MTXX - Matrixx Initiatives, Inc. (NASDAQ Stock)

[BadThad]

Huge drop of 70% yesterday over FDA's warning about Zicam. This could be quite a bounce play! I have to agree with Matrixx's statement over what the FDA is contending. This product has been in use for 10 years and sold OTC so they have a LOT of data.

MTXX - Matrixx Initiatives, Inc. - Google Finance

Current Stock Price: $5.78
52wk Range 5.48 - 19.74

Matrixx Initiatives Voluntarily Withdraws Zicam Cold Remedy Swabs, Zicam Cold Remedy Nasal Gel
10:53p ET June 16, 2009 (PR NewsWire)
Matrixx Initiatives, Inc. (Nasdaq: MTXX) has confirmed that it received a warning letter today from the U.S. Food and Drug Administration about two of its 19 existing Zicam products, specifically Zicam Cold Remedy Nasal Gel and Zicam Cold Remedy Swabs. The warning letter cited consumer reports that the use of these products could cause a temporary or permanent loss of smell, known as anosmia. Zicam Cold Remedy oral products and other products in the Zicam cold, allergy and sinus lines were not included in the letter. The company has announced it will comply with the FDA's requirements, but will seek a meeting with the FDA to vigorously defend its scientific data, developed during more than 10 years of experience with the products, demonstrating their safety.

Consumer safety is and has always been the company's top priority. While Matrixx Initiatives believes that the FDA action today was unwarranted, it is voluntarily withdrawing Zicam Cold Remedy Swabs and Zicam Cold Remedy Gel from the market. Based on the FDA's recommendation, consumers should discard any unused product or contact Zicam at 1-877-942-2626 or visit Home | Zicam to request a refund.

Since Zicam Cold Remedy intranasal Cold Remedy products were first introduced in the market in 1999, more than 35 million retail units representing over 1 billion doses have been sold, and the cumulative body of scientific and medical evidence compiled over those years has demonstrated both the safety and efficacy of Zicam intranasal cold remedy products under conditions of ordinary use. Zicam Cold Remedy products have alleviated countless numbers of colds for millions of satisfied consumers.

"Matrixx Initiatives stands behind the science of its products and its belief that there is no causal link between its Zicam Cold Remedy intranasal gel products and anosmia," said William J. Hemelt, Matrixx Initiatives' acting president. "It is well understood in the medical and scientific communities that the most common cause of anosmia is the common cold, which Zicam Cold Remedy intranasal gel products are taken to treat. Given the enormous number of doses sold and colds treated, there is no reason to believe the number of complaints of anosmia received is more than the number that would be expected in the general population. There is no reliable scientific evidence that Zicam causes anosmia."

Commenting on the FDA action, Hemelt continued, "We were surprised that the FDA decided to take this action without notifying us first, given our cooperative relationship with the FDA since we launched our first product in 1999. Had we had the opportunity to sit down with the FDA beforehand, we are confident that the FDA would have agreed that the scientific data clearly demonstrated the safety of our products."

Matrixx Initiatives, Inc. is engaged in the development and marketing of over-the-counter healthcare products that utilize innovative drug delivery systems. Zicam, LLC, its wholly owned subsidiary, markets and sells Zicam(R) products in the cough and cold category. For more information regarding Matrixx products, go to Home | Zicam. To find out more about Matrixx Initiatives, Inc. (NASDAQ: MTXX), visit our Web site at Matrixx Initiatives Inc. - Overview.

[BadThad]

Rolling the dice, I'm in at 5.73.

[thegreatgate]

Originally Posted by BadThad

Rolling the dice, I'm in at 5.73.

You might like STSI....I'll start a thread...

[BadThad]

As high at 6.45 this morning, looking for a quick flip here at 6.40.

[BadThad]

Easy flip today, stock range 5.52-6.92....I'm out but watching for opportunity.

[Aufan 1983]

I jumped in this one to see what happens. In @ 6.08 and hanging tight.

[BadThad]

News:

Matrixx Initiatives, Inc. Sets Time for Discussion of Recent FDA Action
4:24p ET June 17, 2009 (PR NewsWire)
Matrixx Initiatives, Inc. (Nasdaq: MTXX), an over-the-counter healthcare company announced today that they will hold a conference call to discuss recent actions on Thursday, June 18, 2009 at 11:00 AM ET.

To access the teleconference, please call (877) 719-9795 (domestic) or (719) 325-4805 (international). To listen to the teleconference via the Internet, go to Matrixx Initiatives Inc. - Overview and click on Events & Presentations.

A replay of the call will be available at (888) 203-1112 (domestic) or (719) 457-0820 (international), replay code 7864652 for 3 days following the call, and the web cast will be archived on the company's website, Matrixx Initiatives Inc. - Overview, for 30 days.

[BadThad]

Looks like the party is over to me, stock is flatlined today at around $6.65 on low volume.

[BadThad]

News:

BOSTON (MarketWatch) -- Matrixx Initiatives /quotes/comstock/15*!mtxx/quotes/nls/mtxx (MTXX 4.56, -0.27, -5.59%) said Wednesday that it has started a formal recall of all of its Zicam Cold Remedy Nasal Gel and Zicam Cold Remedy Nasal Swab products in the wake of a warning by the Food and Drug Administration that they might pose certain safety risks. Matrixx added that although it disagrees with the FDA's stance, it is complying with the agency's request that the products be removed from the market. Matrixx added that it also disagrees with the FDA's assertion that the products have been illegally marketed because they had not been formally approved by the agency. Matrixx said it plans to meet with the agency to discuss how it can apply for formal approval. Consumers can return the recalled products to their point-of-sale for a full refund, Matrixx added.

[thegreatgate]

If you take a look at today's chart you'll notice very flat trading up until 12:30pm when the news below broke out. At 12:30pm MTXX was trading at $5.40/share. By 12:45pm it peaked at $7.74! Right now it's just under $7/share, up over 25%.

Matrixx Initiatives (Nasdaq: MTXX) complaint data show "some degree" of loss of smell resulted in complaints by about 3.5 persons for every 100,000 units, according to according to Reuters from a FDA report.

Matrixx data shows peak rate for loss of smell was in 2004 with complaints reaching about 6.7 for every 100,000 units sold.

According to Reuters, the FDA inspector says Matrixx official said coordination of various procedures has improved over time.

Matrixx has bounced 29% to $7.08 on this story from Reuters.