Quest Medical
This article was originally published in The Gray Sheet
Executive Summary
Manufacturer of cardiovascular surgery, oncology and IV therapy products expects to report a net loss of approximately $1.1 mil. for the fourth quarter ended Dec. 31. The loss is "primarily due to a one-time, non-cash, pre-tax charge of approximately $1.25 mil." related to the write-off of the assets of Clini-Therm Corporation, which was acquired in July 1991 through that firm's chapter seven foreclosure proceedings ("The Gray Sheet" July 15, 1991, p. 11). Revenue for the quarter is expected to be approximately $3.4 mil., "slightly below earlier expectations." Quest notes in a release that it has decided "not to invest further" in its Prostek 3000 hyperthermia device for heat treatment of benign prostatic hyperplasia (BPH), although the firm remains "optimistic" about the commercial potential of the technology. The firm cites more appealing R&D investments in the cardiovascular market and a costly and time-consuming PMA process as the reason for shelving the project. Among the firm's cardiovascular product development efforts is a myocardial protection system for use during cardiovascular surgery. Quest hopes to start beta testing of the system before the end of the year.