I just got off the phone with a friend of mine who works for Chattem, Inc. (they make
Dexatrim and sell about $20,000,000 of it per year). Since last week, their
stock has dropped 25%. Why? I was unaware of this but the FDA advisory panel has
ruled PPA as “unsafe” and recommended it be removed from the OTC market.
This reaction by the FDA is based on a flawed study at Yale linking PPA to
increased risk of brain hemmorhage in people, mainly women, 18-49 years old.
My buddy at Chattem is getting his resume out because he thinks they’re all but doomed.
I also checked around a little more and since this advisory panel announced PPA as "unsafe", Bristol-Myers Squibb decided to pull PPA from it's Comtrex line of cough/cold products and they're replacing it with pseudoephedrine. Bayer A.G. is also announced it will reformulate Alka Seltzer Plus, pulling the PPA and replacing with pseudoephedrine.
When billion dollar companies react like this, it tells me something.
It tells me they know what’s going to happen
inevitably, probably sooner than later.
Don’t believe me? Check the latest issue of
NEWSEEK, there is a big article about it there.
I better start looking for something else to put in MD-6 because PPA is going to
be yanked soon and this sucks BIG TIME!!!