Shares of Nevro Corp. (NYSE:NVRO) are falling today, down 13% as of 10:21 a.m. EDT, after an SEC filing revealed that the medical device company's VP of sales has been fired.
Nervo published a filing with the SEC today showing that James Alecxih, the company's vice president of worldwide sales, was terminated earlier in the week.
Wall Street isn't taking this news well because Nervo is a high-growth business that has yet to reach profitability. There's nothing more important to the company right now than growing the top line as rapidly as possible. The surprise departure of a key sales executive could threaten to disrupt the company's short- and long-term growth trajectory. That's especially true considering that the company just recently won FDA approval for its new Senza II Spinal Cord Stimulation System in the U.S. and Europe. Rolling out a new medical device can be tricky, particularly now that the company has to start a search for a new VP of sales.
The last few months have been brutal for Nervo investors. Shares have been in free fall ever since the company reported disappointing first-quarter results. When adding today's decline, the stock has fallen by more than 36% from its peak.
While the gut-wrenching volatility is no fun, I have a hard time seeing how today's news impacts the company's long-term growth potential. If you were bullish on Nervo yesterday, then I see no real reason to change your tune today. That could make right now a great time for opportunistic investors to pick up a few shares while they are trading on the cheap.