Block Drug
Encyclopedia
Block Drug Company was a pharmaceutical company based in Jersey City, New Jersey
, that specialized in dental care products.
GlaxoSmithKline
purchased the company for $1.24 billion in 2001.
Its most popular products included Polident denture cleanser, Poli-Grip dental 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.
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.
Block Drug moved its headquarters to Jersey City, New Jersey
in 1938.
Although Alexander Block built the company largely through acquisitions, he developed the Polident brand internally during the 1930s. In 1948, Block Drug rolled out the Ammi-i-Dent tooth powder, and in the early 1950s, the company developed Nytol. After Alexander Block's death in 1953, his son Leonard N. Block (1911–2005) took over, eventually becoming the company's chairman. The last major new product the company introduced was Tegrin, in 1964.
In 1971, the company went public, trading on NASDAQ under the ticker symbol
BLOCA and raising $5.2 million in its initial offering. Two years later, another stock sale generated $23 million. Later in the 1970s, Efferdent took over from Polident as the No. 1 brand in its space.
In 1972, the company named as its president James Block, who was the grandson of Alexander Block and the nephew of Leonard N. Block. In 1988, James became chairman as his uncle, Leonard N. Block became senior chairman. At the same time, Leonard N. Block's son, Thomas, became the company's president.
In 1978, Block Drug entered the feminine hygiene market, with the ultimately unsuccessful Gentle Spring brand.
In 1983, Block Drug acquired the 2000 Flushes toilet bowl cleaner when it purchased the brand's manufacturer, Passaic, New Jersey
-based Flushco. In 1985, Block Drug acquired the X-14 line of hard surface cleaners from White Laboratories.
By the 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.
In 1992, Block Drug acquired Phazyme from Thompson Medical Company.
In 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. Also, in late 1995, Block Drug acquired the Lava soap brand from Procter & Gamble
.
In 1996, Block Drug purchased the Baby's Own line of baby care products, and then acquired Beano antigas tablets in 1997.
In 1998, a major restructuring took place but was not successful. As part of that, the company divested Carpet Fresh, Rug Fresh, 2000 Flushes and X-14.
In 2000, Block Drug hired Goldman Sachs
as an adviser to evaluate a potential sale.
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.
.
Jersey City, New Jersey
Jersey City is the seat of Hudson County, New Jersey, United States.Part of the New York metropolitan area, Jersey City lies between the Hudson River and Upper New York Bay across from Lower Manhattan and the Hackensack River and Newark Bay...
, that specialized in dental care products.
GlaxoSmithKline
GlaxoSmithKline
GlaxoSmithKline plc is a global pharmaceutical, biologics, vaccines and consumer healthcare company headquartered in London, United Kingdom...
purchased the company for $1.24 billion in 2001.
Its most popular products included Polident denture cleanser, Poli-Grip dental adhesive, Dentu-Creme denture toothpaste, Nytol
Nytol
Nytol is a brand of sleeping pill produced by GlaxoSmithKline. The active ingredient is diphenhydramine hydrochloride, a sedative antihistamine.GlaxoSmithKline acquired the product in 2001 with the purchase of Block Drug....
sleeping pill, Tegrin medicated shampoo for psoriasis
Psoriasis
Psoriasis is an autoimmune disease that appears on the skin. It occurs when the immune system mistakes the skin cells as a pathogen, and sends out faulty signals that speed up the growth cycle of skin cells. Psoriasis is not contagious. However, psoriasis has been linked to an increased risk of...
, Lava
Lava (soap)
Lava is a heavy-duty hand cleaner made by WD-40, first produced in 1893. WD-40 acquired the brand from Block Drug in 1999 who acquired it from Procter & Gamble in 1995. It was originally developed by the Waltke Company of St. Louis in 1893. Unlike typical hand soaps, Lava contains ground pumice,...
hand soaps (acquired from Procter & Gamble
Procter & Gamble
Procter & Gamble is a Fortune 500 American multinational corporation headquartered in downtown Cincinnati, Ohio and manufactures a wide range of consumer goods....
), Beano
Beano (dietary supplement)
Beano is an enzyme-based dietary supplement that is used to reduce gas in the digestive tract, thereby improving digestion and reducing bloating, discomfort, and flatulence caused by gas. It contains the enzyme alpha galactosidase that breaks down oligosaccharides such as raffinose...
and Phazyme anti-gas products, Balmex diaper rash ointments, and Sensodyne
Sensodyne
Sensodyne is a toothpaste, toothbrush and mouthwash marketed for individuals with sensitive teeth and/or dentine hypersensitivity. It is a registered trademark of GlaxoSmithKline which acquired it in 2001 in the purchase of Block Drug which developed it....
desensitizing toothpaste.
History
The company was founded in 1907 by Alexander Block, a Russian immigrant who had a small drugstore on Fulton Street (Brooklyn)Fulton Street (Brooklyn)
Fulton Street, named after engineer Robert Fulton, exists mainly in two parts in what are today two boroughs of New York City which Fulton linked by his steam ferries, and each segment has its own distinct identity. This entry deals with Fulton Street in Brooklyn, which now begins at the...
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.
Block Drug moved its headquarters to Jersey City, New Jersey
Jersey City, New Jersey
Jersey City is the seat of Hudson County, New Jersey, United States.Part of the New York metropolitan area, Jersey City lies between the Hudson River and Upper New York Bay across from Lower Manhattan and the Hackensack River and Newark Bay...
in 1938.
Although Alexander Block built the company largely through acquisitions, he developed the Polident brand internally during the 1930s. In 1948, Block Drug rolled out the Ammi-i-Dent tooth powder, and in the early 1950s, the company developed Nytol. After Alexander Block's death in 1953, his son Leonard N. Block (1911–2005) took over, eventually becoming the company's chairman. The last major new product the company introduced was Tegrin, in 1964.
In 1971, the company went public, trading on NASDAQ under the ticker symbol
Ticker symbol
A stock symbol or ticker symbol is a short abbreviation used to uniquely identify publicly traded shares of a particular stock on a particular stock market. A stock symbol may consist of letters, numbers or a combination of both. "Ticker symbol" refers to the symbols that were printed on the ticker...
BLOCA and raising $5.2 million in its initial offering. Two years later, another stock sale generated $23 million. Later in the 1970s, Efferdent took over from Polident as the No. 1 brand in its space.
In 1972, the company named as its president James Block, who was the grandson of Alexander Block and the nephew of Leonard N. Block. In 1988, James became chairman as his uncle, Leonard N. Block became senior chairman. At the same time, Leonard N. Block's son, Thomas, became the company's president.
In 1978, Block Drug entered the feminine hygiene market, with the ultimately unsuccessful Gentle Spring brand.
In 1983, Block Drug acquired the 2000 Flushes toilet bowl cleaner when it purchased the brand's manufacturer, Passaic, New Jersey
Passaic, New Jersey
Passaic is a city in Passaic County, New Jersey, United States. As of the 2010 United States Census, the city had a total population of 69,781, maintaining its status as the 15th largest municipality in New Jersey with an increase of 1,920 residents from the 2000 Census population of 67,861...
-based Flushco. In 1985, Block Drug acquired the X-14 line of hard surface cleaners from White Laboratories.
By the 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.
In 1992, Block Drug acquired Phazyme from Thompson Medical Company.
In 1995, Block Drug divested its U.S. Reed and Carnrick Pharmaceuticals Division to Schwarz Pharma KermersUrban and also purchased Reckitt and Colman's
Reckitt Benckiser
Reckitt Benckiser plc is a global consumer goods company headquartered in Slough, United Kingdom. It is the world's largest producer of household products and a major producer of consumer healthcare and personal products...
Carpet Fresh and Rug Fresh cleaning and deodorizing products. Also, in late 1995, Block Drug acquired the Lava soap brand from Procter & Gamble
Procter & Gamble
Procter & Gamble is a Fortune 500 American multinational corporation headquartered in downtown Cincinnati, Ohio and manufactures a wide range of consumer goods....
.
In 1996, Block Drug purchased the Baby's Own line of baby care products, and then acquired Beano antigas tablets in 1997.
In 1998, a major restructuring took place but was not successful. As part of that, the company divested Carpet Fresh, Rug Fresh, 2000 Flushes and X-14.
In 2000, Block Drug hired Goldman Sachs
Goldman Sachs
The Goldman Sachs Group, Inc. is an American multinational bulge bracket investment banking and securities firm that engages in global investment banking, securities, investment management, and other financial services primarily with institutional clients...
as an adviser to evaluate a potential sale.
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.
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.Aftermath
Leonard N. Block died in 2005 at age 93 after suffering for years from Alzheimer's diseaseAlzheimer's disease
Alzheimer's disease also known in medical literature as Alzheimer disease is the most common form of dementia. There is no cure for the disease, which worsens as it progresses, and eventually leads to death...
.