in our operations

Allergan continues to generate high margins and deliver strong results to our stockholders, with double-digit sales growth in 2005 across all regions and all product franchises. One key to achieving this has been our continuous effort to streamline our business and increase productivity in all our worldwide operations. We are meticulous and vigilant about operational efficiency and highly focused in our R&D effort.

As part of this ongoing strategy, in 2005 we initiated the restructuring of our European commercial operations and the consolidation of our worldwide R&D network. This included the closure of our R&D centers in France and Japan and the consolidation of all our European clinical development activities into the United Kingdom. Wherever we conduct business, in every activity we undertake, we continue to concentrate our resources on areas that provide the most opportunities for growth and leadership. This creates value for the investors who support our vision. We take that mission seriously and were proud to be named the “most shareholder-friendly” specialty pharmaceutical in an industry survey⁽¹⁾.

in our sales and marketing

Allergan products are available in more than 100 countries today and 2005 worldwide sales exceeded $2.3 billion. Our ophthalmology business is Allergan’s fastest-growing — which is particularly gratifying given our more than 55-year heritage as a leader in this field — and we have just finished our third straight year as the fastest-growing eye care company in the world (excludes retinal therapeutics)⁽²⁾. Our agreement with GlaxoSmithKline (GSK) to accelerate development and commercialization of BOTOX® in Japan and China while we co-promote GSK’s leading migraine products IMITREX STATdose System® and AMERGE® in the United States is meeting our strategic goal for building our BOTOX® franchise, while broadening our neurology portfolio and doubling the size of our U.S. neurology sales force. Our GSK collaboration is also enabling us to gain valuable expertise in the headache/migraine market segments as we enter into Phase III clinical trials exploring the use of BOTOX® for the treatment of chronic daily headache.

Allergan utilized powerful direct-to-consumer advertising campaigns and dedicated other significant resources during 2005 to support our flagship products including BOTOX® Cosmetic/VISTABEL®/ VISTABEX™ and BOTOX® for therapeutic use in our neurosciences business, and RESTASIS® and LUMIGAN® in our ophthalmology portfolio. We saw excellent growth in European sales as we sharpened our focus there by centralizing all marketing operations into a single UK location and focusing the national organizations on local promotion and selling efforts.

in our market reach

By continually bringing innovative treatments to market, we have earned a reputation as a different kind of pharmaceutical company. With our intense focus on addressing unmet medical needs we often create major new markets, as we have done in dry eye therapeutics with RESTASIS® and in facial aesthetics with BOTOX® Cosmetic/VISTABEL®/ VISTABEX™. With our acquisition of Inamed, we will create a world-leading medical aesthetics franchise offering a complementary range of products to patients and customers and significant cross-marketing and cross-selling opportunities to dermatologists, plastic surgeons and other medical aesthetic specialists. Our company is growing stronger, and our products are helping millions of patients around the world.