Allergan Reports Second Quarter 2008 Operating Results

Allergan Reports Second Quarter 2008 Operating Results

-- Total Product Net Sales Increased 20 Percent for the Second
Quarter

-- Board of Directors Declares Second Quarter Dividend

IRVINE, Calif., Jul 30, 2008 (BUSINESS WIRE) -- Allergan, Inc. (NYSE: AGN) today announced operating results for the quarter ended June 30, 2008. Allergan also announced that its Board of Directors has declared a second quarter dividend of $0.05 per share, payable on September 5, 2008 to stockholders of record on August 15, 2008.

Operating Results

For the quarter ended June 30, 2008:

-- Allergan reported $0.48 diluted earnings per share from continuing operations compared to $0.45 diluted earnings per share reported for the second quarter of 2007.

-- Allergan's adjusted diluted earnings per share from continuing operations were $0.63 in the second quarter of 2008, compared to adjusted diluted earnings per share of $0.54 in the second quarter of 2007, a 16.7% year-over-year increase.

Product Sales

For the quarter ended June 30, 2008:

-- Allergan's total product net sales were $1,155.8 million. Total
product net sales increased 20.1 percent, or 15.7 percent at constant
currency, compared to total product net sales in the second quarter
of 2007.
-- Total specialty pharmaceuticals net sales increased 21.0
percent, or 16.7 percent at constant currency, compared to
total specialty pharmaceuticals net sales in the second
quarter of 2007.

-- Total medical devices net sales increased 16.4 percent, or
11.5 percent at constant currency, compared to total medical
devices net sales in the second quarter of 2007.

"Sales growth in the second quarter of over 20% demonstrates the strength in diversity of our business model with particularly strong performance in reimbursed pharmaceuticals and our businesses outside the United States," said David E.I. Pyott, Allergan's Chairman of the Board and Chief Executive Officer. "Furthermore, as discussed at our R&D technology review day in June, we have a robust R&D pipeline that should fuel additional growth over the long-term."

Product and Pipeline Update

During the second quarter of 2008:

-- On June 16, 2008, Allergan announced that the FDA approved TRIVARIS(TM) (triamcinolone acetonide injectable suspension) 80 mg/mL, a synthetic glucocorticoid corticosteroid with anti-inflammatory action. Delivered via intravitreal injection, the ophthalmic indications for TRIVARIS(TM) include sympathetic ophthalmia, temporal arteritis, uveitis, and ocular inflammatory conditions unresponsive to topical corticosteroids.

-- As a result of Allergan's development and promotion arrangement with GlaxoSmithKline, GSK submitted a sNDA with the Japanese regulatory authorities for BOTOX(R) to treat Juvenile Cerebral Palsy. Achieving this milestone demonstrates excellent co-development progress with our GSK partner.

-- The Australian regulatory authorities expanded the approval for BOTOX(R) to include the upper limb in patients with Juvenile Cerebral Palsy, bringing BOTOX(R) treatment to the broader population of pediatric patients in Australia suffering from this debilitating neuromuscular condition. BOTOX(R) had been approved for the treatment of lower-limb spasticity in patients with Cerebral Palsy in 1998.

-- Allergan filed a New Drug Application with the U.S. Food and Drug Administration (FDA) for bimatoprost, a synthetic prostaglandin analog, as a treatment to promote eyelash growth. Allergan's clinical trial program demonstrated that its patented formulation of bimatoprost, when applied directly to the base of the eyelashes, results in significant eyelash growth.

Following the end of the second quarter of 2008:

-- On July 14, 2008, Allergan announced that its wholly-owned subsidiary, Allergan Sales, LLC, completed the acquisition of ACZONE(R) (dapsone) Gel 5%, a topical treatment for acne vulgaris, from QLT USA, Inc., a wholly-owned subsidiary of QLT Inc. (NASDAQ:QLTI) (TSX:QLT), for approximately $150 million.

-- On July 18, 2008, Allergan announced that it has agreed to dismiss its legal action against Jan Marini Skin Research, Inc. ("Jan Marini"), one of the defendants in Allergan's patent infringement lawsuit pending in the United States District Court for the Central District of California. In addition, Allergan today announced that it has agreed to dismiss its legal action against Intuit Beauty, a further defendant in the patent infringement lawsuit. The dismissals are based on Jan Marini and Intuit Beauty acknowledging the validity of Allergan's relevant patents covering the use of certain drug substances, such as prostaglandin analogs, to promote eyelash enhancement and also agreeing to cease their distribution of eyelash products containing these ingredients in the United States and other countries worldwide where Allergan owns related patents.

Discontinued Operations

On July 2, 2007, Allergan completed the sale of the ophthalmic surgical business that Allergan obtained in connection with its January 2007 acquisition of Groupe Corneal Laboratoires. Operating results of the ophthalmic surgical business are presented as discontinued operations in the financial tables of this press release.

Common Stock Split

On June 22, 2007, Allergan completed a two-for-one stock split of its common stock. The stock split was structured in the form of a 100% stock dividend and was paid to stockholders of record on June 11, 2007. All share and per share data contained in this press release have been adjusted to reflect the effect of the stock split for all periods presented.

Outlook:

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