Integrated Medical Resources Sees 32% Revenue Increase Amid Rapid Growth of Viagra Sales

Strategic Insights -

Integrated Medical Resources, Inc. (IMRI), the leading national network of providers of treatment for impotence, reported a 32% increase in revenue to $5.3 million in the first quarter of 1998, compared to $4.1 million in the same quarter of 1997. The company attributed this growth to the rapid adoption of Pfizer's revolutionary new impotence pill, Viagra(R), which has become the fastest-selling prescription drug in history. IMRI launched a direct-response telemarketing campaign featuring Viagra, targeting the estimated 14 million men ages 40 to 70 who suffer from moderate to complete impotence in the United States.

Key Takeaways:

  • IMRI saw a 32% increase in revenue to $5.3 million in the first quarter of 1998, compared to $4.1 million in the same quarter of 1997.
  • The company attributed this growth to the rapid adoption of Pfizer's Viagra(R) pill, which has become the fastest-selling prescription drug in history.
  • IMRI launched a direct-response telemarketing campaign featuring Viagra, targeting the estimated 14 million men ages 40 to 70 who suffer from moderate to complete impotence in the United States.
  • The campaign was directed primarily toward the company's established patients, as well as to approximately 110,000 additional men who have inquired about treatment.
  • IMRI has a database of 50,000 diagnosed impotent men and 110,000 prospective new patients.
  • The company's Diagnostic Centers for Men have reported a significant increase in established patient inquiries for the new drug since mid-April 1998.
  • IMRI has 28 centers operating in 18 states, with 28 centers operating as of March 31, 1998, compared to 31 centers operating at the end of the first quarter of 1997.
  • Established patient revenue accounted for 10% of total patient charges during the first quarter of 1998, compared to 11% in the fourth quarter of 1997 and 20% in the year-ago first quarter.

Statistics:

  • Revenue increase: 32% to $5.3 million in the first quarter of 1998, compared to $4.1 million in the same quarter of 1997.
  • Number of new patients: 5,994 in the first quarter, an 8% increase from the previous quarter.
  • Patient base expansion: 11% to 58,796 patients at the end of the first quarter, compared to 52,802 at the end of the fourth quarter.
  • Average conversion rate: 26.6% in the first quarter, up from 22.6% in the previous quarter.
  • Revenue growth from established patients: 10% of total patient charges in the first quarter of 1998, compared to 11% in the fourth quarter of 1997 and 20% in the year-ago first quarter.

Sources:

  • Integrated Medical Resources, Inc. (Nasdaq: IMRI) press release, May 6, 1998.
  • Company filings with the Securities and Exchange Commission, including Form 10-K for the year ended December 31, 1997, and Forms 8-K dated March 5, 1998, April 14, 1998, and April 28, 1998.