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Biotech / Medical : PFE (Pfizer) How high will it go? -- Ignore unavailable to you. Want to Upgrade?

To: Anthony Wong who wrote (6242)	11/8/1998 8:25:00 AM
From: BigKNY3	Read Replies (1) \| Respond to of 9523

Lexena, Kan.-Based Clinic Operator Considers Cutbacks, Merger Julius A. Karash, The Kansas City Star, Mo. 11/07/98 KRTBN Knight-Ridder Tribune Business News: The Kansas City Star, Mo Knight Ridder/Tribune Business News Nov. 7--Integrated Medical Resources Inc., a Lenexa-based company that operates clinics for the treatment of impotence, said Friday that it was considering shutting down its operations and had asked that its stock be suspended from trading amid continuing financial problems. The company said it also might pare down staff and facilities and was considering a merger with another clinic operator. E. Stanley Kardatzke, chairman and chief executive officer, said the company had been unable to meet its last two weeks of payroll. "We are meeting throughout the weekend with all of the potential parties and expect to have a decision on our future direction by early next week," Kardatzke said. Kardatzke said the company had suffered a shortfall of new patients in recent months, largely because of a decline in advertising. "Clearly, we need an injection of capital that will allow us to increase our activities such that we can break even, and then profitability," Kardatzke said. Integrated Medical said it had asked the Nasdaq trading exchange to suspend trading of its stock pending the outcome of the company's discussions. Shares were at when trading was suspended. Integrated Medical reached a 52-week low of on Oct. 7. In Integrated Medical's second-quarter earnings report, Kardatzke said the company had not been prepared for the hordes of men who wanted prescriptions for the impotence drug Viagra but did not want diagnostic tests. Integrated Medical said in October that it continued to experience "very significant cash flow challenges" and that it expected third-quarter revenues to be significantly lower than those of preceding quarters. The company said on Oct. 6 that it had obtained $700,000 in short-term loans. It said management was "in negotiations with several investment funds for additional capital in the range of $4 million to $6 million and remains optimistic about its ability to obtain such financing." Integrated Medical began in 1990 with one Olathe clinic. It grew quickly -- some observers say too quickly. It lost $1.15 million in 1995, $6.52 million in 1996 and $8.45 million in 1997. It lost $4.9 million in the first six months of this year. Integrated Medical announced last December that it was closing several clinics and laying off 24 employees. The company acquired additional clinics in recent months and now has about 40, including one in Overland Park. Some are open only part time. Integrated Medical shuffled its management in April and gave the top job to Kardatzke, whose Kardatzke Management Inc. lent Integrated Medical $1.6 million in March. The company disclosed in summer 1997 that the FBI was investigating its Medicare billing practices. The FBI has declined to comment.