial obligations.”
Dr. Parks continued, “We are committed to supporting the patients who are using our device and their physicians and clinicians by maintaining a team of clinical specialists and product support specialists.”
Furthermore, Nuvectra is committed to supporting existing patients using Algovita, as well as the physicians, clinicians and facilities treating patients with Algovita. The safety and functionality of Algovita will not be impacted by the Court-supervised process. The company is currently suspending its support of future implants until the company’s path forward is determined and recommends physicians cease any new implantations, as well as trial procedures and clinical studies in progress, until that time.
Dr. Fred Parks, Nuvectra’s CEO, commented, “Since launching as an independent company, Nuvectra has been investing in our mission to help physicians improve the lives of people with chronic conditions. We were successful in bringing Algovita to market and have opportunities in our pipeline, including Virtis, which we believe will generate value in the future. To fund our innovation and commercialization efforts, the company took on substantial debt. We have been working to achieve an alternative path forward through our extensive review of options for our business over the past several months. Following constructive discussions with our lenders, the Court-supervised process we are starting will provide us the time and flexibility we need to continue our review of options, maximize the value of our assets and address our financial obligations.”
Dr. Parks continued, “We are committed to supporting the patients who are using our device and their physicians and clinicians by maintaining a team of clinical specialists and product support specialists.”
