This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Oculus Partner Misleads on Wound Cleaner

The active ingredient in MyClyns and Microcyn are the same -- greatly diluted quantities of sodium hypochlorite and hypochlorous acid.

Hypochlorous acid is a weak acid formed when chlorine is dissolved in water. It is used as an oxidizer and disinfectant. This is the stuff commonly used to keep swimming pools clean. Sodium hypochlorite is known by its more recognizable moniker -- common household bleach.

FDA gave Union Springs 15 days from the receipt of the May 23 warning letter to correct the misbranding of MyClyns or face more serious legal action. The MyClyns web site has been scrubbed of the material FDA considered misleading, with many of the sections describing the product either blank or "under construction."

FDA's action against Union Springs comes two years after TheStreet first raised questions about the drug-like therapeutic claims being made about Microcyn by Oculus.

Microcyn, like MyClyns, is a wound cleaner that can be bought at retail for $20 a bottle, similar to other wound-cleaning products sold commercially for years. But TheStreet report showed how Oculus was marketing Microcyn as a drug with specific medical claims that the product cures infections, accelerates wound healing and reduces inflammation in patients with serious diabetic ulcers, according to comments made by the company's CEO Hoji Alimi and CFO Bob Miller on investor conference calls.

Oculus was making these drug-like claims about Microcyn despite only having FDA clearance to sell the product as a wound cleaner, according to U.S. regulators.

During a presentation to investors at a conference in Sept. 2010, Oculus' Alimi flashed on the screen a gruesome photo of a gaping diabetic foot wound. The patient was saved from having the foot amputated by treatment with Microcyn, Alimi alleged, even though Oculus has no data nor FDA approval to make such a claim.

For the fiscal year ended March 31, 2011, Oculus reported a net loss of $7.9 million, or 30 cents a share, on total revenue of $9.8 million. That compares to a net loss of $8.2 million, or 36 cents a share on total revenue of $7.4 million in the previous fiscal year.

Oculus shares closed Wednesday at $1.78, flat since the beginning of the year.

--Written by Adam Feuerstein in Boston.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
OCLS $0.82 -2.38%
YHOO $44.13 -0.69%
AAPL $124.25 -0.14%
FB $81.66 -0.67%
GOOG $542.56 -0.99%

Markets

DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs