REVENUE FROM PRODUCT SALES INCREASES 93%
VANCOUVER, BC, January 13, 2011 – CRH Medical Corporation (CRM:TSX-V, CRMMF: OTCQX) announced today that it expects to report revenue from product sales for the three months ended December 31, 2010 of approximately $1,110,000, an increase of 20% as compared to revenues from product sales of $927,775 for the three months ended September 30, 2010. The anticipated fourth quarter revenue from product sales would also represent an increase of 93% as compared to the same period in 2009. This announced revenue amount is a preliminary unaudited management assessment of revenue from product sales for the period. The Company expects to report its full final 2010 financial results by the end of April, 2011.
Edward Wright, Chief Executive Officer of CRH Medical stated, “Having only launched this initiative in June 2008, we are extremely excited at the rate of growth that we are experiencing within the Gastroenterology community. Currently we have a network of 725 physicians, representing over 234 practices in 41 States and demand for our services continues to increase. During 2010 we trained 375 physicians compared to 242 during 2009.”
In December 2010 the Company closed its remaining 8 Centers for Colorectal Health to focus all of its resources on product sales directly to physicians. As a result of this restructuring the Company expects that it will reach its goal of profitability in 2011.
Also effective January 13, 2011 the Company announced that Richard Bear will assume the duties of corporate secretary from Deborah Cotter, who resigned. Mr. Bear will also remain as the Company’s Chief Financial Officer.
About CRH Medical Corporation:
CRH Medical Corporation is a value added resource to the Gastroenterologist community, providing the CRH O’Regan System, as well as delivering related, clinical, marketing and operational support directly to its partner physicians. CRH utilizes its web based platform to connect doctors with patients as well as educating its ever increasing install base of physicians. CRH’s single use, disposable, hemorrhoid technology is safe and highly effective in treating hemorrhoid grades I – IV. The Company’s goal is to establish the CRH O’Regan System as the standard for hemorrhoid treatment.
The information in this news release contains so-called “forward-looking” statements. These include statements regarding CRH Medical’s expectations and plans relating to its business, statements about the CRH reaching its goal of profitability in 2011 and statements about CRH Medical’s expectations, beliefs, intentions or strategies for the future, which may be indicated by words or phrases such as “anticipate”, “expect”, “intend”, “plan”, “will”, “we believe”, “CRH Medical believes”, “management believes”, and similar language. All forward-looking statements are based on CRH Medical’s current expectations and are subject to risks and uncertainties and to assumptions made. Assumptions include: (i) that the growth of CRH’s product sales will continue in a consistent manner; (ii) CRH’s costs will not escalate significantly; and (iii) CRH does not incur any extraordinary costs.
Important risk factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include: (i) we may need to raise additional capital to fund future operations; (ii) the policies of health insurance carriers in the United States may affect the amount of revenue the Company receives; (iii) the Company may not successfully market its products; (iv) changes in United States federal or state laws, rules, and regulations, including those governing the corporate practice of medicine, and fee splitting; (v) changes in the United States Anti-Kickback Statute and Stark Law and/or similar state laws, rules, and regulations; (vi) if we are unable to manage growth, we may be unable to achieve our expansion strategy: (vii) our senior management has been key to our growth, and we may be adversely affected if we lose any member of our senior management; (viii) economic dependence on suppliers and our contract manufacturer; (ix) changes in the industry and the economy may affect the Company’s business; (x) evolving regulation of corporate governance and public disclosure may result in additional corporate expenses; (xi) we may not be able to attract Gastroenterologists and other licensed providers to purchase and use the CRH O’Regan System; (xii) we may be subject to competition and technological risk which may impact the price and amount of product we can sell; (xiii) we may be subject to product liability and medical malpractice claims, which may adversely affect our operations; (xiv) our business may be impacted by health care reform in the United States; and (xv) we may not have the expertise required to expand internationally. CRH Medical bases its forward-looking statements on information currently available to it, and assumes no obligation to update them, except as required by law.
For further information call Dean Linden, Corporate Communications, CRH Medical Corporation at 604.633.1440 or ir@crhmedcorp.com. Additional information may also be found by visiting the Company’s website at www.crhmedcorp.com or the SEDAR website at www.sedar.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.