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NuVasive Expansion Aims to Be Catalyst for Innovation

San Diego-based NuVasive Inc. in January will begin expanding its headquarters, including creating an innovation center to showcase the company’s efforts in training surgeons in its latest spine surgery procedures and technology.

The medical device company, which is also focused on minimally invasive, lateral spine surgery, stated that accelerated growth spurred the expansion. It will add 100,000 square feet in phases to its 250,000-square-foot footprint, at 7475 Lusk Blvd. in Sorrento Valley.

The Revenue

NuVasive, founded in 1997, anticipates surpassing $1 billion in revenue at the end of the year, which would exceed 2016’s total of $962.1 million and $811.1 million in the prior year. In addition, the company has pledged to increase research and development spending as a percent of revenue from 5 percent to 7 percent over the next several years.

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On that note, the renovated campus — expected to be completed in 2020 — will include an innovation center featuring the company’s products and surgeon education initiatives.

Currently, the company trains more than 500 surgeons annually on products and

Carol Cox

procedures at its onsite cadaver lab, which is due to be expanded under the plans.

“We are committed to developing products and procedures that help drive better clinical and economic outcomes,” said Carol Cox, executive vice president, external affairs, in an email. “As a result, these procedures are new and many surgeons will not have trained on them during medical school. They can visit our labs and operating room to learn these procedures.”

Centralizing Is Catalyst to Innovation

Asked why it’s important from a business perspective that surgeons train there, Cox said:

“It makes perfect sense for us to centralize our R&D, our prototyping and our surgeon education programs. Having the right team in the same room, learning and collaborating together, allows us to serve our surgeons needs and to innovate at a much faster rate.”

Additional expansion features include:

• A prototype design facility with 3-D printing capabilities;

• A biomedical testing center; and

• A new amenities building that includes a café and fitness center.

Tax Credit

NuVasive was awarded a $3 million California Competes Tax Credit for the expansion, of which the company did not disclose an estimate of the construction cost.

One requirement of the credit is that NuVasive grow its 2016 California employee total of 651 to 896 by 2021, according to the tax credit document.

Besides the San Diego expansion, NuVasive recently opened a new international headquarters in Amsterdam, Netherlands, and finished a new 180,000-square-foot manufacturing center in Ohio. It also has a distribution hub in Tennessee.


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