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Exhibit 20
FOR IMMEDIATE RELEASE
COMPANY CONTACTS:
John Urheim Dean Siegal
Chief Executive Officer Director of Corporate Communications
ATRIX LABORATORIES, INC. BLOCK DRUG COMPANY
(970) 482-5868 (201) 434-3000 X1514
www. atrixlabs.com
INVESTOR RELATIONS CONTACTS:
LIPPERT/HEILSHORN & ASSOCIATES
In New York: In San Francisco:
Evan Smith, CFA Lillian Armstrong
(212) 838-3777 X104 (415) 433-3777 X101
evan@lhei.com lillian@lhei.com
ATRIX LABORATORIES SIGNS $50 MILLION CORPORATE ALLIANCE
AGREEMENT WITH BLOCK DRUG COMPANY
FORT COLLINS, CO, DECEMBER 17, 1996 -- ATRIX LABORATORIES, INC. (NASDAQ: ATRX),
today announced an agreement with Block Drug Company (NASDAQ: BLOCA), which
includes potential milestone payments in excess of $50 million to Atrix over
the next three to five years, as well as manufacturing margins and royalties on
sales.
Under the terms of the agreement, Block Drug Company will receive
North American and certain European marketing rights to the first three Atrix
products for the treatment of periodontal disease. The first product, the
ATRISORB(R) Barrier for Guided Tissue Regeneration (GTR), which received FDA
approval in March 1996, is currently marketed in the U.S. and several foreign
markets. ATRIDOX(TM), a subgingival anti-infective treatment for periodontal
disease, is the subject of a New Drug Application scheduled for U.S. and
European filing early in 1997. The third product, a second generation GTR
barrier, will begin pivotal human clinical trials in 1997. Atrix will
manufacture the three products in Fort Collins, Colorado, and will continue
research and development activities on these and other products based upon its
patented ATRIGEL(R) Drug Delivery Technology.
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Block Drug Company will have responsibility for the sales and
marketing of the products and will advise, consult, and financially support
various aspects of Atrix's continuing dental R&D program. In addition, Bock
has certain rights to future dental products based upon the Atrix technology
and will provide some financial support to the maintenance and expansion of the
ATRIGEL(R) technology patent estate.
John Urheim, Vice Chairman and CEO of Atrix, stated, "Block Drug
Company is an ideal marketing partner for Atrix given its track record in
effectively promoting products to the dental profession. Its strong
relationships with leading dental practitioners will significantly enhance our
ability to penetrate this market. While we continue to pursue our
long-standing objective to become one of the leading research-based dental
companies in the world, the alliance with Block allows us to reach that goal
more quickly. At the same time, it enables us to focus more on other
non-dental areas of drug delivery where the potential for ATRIGEL is also quite
large."
Peter Mann, President, U.S. Division of Block Drug Company, said,
"Block is committed to being a leader in marketing of serious therapies for the
treatment of periodontal disease, and we are extremely pleased to include the
Atrix products within our product line. We believe the Atrix technologies
represent significant advantages over both currently available periodontal
treatments as well as products under development. In short, Atrix's technology
and their overall commitment to excellence will enhance Block's ability to
compete effectively in the international dental arena."
Mr. Urheim concluded, "This is the third major milestone Atrix has
achieved in the last six months. In July, we purchased a state-of-the-art
production facility, which provides manufacturing capabilities to meet
anticipated demand for our products over the next several years, and in August,
we reported strong Phase III clinical trial results for ATRIDOX(TM), our first
major drug product. With today's announcement of the collaboration with Block,
we have put in place the final element in preparing for a successful launch,
both domestically and overseas, of ATRIDOX(TM), a product with the potential to
change the standard of therapy in the treatment of periodontitis."
Periodontal disease is one of the world's most prevalent chronic
diseases. Its treatment and the costs associated with failed therapy, account
for over 40% of the $42 billion spent annually for dental care in the U.S.
alone. It is characterized by infection and inflammation of the gums and
surrounding tissue resulting in the formation of periodontal pockets (spaces
between the gum and tooth) and loss of supporting bone structure. It is a
recurring, progressive
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and episodic disease which, if not controlled, may lead to loss of teeth and
other non-dental health problems. The current mode of therapy is scaling and
root planing, a painful mechanical cleaning procedure. For more serious cases,
various forms of gum surgery are the primary treatment. The Atrix product line
includes both surgical and non-surgical approaches and may be used alone or in
conjunction with conventional therapy.
Atrix Laboratories, Inc. develops, manufactures and markets treatments
for periodontal disease based on its proprietary ATRIGEL(R) biodegradable
polymeric drug delivery system, which can be used for a broad range of
non-dental drug delivery and medical device application as well.
Headquartered in Jersey City, New Jersey, Block Drug Company, Inc. is
an international marketer and manufacturer of denture care products, dental
products, proprietary over-the-counter medicines and specialty household
products. Among the Company's well-known brands are the Polident(R) line of
denture cleansers, the Sensodyne(R) line of desensitizing toothpaste, and
Poli-Grip(R) brand denture adhesives. Block Drug Company sales for the last
four consecutive quarters are in excess of $770 million.
Forward looking statements in this release involve a number of risks
and uncertainties including, but 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 detailed in the company's SEC filings.
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