Nuvectra Continuing to Support Current Patients with the Algovita Implant as Company Voluntarily Files for Chapter 11
Posted on November 14, 2019 by Medtech[y] Staff
Nuvectra Corporation (NASDAQ: NVTR) , a neurostimulation medical device company, today announced that it 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 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 Chief Executive Officer, 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 today 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.”
Patients or physicians with questions regarding Algovita should contact Nuvectra Customer Service by calling 1-844-727-7897 (or +1-214-618-4980 for calls originating outside the U.S.) and selecting option one or sending an email to firstname.lastname@example.org.
The Company has filed a number of customary motions seeking Court authorization to support its operations during the Court-supervised process, including a consensual cash collateral motion and a motion to pay employee wages and benefits. The Company expects to receive Court approval for these requests shortly.
Additional Information Additional resources for vendors and other outside parties, including court filings and other documents related to the Chapter 11 process, are available on a website administered by Nuvectra’s claims agent, KCC, at http://www.kccllc.net/nuvectra. Information is also available by calling 1-888-201-2205 (U.S. and Canada) or +1-310-751-1839 (International).
Norton Rose Fulbright US LLP and Dorsey & Whitney LLP are serving as the Company’s legal counsel and Alvarez & Marsal is serving as restructuring advisor.
About Nuvectra Corporation Nuvectra® is a neurostimulation company committed to helping physicians improve the lives of people with chronic conditions. The Algovita® Spinal Cord Stimulation (SCS) System is our first commercial offering and is CE marked and FDA approved for the treatment of chronic intractable pain of the trunk and/or limbs. Our innovative technology platform also has capabilities under development to support other indications such as sacral neuromodulation (SNM) for the treatment of overactive bladder, and deep brain stimulation (DBS) for the treatment of Parkinson’s Disease.