More bad news for Matrixx Initiatives on the Zicam front.  According to a Wall Street Journal report, last week’s Food & Drug Administration (FDA) warning on several Zicam nasal cold remedies seems to have attracted the attention of the Securities and Exchange Commission (SEC).

According to The Wall Street Journal, the SEC has asked Matrixx to provide documents and information relating to the FDA warning.  On Tuesday, the company said it didn’t know what the SEC was looking into but would cooperate fully, the Journal said.

Last week, the FDA said it had received 130 reports of anosmia – loss of sense of smell – in people who had used three Zicam nasal remedies. Following the FDA alert, Matrixx Initiatives recalled two of the products – Zicam Cold Remedy Nasal Gel and Zicam Cold Remedy Swabs. The company had already withdrawn Zicam Cold Remedy Swabs, Kids Size, the third product named by the FDA.

Zicam  – which also comes in other varieties, such as melting tablets and liquids -is Matrixx’s most popular product line, and accounts for about 40% of its sales.  The recall could cost Matrixx as much as $10 million.  The day of the FDA warning, Matrixx shares closed at $5.78, compared with $19.24 at its close the day before, The Wall Street Journal said. According to a Reuters report, Matrixx began formally notifying retailers, wholesalers and distributors of the Zicam recall today.

However, Matrixx continues to say that it “vigorously disagrees” with the FDA over charges that the Zicam products were illegally marketed. It also continues to maintain that nasal varieties of are safe.  This, despite the fact that  in 2006 the company reached a settlement with 300 Zicam users who claimed the nasal remedies had caused them to lose the sense of smell.