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  1. 1. David E.I. Pyott Chairman & CEO Allergan, Inc. Global Supply Chain – Beyond Logistics Alone
  2. 2. A Global Leader in Specialty Pharmaceuticals and Medical Devices <ul><li>Founded 1950 in Los Angeles </li></ul><ul><li>David Pyott is 3rd CEO in 58 year history </li></ul><ul><ul><li>~ Approximately 8,800 employees </li></ul></ul><ul><ul><li>~ 2008 sales approximately $4.3 billion </li></ul></ul><ul><ul><li>23 sales subsidiaries in No. America, Europe, Asia–Pacific, Latin America </li></ul></ul><ul><ul><li>Market capitalization approx $12 billion*, 8 times increase since 1997 </li></ul></ul>Plants R&D Facilities
  3. 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. 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. 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. 6. Global Leader in a Few Selected Medical Specialties Yellow-shaded sections represent areas of interest for licensing and acquisitions <ul><li>Follow R&D technologies into specialties </li></ul><ul><li>Build presence within specialties organically and by acquisitions </li></ul>Ophthalmology <ul><li>Glaucoma </li></ul><ul><li>LUMIGAN ® </li></ul><ul><li>ALPHAGAN ® </li></ul><ul><li>GANFORT™ </li></ul><ul><li>COMBIGAN™ </li></ul><ul><li>IOP lowering </li></ul><ul><ul><li>PG Analog </li></ul></ul><ul><ul><li>Sus. Release </li></ul></ul>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 <ul><li>GSK Co-promote </li></ul><ul><li>IMITREX ® </li></ul><ul><li>AMERGE ® </li></ul>Medical Dermatology TAZORAC ® Topical - Cream - Gel ACZONE ® - Topical Acne BOTOX ® - Hyperhidrosis * Plastic surgery & dermatology OAB - SANCTURA XR™ - BOTOX ® <ul><li>Dry Eye </li></ul><ul><li>RESTASIS ® </li></ul><ul><li>REFRESH ® </li></ul><ul><li>OPTIVE™ </li></ul><ul><li>Ocular Surface Disease </li></ul><ul><li>ACULAR ® </li></ul><ul><li>ZYMAR ® </li></ul><ul><li>ELESTAT ® </li></ul><ul><li>ALOCRIL ® </li></ul>Medical Aesthetics * <ul><li>Physician </li></ul><ul><li>Dispensed </li></ul><ul><li>Creams </li></ul><ul><li>CLINIQUE MEDICAL </li></ul><ul><li>M.D. FORTE ® </li></ul><ul><li>PREVAGE ® MD </li></ul><ul><li>VIVITÉ ® </li></ul>Breast Aesthetics Dermal Fillers - JUVÉDERM™ - SURGIDERM ® - VOLUMA™ BOTOX ® COSMETIC Bimatoprost - Eyelash Growth Targeted BOTOX ® (Next Generation) - Pain Bladder Cancer - Apaziquone (EOQUIN ® )
  7. 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 <ul><li>Investment doubled in 3 years </li></ul><ul><li>Top quartile R&D investment as a % of sales in pharma / medical device 4 </li></ul><ul><li>R&D Network </li></ul><ul><li>Irvine </li></ul><ul><li>London </li></ul><ul><li>Lausanne </li></ul><ul><li>Bangalore </li></ul>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. 8. <ul><li>Highly concentrated manufacturing </li></ul><ul><ul><li>1997 10 plants for $0.6B in sales to 2009 5 plants with ~$4.5B in sales </li></ul></ul><ul><li>1998 - collapsed number of manufacturing plants from 10 to 5 </li></ul><ul><li>2006 - acquired Inamed Corporation, Santa Barbara </li></ul><ul><ul><li>by 2009 moved from 3 plants to 1 </li></ul></ul><ul><ul><li> - acquired Corneal France </li></ul></ul><ul><li>2009 Footprint - 5 plants </li></ul><ul><ul><li>Botox - Global Supply - Ireland </li></ul></ul><ul><ul><li>Dermal Fillers - Global Supply - France </li></ul></ul><ul><ul><li>Breast Implants - Global Supply - Costa Rica </li></ul></ul><ul><ul><li>LAP-BAND - Global Supply - Costa Rica </li></ul></ul><ul><ul><li>Ophthalmic Pharmaceuticals - Texas  N. America </li></ul></ul><ul><ul><li>- Brazil  S. America </li></ul></ul><ul><ul><li>- Ireland  Europe, Africa, Asia Pacific </li></ul></ul>Global Supply Chain Beyond Logistics Alone
  9. 9. <ul><li>Plant concentration </li></ul><ul><ul><li>Driven by </li></ul></ul><ul><ul><li>Capital intensity </li></ul></ul><ul><ul><li>Ever higher Good Manufacturing Practices standards (GMP) </li></ul></ul><ul><ul><li>Good Laboratory Practices standards (GLP) </li></ul></ul><ul><ul><li>Rigorous government inspections requiring specialist skills </li></ul></ul><ul><li>Benefit of Fx diversification </li></ul><ul><ul><li>Dual registrations for product licenses </li></ul></ul><ul><li>Inventory de-risking </li></ul>Global Supply Chain Beyond Logistics Alone
  10. 10. <ul><li>Strategy of focusing on selected medical specialties </li></ul><ul><li>Typically 10,000 physicians in U.S. and equivalent in foreign markets </li></ul><ul><li>Strategic advantage vs “Big Pharma” companies </li></ul><ul><ul><li>Focus of R&D investment and experience </li></ul></ul><ul><ul><li>Typically largest sales force in world </li></ul></ul><ul><li>Global selling and marketing infrastructure </li></ul><ul><ul><li>23 sales subsidiaries </li></ul></ul><ul><ul><li>+ ~70 distributors </li></ul></ul><ul><ul><li>Regional marketing: Irvine, Toronto, Sao Paulo, London, Singapore </li></ul></ul>Global Supply Chain Beyond Logistics Alone
  11. 11. Allergan’s Leading Market Share Positions Product launched 2008 No. 5 3% <ul><li>Urology </li></ul>No. 6 6% <ul><li>Medical Dermatology </li></ul>U.S. Share No. 1 77% <ul><li>Gastric Bands & Balloons </li></ul>No. 2 38% <ul><li>Breast Aesthetics </li></ul>No. 2 30% <ul><li>Dermal Fillers </li></ul>No. 1 85% <ul><li>Botox </li></ul>Fastest Growing Company for 5 years No. 2 16% <ul><li>Ophthalmic Pharmaceuticals </li></ul>Rank Global Share

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