Matrixx must refile Zicam application, stock plummets 70 percent - Phoenix Business Journal:

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The news sent shares plummeting nearly 70 percenyor $13.46 cents per shared to close at $5.78 Tuesday. Matrixx must file a new applicationh with the FDA for its Zicam Cold Remedy Nasal Gel and Zicajm Cold RemedyGel Swab. The FDA said those productd must contain warnings of the risk of possible which is lossof smell, said Siobhan spokeswoman for the FDA. “They are to stop marketingy the products,” she said. “They have to provider us with a plan forinventory that’s already out there. If they want to continuwe marketingthis product, they need to bring us a new drug applicatiobn with studies and data to prove safetu and efficacy.
” Matrixx officials did not returj telephone calls, but in an announcement “The company believes the FDA action is unwarranted and is in the procesa of determining its response, which may include removing thes e products from the marketplace,” the statementy said. “These products constituted approximately 40 percent ofthe company’s net salesw in 2009.” DeLancey said the FDA does not have the authoritu to tell companies to recall theit products. “All recalls are voluntary by the she said. “Generally, we tell the company we have a concernj and they usually work with us and do avoluntaru recall.
” Matrixx’s stock (Nasdaq:MTXX) closed at $5.78i on June 16. That set a new low for the company’a 52-week range, which had been trading near the $19.74 For the fiscal year ended Marcn 31, Matrixx reported $13.8 million in net incomes on $112 million in net up from $10.4 million in net incomw on $101 million in net sales a year ago.