A core competency of the Skanderbeg Capital Group is identifying investment opportunities that have yet to be realized or recognized by the mainstream community.  We have been heavily focused on the green economy for the past several months but have maintained the notion that there are always opportunities to be had, sometimes in markets that are not receiving huge amounts of media attention (as the ‘green’ market is today).  Some investment opportunities lie in waiting, operating in markets that are seldom talked about, yet potentially profitable.

A proven method of finding such opportunities is to focus on the players.  Some people have a knack for envisioning, planning, structuring, and operating successful ventures.  Sometimes it is that simple.  Obviously different markets demand different talents and every situation is unique, but you can get a real incite in to how things might unfold by tracing the track record of the individuals involved.

One such figure Skanderbeg Capital has kept tabs on is Edward Wright.  Skanderbeg interviewed Mr. Wright back in October.  We talked to him about his extensive experience in the retail sector and his success with some of the world’s most recognized brands.  Edward Wright is the CEO of CRH Medical Corporation, a publicly traded (TSX.V:CRM), Vancouver-based medical treatment technology company.

Before we get right in to the company details, let’s talk a bit more about the team.

Alongside Edward Wright is another key figure we’ve been keeping our eyes on. This fellow is the founder of CRH and is a world-renowned visionary in the space: Dr. Anthony Holler, Chairman of the Board at CRH.  Dr. Holler was one of the original founders and Directors of ID Biomedical, an innovative, Vancouver-based biotechnology company focused on vaccine research, development, manufacturing, sales, and marketing.  Dr. Holler eventually took the helm at ID Biomedical and, as CEO, led the company from a $50 million market capitalization to the $1.7 billion valuation placed on the company by the 2005 GlaxoSmithKline buyout.

CRH Medical Corporation

This particular company offers a non-surgical medical treatment option for an issue that affects 10.4 million Americans, with around 1 million new cases reported every year.  It is estimated that by age 50, “half the population will have experienced this potentially painful condition,” yet it rarely even earns a mention in everyday conversation.

The condition is hemorrhoids and the treatment being offered by CRH Medical Corporation is claiming to be the new “gold standard” in treatment options.

Approved by the FDA in 1997, CRH Medical’s patented proprietary technology has seen widespread adoption across a developed network of Gastroenterologist (GIs) partners in the US. GIs perform an estimated 14 million colonoscopies every year and symptomatic hemorrhoids are diagnosed in around 15%-20% of these cases, with most going untreated.  In 2008 CRH technology was adopted by more than 90% of GIs trained by the Company, offering them the ability to provide an effective, value-added hemorrhoidal treatment option to their patients.  Additionally, CRH partner physicians have reported “significant increases in new patient volumes as a result of CRH’s marketing support of their Practices, including marketing materials, website listing, and other practice development activities” and a corresponding increase in practice revenues.

CRH has employed two key “commercialization strategies”:

1. The implementation and operation of a network of geographically dispersed Centres of Colorectal Health facilities in the United States specializing in the treatment of hemorrhoids and utilizing CRH technology.
2. The development of an extensive “Partnership Program” whereby CRH “technology, treatment protocols, operational and marketing expertise” are offered as a turnkey package to partner physicians.

CRH is working to establish itself as a global leader in this field.  They’ve already proven that the technology is well accepted by those exposed to it and will be actively expanding on their numbers.  The market for this type of solution is truly enormous.  CRH most recently announced their first foray into the Chinese market.  Teaming up with Rayfield Technologies, a well-established sales network force, CRH will have access to 1.3 billion Chinese who have an even higher prevalence rate than North America.

Currently sitting with a market capitalization of approximately $80 million, it will be very interesting to see how things pan out for CRH.  It is clear, though, that with proven figures like Edward Wright and Dr. Anthony Holler leading the way, CRH is in a good position to succeed.