NuVasive to Further Expand Memphis Facility

San Diego, Calif.-based spinal device developer NuVasive Inc. is investing $75 million into the expansion of its distribution center in Memphis, Tenn. Only two years ago, the company spent $1.6 million to double the size of the 123,000-square-foot facility, which currently houses offices and a distribution operation.

Memphis is an important location for NuVasive because of its ideal location as a transportation hub. Intersecting the city are the Mississippi River crossing for Interstate 40, which goes east-west across the country, and the north-south thoroughfare Interstate 55. In 2010, then-president and chief operating officer Keith Valentine pointed out the facility’s proximity to FedEx as a major advantage of the locaton: “That gives us greater access across the country.” Indeed, FedEx is located in Memphis for the same reason of easy access.

NuVasive is seeking a tax break to accomplish this expansion and add 17 jobs in Memphis. The Economic Development Growth Engine (EDGE) for Memphis and Shelby County will consider NuVasive’s application for a PILOT (payment-in-lieu-of-taxes) at its June 20 board meeting.

NuVasive received a PILOT in 2006 when it first opened the 100,00-square-foot facility and employed 50 people. The latest new hires will earn an annual average of more than $49,000 and boost the total number of local employees to 163.

NuVasive recently was embroiled in a controversy over a patent infringement lawsuit filed by Medtronic Inc. A federal jury in San Diego ruled that NuVasive infringed on three patents owned by Warsaw Orthopedic Inc., a unit of Medtronic, and owed Medtronic $101.2 million. NuVasive counter-sued and subsequently was awarded $660,000 in damages from Medtronic for infringing on another patent.