Ugly, just plain ugly! See below.
PR Newswire, Tuesday, September 22, 1998 at 17:39
Company Focuses Efforts in States Where Medicare is Reimbursing for TUNA Procedure
FREMONT, Calif., Sept. 22 /PRNewswire/ -- VidaMed Inc. (NASDAQ:VIDA)
today announced that net revenues for the third quarter, ending September
30th, will include a sales return reserve which will significantly exceed
sales for the quarter. The net loss, reflecting increased reserves, is
expected to range from $7,000,000 to $7,700,000 or $0.35 to $0.39 per share
compared to a net loss of $5,077,000 or $0.39 per share for the third quarter
of 1997.
David Illingworth, VidaMed President and CEO said, "We have re-evaluated
the strategy of the Company and are making some very necessary, reality-based
changes into those markets that are open to us, specifically, the hospital
market in Medicare approved states. Information received in the last thirty
days concerning probable delays in non-hospital reimbursement, dictates that
we focus our resources in specific market segments."
The Company stated that the increased reserves are a direct result of the
ever changing reimbursement challenges that the Company is facing.
Specifically, sales and marketing efforts put forth in the office-based and
Ambulatory Surgery Center (ASC) markets, where VidaMed's TUNA System is
uniquely suited, have not provided the anticipated return due to limitations
on Medicare reimbursement for the single use catheter. Medicare coverage for
supplies and devices in the ASC market was expected to be effective January 1,
1999, providing an opportunity to shift office based systems into this venue.
Recently available information indicates this coverage is now likely to be
delayed. These issues have led the company to fully reserve for all office-
based receivables.
Randy Lindholm, Executive Vice President of Worldwide Sales and Marketing,
stated "Our new effort, focused on hospitals in Medicare approved states, will
allow VidaMed to more effectively utilize available resources. We believe
that this will enable VidaMed to more efficiently address this market. We now
have 14 states that have approved Medicare reimbursement with additional
approvals pending, including several of the largest states."
Lindholm added, "It remains an important priority for the Company to
continue to support our existing customers and we will do so through the
development of marketing tools and new usage programs that allow our non-
hospital based customers to capitalize on the more limited market
opportunities available to them."
Illingworth added, "The positive clinical data of the TUNA Procedure
speaks for itself. It has been proven to be safe, efficacious and durable.
We are confident that the recent changes will result in a more efficient
selling cycle and allow VidaMed to more effectively communicate this message
to our customers and patients suffering from Benign Prostatic Hyperplasia
(BPH)."
Trans Urethral Needle Ablation is a minimally invasive treatment for
symptoms associated with enlarged prostate disease or BPH. TUNA can be
performed in the hospital, office or outpatient setting in less than one hour
and generally requires only minimal anesthesia. Based upon currently
available published clinical data, TUNA has the least post-procedural
complications of any thermal or surgical procedure to treat this condition.
Approximately 13 million men in the United States suffer from enlarged
prostate symptoms, 23 million men worldwide. Over ten thousand TUNA
procedures have been performed worldwide, four thousand in the U.S. VidaMed
designs, develops, manufactures and markets clinically advanced cost-effective
systems for the treatment of Urological conditions. Founded in 1992, VidaMed
is headquartered in the Silicon Valley in Fremont, California.
The statements in this news release include forward-looking information
including uncertainties associated with the introduction of the VidaMed TUNA
Procedure into the U.S. and worldwide markets, the availability of
reimbursement for the procedure including Medicare reimbursement in the U.S.,
development by the Company of a sales and marketing organization, whether
VidaMed's TUNA Procedure will be deemed cost effective by health care payors
and providers, the ability of VidaMed's TUNA System to achieve market
acceptance, the impact of competitive products and pricing and other risks.
The Company's actual results may differ significantly from the results
anticipated by the forward-looking statements as a result of these and other
factors.
For additional patient information and VidaMed's physician referral
service, please call 800-328-8781. For investor information on VidaMed, Inc.
at no cost please call 888-301-2498, or order it from VidaMed's website at
www.vidamed.com.
SOURCE VidaMed Inc.
-0- 09/22/98
/CONTACT: Richard D. Brounstein, Vice President of Finance & CFO of
VidaMed, Inc., 510-492-4900; or Jeffrey S. Goldberger of Stern & Company,
212-888-0044/
/Web site: vidamed.com
Companies or Securities discussed in this article:
Symbol
Name
NASDAQ:VIDA
Vidamed Inc |
