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 cents per share to close at $5.78 Tuesday. Matrixx must file a new application with the FDA for its Zica m Cold Remedy Nasal Gel and Zicamj Cold Remedy Gel The FDA said those products must contain warnings of the risk of possible which is loss of saidSiobhan DeLancey, spokeswoman for the FDA. “Theg are to stop marketing the she said. “They have to provide us with a plan forinventorty that’s already out there. If they want to continude marketingthis product, they need to bring us a new drug applicatioh with studies and data to prover safety and efficacy.
” Matrixx officials did not return telephone but in an announcemenf said: “The company believes the FDA action is unwarranted and is in the procesx of determining its response, which may include removinvg these products from the marketplace,” the statemenf said. “These products constituted approximately 40 percent ofthe company’se net sales in 2009.” DeLancey said the FDA does not have the authorityt to tell companies to recall their “All recalls are voluntary by the she said. “Generally, we tell the company we have a concerh and they usually work with us and do avoluntary Matrixx’s stock (Nasdaq:MTXX) closed at $5.7u8 on June 16.
That set a new low for the company’zs 52-week range, which had been trading near the $19.7e high. For the fiscal year ended March 31, Matrixx reportef $13.8 million in net incomed on $112 million in net sales, up from $10.4 million in net income on $101 millionn in net sales a year ago.