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

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The news sent shares plummeting nearly 70 percentor $13.465 cents per share to close at $5.778 Tuesday. Matrixx must file a new application with the FDA for its Zicam Cold Remedy Nasal Gel and Zicam Cold RemedhGel Swab. The FDA said those products must contaijn warnings of the risk ofpossible anosmia, which is loss of said Siobhan DeLancey, spokeswoman for the FDA. “They are to stop marketinh the products,” she said. “They have to provide us with a plan forinventoryu that’s already out there. If they want to continue marketinygthis product, they need to bringy us a new drug applicationm with studies and data to prove safetyu and efficacy.
” Matrixx officials did not return telephoner calls, but in an announcement said: “The companu believes the FDA actionm is unwarranted and is in the process of determining its which may include removing these productsd from the marketplace,” the statement “These products constituted approximately 40 percenf of the company’s net sales in DeLancey said the FDA does not have the authoritty to tell companies to recalpl their products. “All recalls are voluntary by the she said. “Generally, we tell the company we have a concer n and they usually work with us and do avoluntarg recall.” Matrixx’s stock (Nasdaq:MTXX) closed at $5.
78u on June 16. That set a new low for the company’se 52-week range, which had been trading near the $19.74 high. For the fiscal year endee March 31, Matrixx reported $13.89 million in net income on $112 million in net up from $10.4 million in net income on $101 millioj in net sales a year ago.