Matrixx Initiatives reports this year’s cough/cold/flu season is tracking lower than last year’s
SCOTTSDALE, Ariz. This year’s cough/cold/flu season is tracking below even last year’s historically low levels, Matrixx Iniatives reported Monday, though retailers may be in a better position across their respective supply chains this year compared with last.
“For the 12 weeks ended Dec. 28, retail unit sales (three-outlet syndicated scanner data, not including Walmart or club stores) of Zicam products decreased approximately 3%, while the total cough/cold category declined approximately 1% compared to last year,” stated Bill Hemelt, acting president and COO, Matrixx. “While we are disappointed with the slow start to the season, we believe that, unlike last year, certain retailers did not enter the season in an over-stock position and are managing their buying to match increasing retail sales,” he said.
“We anticipate continued sales growth for our proprietary swab delivery products and have moved forward with building a second swab manufacturing machine to come on line in early fall 2009 to meet increasing consumer demand for our swab products,” Hemelt added.
For the third quarter ended Dec. 31, Matrixx reported a revenue increase of 26% to $38.7 million. “The 26% increase in fiscal third-quarter sales was driven by higher sales of Cold Remedy swabs and our new Allergy swab product, price increases implemented prior to the start of the current cold season and lower product return charges incurred compared with last year,” Hemelt said.
“As discussed previously, we had planned our marketing program to better coincide with the incidence of colds, and shifted approximately $3 million in spending from the third quarter to the fourth quarter,” Hemelt added. “The reduced marketing spending in the third quarter was the principal reason operating expense decreased as compared with last year.”
Abbott to commence cash tender offer for Advanced Medical Optics
ABOTT PARK, Ill. Abbott will commence on Tuesday a cash tender offer for all outstanding shares of common stock of Advanced Medical Optics at $22 per share on Jan. 27, in a deal worth approximately $2.8 billion, the company announced Monday.
Abbott and AMO announced the proposed merger earlier this month. “With AMO, Abbott is enhancing and strengthening its diverse mix of medical device businesses and gaining a leadership position in another large and growing segment,” stated Miles White, Abbott chairman and CEO, in announcing the deal Jan. 12. “Additionally, Abbott’s significant global presence will help drive growth opportunities for this business, especially in international markets, where favorable demographics are driving demand for advanced eye care procedures and products.”
The transaction is subject to customary closing conditions, including antitrust clearances. Abbott and AMO expect the transaction to close in the first quarter of 2009.
SCOLR announces issue of Complete Response letter by FDA for its Abbreviated New Drug Application
BOTHELL, Wash. SCOLR Pharma last week announced that the Food and Drug Administration recently issued a Complete Response letter regarding its Abbreviated New Drug Application for a controlled-delivery formulation of pseudoephedrine.
“We are pleased that the FDA has moved so quickly to review our application,” stated Tanya Raco, SCOLR associate VP regulatory affairs and quality assurance. “If approved, this would be SCOLR’s first successful product application, but more importantly, it would provide additional validation for our underlying technology.”
SCOLR currently is in discussions with potential partners for an alliance for this product, but is still open to talk with other companies about this opportunity, the company stated.
The application, filed by SCOLR Aug. 5, seeks approval to market a 120-mg, 12-hour pseudoephedrine tablet based on its patented Controlled Delivery Technology platform. The Complete Response letter requests additional information, all of which was identified by the FDA as “minor,” the company stated.