Key Developments For Matrixx Initiatives
Matrixx Initiatives (MTXX.O) (Nasdaq)
Matrixx Initiatives, Inc. Issues FY 2010 Revenue Guidance In Line With Analysts' Estimates; Comments On H2 2010 Earnings Guidance
Matrixx Initiatives, Inc. announced that due to the loss of nasal Cold Remedy product sales, the Company is executing operating plans that reflect fiscal 2010 revenue in the $65-$70 million range. In addition, due to increased marketing between November and March and higher legal expense, the Company expects to incur a net loss in the second half of 2010. According to Reuters Estimates, analysts on an average are expecting the Company to report revenues of $67 million for fiscal 2010.
FDA unwilling To Change Stance On Matrixx Initiatives, Inc.'s Zicam
Reuters reported that U.S. health regulator has indicated that it is unwilling to reverse its position regarding the warning letter issued on Matrixx Initiatives, Inc.'s nasal versions of Zicam cold remedy. The FDA also identified several individual cases where the regulator indicated the Company should have filed serious adverse event reports.
Matrixx Initiatives, Inc. Names William J. Hemelt President And Chief Executive Officer
Matrixx Initiatives, Inc. announced that Matrixx's Board of Directors has named William J. Hemelt as President and Chief Executive Officer (CEO), effective August 28, 2009. Mr. Hemelt was also elected to the Company's Board of Directors, effective as of that same date.
Matrixx Initiatives, Inc. Withdraws FY 2010 Guidance
Matrixx Initiatives, Inc. announced that the FDA Warning Letter has had a material adverse impact the Company's business and generated publicity. The recall of two products has required to take impairment charges, record reserves for customer returns and withdraw sales and earnings guidance for fiscal 2010.
Shalov Stone Bonner & Rocco LLP Announces Class Action Against Matrixx Initiatives, Inc.
Shalov Stone Bonner & Rocco LLP announced that a class action lawsuit has been filed on behalf of purchasers of Matrixx Initiatives, Inc. stock between December 22, 2007 and June 15, 2009, inclusive (the class period). The lawsuit is pending in the United States District Court for the District of Arizona, and names as defendants the Company and certain of its top officers and/or Directors. Through its subsidiary, Matrixx develops, produces, markets and sells over-the-counter healthcare products, including Zicam Cold Remedy Products. The complaint alleges that, throughout the Class Period, the defendants violated the federal securities laws by misrepresenting and failing to disclose material adverse facts that were known to the defendants or recklessly disregarded by them. More specifically, the complaint alleges that the defendants failed to disclose: (1) that Matrixx had received notice of hundreds of serious adverse events regarding the Zicam Cold Remedy Products; (2) that Matrixx failed to report these incidents to the FDA despite having an obligation to do so; (3) that the Company failed to comply with FDA regulations despite repeated assurances of its compliance; and (4) that, as a result of the foregoing, the Company's statements about its meeting FRA regulations were false and misleading when made. On June 16, 2009, Matrixx revealed that it had received a warning letter from the FDA and that it would be withdrawing the Zicam Cold Remedy Products from the market.
