Phoenix-based pharmaceutical company facing may lawsuits

by Administrator 29. June 2010 08:12

The Phoenix-based pharmaceutical company, Matrixx Initiatives Inc., is facing another pharmaceutical product lawsuit after their last lawsuit was thrown out by a federal trial judge in Arizona in 2005.  Matrixx is now challenging the lawsuit that was reinstated last year.

The U.S. Supreme Court agreed to hear their challenge against allegations of failing to tell investors that some users lost their sense of smell after using their Zicam Cold Remedy nasal-gel products on Monday.  The main issue of debate is when it become necessary for pharmaceutical companies to disclose reports of adverse side-effects in its users.

Plantiffs argue that Matrixx received twelve incident reports between 1999 and 2003 that Zicam caused users to lose their sense of smell, but never made these reports public and continued to promote the product as if it had no negative effects.  Matrixx continues to argue that there is no evidence that their Zicam products are unsafe.  Furthermore, in their address to the Supreme Court they stated their belief that a ruling against them could prove extremely harmful to the pharmaceutical industry, making companies liable for the smallest offenses of adverse effects from products.

Matrixx faces many other lawsuits and warnings from the Food and Drug Administration.  After receiving a letter from the FDA, Matrixx removed Zicam cold-remedy products from the market.  

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