ProPhase rejects second overture from Matrixx Initiatives

DOYLESTOWN, Pa. — ProPhase Labs on Monday again rejected an acquisition proposal from Matrixx Initiatives. Matrixx's latest offer was to acquire ProPhase for $1.60 per share in cash, up from a prior $1.40 per share proposal. 

"The extra 20 cents per share that Matrixx has tacked on to its prior inadequate offer does not alter our view that the current shareholders of ProPhase should benefit from the upside created by our current strategies, not the private equity owners of one of our primary competitors," stated Ted Karkus, ProPhase chairman and CEO. "Matrixx's fundamental assertion that ProPhase supposedly 'lacks the scale to effectively compete' ... is demonstrably false, as evidenced by the most recent 52-week industry retail sales data, which show that even without including ProPhase's new products, our core Cold-Eeze Cold Remedy products continue to grow at double-digit rates while sales of many of our competitors' products, including Matrixx's Zicam-brand core cough-cold products, declined by double digits during the same time period."

Karkus added, "If we stay the course, we believe that our shareholders will be well rewarded for their patience."