Matrixx releases Q3 financial results
PHOENIX Matrixx Initiatives Thursday morning released financial results for its fiscal 2008 third quarter and nine months ended Dec. 31.
And while the company recorded a net loss for the quarter of $635,000 and a 13.5 percent decline in net sales to $68 million, the period falls before the cold and flu illness rates began picking up in January.
“Our year-to-date results reflect the extreme weakness in the cold season through December,” commented Carl Johnson, Matrixx president and chief executive officer. “The incidence of colds and flu in the general population during the quarter … was the lowest since Zicam was introduced in 1999,” Johnson said, adding that the low incidence of illness was compounded by the fact that many retailers carried less inventory of cough and cold products going into this season than in seasons past. “This year our factory orders were nearly equal to retail unit consumption for the quarter ended Dec. 31,” he noted. “This change in factory orders more closely mirroring retail consumption leads us to believe factory orders will follow consumption more closely during our fourth quarter ending March 31.”
And that means a projected uptick in sales—Matrixx has projected fiscal 2008 net sales to be as much as 5 percent above the $97.6 million recorded last year.
“For the 12 weeks ended Dec. 30, category retail sales of cough and cold products decreased approximately 5 percent, compared to the prior year; and, during the same period, Zicam sales decreased 7 percent compared to the prior year,” Johnson said.
Matrixx also announced their transition from brokerage representation, courtesy of the Emerson Group, to an in-house sales force. “We believe our new sales force will help us achieve new product acceptance at retail, increase distribution and lower overall sales expense in the future,” Johnson said, adding that Matrixx has signed at least one national retailer in launching its Xcid antacid, which is expected to hit shelves by the end of March. A launch into the gastrointestinal space, if successful, will help to diversify Matrixx’ portfolio from its heavy reliance on the cough-cold season.
Report to House committee finds imbalance between FDA demands and resources
WASHINGTON The nation’s public health is at risk, as are the regulatory systems that oversee the nation’s drug and device supplies, read an FDA Science Board report presented at a House Energy and Commerce Committee hearing Tuesday.
The committee attributed the deficiencies to soaring demands on the FDA; and resources that have not increased in proportion to those demands. They conclude that “this imbalance is imposing a significant risk to the integrity of the food, drug, cosmetic and device regulatory system, and hence the safety of the public.”
“Over the last decade, complex scientific advances, globalization and challenging new safety issues have combined to multiply the responsibilities of the FDA,” noted Mark McClellan, former FDA commissioner and chairman of the Reagan-Udall Institute. “As the FDA Science Board report makes clear: our expectations cannot exceed the resources we give FDA to accomplish its mission.”
The result of a year-long review by a distinguished panel of experts, the 300-page report concludes that the state of FDA’s scientific and regulatory programs could not be separated from the lack of resources available to support the agency’s scientific base, hire and train a broadly-capable scientific workforce, and build a sophisticated and modern information technology infrastructure.
“FDA can’t improve its science, prepare for the future, or protect American consumers without significant additional resources,” stated Don Kennedy, another former FDA commissioner and editor-in-chief of Science. “The Administration and Congress are starting now on the FDA’s FY 2009 budget and must fix this critical problem.”
Peter Barton Hutt, who served as the FDA’s general counsel in the 1970s, suggested a doubling of the agency’s $2 billion annual budget and a 50 percent increase in its staff over two years.
NuVim gets featured beverage spot, gears up for 2008 ad campaign
PARAMUS, N.J. NuVim on Wednesday announced that its nutritional beverages have been chosen by “Eye on America” as the featured beverage for 2008. T
A five-minute television NuVim story will be aired on CNN Headline News and Regional News networks starting in the second quarter of 2008, featuring interviews with national nutrition experts Ruth Carey and Coni Francis. Additionally, in 2008 a total of 1,100 30-second commercial spots featuring NuVim will air regionally on ION, ESPN2, FSN and possibly nationally on WE, Oxygen and ABC Family Channel, on the following shows: “Today’s Family,” “Health Forum,” “Competitive Edge” and “Eye on America.”