CRH Medical Corp. (TSX-V:CRM) said Monday it would close its remaining eight clinics and focus on its partnership program.
The Vancouver-based company, which specializes in the treatment of hemorrhoids, said that its partnership program with physicians is the quickest route to profitability and has shown an average quarter-over-quarter revenue growth of 25% during the past eight quarters.
The program gives partnered physicians throughout the U.S. direct access to the company’s CRH O’Regan hemorrhoid treatment system. The company’s goal is to establish the O’Regan system as the standard for hemorrhoid treatment.
CEO Edward Wright said in a statement Monday that the recent success of the partnership program is a direct result of the clinical, operational and marketing knowledge the company obtained through its colorectal health clinics.
“With this knowledge the company has evolved and is successfully selling its technology and expertise directly to physicians,” Wright said. “As a result, CRH no longer requires the centres and the fixed costs associated with them.”
CRH spokesman Dean Linden told Business in Vancouver Monday morning the clinic closures would affect approximately 16 jobs and result in a one-time restructuring charge in the fourth quarter.
The move falls in line with comments Wright made to BIV in September (See “CRH Medical Corp.’s Mr. Wright” – issue 1090; September 14-20).
“Even if we had 100 clinics, we would still only be scratching the surface in terms of treating all the hemorrhoid patients in the U.S.,” Wright told BIV during the interview. “We closed some clinics and we will close more. We’re moving our business to a wholesale model: now we’re training physicians who see the patients and symptoms themselves.”
At press time, CRH’s shares were down approximately 5% to $1.35.