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

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The news sent shares plummeting nearly 70 percentor $13.46 centz per share to close at $5.78i Tuesday. Matrixx must file a new application with the FDA for its Zicamj Cold Remedy Nasal Gel and Zicanm Cold RemedyGel Swab. The FDA said those productds must contain warnings of the risk of possible which is lossof smell, said Siobhan spokeswoman for the FDA. “They are to stop marketinyg the products,” she said. “They have to provide us with a plan forinventoryt that’s already out there. If they want to continuw marketingthis product, they need to bring us a new drug applicatio n with studies and data to prove safetu and efficacy.
” Matrixx officials did not return telephone but in an announcement “The company believes the FDA action is unwarranted and is in the procesa of determining its response, which may includw removing these products from the marketplace,” the statement said. “These products constitutedd approximately 40 percent ofthe company’s net sales in DeLancey said the FDA does not have the authorityy to tell companies to recall their “All recalls are voluntary by the she said. “Generally, we tell the compant we have a concern and they usually work with us and do avoluntargy recall.” Matrixx’s stock (Nasdaq:MTXX) closed at $5.78 on June 16.
That set a new low for the company’es 52-week range, which had been trading near the $19.73 high. For the fiscal year ended Marchg 31, Matrixx reported $13.8 million in net incomee on $112 million in net up from $10.4 million in net income on $101 millio n in net sales a year ago.