New name, new products for Gum Tech

Gum Tech, the Utah-based company which produces the Zicam homeopathic cold remedy and other innovative pharmaceutical products, has announced plans to change its name to Matrixx Initiatives and to launch a number of new products within the Zicam range.

Shareholders in the company voted to change the name to Matrixx Initiatives and to change the company's home state from Utah to Delaware. Carl J. Johnson, president and chief executive officer of Matrixx, said:"This is more than just a name change. Today we are truly a new company, with a new corporate focus of developing innovative, proprietary products for improved delivery of consumer healthcare."​

Johnson said that the company intended to continue building upon its past successes and experience in developing and marketing over-the-counter (OTC) pharmaceuticals utilising its patented delivery systems. The company currently produces, markets and sells Zicam Cold Remedy nasal gel, a patented, homeopathic cold remedy; and Zicam Allergy Relief nasal gel.

"We intend to continue to achieve high revenue growth, strengthen equity in the Zicam brand, and increase shareholder value,"​ said Johnson. "To accomplish this, we will provide aggressive marketing and advertising support for our existing products, extend the Zicam product line, explore other technologies and new products, identify unmet or underserved consumer needs, and pursue expansion of our geographic distribution base."​

One of these goals has already been achieved with the launch of five new Zicam products based on formulas using Gum Tech's patented, nasal gel matrix technology. The new products are Zicam Cold Remedy Swabs; Zicam Kids Size Cold Remedy Swabs; Zicam Extreme Congestion Relief; Zicam Sinus Relief and Zicam Nasal Moisturiser. In addition to the new products, the company has also updated packaging for the existing Zicam Cold Remedy and Zicam Allergy Relief products.

Johnson said that the new product development had been accomplished in less than six months since the company acquired 100 per cent of the patented gel technology from Gel Tech. "We are moving fast, and I must caution that the introduction of these products is contingent upon successful completion of required stability studies."​

He also said that the company would focus on the US market in the short term, as the regulatory environment was known and understood there and the company already had strong relationships with retail channel partners. However, Matrixx would also continue to pursue options for international expansion, either through alliances with multinational partners or by establishing distributor relationships.

The company will also relaunch its product​ and corporate​ websites. William J. Hemelt, chief financial officer of Matrixx, said that the company expected 2002 to be a good year, with expected revenue growth of 25 to 30 per cent.