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CRH Medical Reports Q1 2010 Results

  • Partnership Program Revenues increase 115%
  • Net loss decreases 57%

VANCOUVER, BC, April 29, 2010– CRH Medical Corporation (CRM:TSX-V) announced today unaudited results for the three months ended March 31, 2010. Total revenue for the three months ended March 31, 2010 was $1,951,590 compared to $1,739,470 for the same period in 2009.  The net loss decreased 57% to $300,882 for the three months ended March 31, 2010 compared to $700,008 for the same period in 2009.

Highlights of the quarter include.

Product Sales:

  • Revenue from product sales increased 115% to $715,622 for the three months ended March 31, 2010 compared to $332,273 for the same period in 2009.
  • Operating income from the sale of products increased 297% to $279,949 for the three months ended March 31, 2010 compared to a $70,561 for the same period in 2009.
  • For the three months ended March 31, 2010 the Company sold 10,080 units of its CRH O’Regan System compared to 4,240 for the three months ended March 31, 2009.

Center Operations:

  • Revenue from Center operations decreased 12% to $1,235,968 for the three months ended March 31, 2010 compared to $1,417,197 for the same period in 2009. The Company had 10 Centers at March 31, 2010 compared to 15 at March 31, 2009.
  • The number of patient appointments for the 10 Centers open as of March 31, 2010 increased 5% compared to the same period in 2009.
  • Operating loss from the Center operations decreased 66% to $92,458 for the three months ended March 31, 2010 compared to a loss of $272,010 for the same period in 2009.

As of March 31, 2010 the Company had $1,523,016 in cash and cash equivalents and $1,672,512 in working capital.

Edward Wright, Chief Executive Officer of CRH Medical states “It is extremely rewarding to see the continued momentum of our Partnership Program and how it is positively impacting the value of our Company. The Gastroenterology community is just beginning to realize that the CRH O’Regan System provides superior patient care and significant practice revenue. Through our innovative marketing initiatives CRH is also providing a significant number of new hemorrhoid patients to our partners, many of which require other endoscopic procedures. Providing new patients to our partners is a unique element of our Company that differentiates CRH from other medical product companies.” Wright further states “To date we have trained 460 of the potential 8,000 gastroenterologists in the United States, our initial market. In terms of international expansion, in April, as part of our expansion into new markets, our Chinese distribution partner commenced physician training activities in China. We would expect to see results from this initiative as early as the third quarter of this year.  We are also looking for additional opportunities to expand beyond these markets.”

The Company’s March 31, 2010 financial report will be available on www.sedar.com

About CRH Medical Corporation:

CRH Medical Corporation specializes in the treatment of hemorrhoids utilizing its proven treatment protocol and patented proprietary technology. CRH’s single use, disposable, hemorrhoid technology is safe and highly effective in treating hemorrhoid grades I – IV. CRH Medical employs two commercialization strategies: First, it operates Centers for Colorectal Health facilities in the United States specializing in the treatment of hemorrhoids and fissures, and colon cancer screening. In addition, CRH distributes its hemorrhoid banding technology, treatment protocols, operational and marketing expertise as a complete, “turn key” package directly to its partner physicians. The Company’s goal is to establish the CRH hemorrhoid technology 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 expansion plans for its Centers for Colorectal Health, 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 dlinden@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.