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Matrixx Rejected On ProPhase Labs Bid, Picks Up Option On Shares

This article was originally published in The Tan Sheet

Executive Summary

In a bid to dominate the market for zinc cold remedies, Matrixx Initiatives attempts to acquire ProPhase Labs, but is turned away by CEO Ted Karkus who asserts ProPhase’s growth prospects outweigh the benefits of a sale.

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Matrixx Zicam “Cold Monster” Campaign Claims Fail NAD Test

NAD recommends Matrixx discontinue using “Don’t let a monster of a cold catch you” in print and online ads because the claims “could reasonably be understood by consumers” to mean Zicam products prevent colds. ProPhase Labs, maker of the rival zinc-containing homeopathic Cold-EEZE line, challenges the Zicam ads.

Matrixx Zicam “Cold Monster” Campaign Claims Fail NAD Test

NAD recommends Matrixx discontinue using “Don’t let a monster of a cold catch you” in print and online ads because the claims “could reasonably be understood by consumers” to mean Zicam products prevent colds. ProPhase Labs, maker of the rival zinc-containing homeopathic Cold-EEZE line, challenges the Zicam ads.

In Brief

Novartis ships Excedrin Migraine; Perrigo will launch mini nicotine lozenges; Matrixx ups offer to buy ProPhase; Merck consolidates HQ in Summit, N.J.; NBTY expects at least 3% sales boost; FDA will hold risk communication meeting; more news In Brief.

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