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  • 1. David E.I. Pyott Chairman & CEO Allergan, Inc. Global Supply Chain – Beyond Logistics Alone
  • 2. A Global Leader in Specialty Pharmaceuticals and Medical Devices
    • Founded 1950 in Los Angeles
    • David Pyott is 3rd CEO in 58 year history
      • ~ Approximately 8,800 employees
      • ~ 2008 sales approximately $4.3 billion
      • 23 sales subsidiaries in No. America, Europe, Asia–Pacific, Latin America
      • Market capitalization approx $12 billion*, 8 times increase since 1997
    Plants R&D Facilities
  • 3. High Revenue Growth Driven by Innovation $ in billions * Pharmaceutical only, in local currency excluding divested products 1 Growth in local currency includes Allergan Medical, excluding BOTOX ® Japan 2 Growth in local currency Includes Allergan Medical, EndoArt, and Corneal 21% Compound Annual Sales Growth 1998 - 2007 $0.7 1998* 1999* 2000* 2001* 2002* 2003* 2004* 2005* 2006 2007 +25% +25% +26% +18% +21% +20% +15% +16% +26% 2 $3.9 +34% 1 $3.0 AGN Allergan Medical Allergan Medical +105% (Organic +49%) +14% $2.7 $0.7 $0.8 $1.0 $1.1 $1.4 $1.7 $2.0 $2.3 $2.6 $3.1 1998* 1999* 2000* 2001* 2002* 2003* 2004* 2005* 2006 2007 +25% +25% +26% +18% +21% +20% +15% +16% +26% 2 $3.9 +34% 1 $3.0 $0.4 $0.8 AGN Rx +17% Rx +15% Allergan Medical Allergan Medical +105% (Organic Allergan Medical +105% (Organic AGN Rx +15% YTD Q3 ‘08 Allergan Medical +12% $3.3 $0.6
  • 4. Strong EPS 1 Growth 1 Adjusted for non-GAAP items and 2002 spin-off of Advanced Medical Optics, Inc. Includes the effect of EITF 04-8. Historical EPS adjusted for Q2 2007 stock split. See reconciliation at end of presentation. 2 Pre IRS Tax Settlement 3 2006 EPS growth excludes FAS 123R stock option expense 21% Compound Annual EPS Growth +25% +22% +20% +20% +27% +18% 3 +19% 2000 2001 2002 2003 2004 2005 2 2006 2007 $0.59 $0.74 $0.94 $1.15 $1.38 $1.65 $1.83 $2.18
  • 5. Diversified Business Segments * Proforma growth in US $ including Inamed, Corneal, and EndoArt in prior year Breast Aesthetics 8% (+30%) * Obesity Intervention 7% (+54%) * BOTOX ® Cosmetic 16% (+29%) Ophthalmology 45% (+16%) Facial Aesthetics 5% (+102%) * BOTOX ® Therapeutic 16% (+19%) Skin Care 3% (-12%) FY 2007 $3.9 Billion +29%
  • 6. Global Leader in a Few Selected Medical Specialties Yellow-shaded sections represent areas of interest for licensing and acquisitions
    • Follow R&D technologies into specialties
    • Build presence within specialties organically and by acquisitions
    Ophthalmology
    • Glaucoma
    • LUMIGAN ®
    • ALPHAGAN ®
    • GANFORT™
    • COMBIGAN™
    • IOP lowering
      • PG Analog
      • Sus. Release
    Retina - POSURDEX ® - TRIVARIS™ - AGN-745 (siRNA) - Brimo-DDS - TKI Urologics BPH - BOTOX ® Obesity - LAP-BAND ® - BIB™ - EASYBAND™ Neurosciences BOTOX ® Therapeutic - Spasticity, CD, Headache, JCP, etc. Alpha Agonists - Pain
    • GSK Co-promote
    • IMITREX ®
    • AMERGE ®
    Medical Dermatology TAZORAC ® Topical - Cream - Gel ACZONE ® - Topical Acne BOTOX ® - Hyperhidrosis * Plastic surgery & dermatology OAB - SANCTURA XR™ - BOTOX ®
    • Dry Eye
    • RESTASIS ®
    • REFRESH ®
    • OPTIVE™
    • Ocular Surface Disease
    • ACULAR ®
    • ZYMAR ®
    • ELESTAT ®
    • ALOCRIL ®
    Medical Aesthetics *
    • Physician
    • Dispensed
    • Creams
    • CLINIQUE MEDICAL
    • M.D. FORTE ®
    • PREVAGE ® MD
    • VIVITÉ ®
    Breast Aesthetics Dermal Fillers - JUVÉDERM™ - SURGIDERM ® - VOLUMA™ BOTOX ® COSMETIC Bimatoprost - Eyelash Growth Targeted BOTOX ® (Next Generation) - Pain Bladder Cancer - Apaziquone (EOQUIN ® )
  • 7. R&D Integral to “Supply Chain” 1 Adjusted for non-GAAP items. See reconciliation at end of presentation. (Periods 1998-2001 not restated for 2006 change in financial reporting of amortization of acquired intangible assets) 2 Includes Allergan Medical activities for 9 months. 3 2008E represents midpoint of guidance provided on October 29, 2008 and has not been updated. This presentation does not reaffirm such guidance. 4 Internal analysis of public filings of AGN peer group
    • Investment doubled in 3 years
    • Top quartile R&D investment as a % of sales in pharma / medical device 4
    • R&D Network
    • Irvine
    • London
    • Lausanne
    • Bangalore
    2006 2 2007 $98 $135 $164 $188 1 $228 1 $305 1 $343 1 $384 1 $476 1 R&D $ (in millions) R&D as a % of Sales ~$734 $646 1 - 100 200 300 400 500 600 700 800 1998 1999 2000 2001 2002 2003 2004 2005 2008E 3 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% +38% +15% +21% +34% +21% +12% +12% +24% +36% +14%
  • 8.
    • Highly concentrated manufacturing
      • 1997 10 plants for $0.6B in sales to 2009 5 plants with ~$4.5B in sales
    • 1998 - collapsed number of manufacturing plants from 10 to 5
    • 2006 - acquired Inamed Corporation, Santa Barbara
      • by 2009 moved from 3 plants to 1
      • - acquired Corneal France
    • 2009 Footprint - 5 plants
      • Botox - Global Supply - Ireland
      • Dermal Fillers - Global Supply - France
      • Breast Implants - Global Supply - Costa Rica
      • LAP-BAND - Global Supply - Costa Rica
      • Ophthalmic Pharmaceuticals - Texas  N. America
      • - Brazil  S. America
      • - Ireland  Europe, Africa, Asia Pacific
    Global Supply Chain Beyond Logistics Alone
  • 9.
    • Plant concentration
      • Driven by
      • Capital intensity
      • Ever higher Good Manufacturing Practices standards (GMP)
      • Good Laboratory Practices standards (GLP)
      • Rigorous government inspections requiring specialist skills
    • Benefit of Fx diversification
      • Dual registrations for product licenses
    • Inventory de-risking
    Global Supply Chain Beyond Logistics Alone
  • 10.
    • Strategy of focusing on selected medical specialties
    • Typically 10,000 physicians in U.S. and equivalent in foreign markets
    • Strategic advantage vs “Big Pharma” companies
      • Focus of R&D investment and experience
      • Typically largest sales force in world
    • Global selling and marketing infrastructure
      • 23 sales subsidiaries
      • + ~70 distributors
      • Regional marketing: Irvine, Toronto, Sao Paulo, London, Singapore
    Global Supply Chain Beyond Logistics Alone
  • 11. Allergan’s Leading Market Share Positions Product launched 2008 No. 5 3%
    • Urology
    No. 6 6%
    • Medical Dermatology
    U.S. Share No. 1 77%
    • Gastric Bands & Balloons
    No. 2 38%
    • Breast Aesthetics
    No. 2 30%
    • Dermal Fillers
    No. 1 85%
    • Botox
    Fastest Growing Company for 5 years No. 2 16%
    • Ophthalmic Pharmaceuticals
    Rank Global Share