I am looking for a big pop on Monday on EZM.
This is the same product that CNN keeps talking about (Reactive Skin Decontamination Lotion or RSDL) However, CNN states O'dell Engineering Ltd as the maker of RSDL. I haven't been able to reconcile the two yet. cnn.com
Reuters
UPDATE - US OKs decontamination lotion for military
Friday March 28, 7:12 pm ET
(Adds company comments, updates stock price)
WASHINGTON, March 28 (Reuters) - U.S. regulators on Friday said they approved E-Z-EM Inc.'s (AMEX:EZM - News) decontamination lotion for use by the military to neutralize chemical warfare agents and a fungal toxin from the skin.
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The lotion, called Reactive Skin Decontamination Lotion, must be applied to the skin as soon as possible after exposure to a chemical agent, the Food and Drug Administration (News - Websites) said in a statement.
The lotion removes the chemical agents or the T-2 fungal toxin and also reacts with the chemical agents to neutralize them so they are nontoxic, the FDA said.
"If used in time, this lotion can help prevent the serious burns and deaths that results from exposure to chemical warfare agents," FDA Commissioner Mark McClellan said in a statement.
Dennis Curtin, chief financial officer at E-Z-EM, said the company was still awaiting a purchase order from the government and could not yet comment on potential sales volume.
He said the product, currently sold to the Canadian armed forces, a couple of countries in Europe and in Australia, accounts for "a few million dollars a year in sales revenue."
The company, which counts radiology imaging products as its core business, had a net profit of $988,000 on sales of $32.9 million in the quarter ended November 30, 2002.
The FDA said it cleared the product for use based on studies by the Army. The lotion's safety was evaluated in tests involving more than 300 people. The effectiveness was tested by treating animals exposed to the chemical agents, the FDA said.
Shares of E-Z-EM rose $1.60, or 23 percent, to close at $8.65 on the American Stock Exchange. |
