VANCOUVER, BC, November 1, 2010 – CRH Medical Corporation (CRM:TSX-V, CRMMF: OTCQX) announced today that it has revised its business development strategy and has elected to focus 100% of its resources on the segment of its business that is related to its Partnership Program. The CRH Partnership Program has shown an average quarter over quarter revenue growth of 25% over the past 8 quarters, with annual revenues growing from $615,079 in 2008, to $,1,864,728 in 2009. With only 648 of the over 8,000 Gastroenterologists in the United States trained in the use of its system and demand for training accelerating, the Company expects this revenue growth to continue. As a result of this strategic decision, the Company will close its remaining 8 Centers for Colorectal Health as of December 31, 2010 and record a one-time restructuring charge in the 4th quarter of 2010. The Company anticipates that this restructuring of the Company to focus solely on its rapidly growing and highly profitable Partnership Program will allow CRH to reach its goal of profitability in 2011.
Edward Wright, Chief Executive Officer of CRH Medical stated, “The success of our Partnership Program is a direct result of the clinical, operational, and marketing knowledge obtained through operating the Centers for Colorectal Health. With this knowledge, the Company has evolved and is successfully selling its technology and expertise directly to physicians. As a result, CRH no longer requires the Centers and the fixed costs associated with them.” Wright continued by stating, “Currently our Partnership Program has a network of 648 physicians, representing over 193 practices in 39 States and demand for services continues to increase. Having only launched this initiative in June 2008 this is an exciting evolution of our business.”
The Company also announced that it will hold a conference call to discuss the prospects for CRH moving forward and the impact of the clinic closures. The call will take place at 1:00 pm PST Monday November 1, 2010. The conference call can be accessed by dialing 1-866-782-8903.
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 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. Important 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 not be able to retain sufficient qualified physicians to operate our Centers; (xiv) we may be subject to product liability and medical malpractice claims, which may adversely affect our operations; (xv) our business may be impacted by health care reform in the United States; and (xvi) 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.
For further information call Dean Linden, Corporate Communications, CRH Medical Corporation at 604.633.1440 or firstname.lastname@example.org. 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.