Block Drug

Block Drug Company was a pharmaceutical company based in Jersey City, New Jersey, United States, that specialized in dental care products. Its most popular products included Polident denture cleanser, Poli-Grip denture adhesive, Dentu-Creme denture toothpaste, Nytol sleeping pill, Tegrin medicated shampoo for psoriasis, Lava hand soaps (acquired from Procter & Gamble), Beano and Phazyme anti-gas products, Balmex diaper rash ointments, and Sensodyne desensitizing toothpaste.^[1]

GlaxoSmithKline purchased the company for $1.24 billion in 2001.^[2][3]

History

The company was founded in 1907 by Alexander Block, a Russian immigrant who had a small drugstore on Fulton Street in Brooklyn, New York. He turned the company into a wholesaler in 1915 and then became a drug manufacturer in 1925, acquiring a 50 percent interest in Wernet's Dental Manufacturing Company.^[1]

Block Drug moved its headquarters to Jersey City, New Jersey in 1938.^[4]

Although Alexander Block built the company largely through acquisitions, he developed the Polident brand internally during the 1930s.^[5] In 1948, Block Drug rolled out the Ammi-i-Dent tooth powder, and in the early 1950s, the company developed Nytol.^[6] After Alexander Block's death in 1953,^[5] his son Leonard N. Block (1911–2005)^[4] took over, eventually becoming the company's chairman.^[5] The last major new product the company introduced was Tegrin, in 1964.^[5]

Timeline

• 1971 – The company went public, trading on NASDAQ under the ticker symbol BLOCA and raising $5.2 million in its initial offering.^[6] Two years later, another stock sale generated $23 million.^[6] Later in the 1970s, Efferdent took over from Polident as the No. 1 brand in its space.^[5]
• 1972 – Block named as its president James Block, who was the grandson of Alexander Block and the nephew of Leonard N. Block.^[5] In 1988, James became chairman as his uncle, Leonard N. Block became senior chairman.^[6] At the same time, Leonard N. Block's son, Thomas, became the company's president.^[6][7]
• 1978 – Block Drug entered the feminine hygiene market, with the ultimately unsuccessful Gentle Spring brand.^[8]
• 1983 – The company acquired Passaic, New Jersey-based 2000 Flushes toilet bowl cleaner manufacturer Flushco.^[6] In 1985, Block Drug acquired the X-14 line of hard surface cleaners from White Laboratories.^[6] Block Drug later acquired Gold Bond in 1987.
• 1990s – Sales began to fall as Block Drug's products began to age and face new competition, and the problem was exacerbated by a lack of new products.^[6]
• 1990 – Block Drug sold Gold Bond to Martin Himmel Inc..
• 1992 – The company acquired Phazyme from Reed and Carnrick.
• 1995 – Block Drug divested its U.S. Reed and Carnrick Pharmaceuticals Division to Schwarz Pharma KermersUrban and also purchased Reckitt and Colman's Carpet Fresh and Rug Fresh cleaning and deodorizing products.^[7]
• Late 1995 – The company acquired the Lava soap brand from Procter & Gamble.^[7]
• 1996 – Block Drug purchased the Baby's Own line of baby care products, and then acquired Beano antigas tablets in 1997.^[7]
• 1998 – A major restructuring took place but was not successful.^[6] As part of that, the company divested Carpet Fresh, Rug Fresh, 2000 Flushes and X-14.^[7] Lava was later sold to WD-40 the following year.
• 2000 – Block Drug hired Goldman Sachs as an adviser to evaluate a potential sale.^[9]
• 2001 – At the time of its sale to Glaxo, Block Drug was reported to have $900 million in annual sales, operations in 100 countries and employed 3,000 people.^[2]

Secrecy

Although Block Drug was a public company from 1971 until 2001, it operated much like a private, family-run firm, with the Block family holding all voting shares plus 54 percent of the non-voting stock. In addition, the company never held annual meetings or issued proxy statements.^[6]

Aftermath

Leonard N. Block died in 2005 at age 93 after suffering for years from Alzheimer's disease.^[4] Block's nephew John P. Roberts was the producer of the Woodstock Festival using money from his Block inheritance.

References