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Allergan Reports Fourth Quarter Operating Results

-- Total Product Net Sales Increased 37 Percent for the Fourth Quarter
-- 2006 BOTOX(R) Sales Top $1 Billion Mark
-- Board of Directors Declares Fourth Quarter Dividend

-- Total Product Net Sales Increased 37 Percent for the Fourth Quarter
-- 2006 BOTOX(R) Sales Top $1 Billion Mark
-- Board of Directors Declares Fourth Quarter Dividend

IRVINE, Calif., Jan 31, 2007 (BUSINESS WIRE) -- Allergan, Inc. (NYSE:AGN) today announced operating results for the fourth quarter ended December 31, 2006. Allergan also announced that its Board of Directors has declared a fourth quarter dividend of $0.10 per share, payable on March 9, 2007 to stockholders of record on February 16, 2007.

Operating Results

For the quarter ended December 31, 2006:

-- Allergan reported $0.89 diluted earnings per share compared to the $1.03 diluted earnings per share reported for the fourth quarter of 2005. The reported $1.03 diluted earnings per share for the fourth quarter of 2005 included a $0.13 per share benefit related to the resolution of certain tax disputes. In accordance with GAAP, Allergan began implementing Statement of Financial Accounting Standards No. 123 (revised 2004), Shared-Based Payment (FAS 123R) in the first quarter of 2006. The reported $0.89 diluted earnings per share for the fourth quarter of 2006 includes a $0.07 per share expense related to the effect of expensing stock options in accordance with FAS 123R.

-- The pre-tax costs related to expensing stock options included in Allergan's statement of operations for the fourth quarter of 2006 are allocated as follows: $0.9 million to cost of sales, $11.9 million to selling, general and administrative expense and $3.3 million to research and development expense. Allergan's results of operations for the fourth quarter of 2005 do not include any costs related to expensing stock options.

-- Allergan's adjusted diluted earnings per share were $1.02 in the fourth quarter of 2006, compared to adjusted diluted earnings per share of $1.00 in the fourth quarter of 2005. Adjusted diluted earnings per share of $1.00 in the fourth quarter of 2005 included a $0.09 per share benefit related to the resolution of certain tax disputes. Adjusted diluted earnings per share of $1.02 in the fourth quarter of 2006 includes a $0.07 per share expense related to the effect of expensing stock options in accordance with FAS 123R. Adjusted diluted earnings per share for the fourth quarter of 2006 exclude non-GAAP adjustments to diluted earnings per share which are contained in the financial tables of this press release.

Product Sales

For the quarter ended December 31, 2006:

-- Allergan's total product net sales were $816.2 million, which includes $127.0 million of product net sales acquired in connection with the Inamed acquisition. Total product net sales increased 37.2 percent, or 35.5 percent at constant currency, compared to total product net sales in the fourth quarter of 2005.

-- Pharmaceutical net sales (which excludes product sales acquired in connection with the Inamed acquisition) increased 15.9 percent, or 14.1 percent at constant currency, compared to pharmaceutical net sales in the fourth quarter of 2005. Pharmaceutical net sales increased 18.1 percent, or 16.4 percent at constant currency, compared to pharmaceutical net sales in the fourth quarter of 2005 adjusted to exclude BOTOX(R) sales in Japan as a result of Allergan's development and promotion arrangement with GlaxoSmithKline (GSK). A reconciliation of the adjustments made from pharmaceutical product net sales reported in accordance with United States Generally Accepted Accounting Principles (GAAP) to adjusted pharmaceutical product net sales is contained in the financial tables of this press release.

"We are pleased with our strong sales growth and performance in 2006 across a broad range of businesses, products and geographic regions," said David E.I. Pyott, Allergan's Chairman of the Board and Chief Executive Officer. "Furthermore, we are looking forward in 2007 to building on our strong position as the global leader in the high growth medical aesthetics market and also on our momentum as the fastest growing global ophthalmic pharmaceutical company."

Achieving a major milestone, 2006 sales of BOTOX(R) (botulinum toxin type A) crossed the billion-dollar mark on the strength of growth in sales for both therapeutic and cosmetic use, including GSK's sales in Japan and China as a result of Allergan's development and promotion arrangement with GSK. For full year 2006, therapeutic sales accounted for approximately 52% of total BOTOX(R) sales and cosmetic sales accounted for approximately 48% of total BOTOX(R) sales. The BOTOX(R) therapeutic and cosmetic growth rate calculations are contained in the financial table of this press release.

Product and Pipeline Update

During the fourth quarter of 2006:

-- On October 5, 2006, Allergan announced completion of the integration of Inamed's commercial and research and development operations, uniting the companies' facial aesthetics, breast aesthetics and obesity intervention product portfolios under the Allergan name and within a newly established corporate division, Allergan Medical.

-- On October 20, 2006, Allergan announced that Health Canada granted a medical device license with conditions to sell and market INAMED(R) Silicone-Filled Breast Implants, including the INAMED(R) Round, Smooth and Textured Silicone-Filled Breast Implants and INAMED(R) Style 410 Shaped and Textured Silicone-Filled Breast Implants, for use in breast augmentation, reconstruction and revision surgery.

-- GSK launched BOTOX(R) in China for blepharospasm and hemifacial spasm, for the first time, bringing BOTOX(R) treatment to the many patients in China suffering from these debilitating neuromuscular conditions.

-- On November 17, 2006, Allergan announced that the United States Food and Drug Administration (FDA) approved Allergan's INAMED(R) Silicone-Filled Breast Implants for use in breast augmentation, reconstruction and revision surgery.

-- On December 21, 2006, Allergan announced that the FDA issued an approvable letter for COMBIGAN(TM) (brimonidine tartrate/timolol maleate ophthalmic solution) 0.2%/0.5% for the reduction of elevated intraocular pressure (IOP) in patients with glaucoma or ocular hypertension who require adjunctive or replacement therapy due to inadequately controlled IOP.

Following the end of the fourth quarter of 2006:

-- On January 2, 2007, Allergan completed the acquisition of Groupe Corneal Laboratoires, obtaining exclusive rights to market and manufacture JUVEDERM(TM).

-- On January 17, 2007, Allergan announced nationwide availability of its 'next-generation' hyaluronic acid dermal filler family of products, JUVEDERM(TM) ULTRA and JUVEDERM(TM) ULTRA PLUS.

Memantine Update

Following the fourth quarter, Allergan completed the initial analysis of the data from the first of two phase III clinical trials of memantine for the preservation of visual function in patients with glaucoma. The use of memantine as a neuroprotective agent would be the first drug approved to prevent the loss of visual function, and potentially lead to a paradigm shift in the treatment of this important disease. To date, glaucoma treatment has focused on medications or surgery to lower intraocular pressure.

Two measures of visual function were selected in the statistical analysis plan to assess the efficacy of memantine in glaucoma. The functional measure chosen as the primary endpoint did not show a benefit of memantine in preserving visual function. In a number of analyses using the secondary functional measure, memantine demonstrated a statistically significant benefit of the high dose compared to placebo. While Allergan is encouraged that a functional benefit of memantine was demonstrated in this secondary analysis, there are a number of challenges that remain. First, Allergan needs to complete the full assessment of the data from this complex clinical trial that contains four years of data on approximately one thousand glaucoma patients. Once completed, Allergan will review the data with the FDA and other regulatory agencies. Importantly, the safety and efficacy of memantine must be confirmed in the second phase III trial. Until Allergan completes the data analysis and agency meetings, which could take up to twelve months, it cannot assess the impact to filing and approval timing.

Outlook

For the full year of 2007, Allergan estimates:

-- Total product net sales between $3,460 million and $3,630 million.

        -- Pharmaceutical product net sales between $2,885 million and
           $2,985 million. Pharmaceutical sales exclude sales of
           products acquired in connection with the Inamed
           acquisition.

        -- ALPHAGAN(R) Franchise product net sales between $295
           million and $315 million.

        -- LUMIGAN(R) Franchise product net sales between $355 million
           and $375 million.

        -- RESTASIS(R) product net sales between $320 million and $340
           million.

        -- BOTOX(R) product net sales between $1,100 million and
           $1,145 million.

        -- Breast aesthetic product net sales between $250 million and
           $280 million.

        -- Obesity intervention product net sales between $215 million
           and $235 million.

        -- Dermal filler product net sales between $110 million and
           $130 million.

-- Cost of sales ratio to product net sales between 17.5% and 18.0%.

-- Other revenue between $50 million and $60 million.

-- Selling, General and Administrative ratio to product net sales between 40% and 41%.

-- Research and Development ratio to product net sales at approximately 16.5%. This guidance excludes any potential in-process research and development associated with the Corneal acquisition.

-- Amortization of acquired intangible assets at approximately $20 million. This guidance excludes the amortization of acquired intangible assets associated with the Inamed acquisition of approximately $78 million and any potential amortization associated with the Corneal acquisition.

-- Adjusted diluted earnings per share guidance between $4.27 and $4.31. Adjusted diluted earnings per share guidance excludes the non-GAAP adjustments to diluted earnings per share guidance that are contained in the financial tables of this press release.

-- Diluted shares outstanding between approximately 153 million and 155 million.

-- Effective tax rate on adjusted earnings at approximately 28%.

For the first quarter of 2007, Allergan estimates:

-- Total product net sales between $830 million and $850 million.

-- Adjusted diluted earnings per share guidance between $0.88 and $0.90. Adjusted diluted earnings per share guidance excludes the non-GAAP adjustments to diluted earnings per share guidance that are contained in the financial tables of this press release.

Forward-Looking Statements

In this press release, the statements regarding new product development, market potential, expected growth, efficiencies, costs and savings, the statements by Mr. Pyott as well as the outlook for Allergan's earnings per share and revenue forecasts, among other statements above, are forward-looking statements. Because forecasts are inherently estimates that cannot be made with precision, Allergan's performance at times differs materially from its estimates and targets, and Allergan often does not know what the actual results will be until after a quarter's end and year's end. Therefore, Allergan will not report or comment on its progress during a current quarter except through public announcement. Any statement made by others with respect to progress during a current quarter cannot be attributed to Allergan.

Any other statements in this press release that refer to Allergan's expected, estimated or anticipated future results are forward-looking statements. All forward-looking statements in this press release reflect Allergan's current analysis of existing trends and information and represent Allergan's judgment only as of the date of this press release. Actual results may differ materially from current expectations based on a number of factors affecting Allergan's businesses, including, among other things, changing competitive, market and regulatory conditions; the timing and uncertainty of the results of both the research and development and regulatory processes; domestic and foreign health care and cost containment reforms; technological advances and patents obtained by competitors; the performance, including the approval, introduction, and consumer and physician acceptance, of new products and the continuing acceptance of currently marketed products; the effectiveness of advertising and other promotional campaigns; the timely and successful implementation of strategic initiatives; the results of any pending or future litigations, investigations or claims; the uncertainty associated with the identification of and successful consummation and execution of external corporate development initiatives and strategic partnering transactions; and Allergan's ability to obtain and successfully maintain a sufficient supply of products to meet market demand in a timely manner. In addition, matters generally affecting the economy, such as changes in interest and currency exchange rates; international relations; and the state of the economy worldwide, can materially affect Allergan's results. Therefore, the reader is cautioned not to rely on these forward-looking statements. Allergan expressly disclaims any intent or obligation to update these forward-looking statements except as required to do so by law.

Additional information concerning the above-referenced risk factors and other risk factors can be found in press releases issued by Allergan, as well as Allergan's public periodic filings with the Securities and Exchange Commission, including the discussion under the heading "Risk Factors" in Allergan's 2005 Form 10-K and Allergan's Form 10-Q for the period ended September 29, 2006. Copies of Allergan's press releases and additional information about Allergan is available at www.allergan.com or you can contact the Allergan Investor Relations Department by calling 714-246-4636.

About Allergan, Inc.

With more than 55 years of experience providing high-quality, science-based products, Allergan, Inc., with headquarters in Irvine, California, discovers, develops and commercializes products in the ophthalmology, neurosciences, medical dermatology, medical aesthetics, obesity intervention and other specialty markets that deliver value to its customers, satisfy unmet medical needs, and improve patients' lives.

(R) and TM Marks owned by Allergan, Inc.

JUVEDERM(TM) Mark owned by Corneal Industrie SAS

                            ALLERGAN, INC.
         Condensed Consolidated Statements of Operations and
                Reconciliation of Non-GAAP Adjustments
                             (Unaudited)


                                              Three months ended
                                        ------------------------------
in millions, except per share amounts         December 31, 2006
--------------------------------------- ------------------------------
                                                  Non-GAAP
                                         GAAP   Adjustments  Adjusted
                                        ------- ------------ ---------
Revenues
  Product net sales                     $816.2    $--         $816.2
  Other revenues                          12.9     --           12.9
                                        ------- ------       ---------
                                         829.1     --          829.1

Operating costs and expenses
  Cost of sales (excludes amortization
   of acquired intangible assets)        142.5   (0.2)(a)      142.3
  Selling, general and administrative    358.0   (5.1)(a)(b)   352.9
  Research and development               125.4     --          125.4
  Amortization of acquired intangible
   assets                                 24.8  (19.5)(c)        5.3
  Restructuring charges                    5.2   (5.2)(d)         --
                                        ------- ------       ---------

Operating income                         173.2   30.0          203.2

Non-operating income (expense)
  Interest income                         14.6     --           14.6
  Interest expense                       (20.0)    --          (20.0)
  Unrealized gain on derivative
   instruments, net                        0.7   (0.7)(e)         --
  Other, net                               2.1   (2.1)(f)         --
                                        ------- ------       ---------
                                          (2.6)  (2.8)          (5.4)
                                        ------- ------       ---------

Earnings before income taxes and
 minority interest                       170.6   27.2          197.8

Provision for income taxes                33.5    7.5 (g)       41.0
Minority interest                          0.3     --            0.3
                                        ------- ------       ---------

Net earnings                            $136.8  $19.7         $156.5
                                        ======= ======       =========

Net earnings per share:
    Basic                                $0.90                 $1.03
    Diluted                              $0.89                 $1.02
                                        =======              =========


Weighted average number of common
 shares outstanding:
    Basic                                151.6                 151.6
    Diluted                              153.4                 153.4

Selected ratios as a percentage of
 product net sales
---------------------------------------

Selling, general and administrative       43.9%                 43.2%
Research and development                  15.4%                 15.4%

                                          Three months ended
                                 -------------------------------------
in millions, except per share
 amounts                                    December 31, 2005
---------------------------------  -----------------------------------
                                                Non-GAAP
                                    GAAP      Adjustments     Adjusted
                                   ------- ------------------ --------
Revenues
  Product net sales                $594.9    $--               $594.9
  Other revenues                      3.9     --                  3.9
                                   ------- ------             --------
                                    598.8     --                598.8

Operating costs and expenses
  Cost of sales (excludes
   amortization of acquired
   intangible assets)                91.0   (0.1)(h)(i)          90.9
  Selling, general and
   administrative                   228.1   (1.8)(h)(j)(k)(l)   226.3
  Research and development          106.8   (0.4)(h)            106.4
  Amortization of acquired
   intangible assets                  5.2     --                  5.2
  Restructuring charges               6.2   (6.2)(i)               --
                                   ------- ------             --------

Operating income                    161.5    8.5                170.0

Non-operating income (expense)
  Interest income                    12.4     --                 12.4
  Interest expense                   (4.9)  (0.8)(m)             (5.7)
  Unrealized gain on derivative
   instruments, net                   0.1   (0.1)(e)               --
  Other, net                          0.4     --                  0.4
                                   ------- ------             --------
                                      8.0   (0.9)                 7.1
                                   ------- ------             --------

Earnings before income taxes and
 minority interest                  169.5    7.6                177.1

Provision for income taxes           29.2   11.6 (n)             40.8
Minority interest                     0.2     --                  0.2
                                   ------- ------             --------

Net earnings                       $140.1  $(4.0)              $136.1
                                   ======= ======             ========

Net earnings per share:
    Basic                           $1.06                       $1.03
    Diluted                         $1.03                       $1.00
                                   =======                    ========


Weighted average number of common
 shares outstanding:
    Basic                           132.0                       132.0
    Diluted                         136.3                       136.3

Selected ratios as a percentage
 of product net sales
---------------------------------

Selling, general and
 administrative                      38.3%                       38.0%
Research and development             18.0%                       17.9%

(a) Integration and transition costs related to the acquisition of Inamed, consisting of Cost of sales of $0.2 million and Selling, general and administrative expense of $5.0 million

(b) Costs related to the acquisition of Groupe Corneal Laboratoires of $0.1 million

(c) Amortization of acquired intangible assets

(d) Restructuring charges

(e) Unrealized gain (loss) on the mark-to-market adjustment to derivative instruments

(f) Reversal of accrued costs for a previously disclosed contingency involving non-income taxes in Brazil

(g) Total tax effect for non-GAAP pre-tax adjustments and other income tax adjustments, consisting of the following amounts (in millions):

  Non-GAAP pre-tax adjustments of $27.2 million                 $(8.3)
  Taxes related to intercompany transfers of trade businesses
   and net assets                                                 0.8
                                                                ------
                                                                $(7.5)
                                                                ======

(h) Transition/duplicate operating expenses related to restructuring and streamlining of European operations, consisting of Cost of sales of $0.2 million; Selling, general and administrative expense of $1.9 million and Research and development expense of $0.4 million

(i) Restructuring charges of $6.2 million and related inventory adjustments of $(0.1) million

(j) Costs related to the acquisition of Inamed of $0.4 million

(k) Gain on sale of a former manufacturing plant in Argentina of $0.6 million

(l) Loss on sales of assets primarily used for AMO Contract Manufacturing of $0.1 million

(m) Reversal of interest expense related to tax settlements

(n) Total tax effect for non-GAAP pre-tax adjustments and other income tax adjustments, consisting of the following amounts (in millions):

  Non-GAAP pre-tax adjustments of $7.6 million                  $(2.4)
  Resolution of uncertain tax positions                          (4.6)
  Extraordinary dividends of $674 million under the American
   Jobs Creation Act of 2004                                     (2.9)
  Additional repatriation of foreign earnings of $85.8 million
   above extraordinary dividends amount                          (1.7)
                                                               -------
                                                               $(11.6)
                                                               =======

"GAAP" refers to financial information presented in accordance with generally accepted accounting principles in the United States.

This press release includes non-GAAP financial measures, as defined in Regulation G promulgated by the Securities and Exchange Commission, with respect to the three and twelve months ended December 31, 2006 and December 31, 2005 and with respect to anticipated results for the first quarter and full year of 2007. Allergan believes that its presentation of non-GAAP financial measures provides useful supplementary information to investors regarding its operational performance because it enhances an investor's overall understanding of the financial performance and prospects for the future of Allergan's core business activities by providing a basis for the comparison of results of core business operations between current, past and future periods. The presentation of historical non-GAAP financial measures is not meant to be considered in isolation from or as a substitute for results prepared in accordance with accounting principles generally accepted in the United States.

In this press release, Allergan reported the non-GAAP financial measure "adjusted net earnings" and related "adjusted earnings per share" - both basic and diluted. Allergan uses adjusted earnings to enhance the investor's overall understanding of the financial performance and prospects for the future of Allergan's core business activities. Adjusted earnings is one of the primary indicators management uses for planning and forecasting in future periods, including trending and analyzing the core operating performance of Allergan's business from period to period without the effect of the non-core business items indicated. Management uses adjusted earnings to prepare operating budgets and forecasts and to measure Allergan's performance against those budgets and forecasts on a corporate and segment level. Allergan also uses adjusted earnings for evaluating management performance for compensation purposes.

Despite the importance of adjusted earnings in analyzing Allergan's underlying business, the budgeting and forecasting process and designing incentive compensation, adjusted earnings has no standardized meaning defined by GAAP. Therefore, adjusted earnings has limitations as an analytical tool, and should not be considered in isolation, or as a substitute for analysis of Allergan's results as reported under GAAP. Some of these limitations are:

-- it does not reflect cash expenditures, or future requirements, for expenditures relating to restructurings, and certain acquisitions, including severance and facility transition costs associated with acquisitions;

-- it does not reflect gains or losses on the disposition of assets associated with restructuring and business exit activities;

-- it does not reflect the tax benefit or tax expense associated with the items indicated;

-- it does not reflect the reduction of cash and earnings associated with a contribution to the Allergan Foundation;

-- it does not reflect the impact on earnings of charges resulting from certain matters Allergan considers not to be indicative of its on-going operations; and

-- other companies in Allergan's industry may calculate adjusted earnings differently than it does, which may limit its usefulness as a comparative measure.

Allergan compensates for these limitations by using adjusted earnings only to supplement net income (loss) on a basis prepared in conformance with GAAP in order to provide a more complete understanding of the factors and trends affecting its business. Allergan strongly encourages investors to consider both net income (loss) and cash flows determined under GAAP as compared to adjusted earnings, and to perform their own analysis, as appropriate.

                            ALLERGAN, INC.
         Condensed Consolidated Statements of Operations and
                Reconciliation of Non-GAAP Adjustments
                             (Unaudited)
                             (Continued)


                                        Twelve months ended
                              ----------------------------------------
in millions, except per share
 amounts                                 December 31, 2006
----------------------------- ----------------------------------------
                                             Non-GAAP
                                GAAP        Adjustments     Adjusted
                              --------- ------------------- ----------
Revenues
  Product net sales           $3,010.1     $--              $3,010.1
  Other revenues                  53.2      --                  53.2
                              --------- -------             ----------
                               3,063.3      --               3,063.3

Operating costs and expenses
  Cost of sales (excludes
   amortization of acquired
   intangible assets)            575.7   (48.8)(a)(b)          526.9
  Selling, general and
   administrative              1,333.4   (53.9)(a)(c)(d)(e)  1,279.5
  Research and development     1,055.5  (580.0)(a)(d)(f)       475.5
  Amortization of acquired
   intangible assets              79.6   (58.6)(g)              21.0
  Restructuring charges           22.3   (22.3)(h)                --
                              --------- -------             ----------

Operating (loss) income           (3.2)  763.6                 760.4

Non-operating income
 (expense)
  Interest income                 48.9     4.9 (i)              53.8
  Interest expense               (60.2)   (4.9)(i)             (65.1)
  Unrealized (loss) gain on
   derivative instruments,
   net                            (0.3)    0.3 (j)                --
  Gain on investments              0.3      --                   0.3
  Other, net                      (5.0)    2.7 (k)              (2.3)
                              --------- -------             ----------
                                 (16.3)    3.0                 (13.3)
                              --------- -------             ----------

(Loss) earnings before income
 taxes and minority interest     (19.5)  766.6                 747.1

Provision for income taxes       107.5    92.0 (l)             199.5
Minority interest                  0.4      --                   0.4
                              --------- -------             ----------

Net (loss) earnings            $(127.4) $674.6                $547.2
                              ========= =======             ==========

Net (loss) earnings per
 share:
    Basic                       $(0.87)                        $3.72
    Diluted                     $(0.87)                        $3.66
                              =========                     ==========


Weighted average number of
 common shares outstanding:
    Basic                        146.9                         146.9
    Diluted                      146.9                         149.4

Selected ratios as a
 percentage of product net
 sales
-----------------------------

Selling, general and
 administrative                   44.3%                         42.5%
Research and development          35.1%                         15.8%

                                      Twelve months ended
                          --------------------------------------------
in millions, except per
 share amounts                          December 31, 2005
--------------------------  ------------------------------------------
                                             Non-GAAP
                              GAAP         Adjustments       Adjusted
                            --------- ---------------------- ---------
Revenues
  Product net sales         $2,319.2           $--           $2,319.2
  Other revenues                15.8            --               15.8
                            --------- -------------          ---------
                             2,335.0            --            2,335.0

Operating costs and
 expenses
  Cost of sales (excludes
   amortization of
   acquired intangible
   assets)                     385.3          (0.5)(m)(n)       384.8
  Selling, general and
   administrative              929.2          10.0 (m)(o)(p)    939.2
  Research and development     388.3          (4.5)(m)(q)       383.8
  Amortization of acquired
   intangible assets            17.5            --               17.5
  Restructuring charges         43.8         (43.8)(n)             --
                            --------- -------------          ---------

Operating (loss) income        570.9          38.8              609.7

Non-operating income
 (expense)
  Interest income               35.4          (2.2)(r)(s)        33.2
  Interest expense             (12.4)         (7.3)(r)          (19.7)
  Unrealized (loss) gain
   on derivative
   instruments, net              1.1          (1.1)(j)             --
  Gain on investments            0.8          (0.8)(t)             --
  Other, net                     3.4          (3.5)(s)           (0.1)
                            --------- -------------          ---------
                                28.3         (14.9)              13.4
                            --------- -------------          ---------

(Loss) earnings before
 income taxes and minority
 interest                      599.2          23.9              623.1

Provision for income taxes     192.4         (22.4)(u)          170.0
Minority interest                2.9          (3.1)(v)           (0.2)
                            --------- -------------          ---------

Net (loss) earnings           $403.9         $49.4             $453.3
                            ========= =============          =========

Net (loss) earnings per
 share:
    Basic                      $3.08                            $3.46
    Diluted                    $3.01                            $3.38
                            =========                        =========


Weighted average number of
 common shares
 outstanding:
    Basic                      131.1                            131.1
    Diluted                    134.0                            134.0

Selected ratios as a
 percentage of product net
 sales
--------------------------

Selling, general and
 administrative                 40.1%                            40.5%
Research and development        16.7%                            16.5%

(a) Integration and transition costs related to the acquisition of Inamed, consisting of Cost of sales of $0.9 million; Selling, general and administrative expense of $19.6 million and Research and development expense of $0.2 million

(b) Inamed fair-market value inventory adjustment roll out of $47.9 million

(c) Costs related to the acquisition of Groupe Corneal Laboratoires of $0.1 million

(d) Transition/duplicate operating expenses related to restructuring and streamlining of European operations, consisting of Selling, general and administrative expense of $5.7 million and Research and development expense of $0.5 million

(e) Contribution to Allergan Foundation of $28.5 million

(f) In-process research and development charge of $579.3 million related to the acquisition of Inamed

(g) Amortization of acquired intangible assets

(h) Restructuring charges

(i) Reversal of interest income on previously paid state income taxes and reversal of interest expense related to the resolution of uncertain tax positions

(j) Unrealized gain (loss) on the mark-to-market adjustment to derivative instruments

(k) Accrued costs for a previously disclosed contingency involving non-income taxes in Brazil

(l) Total tax effect for non-GAAP pre-tax adjustments and other income tax adjustments, consisting of the following amounts (in millions):

  Non-GAAP pre-tax adjustments of $766.6 million               $(61.9)
  Resolution of uncertain tax positions and favorable
   recovery of previously paid state income taxes               (11.7)
  Change in valuation allowance associated with a refund
   claim filed in 2006 for a prior tax year                     (17.2)
  Taxes related to intercompany transfers of trade
   businesses and net assets                                      1.6
  Change in estimated income taxes on 2005 dividend
   repatriation                                                  (2.8)
                                                            ----------
                                                               $(92.0)
                                                            ==========

(m) Transition/duplicate operating expenses related to restructuring and streamlining of European operations, consisting of Cost of Sales of $0.3 million; Selling, general and administrative expense of $3.8 million and Research and development expense of $1.5 million

(n) Restructuring charge of $43.8 million and related inventory write-offs of $0.2 million

(o) Gain on sale of assets primarily used for AMO contract manufacturing ($5.7 million), gain on sale of distribution business in India ($7.9 million), and gain on sale of a former manufacturing plant in Argentina ($0.6 million)

(p) Costs related to the acquisition of Inamed of $0.4 million

(q) Buy-out of license agreement with Johns Hopkins

(r) Interest income related to previously paid state income taxes and reversal of interest expense related to tax settlements

(s) Termination of ISTA Vitrase collaboration agreement (including interest income of $0.1 million)

(t) Gain on sale of third party equity investment

(u) Total tax effect for non-GAAP pre-tax adjustments and other income tax adjustments, consisting of the following amounts (in millions):

  Non-GAAP pre-tax adjustments of $23.9 million                 $(1.7)
  Additional benefit for state income taxes                      (1.4)
  Resolution of uncertain tax positions                         (24.1)
  Extraordinary dividends of $674 million under the
   American Jobs Creation Act of 2004                            29.9
  Additional repatriation of foreign earnings of $85.8
   million above extraordinary dividends amount                  19.7
                                                            ----------
                                                                $22.4
                                                            ==========

(v) Minority interest related to gain on sale of distribution business in India

                            ALLERGAN, INC.
                Condensed Consolidated Balance Sheets
                             (Unaudited)

                                             December 31, December 31,
in millions                                      2006         2005
-------------------------------------------- ------------ ------------

Assets

Cash and equivalents                            $1,369.4     $1,296.3
Trade receivables, net                             386.9        246.1
Inventories                                        168.5         90.1
Other current assets                               205.5        193.1
                                             ------------ ------------

Total current assets                             2,130.3      1,825.6

Property, plant and equipment, net                 611.4        494.0
Intangible assets, net                           1,043.6        139.8
Goodwill, net                                    1,833.6          9.0
Other noncurrent assets                            148.2        382.1
                                             ------------ ------------

Total assets                                    $5,767.1     $2,850.5
                                             ============ ============


Liabilities and stockholders' equity

Notes payable                                     $102.0       $169.6
Convertible notes, net of discount                     -        520.0
Accounts payable                                   142.4         92.3
Accrued expenses and income taxes                  413.7        262.1
                                             ------------ ------------

Total current liabilities                          658.1      1,044.0

Long-term debt                                   1,606.4         57.5
Other liabilities                                  359.5        182.1
Stockholders' equity                             3,143.1      1,566.9
                                             ------------ ------------

Total liabilities and stockholders' equity      $5,767.1     $2,850.5
                                             ============ ============

DSO                                                   43           38

DOH                                                  108           90

Cash, net of debt                                $(339.0)      $549.2

Debt-to-capital percentage                          35.2%        32.3%

                            ALLERGAN, INC.
             Reconciliation of Diluted Earnings Per Share
                             (Unaudited)

In millions, except per share
 amounts                        Three months ended Twelve months ended
------------------------------- ------------------ -------------------
                                Dec. 31,  Dec. 31,  Dec. 31,  Dec. 31,
                                  2006      2005      2006      2005
                                --------- -------- ---------- --------

Net earnings (loss), as
 reported                         $136.8   $140.1    $(127.4)  $403.9

Non-GAAP pre-tax adjustments:
    Restructuring charges (a)        5.2      6.1       22.3     44.0
    Termination of Ista Vitrase
     collaboration agreement          --       --         --     (3.6)
    Transition/duplicate
     operating expenses               --      2.5        6.2      5.6
    Unrealized (gain) loss on
     derivative instruments         (0.7)    (0.1)       0.3     (1.1)
    Buy-out of license
     agreement with Johns
     Hopkins                          --       --         --      3.0
    Gain on sale of
     distribution business in
     India                            --       --         --     (7.9)
    Loss/(gain) on sale of
     assets primarily used for
     AMO contract manufacturing       --      0.1         --     (5.7)
    Sale of former
     manufacturing plant in
     Argentina                        --     (0.6)        --     (0.6)
    Gain on sale of equity
     investment                       --       --         --     (0.8)
    Interest related to
     previously paid state
     income taxes and income
     tax settlements                  --     (0.8)        --     (9.4)
    Inamed integration and
     transition costs                5.2      0.4       20.7      0.4
    Accrued costs (reversal)
     for a previously disclosed
     contingency involving non-
     income taxes in Brazil         (2.1)      --        2.7       --
    Contribution to Allergan
     Foundation                       --       --       28.5       --
    Costs related to the
     acquisition of Groupe
     Corneal Laboratoires            0.1       --        0.1       --
    In-process research and
     development charge               --       --      579.3       --
    Inamed fair-value inventory
     adjustment rollout               --       --       47.9       --
    Amortization of acquired
     intangible assets              19.5       --       58.6       --
                                --------- -------- ---------- --------
                                   164.0    147.7      639.2    427.8

Tax effect for above items          (8.3)    (2.4)     (61.9)    (1.7)
Resolution of uncertain tax
 positions                            --     (4.6)     (10.5)   (24.1)
Tax effect of dividend
 repatriation                         --     (4.6)      (2.8)    49.6
State income tax recovery             --       --       (1.2)    (1.4)
Taxes related to intercompany
 transfers of trade businesses
 and net assets                      0.8       --        1.6       --
Change in valuation allowance                  --      (17.2)      --
Minority interest effect of
 sale of distribution business
 in India                             --       --         --      3.1
                                --------- -------- ---------- --------

Adjusted diluted earnings         $156.5   $136.1     $547.2   $453.3
                                ========= ======== ========== ========


Weighted average number of
 shares issued                     151.6    132.0      146.9    131.1

Net shares assumed issued using
 the treasury stock method for
 options and non-vested equity
 shares and share units
 outstanding during each period
 based on average market price       1.8      2.3        1.7      1.7

Dilutive effect of assumed
 conversion of convertible
 notes outstanding                    --      2.0        0.8      1.2
                                --------- -------- ---------- --------
                                   153.4    136.3      149.4    134.0
                                ========= ======== ========== ========

Diluted earnings (loss) per
 share, as reported                $0.89    $1.03     $(0.87)   $3.01

Effect of additional dilutive
 shares (b)                           --       --       0.02       --

Non-GAAP earnings per share
 adjustments:
    Restructuring charges (a)       0.03     0.03       0.12     0.28
    Termination of Ista Vitrase
     collaboration agreement          --       --         --    (0.03)
    Transition/duplicate
     operating expenses               --     0.01       0.03     0.03
    Unrealized (gain) loss on
     derivative instruments           --       --         --       --
    Buy-out of license
     agreement with Johns
     Hopkins                          --       --         --     0.02
    Gain on sale of
     distribution business in
     India                            --       --         --    (0.05)
    Gain on sale of assets
     primarily used for AMO
     contract manufacturing           --       --         --    (0.04)
    Gain on sale of equity
     investment                       --       --         --       --
    Interest related to
     previously paid state
     income taxes and income
     tax settlements                  --       --         --    (0.04)
    Inamed integration and
     transition costs               0.02       --       0.09       --
    Accrued costs (reversal)
     for a previously disclosed
     contingency involving non-
     income taxes in Brazil        (0.01)      --       0.01       --
    Contribution to Allergan
     Foundation                       --       --       0.11       --
    In-process research and
     development charge               --       --       3.88       --
    Inamed fair value inventory
     roll out                         --       --       0.22       --
    Amortization of acquired
     intangible assets              0.08       --       0.25       --
    Resolution of uncertain tax
     positions                        --    (0.03)     (0.06)   (0.18)
    Tax effect of dividend
     repatriation                     --    (0.04)     (0.02)    0.37
    Taxes related to
     intercompany transfers of
     trade businesses and net
     assets                         0.01       --       0.01       --
    State income tax recovery         --       --      (0.01)   (0.01)
    Change in valuation
     allowance                        --       --      (0.12)      --
    Minority interest effect of
     sale of distribution
     business in India                --       --         --     0.02
                                ------------------ -------------------

Adjusted diluted earnings per
 share                             $1.02    $1.00      $3.66    $3.38
                                ========= ======== ========== ========


Year over year change                  2.0%               8.3%
                                ================== ===================

(a) Including inventory adjustments reported in cost of sales of $(0.1) million and $0.2 million for the three and twelve month periods ending December 31, 2005, respectively.

(b) The number of shares used to calculate adjusted diluted earnings per share includes the dilutive effect of outstanding stock options and the assumed conversion of convertible notes.

                            ALLERGAN, INC.
                  Supplemental Non-GAAP Information
                             (Unaudited)
                           ($ in millions)


                       Three months ended
                       ------------------
                       Dec. 31,  Dec. 31,    $ change in net sales
                                          ----------------------------
                         2006     2005     Total  Performance Currency
                       --------- -------- ------- ----------- --------

Eye Care
 Pharmaceuticals         $386.1   $340.6   $45.5       $39.1     $6.4
Botox/Neuromodulator      273.1    227.3    45.8        41.8      4.0
Skin Care                  30.0     27.0     3.0         3.0      0.0
                       --------- -------- ------- ----------- --------
    Total Specialty
     Pharmaceuticals      689.2    594.9    94.3        83.9     10.4

Breast Aesthetics         $58.5      $--   $58.5       $58.5      $--
Health                     49.4       --    49.4        49.4       --
Fillers                    19.1       --    19.1        19.1       --
                       --------- -------- ------- ----------- --------
    Total Medical
     Devices              127.0       --   127.0       127.0       --

Product net sales        $816.2   $594.9  $221.3      $210.9    $10.4
                       ========= ======== ======= =========== ========

Alphagan P, Alphagan,
 and Combigan             $74.7    $71.1    $3.6        $2.1     $1.5

Lumigan Franchise          86.5     71.2    15.3        13.4      1.9

Other Glaucoma              4.3      4.3      --        (0.2)     0.2

Restasis                   69.2     53.2    16.0        16.0       --


Domestic                   66.9%    66.9%   NA        NA         NA

International              33.1%    33.1%   NA        NA         NA



                                         Percent change in net sales
                                        ------------------------------
                                          Total   Performance Currency
                                        --------- ----------- --------


Eye Care Pharmaceuticals                    13.4%       11.5%     1.9%
Botox/Neuromodulator                        20.1%       18.4%     1.7%
Skin Care                                   11.1%       11.1%     0.0%
    Total Specialty Pharmaceuticals         15.9%       14.1%     1.8%

Breast Aesthetics                          NA         NA         NA
Health                                     NA         NA         NA
Fillers                                    NA         NA         NA
    Total Medical Devices                  NA         NA         NA

Product net sales                           37.2%       35.5%     1.7%

Alphagan P, Alphagan, and Combigan           5.0%        2.9%     2.1%

Lumigan Franchise                           21.4%       18.8%     2.6%

Other Glaucoma                                --       (4.3)%     4.3%

Restasis                                    30.1%       30.1%    NA


Domestic                                   NA         NA         NA

International                              NA         NA         NA

                     Twelve months ended
                     -------------------
                      Dec. 31   Dec. 31     $ change in net sales
                                         ----------------------------
                       2006      2005     Total  Performance Currency
                     --------- --------- ------- ----------- --------

Eye Care
 Pharmaceuticals     $1,530.6  $1,321.7  $208.9      $200.0     $8.9
Botox/Neuromodulator    982.2     830.9   151.3       145.1      6.2
Skin Care               125.7     120.2     5.5         5.4      0.1
                     --------- --------- ------- ----------- --------
Subtotal
 Pharmaceuticals      2,638.5   2,272.8   365.7       350.5     15.2

Other (primarily
 contract sales)           --      46.4   (46.4)      (46.4)      --
                     --------- --------- ------- ----------- --------
    Total Specialty
     Pharmaceuticals  2,638.5   2,319.2   319.3       304.1     15.2

Breast Aesthetics      $177.2       $--  $177.2      $177.2      $--
Health                  142.3        --   142.3       142.3       --
Fillers                  52.1        --    52.1        52.1       --
                     --------- --------- ------- ----------- --------
    Total Medical
     Devices            371.6        --   371.6       371.6       --

Product net sales    $3,010.1  $2,319.2  $690.9      $675.7    $15.2
                     ========= ========= ======= =========== ========

Alphagan P,
 Alphagan, and
 Combigan              $295.9    $277.2   $18.7       $16.9     $1.8

Lumigan Franchise       327.5     267.6    59.9        57.8      2.1

Other Glaucoma           16.3      18.0    (1.7)       (1.9)     0.2

Restasis                270.2     190.9    79.3        79.2      0.1


Domestic                 67.4%     67.5%   NA        NA         NA

International            32.6%     32.5%   NA        NA         NA


                                          Percent change in net sales
                                         -----------------------------
                                          Total   Performance Currency
                                         -------- ----------- --------


Eye Care Pharmaceuticals                    15.8%       15.1%     0.7%
Botox/Neuromodulator                        18.2%       17.5%     0.7%
Skin Care                                    4.6%        4.5%     0.1%
Subtotal Pharmaceuticals                    16.1%       15.4%     0.7%

Other (primarily contract sales)         (100.0)%    (100.0)%    NA
    Total Specialty Pharmaceuticals         13.8%       13.1%     0.7%

Breast Aesthetics                           NA        NA         NA
Health                                      NA        NA         NA
Fillers                                     NA        NA         NA
    Total Medical Devices                   NA        NA         NA

Product net sales                           29.8%       29.1%     0.7%

Alphagan P, Alphagan, and Combigan           6.7%        6.1%     0.6%

Lumigan Franchise                           22.4%       21.6%     0.8%

Other Glaucoma                             (9.2)%     (10.4)%     1.2%

Restasis                                    41.6%       41.5%     0.1%


Domestic                                    NA        NA         NA

International                               NA        NA         NA

                            ALLERGAN, INC.
                  Supplemental Non-GAAP Information
                             (Unaudited)
                           ($ in millions)
                             (Continued)

Adjusted total pharmaceutical product net sales
--------------------------------------------------


                                             Three months ended
                                        -----------------------------
                                        Dec. 31,  Dec. 31,   Dec. 31,
                                         2005       2005      2005
                                           as    adjustments    as
                                        reported             adjusted
                                        -------- ----------- --------
                                                     (a)

Eye Care Pharmaceuticals                 $340.6         $--   $340.6
Botox/Neuromodulator                      227.3       (11.4)   215.9
Skin Care                                  27.0          --     27.0
                                        -------- ----------- --------
Total pharmaceutical product net sales   $594.9      $(11.4)  $583.5
                                        ======== =========== ========


                                             Twelve months ended
                                       -------------------------------
                                       Dec. 31,   Dec. 31,   Dec. 31,
                                         2005       2005       2005
                                          as     adjustments    as
                                       reported              adjusted
                                       --------- ----------- ---------
                                                     (a)


Eye Care Pharmaceuticals               $1,321.7         $--  $1,321.7
Botox/Neuromodulator                      830.9       (38.8)    792.1
Skin Care                                 120.2          --     120.2
                                       --------- ----------- ---------
Total pharmaceutical product net sales $2,272.8      $(38.8) $2,234.0
                                       ========= =========== =========

                      Three months ended
                      ------------------
                                            $ change in net sales
                       Dec. 31  Dec. 31         (as adjusted)
                                         ----------------------------
                        2006     2005
                         as        as
                      reported  adjusted  Total  Performance Currency
                      --------- -------- ------- ----------- --------

Eye Care
 Pharmaceuticals        $386.1   $340.6   $45.5       $39.1     $6.4
Botox/Neuromodulator     273.1    215.9    57.2        53.4      3.8
Skin Care                 30.0     27.0     3.0         3.0      0.0
                      --------- -------- ------- ----------- --------
Total pharmaceutical
 product net sales      $689.2   $583.5  $105.7       $95.5    $10.2
                      ========= ======== ======= =========== ========


                                           Percent change in net sales
                                                  (as adjusted)
                                           ---------------------------

                                           Total  Performance Currency
                                           ------ ----------- --------


Eye Care Pharmaceuticals                    13.4%       11.5%     1.9%
Botox/Neuromodulator                        26.5%       24.7%     1.8%
Skin Care                                   11.1%       11.1%     0.0%
Total pharmaceutical product net sales      18.1%       16.4%     1.7%

                     Twelve months ended
                     -------------------
                                            $ change in net sales
                      Dec. 31   Dec. 31         (as adjusted)
                                         ----------------------------
                       2006      2005
                     --------- ---------
                        as        as
                     reported  adjusted   Total  Performance Currency
                     --------- --------- ------- ----------- --------


Eye Care
 Pharmaceuticals     $1,530.6  $1,321.7  $208.9      $200.0     $8.9
Botox/Neuromodulator    982.2     792.1   190.1       184.0      6.1
Skin Care               125.7     120.2     5.5         5.4      0.1
                     --------- --------- ------- ----------- --------
Total pharmaceutical
 product net sales   $2,638.5  $2,234.0  $404.5      $389.4    $15.1
                     ========= ========= ======= =========== ========


                                          Percent change in net sales
                                                 (as adjusted)
                                          ---------------------------

                                          Total  Performance Currency
                                          ------ ----------- --------

Eye Care Pharmaceuticals                   15.8%       15.1%     0.7%
Botox/Neuromodulator                       24.0%       23.2%     0.8%
Skin Care                                   4.6%        4.5%     0.1%
Total pharmaceutical product net sales     18.1%       17.4%     0.7%



Adjusted Botox/Neuromodulator net sales


                             Twelve
                             months
                             ended         Twelve months ended
                                     --------------------------------
                            Dec. 31, Dec. 31,  Dec. 31,    Dec. 31,
                             2006     2005       2005        2005
                                              adjustments as adjusted
                            -------- -------- ----------- -----------
                              (c)      (c)        (b)


Botox/Neuromodulator
 Therapeutic net sales       $510.7   $473.6      $(38.8)     $434.8
Botox/Neuromodulator
 Cosmetic net sales           471.5    357.3          --       357.3
                            -------- -------- ----------- -----------
Total Botox/Neuromodulator
 net sales                   $982.2   $830.9      $(38.8)     $792.1
                            ======== ======== =========== ===========


                                          Change in adjusted net sales
                                          ----------------------------


                                                $             %
                                          ------------- --------------


Botox/Neuromodulator Therapeutic net
 sales                                           $75.9           17.4%
Botox/Neuromodulator Cosmetic net sales          114.2           32.0%
                                          -------------
Total Botox/Neuromodulator net sales            $190.1           24.0%
                                          =============

(a) Adjustments to pharmaceutical product net sales consist of Botox net sales in Japan in 2005 of $11.4 and $38.8 million for the three and twelve month periods ended December 31, 2005, respectively.

(b) Adjustments to Botox/Neuromodulator net sales consist of Therapeutic net sales in Japan in 2005 of $38.8 million for the twelve month period ended December 31, 2005.

(c) The breakout between therapeutic and cosmetic net sales is subjectively determined based upon management's estimate of use based on customer specialty, product SKU and limited third party customer surveys.

In this press release, Allergan reported sales performance using the non-GAAP financial measure of constant currency sales. Constant currency sales represent current period reported sales adjusted for the translation effect of changes in average foreign exchange rates between the current period and the corresponding period in the prior year. Allergan calculates the curr