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EXHIBIT 99.1
COMPANY CONTACT:
Danette R.M. Meyer, Ph.D. (Dmeyer@atrixlab.com)
Director, Investor
Relations ATRIX
LABORATORIES, INC.
(970) 482-5868
http://www.atrixlabs.com
INVESTOR RELATIONS FIRM:
Robert Jaffe (rjaffe@pondel.com)
PONDEL WILKINSON MS&L
(310) 207-9300
ATRIX NAMES COLLAGENEX NEW MARKETER OF ATRIDOX(R)
- NEGOTIATES RETURN OF MARKETING RIGHTS FROM BLOCK DRUG CORPORATION -
FORT COLLINS, CO (AUGUST 27, 2001) -- ATRIX LABORATORIES, INC. (NASDAQ NM: ATRX)
announced today that it has licensed the exclusive U.S. marketing rights for
Atridox(R), Atrisorb(R)-Free Flow and Atrisorb(R)-D to CollaGenex
Pharmaceuticals, Inc. (NASDAQ NM: CGPI), the leader in prescription dental
product sales, following the negotiated return of marketing rights from Block
Drug Corporation (Block), which was recently acquired by GlaxoSmithKline.
Under the terms of the CollaGenex agreement, Atrix will receive an up-front
licensing fee of $1 million, a royalty on sales of the dental products, and a
manufacturing margin from the production of the three products at its Fort
Collins facility. As part of the transaction, Atrix will purchase $3 million of
CollaGenex's common stock at a premium, the proceeds of which CollaGenex will
use primarily to fund a revitalized marketing campaign for Atridox and the
Atrisorb barrier products.
"We are excited to begin marketing these fine periodontal products to dental
professionals," said Brian M. Gallagher, Ph.D., chairman, president and chief
executive officer of CollaGenex. "We believe that our 120-person professional
dental sales force can significantly increase the use of Atridox as the
preferred local anti-microbial treatment for adult periodontitis. Many of our
Periostat(R) prescribers already use Atridox, and the use of both products,
along with a program of professional dental care, may provide optimal treatment
for the millions of patients suffering from this disorder. We look forward to
significantly extending the introduction of Atrix's periodontal products to the
professional dental community and to a mutually-beneficial relationship with
Atrix."
"We have been negotiating for the return of our dental products business from
Block over the past six months," said David R. Bethune, Atrix's chairman and
chief executive officer. "We are excited that these products will now be
marketed by CollaGenex in the U.S. They are the only dental marketer with
established expertise and a strong commitment to pharmaceutical dentistry, as
evidenced by their innovative professional dental products such as the Periostat
periodontal treatment."
Under the terms of the Block agreement, Atrix will reacquire marketing rights of
the dental product for $7 million, of which $3.3 million will be paid upon
execution of the agreement with the balance payable over four years out of net
sales. Block will pay Atrix $3 million owed for the development and approval of
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Atrisorb-D, a periodontal barrier product for gingival surgery. Finally, each
party agreed to terminate all legal proceedings related to the Block agreement.
Atrix and CollaGenex anticipate that Atridox and the barrier products will be
available for sale in the U.S. through CollaGenex beginning later this year.
ABOUT ATRIDOX, ATRISORB-FREE FLOW, and ATRISORB-D:
Atridox combines Atrix's Atrigel(R) drug delivery system with the antibiotic
doxycycline to dramatically reduce the bacteria associated with periodontal
disease. The periodontal treatment is applied as a gel to the affected area,
where it conforms to the shape of the periodontal pocket and solidifies,
releasing doxycycline over a period of about seven days as it bioabsorbs.
Approved by the U.S. Food and Drug Administration in late 1998, Atridox is the
first and only locally delivered antibiotic treatment for chronic adult
periodontitis that has been proven effective as a stand-alone therapy that leads
to significant improvements in both pocket depth and attachment level, the
primary indicators of healing, as well as to reduced bleeding of the gums.
Atrisorb-Free Flow and Atrisorb-D are guided tissue regeneration barriers used
following periodontal surgery to help the regenerative process of bone and other
tissues destroyed by periodontal disease. The Atrisorb-D is the first barrier
product to incorporate the antibiotic doxycycline to reduce bacterial growth on
the barrier.
ABOUT PERIOSTAT AND COLLAGENEX:
Periostat, developed and marketed by CollaGenex, is the only medication that
works by reducing the activity of the enzymes that destroy tooth and gum tissue.
Taken orally twice a day, it is administered as an adjunct to scaling and root
planing. Periostat is marketed to the U.S. dental community by the CollaGenex
sales force composed of approximately 120 sales representatives and managers.
Currently, the professional dental sales force also markets VIOXX(R), a Merck &
Co. drug that CollaGenex co-promotes for the treatment of acute dental pain, and
Dentaplex(TM), a unique formulation of vitamins and mineral supplements
developed by CollaGenex and MediNiche, Inc. to promote oral health.
ABOUT ATRIX LABORATORIES:
Atrix Laboratories, Inc. is an emerging specialty pharmaceutical company focused
on advanced drug delivery. With five unique patented technologies, Atrix is
currently developing a diverse portfolio of proprietary products, including
oncology, pain management, and dermatology products. The company also partners
with large pharmaceutical and biotechnology companies to apply its proprietary
technologies to new chemical entities or to extend the patent life of existing
products. Atrix has strategic alliances with several pharmaceutical companies
including recent collaborations with Pfizer, Elan Corporation plc,
Sanofi-Synthelabo, Human Genome Sciences Inc., MediGene and the Novartis company
- - Geneva Pharmaceuticals, to use its drug delivery technologies and expertise in
the development of new products. Additional information is available on the
Atrix Laboratories, Inc. Web site at http://www.atrixlabs.com.
Statements contained in this press release, which are not historical facts, are
forward-looking statements, as the term is defined in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are subject to
risks and uncertainties which can cause actual results to differ materially from
those currently anticipated, due to a number of factors, which include, but are
not limited to, product demand, pricing, market acceptance, changing economic
conditions, risks in product and technology development, the effect of the
company's accounting policies and other risk factors discussed in documents
filed by the company with the Securities and Exchange Commission from time to
time.
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