Shares of Zicam manufacturer Matrixx Initiatives plummet more than 55% after government warns consumers to discontinue use. Stock is halted.
Consumers should discontinue use of Zicam Cold Remedy nasal gel and related products because they can can permanently damage users' sense of smell, the government said Tuesday.
In a press release, the U.S. Food and Drug Administration advised consumers to stop use of three over-the-counter Zicam Cold Remedy products: nasal gel, nasal swabs and the discontinued "kids size" swabs.
The FDA warned the three products could cause anosmia, the loss of sense of smell, which "may be long-lasting or permanent."
Zicam is considered a "remedy" rather than a drug, and federal law allows herbal supplements to be marketed without the government oversight required of food and drugs.
After that news was released, shares of Scottsdale, Ariz.-based Zicam manufacturer Matrixx Initiatives Inc. (MTXX) plummeted 55.5% to $8.56 before trading was halted.
About 130 consumers since 1999 have reported a loss of smell after using Zicam products. Many said the condition occurred after their first dose, the FDA said.
The FDA advised anyone who has experienced problems after using Zicam products to contact a doctor. The agency noted that besides harming a person's quality of life, loss of smell can limit the ability to detect gas, smoke or other signs of danger in the environment.
The agency sent Matrixx a warning letter saying these products can no longer be marketed without FDA approval, according to its press release.
Other "remedies" may still be marketed without oversight, but Zicam now requires formal approval because of the product's safety issues.
A note on Matrixx's Web site, titled "Response to Those Who Are Concerned About Zicam's Purported Connection to Anosmia," says the products are safe and that "allegations to the contrary are scientifically unfounded and misleading."
However, the Matrixx note does acknowledge lawsuits that have been brought against the company, saying, "Although plaintiffs and their attorneys hoping for financial gain have sued Matrixx, no plaintiff has ever won a court case, because there is no known causal link."
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1) I've used Zicam nasal spray and swabs for years with better results than any prescription medication available. - Others have told me the same thing.
-- Therefore, big pharma may see Zicam as a threat to a very lucrative market in treating colds and flu
2) this anosmia scare came out several years ago, a good 4 or more years ago if I recall correctly. The thing is, the scare went away after it was discredited. I even recall reading in a respected pharmacy journal that the scare was unfounded. --- However, I can't find the references anymore that talk about the scare being unfounded. They seem to have disappeared, and a web search seems to only turn up Zicam and anosmia lawsuits.
3) So now we have the scare re-surfacing, with the FDA supporting it.
I haven't seen the data that supports Zicam and anosmia and can no longer find the info discrediting it, but my initial thoughts on this are that big pharma has cooked up some data and influenced the FDA to get Zicam off the market - which will discourage any new products based on using Zinc to treat colds and flu.