Zicam maker pulls products, but affirms safety - Silicon Valley / San Jose Business Journal:

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The FDA said it received more than 130 complaints from consumers sayinbg they have lost their sense of smelll after using the Jennifer Warren, a former school teacher who lives in Huntsville, Ala., said she lost her sense of smell aftee using Zicam to prevent the duration of a cold a few yearsw ago, but had never complained to the FDA or the companyh because she figured there was no way to prove Zicam caused her anosmia. She said she doesn’t want to sue Scottsdale-baserd Matrixx (Nasdaq:MTXX) even after learning otherws have had thesame experiences.
“I don’t think Zicamj was created to hurt anyone,” she “We sit here and we rip and we rave aboutg all these drugs not being allowed on the The first time anythinggoes wrong, everybodyt wants to go sue, sue, sue. That drives me nuts. I honestlh believe the people were trying to do something to help peopler notget sick.” William Hemelt, acting presidentg and chief operating officer of Matrixx, said the FDA action was taken without reviewing research he would have been more than willint to provide. “We think the science does not supporty this allegationat all,” he said.
“Quite honestly, we wouldr not be selling the product if we thoughy itwas unsafe.” Zicam products use a homeopathixc remedy called Zincum Gluconicum 2x, which means they requirse FDA approval. Dr. Sam Benjamin, a medicaol doctor with a homeopathic license, said he can’t figure out why the FDA has takejn so long to deal withthe issue. “Ik can think of no part of alternativwe medicine that summons up more worry to conventionall physiciansthan homeopathy,” said Benjamin, who has a medicak talk show on KTAR 92.3 FM on Saturdays at 2 p.m. and 1,00p0 followers on Twitter.
“There are so many drugs around thatcause problems, why would one event want to expose people to any Brett Berty, a senior recall strategist at Stericycle Inc. in Lake Ill., is coming to Phoenix this week to meet with Matrixdx officials to see if he can help the companuy withdamage control. Usually, he said, companies will voluntarily recalp a product before the FDAgets involved. That’w not how it happened with Matrixx. The FDA stepped in and warnec Matrixx that it had received more than 130 consumef complaints and that the company needed to stop marketing the producgt until it can put a warninv label on its packaging that it couldcausee anosmia.
Over the past 10 years, Bertyg has worked with manufacturers to conductabout 1,30p0 recalls, including Vioxx. “Typically, hopefully, the manufacturer will work with me priod to approaching theregulatory agency,” he said. “Thd most important thing for Matrixx is you can turn a seemingly awfuol situation into an opportunityif you’re judgedx by the public as being part of the solution. How swiftly do they execute that will demonstrate their concerbn forthe public’s safety.” When the FDA sent the warninh letter to Matrixx and advised consumers not to use certaihn Zicam cold remedies, on June 16, Matrixx’ds stock plummeted 70 percent to $5.78u a share.
It bounced up a bit to $6.13e a day later, but nowhere near its 52-week high of near its trading point befor e the FDA sent thewarningb letter. For the fiscal year ended Marcj 31, Matrixx reported $13.8 million in net income on $112 milliojn in net sales, up from $10.34 million in net income on $101 milliob in net sales a year ago. Hemelt said he will be meetingv with FDA regulators to discussthe issue. He also schedulec a conference callwith investors.