Allergan Reports Fourth Quarter 2012 Operating Results

Tue Feb 5, 2013 9:00am EST

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IRVINE, Calif.--(Business Wire)--
Allergan, Inc. (NYSE: AGN) today announced operating results for the quarter
ended December 31, 2012. Allergan also announced that its Board of Directors has
declared a fourth quarter dividend of $0.05 per share, payable on March 21, 2013
to stockholders of record on February 28, 2013. 

Operating Results Attributable to Stockholders

For the quarter ended December 31, 2012:

* Allergan reported $1.06 diluted earnings per share attributable to
stockholders compared to $0.90 diluted earnings per share attributable to
stockholders for the fourth quarter of 2011. 
* Allergan reported $1.15 non-GAAP diluted earnings per share attributable to
stockholders compared to $1.00 non-GAAP diluted earnings per share attributable
to stockholders for the fourth quarter of 2011, a 15.0 percent increase. 
* Diluted and non-GAAP diluted earnings per share for the fourth quarter of 2012
exclude the full year 2012 impact of the U.S. Research and Development tax
credit, which was signed into law on January 2, 2013 and retroactively
reinstated to January 1, 2012. The estimated impact of the Research and
Development tax credit on net earnings attributable to Allergan for the full
year 2012, which will be reported in Allergan`s operating results in the first
quarter of 2013, was approximately $17.3 million, or $0.06 diluted earnings per
share based on weighted average diluted shares outstanding of 307.1 million for
the full year 2012.

Product Sales

For the quarter ended December 31, 2012:

* Allergan reported $1,484.6 million total product net sales. Total product net
sales increased 7.4 percent compared to total product net sales in the fourth
quarter of 2011. On a constant currency basis, total product net sales increased
8.1 percent compared to total product net sales in the fourth quarter of 2011.

* Total specialty pharmaceuticals net sales increased 8.2 percent, or 9.0
percent on a constant currency basis, compared to total specialty
pharmaceuticals net sales in the fourth quarter of 2011. 
* Total medical devices net sales increased 2.9 percent, or 3.6 percent on a
constant currency basis, compared to total medical devices net sales in the
fourth quarter of 2011.

"Evidenced by our recent acquisitions of SkinMedica and MAP Pharmaceuticals and
our decision to declare our obesity intervention assets as a discontinued
business, we are dynamically managing our portfolio to drive long term sales
growth," said David E.I. Pyott, Allergan`s Chairman of the Board, President and
Chief Executive Officer. "In 2013, we look forward to making a notable increase
in R&D investment, to secure several regulatory approvals and to growing our
markets." 

Based on internal information and assumptions, full year 2012 therapeutic sales
accounted for approximately 52% of total BOTOX (onabotulinumtoxinA) sales and
increased approximately 13% compared to 2011. Full year 2012 aesthetic sales
accounted for approximately 48% of total BOTOX sales and increased approximately
8% compared to 2011. 

Product and Pipeline Update

During the fourth quarter of 2012:

* On November 16, 2012, Allergan announced that it had entered into a definitive
agreement with SkinMedica, Inc. to acquire the privately held company`s topical
aesthetics skin care business. On December 19, 2012, Allergan announced
completion of the acquisition of SkinMedica, Inc. Under the terms of the
agreement, Allergan paid approximately $350 million (subject to certain
adjustments) for the business, which includes a variety of "physician dispensed"
non-prescription aesthetic skin care products and prescription products. 
* On November 19, 2012, Allergan received the European Commission decision for a
new preservative-free formulation of LUMIGAN (Bimatoprost Ophthalmic Solution)
0.03% in single-dose containers for the 27 countries of the European Union.
LUMIGAN is licensed for the reduction of elevated intraocular pressure (IOP) in
adults with chronic open-angle glaucoma and ocular hypertension and is now
available in a formulation for those patients who require a preservative-free
treatment. 
* In December 2012, the U.S. District Court in Santa Ana, California granted
Allergan`s summary judgment motions, finding that Lifetech`s Rapidlash, Cosmetic
Alchemy`s LiLash, and Rocasuba`s neuLash lines of products are drugs sold
without approval and are therefore misbranded in violation of California law as
well as the federal statutes which California law incorporates. On October 12,
2012, the court denied a motion by Athena Cosmetics, Inc. for reconsideration of
the court`s decision to grant Allergan`s motion for summary judgment against
Athena Cosmetics, Inc. on our unfair competition cause of action. In July 2012,
the court granted Allergan`s summary judgment motion, finding that Athena`s
Revitalash line of products are drugs sold without approval and are therefore
misbranded in violation of California law as well as the federal statutes which
California law incorporates. 
* On December 19, 2012, Allergan announced that BOTOX (botulinum toxin type A)
received a positive opinion from the Irish Medicines Board for the treatment of
idiopathic overactive bladder (OAB) with symptoms of urinary incontinence,
urgency and frequency in adult patients who have an inadequate response to, or
are intolerant of, anticholinergic medications. This is an important step
towards securing national licenses in the 14 European countries involved in the
Mutual Recognition Procedure. 
* Allergan submitted a supplemental biologics license application (sBLA) with
the U.S. Food and Drug Administration (FDA) for the use of BOTOX Cosmetic
(onabotulinumtoxinA)for the temporary improvement in the appearance of moderate
to severe lateral canthal lines (crow`s feet lines) in adults treated either
alone or simultaneously with glabellar lines.

Following the end of the fourth quarter of 2012:

* On January 18, 2013, Allergan announced that the FDA approved BOTOX
(onabotulinumtoxinA) for the treatment of overactive bladder with symptoms of
urge urinary incontinence, urgency and frequency in adults who have had an
inadequate response to or are intolerant of an anticholinergic medication. 
* On January 22, 2013, Allergan and MAP Pharmaceuticals announced that they
entered into a definitive merger agreement whereby Allergan will acquire 100% of
the shares of MAP Pharmaceuticals for a price of $25.00 per share. MAP
Pharmaceuticals is a biopharmaceutical company focused on developing and
commercializing new therapies in Neurology, including Levadex, an orally inhaled
drug for the potential acute treatment of migraine in adults. Levadex is
currently under review with the FDA. 
* In January 2013, Allergan restructured its collaboration agreement with
Spectrum Pharmaceuticals, Inc. ("Spectrum") pursuant to which Spectrum
reacquired all rights from Allergan under the collaboration agreement in
exchange for agreeing to pay Allergan a royalty on future net sales of specified
products. Going forward, Allergan will have no further obligations under the
agreement to share development costs or perform any development, regulatory or
other activities. 
* On February 1, 2013, Allergan completed its previously announced review of
strategic options for maximizing the value of its obesity intervention business,
and has formally committed to pursue a sale of that business unit. Accordingly,
Allergan will begin to consider offers for the sale of that business unit and
currently expects to execute a signed agreement in the first half of 2013. As a
result of Allergan`s approved plan to sell its obesity intervention business
unit, beginning in the first quarter of 2013, Allergan expects to report the
financial results from that business unit in discontinued operations in its
statement of earnings and balance sheet, and intends to retrospectively adjust
its prior period statements of earnings and its balance sheet as of December 31,
2012 to reflect the classification of assets and liabilities held for sale as
discontinued operations. In the first quarter of 2013, Allergan expects to
report income from discontinued operations and a separate expected disposal loss
from the write-down to fair value of the net assets held for sale. Allergan is
currently unable to estimate the range of the expected disposal loss. As
previously stated, Allergan intends to offset any potential earnings dilution
related to this transaction.

Outlook

For the full year of 2013, Allergan expects:

* Total product net sales between $5,900 million and $6,200 million, which
excludes the obesity intervention business.

* Total specialty pharmaceuticals net sales between $5,100 million and $5,340
million. 
* Total medical devices net sales between $800 million and $860 million. 
* ALPHAGANfranchise product net sales between $440 million and $470 million. 
* LUMIGANfranchise product netsales between $630 million and $660 million. 
* RESTASIS product netsales between $830 million and $870 million. 
* BOTOX product netsales between $1,900 million and $2,000 million. 
* LATISSE product netsales at approximately $110 million. 
* Breast aestheticsproduct netsales between $390 million and $420 million. 
* Facial aesthetics product netsales between $410 million and $440 million.

* Non-GAAP cost of sales to product net sales ratio at approximately 13.5%. 
* Non-GAAP other revenue at approximately $90 million. 
* Non-GAAP selling, general and administrative expenses to product net sales
ratio between 37% and 38%. 
* Non-GAAP research and development expenses to product net sales ratio at
approximately 16.5%. 
* Non-GAAP amortization of intangible assets at approximately $25 million. This
expectation excludes the amortization of certain intangible assets associated
with business combinations, asset purchases and product licenses. 
* Non-GAAP diluted earnings per share attributable to stockholders between $4.75
and $4.83, which excludes the 2012 impact of the Research and Development tax
credit, which was signed into law on January 2, 2013 and retroactively
reinstated to January 1, 2012, and excludes the dilutive impact of the proposed
acquisition of MAP Pharmaceuticals as discussed on the January 23, 2013
conference call. 
* Diluted shares outstanding at approximately 303 million. 
* Effective tax rate on non-GAAP earnings between 26% and 27%.

For the first quarter of 2013, Allergan expects:

* Total product net sales between $1,375 million and $1,450 million, which
excludes the obesity intervention business. 
* Non-GAAP diluted earnings per share attributable to stockholders between $0.94
and $0.96, which excludes the 2012 impact of the Research and Development tax
credit, which was signed into law on January 2, 2013 and retroactively
reinstated to January 1, 2012, and excludes the dilutive impact of the proposed
acquisition of MAP Pharmaceuticals as discussed on the January 23, 2013
conference call.

In this press release, Allergan reports certain historical and expected non-GAAP
results, including earnings attributable to Allergan, Inc., non-GAAP basic and
diluted earnings per share attributable to stockholders as well as non-GAAP
other revenue, non-GAAP cost of sales, non-GAAP selling, general and
administrative expenses, non-GAAP research and development expenses, non-GAAP
amortization of intangible assets, non-GAAP impairment of intangible assets and
related costs, non-GAAP restructuring charges, non-GAAP interest expense,
non-GAAP other, net, non-GAAP earnings before income taxes, non-GAAP provision
for income taxes, non-GAAP net earnings and non-GAAP net sales reported in
constant currency. Non-GAAP financial measures are reconciled to the most
directly comparable GAAP financial measure in the financial tables of this press
release and the accompanying footnotes. The information that accompanies the
financial tables of this press release also includes an explanation of why
Allergan uses these non-GAAP financial measures, certain limitations associated
with the use of these non-GAAP financial measures, the manner in which Allergan
management compensates for those limitations, and the reasons why Allergan
management believes that these non-GAAP financial measures provide useful
information to investors. 

Forward-Looking Statements

This press release contains forward-looking statements, including but not
limited to the statements by Mr. Pyott and other statements regarding product
development, external corporate development initiatives and strategic partnering
transactions, market potential, expected growth and regulatory approvals as well
as Allergan`s earnings per share, product net sales, revenue forecasts and any
other statements that refer to Allergan`s expected, estimated or anticipated
future results. 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 the end of the applicable reporting period. 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. 

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, the following: 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, including government pricing, tax and
reimbursement policies; 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 litigation, 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, U.S. and international economic conditions,
including higher unemployment, financial hardship, consumer confidence and debt
levels, taxation, changes in interest and currency exchange rates, international
relations, capital and credit availability, the status of financial markets and
institutions, fluctuations or devaluations in the value of sovereign government
debt, as well as the general impact of continued economic volatility, 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 U.S. Securities and Exchange
Commission, including the discussion under the heading "Risk Factors" in
Allergan`s 2011 Annual Report on Form 10-K and subsequent Quarterly Reports on
Form 10-Q. Copies of Allergan`s press releases and additional information about
Allergan are available at www.allergan.com or you can contact the Allergan
Investor Relations Department by calling 714-246-4636. 

About Allergan, Inc.

Allergan is a multi-specialty health care company established more than 60 years
ago with a commitment to uncover the best of science and develop and deliver
innovative and meaningful treatments to help people reach their life`s
potential. Today, we have approximately 10,800 highly dedicated and talented
employees, global marketing and sales capabilities with a presence in more than
100 countries, a rich and ever-evolving portfolio of pharmaceuticals, biologics,
medical devices and over-the-counter consumer products, and state-of-the-art
resources in R&D, manufacturing and safety surveillance that help millions of
patients see more clearly, move more freely and express themselves more fully.
From our beginnings as an eye care company to our focus today on several medical
specialties, including eye care, neurosciences, medical aesthetics, medical
dermatology, breast aesthetics, obesity intervention and urologics, Allergan is
proud to celebrate more than 60 years of medical advances and proud to support
the patients and physicians who rely on our products and the employees and
communities in which we live and work. For more information regarding Allergan,
go to: www.allergan.com. 

 and  marks owned by Allergan, Inc.
Revitalashis a registered trademark of Athena Cosmetics, Inc.
Rapidlash is a registered trademark of Lifetech Resources
LiLash is a registered trademark of Kurt Wasserman Consulting
neuLash is a registered trademark of Lifetech Resources
Levadex is a registered trademark of MAP Pharmaceuticals, Inc.

 ALLERGAN, INC.                                                                                                                                                                                                                             
 Condensed Consolidated Statements of Earnings and                                                                                                                                                                                          
 Reconciliation of Non-GAAP Adjustments                                                                                                                                                                                                     
 (Unaudited)                                                                                                                                                                                                                                
                                                                                                                                                                                                                                            
                                                                       Three months ended                                                                                                                                                   
 In millions, except per share amounts                                 December 31, 2012                                                                       December 31, 2011                                                            
                                                                                                Non-GAAP                                                                                Non-GAAP                                            
                                                                       GAAP                     Adjustments                        Non-GAAP                    GAAP                     Adjustments                      Non-GAAP           
 Revenues                                                                                                                                                                                                                                   
 Product net sales                                                     $   1,484.6              $     --                           $    1,484.6                $   1,382.8              $     --                         $    1,382.8       
 Other revenues                                                            24.3                       --                                24.3                       19.5                       --                              19.5          
                                                                           1,508.9                    --                                1,508.9                    1,402.3                    --                              1,402.3       
                                                                                                                                                                                                                                            
 Operating costs and expenses                                                                                                                                                                                                               
 Cost of sales (excludes amortization of                                   189.2                      --                                189.2                      182.0                      --                              182.0         
 intangible assets)                                                                                                                                                                                                                         
 Selling, general and administrative                                       557.9                      6.9    (a)(b)(c)(d)               564.8                      551.9                      (12.3  )(k)(l)(m)               539.6         
 Research and development                                                  239.3                      --                                239.3                      226.4                (0.2         )(n)                     226.2         
 Amortization of intangible assets                                         33.2                       (27.4  )(e)                       5.8                        32.0                       (26.1  )(e)                     5.9           
 Impairment of intangible assets and related costs                         22.3                       (22.3  )(f)                       --                         --                         --                              --            
 Restructuring charges                                                     1.0                        (1.0   )(g)                       --                         --                         --                              --            
                                                                                                                                                                                                                                            
 Operating income                                                          466.0                      43.8                              509.8                      410.0                      38.6                            448.6         
                                                                                                                                                                                                                                            
 Non-operating income (expense)                                                                                                                                                                                                             
 Interest income                                                           1.9                        --                                1.9                        1.3                        --                              1.3           
 Interest expense                                                          (14.8    )                 0.1    (h)                        (14.7    )                 (16.7    )                 --                              (16.7    )    
 Other, net                                                                (3.8     )                 0.1    (i)                        (3.7     )                 (10.9    )           3.6          (o)(p)(q)                (7.3     )    
                                                                           (16.7    )                 0.2                               (16.5    )                 (26.3    )                 3.6                             (22.7    )    
                                                                                                                                                                                                                                            
 Earnings before income taxes                                              449.3                      44.0                              493.3                      383.7                      42.2                            425.9         
                                                                                                                                                                                                                                            
 Provision for income taxes                                                124.1                      17.0   (j)                        141.1                      104.0                10.9         (r)                      114.9         
                                                                                                                                                                                                                                            
 Net earnings                                                              325.2                      27.0                              352.2                      279.7                      31.3                            311.0         
                                                                                                                                                                                                                                            
 Net earnings (loss) attributable to noncontrolling interest               1.0                        --                                1.0                        (0.1     )                 --                              (0.1     )    
                                                                                                                                                                                                                                            
 Net earnings attributable to Allergan, Inc.                           $   324.2                $     27.0                         $    351.2                  $   279.8                $     31.3                       $    311.1         
                                                                                                                                                                                                                                            
 Net earnings per share attributable to                                                                                                                                                                                                     
 Allergan, Inc. stockholders:                                                                                                                                                                                                               
 Basic                                                                 $   1.08                                                    $    1.17                   $   0.92                                                  $    1.02          
 Diluted                                                               $   1.06                                                    $    1.15                   $   0.90                                                  $    1.00          
                                                                                                                                                                                                                                            
 Weighted average number of common                                                                                                                                                                                                          
 shares outstanding:                                                                                                                                                                                                                        
 Basic                                                                     299.8                                                        299.8                      304.2                                                      304.2         
 Diluted                                                                   305.1                                                        305.1                      310.0                                                      310.0         
                                                                                                                                                                                                                                            
 Selected ratios as a percentage of product net sales                                                                                                                                                                                       
                                                                                                                                                                                                                                            
 Cost of sales (excludes amortization of                                   12.7     %                                                   12.7     %                 13.2     %                                                 13.2     %    
 intangible assets)                                                                                                                                                                                                                         
 Selling, general and administrative                                       37.6     %                                                   38.0     %                 39.9     %                                                 39.0     %    
 Research and development                                                  16.1     %                                                   16.1     %                 16.4     %                                                 16.4     %    
                                                                                                                                                                                                                                            


 (a)        Income from changes in fair value of contingent consideration of $10.4 million and integration and transaction costs of $1.5 million associated with business combinations                                                                                           
 (b)        External costs of $0.8 million for stockholder derivative and tax litigation costs associated with the U.S. Department of Justice (DOJ) settlement announced in September 2010                                                                                       
 (c)        Expenses related to the realignment of various business functions and the restructuring of the obesity intervention business of $1.0 million                                                                                                                         
 (d)        Transaction costs of $0.2 million associated with the license and collaboration agreements with Molecular Partners AG for technology that has not achieved regulatory approval                                                                                       
 (e)        Amortization of certain intangible assets related to business combinations, asset acquisitions and product licenses                                                                                                                                                  
 (f)        Impairment of an in-process research and development asset related to technology acquired in connection with the 2011 acquisition of Vicept Therapeutics, Inc. of $17.0 million and a prepaid royalty asset associated with the Sanctura® franchise of $5.3 million  
 (g)        Net restructuring charges                                                                                                                                                                                                                                            
 (h)        Interest expense associated with changes in estimated taxes related to uncertain tax positions included in prior year filings                                                                                                                                        
 (i)        Unrealized loss on the mark-to-market adjustment to derivative instruments                                                                                                                                                                                           
 (j)        Total tax effect for non-GAAP pre-tax adjustments and other income tax adjustments, consisting of the following amounts (in millions):                                                                                                                               


                                                                                                    Tax effect         
 Non-GAAP pre-tax adjustments of $44.0 million                                                      $     (18.0  )     
 Change in estimated taxes related to uncertain tax positions included in prior year filings              1.0          
                                                                                                    $     (17.0  )     


 (k)        Expenses from changes in fair value of contingent consideration of $9.6 million and transaction costs of $0.4 million associated with business combinations  
 (l)        External costs of $0.3 million for stockholder derivative litigation costs associated with the DOJ settlement announced in September 2010                    
 (m)        Costs associated with tax audit settlements for prior years` filings of $2.0 million                                                                         
 (n)        Expenses related to the realignment of research and development functions                                                                                    
 (o)        Unrealized loss on the mark-to-market adjustment to derivative instruments of $0.9 million                                                                   
 (p)        Gain on sale of investments of $0.5 million                                                                                                                  
 (q)        Impairment of a non-marketable equity investment of $3.2 million                                                                                             
 (r)        Total tax effect for non-GAAP pre-tax adjustments                                                                                                            
                                                                                                                                                                         


"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 U.S. Securities and Exchange Commission, with
respect to the three and twelve months ended December 31, 2012 and December 31,
2011 and with respect to anticipated results for the first quarter and full year
of 2013. 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 as reported under GAAP. 

In this press release, Allergan reported the non-GAAP financial measures
"non-GAAP basic and diluted earnings per share attributable to Allergan, Inc.
stockholders" and "non-GAAP earnings attributable to Allergan, Inc." and its
subcomponents "non-GAAP other revenue," "non-GAAP cost of sales," "non-GAAP
selling, general and administrative expenses," "non-GAAP research and
development expenses," "non-GAAP amortization of intangible assets," "non-GAAP
impairment of intangible assets and related costs," "non-GAAP restructuring
charges," "non-GAAP operating income," "non-GAAP interest expense," "non-GAAP
other, net," "non-GAAP earnings before income taxes," "non-GAAP provision for
income taxes," and "non-GAAP net earnings." Allergan uses non-GAAP earnings to
enhance the investor`s overall understanding of the financial performance and
prospects for the future of Allergan`s core business activities. Non-GAAP
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 non-GAAP
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 non-GAAP earnings for evaluating management
performance for compensation purposes. 

Despite the importance of non-GAAP earnings in analyzing Allergan`s underlying
business, the budgeting and forecasting process and designing incentive
compensation, non-GAAP earnings has no standardized meaning defined by GAAP.
Therefore, non-GAAP 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, legal settlements, and certain
acquisitions, including severance and facility transition costs associated with
acquisitions; 
* it does not reflect asset impairment charges or 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 impact on earnings of charges or income resulting from
certain matters Allergan considers not to be indicative of its on-going
operations; and 
* other companies in Allergan`s industry may calculate non-GAAP earnings
differently than it does, which may limit its usefulness as a comparative
measure.

Allergan compensates for these limitations by using non-GAAP earnings only to
supplement net earnings 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 earnings
and cash flows determined under GAAP as compared to non-GAAP earnings, and to
perform their own analysis, as appropriate. 

In this press release, Allergan also 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 currency effect
by comparing adjusted current period reported amounts, calculated using the
monthly average foreign exchange rates for the corresponding period in the prior
year, to the actual current period reported amounts. Management refers to growth
rates at constant currency so that sales results can be viewed without the
impact of changing foreign currency exchange rates, thereby facilitating
period-to-period comparisons of Allergan`s sales. Generally, when the dollar
either strengthens or weakens against other currencies, the growth at constant
currency rates will be higher or lower, respectively, than growth reported at
actual exchange rates. 

Reporting sales performance using constant currency sales has the limitation of
excluding currency effects from the comparison of sales results over various
periods, even though the effect of changing foreign currency exchange rates has
an actual effect on Allergan`s operating results. Investors should consider
these effects in their overall analysis of Allergan`s operating results.

 ALLERGAN, INC.                                                                                                                                                                                                                                     
 Condensed Consolidated Statements of Earnings and                                                                                                                                                                                                  
 Reconciliation of Non-GAAP Adjustments                                                                                                                                                                                                             
 (Unaudited)                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                    
                                                                   Twelve months ended                                                                                                                                                              
 In millions, except per share amounts                             December 31, 2012                                                                         December 31, 2011                                                                      
                                                                                            Non-GAAP                                                                                  Non-GAAP                                                      
                                                                   GAAP                     Adjustments                          Non-GAAP                    GAAP                     Adjustments                                Non-GAAP           
 Revenues                                                                                                                                                                                                                                           
 Product net sales                                                 $   5,708.8              $     --                             $    5,708.8                $   5,347.1              $     --                                   $    5,347.1       
 Other revenues                                                        97.3                       --                                  97.3                       72.0                       --                                        72.0          
                                                                       5,806.1                    --                                  5,806.1                    5,419.1                    --                                        5,419.1       
                                                                                                                                                                                                                                                    
 Operating costs and expenses                                                                                                                                                                                                                       
 Cost of sales (excludes amortization of intangible assets)            775.5                      (0.4    )(a)(b)                     775.1                      748.7                      (0.4    )(l)                              748.3         
 Selling, general and administrative                                   2,268.4                    (19.5   )(b)(c)(d)(e)               2,248.9                    2,246.6              (92.7         )(m)(n)(o)(p)(q)(r)               2,153.9       
 Research and development                                              989.6                      (62.8   )(d)(e)                     926.8                      902.8                (45.2         )(o)(s)                           857.6         
 Amortization of intangible assets                                     131.3                      (107.8  )(f)                        23.5                       127.6                      (104.0  )(f)                              23.6          
 Impairment of intangible assets and related costs                     22.3                       (22.3   )(g)                        --                         23.7                 (23.7         )(p)(t)(u)                        --            
 Restructuring charges                                                 5.7                        (5.7    )(h)                        --                         4.6                        (4.6    )(h)                              --            
                                                                                                                                                                                                                                                    
 Operating income                                                      1,613.3                    218.5                               1,831.8                    1,365.1                    270.6                                     1,635.7       
                                                                                                                                                                                                                                                    
 Non-operating income (expense)                                                                                                                                                                                                                     
 Interest income                                                       6.7                        --                                  6.7                        6.9                        --                                        6.9           
 Interest expense                                                      (63.6    )                 0.9     (i)                         (62.7    )                 (71.8    )           7.3           (v)                               (64.5    )    
 Other, net                                                            (23.1    )                 15.3    (j)                         (7.8     )                 (0.5     )           (9.8          )(w)(x)(y)                        (10.3    )    
                                                                       (80.0    )                 16.2                                (63.8    )                 (65.4    )                 (2.5    )                                 (67.9    )    
                                                                                                                                                                                                                                                    
 Earnings before income taxes                                          1,533.3                    234.7                               1,768.0                    1,299.7                    268.1                                     1,567.8       
                                                                                                                                                                                                                                                    
 Provision for income taxes                                            430.8                      61.2    (k)                         492.0                      361.6                70.8          (z)                               432.4         
                                                                                                                                                                                                                                                    
 Net earnings                                                          1,102.5                    173.5                               1,276.0                    938.1                      197.3                                     1,135.4       
                                                                                                                                                                                                                                                    
 Net earnings attributable to noncontrolling interest                  3.7                        --                                  3.7                        3.6                        --                                        3.6           
                                                                                                                                                                                                                                                    
 Net earnings attributable to Allergan, Inc.                       $   1,098.8              $     173.5                          $    1,272.3                $   934.5                $     197.3                                $    1,131.8       
                                                                                                                                                                                                                                                    
 Net earnings per share attributable to                                                                                                                                                                                                             
 Allergan, Inc. stockholders:                                                                                                                                                                                                                       
 Basic                                                             $   3.64                                                      $    4.22                   $   3.07                                                            $    3.72          
 Diluted                                                           $   3.58                                                      $    4.14                   $   3.01                                                            $    3.65          
                                                                                                                                                                                                                                                    
 Weighted average number of common                                                                                                                                                                                                                  
 shares outstanding:                                                                                                                                                                                                                                
 Basic                                                                 301.5                                                          301.5                      304.4                                                                304.4         
 Diluted                                                               307.1                                                          307.1                      310.2                                                                310.2         
                                                                                                                                                                                                                                                    
 Selected ratios as a percentage of product net sales                                                                                                                                                                                               
                                                                                                                                                                                                                                                    
 Cost of sales (excludes amortization of                               13.6     %                                                     13.6     %                 14.0     %                                                           14.0     %    
 intangible assets)                                                                                                                                                                                                                                 
 Selling, general and administrative                                   39.7     %                                                     39.4     %                 42.0     %                                                           40.3     %    
 Research and development                                              17.3     %                                                     16.2     %                 16.9     %                                                           16.0     %    
                                                                                                                                                                                                                                                    


 (a)        Fair market value inventory adjustment rollout of $0.3 million associated with the purchase of a distributor`s business in Russia related to Allergan`s products                                                                                                                                                                           
 (b)        Expenses from changes in fair value of contingent consideration of $5.4 million and integration and transaction costs of $2.1 million associated with business combinations, consisting of cost of sales of $0.1 million and selling, general and administrative expenses of $2.0 million                                                  
 (c)        Aggregate charges of $9.7 million for external costs for stockholder derivative and tax litigation associated with the DOJ settlement announced in September 2010 and other legal contingency expenses                                                                                                                                     
 (d)        Expenses related to the realignment of various business functions and the restructuring of the obesity intervention business of $2.4 million, consisting of selling, general and administrative expenses of $2.1 million and research and development expenses of $0.3 million                                                             
 (e)        Upfront licensing fees of $62.5 million included in research and development expenses associated with the license and collaboration agreements with Molecular Partners AG for technology that has not achieved regulatory approval and related transaction costs of $0.3 million included in selling, general and administrative expenses  
 (f)        Amortization of certain intangible assets related to business combinations, asset acquisitions and product licenses                                                                                                                                                                                                                        
 (g)        Impairment of an in-process research and development asset related to technology acquired in connection with the 2011 acquisition of Vicept Therapeutics, Inc. of $17.0 million and a prepaid royalty asset associated with the Sanctura® franchise of $5.3 million                                                                        
 (h)        Net restructuring charges                                                                                                                                                                                                                                                                                                                  
 (i)        Interest expense associated with changes in estimated taxes related to uncertain tax positions included in prior year filings                                                                                                                                                                                                              
 (j)        Unrealized loss on the mark-to-market adjustment to derivative instruments                                                                                                                                                                                                                                                                 
 (k)        Total tax effect for non-GAAP pre-tax adjustments and other income tax adjustments, consisting of the following amounts (in millions):                                                                                                                                                                                                     


                                                                                                    Tax effect         
 Non-GAAP pre-tax adjustments of $234.7 million                                                     $     (68.9  )     
 Change in estimated taxes related to uncertain tax positions included in prior year filings              7.7          
                                                                                                    $     (61.2  )     


 (l)        Fair market value inventory adjustment rollout associated with the purchase of a distributor`s business in South Africa related to Allergan`s products                                                                                                                                                                                                                                                                                               
 (m)        Expenses from changes in fair value of contingent consideration of $11.9 million and integration and transaction costs of $1.9 million associated with business combinations                                                                                                                                                                                                                                                                         
 (n)        External costs of $3.4 million for stockholder derivative litigation costs associated with the DOJ settlement announced in September 2010                                                                                                                                                                                                                                                                                                            
 (o)        Upfront licensing fee of $45.0 million included in research and development expenses associated with a license and collaboration agreement with Molecular Partners AG for technology that has not achieved regulatory approval and related transaction costs of $0.1 million included in selling, general and administrative expenses                                                                                                                
 (p)        Fixed asset impairment of $2.2 million and a gain of $9.4 million from the substantially complete liquidation of Allergan`s investment in a foreign subsidiary included in selling, general and administrative expenses, and intangible asset impairment of $16.1 million resulting from the discontinued development of the EasybandTM Remote Adjustable Gastric Band System, a technology acquired by Allergan in the 2007 EndoArt SA acquisition  
 (q)        Upfront payment of $60.0 million and subsequent milestone payment of $20.0 million for the United States Food and Drug Administration acceptance of an New Drug Application filing for technology that has not achieved regulatory approval associated with a collaboration and co-promotion agreement with MAP Pharmaceuticals, Inc. and related transaction costs of $0.6 million                                                                  
 (r)        Costs associated with tax audit settlements for prior years` filings of $2.0 million                                                                                                                                                                                                                                                                                                                                                                 
 (s)        Expenses related to the realignment of research and development functions of $0.2 million                                                                                                                                                                                                                                                                                                                                                            
 (t)        Impairment of an in-process research and development asset related to a tissue reinforcement technology acquired in connection with the 2010 acquisition of Serica Technologies, Inc. of $4.3 million                                                                                                                                                                                                                                                
 (u)        Additional costs of $3.3 million for the termination of a third-party agreement primarily related to the promotion of Sanctura XR® associated with the impairment of the Sanctura® assets in the third quarter of 2010                                                                                                                                                                                                                               
 (v)        Non-cash interest expense associated with amortization of convertible debt discount                                                                                                                                                                                                                                                                                                                                                                  
 (w)        Unrealized gain on the mark-to-market adjustment to derivative instruments of $11.1 million                                                                                                                                                                                                                                                                                                                                                          
 (x)        Gain on sale of investments of $1.9 million                                                                                                                                                                                                                                                                                                                                                                                                          
 (y)        Impairment of a non-marketable equity investment of $3.2 million                                                                                                                                                                                                                                                                                                                                                                                     
 (z)        Total tax effect for non-GAAP pre-tax adjustments                                                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                 


 ALLERGAN, INC.                                                                                                            
 Condensed Consolidated Balance Sheets                                                                                     
 (Unaudited)                                                                                                               
                                                                                                                           
 in millions                                                         December 31,                  December 31,            
                                                                     2012                          2011                    
                                                                                                                           
 Assets                                                                                                                    
                                                                                                                           
 Cash and equivalents                                                $      2,701.8                $      2,406.1          
 Short-term investments                                                     260.6                         179.9            
 Trade receivables, net                                                     764.2                         730.6            
 Inventories                                                                282.9                         249.7            
 Other current assets                                                       449.3                         482.0            
                                                                                                                           
 Total current assets                                                       4,458.8                       4,048.3          
                                                                                                                           
 Property, plant and equipment, net                                         852.9                         807.0            
 Intangible assets, net                                                     1,229.1                       1,165.2          
 Goodwill                                                                   2,239.5                       2,088.4          
 Other noncurrent assets                                                    399.0                         399.7            
                                                                                                                           
 Total assets                                                        $      9,179.3                $      8,508.6          
                                                                                                                           
                                                                                                                           
 Liabilities and equity                                                                                                    
                                                                                                                           
 Notes payable                                                       $      48.8                   $      83.9             
 Accounts payable                                                           233.1                         200.4            
 Other accrued expenses                                                     813.3                         670.7            
                                                                                                                           
 Total current liabilities                                                  1,095.2                       955.0            
                                                                                                                           
 Long-term debt                                                             1,512.4                       1,515.4          
 Other liabilities                                                          709.1                         705.8            
                                                                                                                           
 Equity:                                                                                                                   
 Allergan, Inc. stockholders` equity                                        5,837.1                       5,309.6          
 Noncontrolling interest                                                    25.5                          22.8             
 Total equity                                                               5,862.6                       5,332.4          
                                                                                                                           
 Total liabilities and equity                                        $      9,179.3                $      8,508.6          
                                                                                                                           
 DSO                                                                        47                            48               
                                                                                                                           
 DOH                                                                        136                           125              
                                                                                                                           
 Cash and equivalents and short-term investments                     $      2,962.4                $      2,586.0          
 Total notes payable and long-term debt                                     (1,561.2  )                   (1,599.3  )      
 Cash and equivalents and short-term investments, net of debt        $      1,401.2                $      986.7            
                                                                                                                           
 Debt-to-capital percentage                                                 21.0      %                   23.1      %      
                                                                                                                           


 ALLERGAN, INC.                                                                                                                                                                                                                                                                                        
 Reconciliation of Non-GAAP Earnings and Diluted Earnings Per Share Attributable                                                                                                                                                                                                                       
 to Allergan, Inc. Stockholders                                                                                                                                                                                                                                                                        
 (Unaudited)                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                       
 In millions, except per share amounts                                                                                                                                                                                                     Three months ended                                          
                                                                                                                                                                                                                                           December 31,                           December 31,         
                                                                                                                                                                                                                                           2012                                   
2011                
                                                                                                                                                                                                                                                                                                       
 Net earnings attributable to Allergan, Inc.                                                                                                                                                                                               $      324.2                           $      279.8         
                                                                                                                                                                                                                                                                                                       
 Non-GAAP pre-tax adjustments:                                                                                                                                                                                                                                                                         
 Expenses (income) from changes in fair value of contingent consideration and integration and transaction costs associated with business combinations                                                                                             (8.9   )                               10.0          
 External costs for stockholder derivative and tax litigation associated with the DOJ settlement                                                                                                                                                  0.8                                    0.3           
 Expenses related to the realignment of various business functions and the restructuring of the obesity intervention business                                                                                                                     1.0                                    0.2           
 Transaction costs associated with the license and collaboration agreements with Molecular Partners AG for technology that has not achieved regulatory approval                                                                                   0.2                                    --            
 Amortization of intangible assets                                                                                                                                                                                                                27.4                                   26.1          
 Impairment of an in-process research and development asset related to technology acquired in connection with the 2011 acquisition of Vicept Therapeutics, Inc. and a prepaid royalty asset associated with the Sanctura® franchise               22.3                                   --            
 Net restructuring charges                                                                                                                                                                                                                        1.0                                    --            
 Interest expense associated with changes in estimated taxes related to uncertain tax positions included in prior year filings                                                                                                                    0.1                                    --            
 Unrealized loss on derivative instruments                                                                                                                                                                                                        0.1                                    0.9           
 Costs associated with tax audit settlements for prior years` filings                                                                                                                                                                             --                                     2.0           
 Gain on sale of investments                                                                                                                                                                                                                      --                                     (0.5   )      
 Impairment of a non-marketable equity investment                                                                                                                                                                                                 --                                     3.2           
                                                                                                                                                                                                                                                  368.2                                  322.0         
                                                                                                                                                                                                                                                                                                       
 Tax effect for above items                                                                                                                                                                                                                       (18.0  )                               (10.9  )      
 Change in estimated taxes related to uncertain tax positions included in prior year filings                                                                                                                                                      1.0                                    --            
 Non-GAAP earnings attributable to Allergan, Inc.                                                                                                                                                                                          $      351.2                           $      311.1         
                                                                                                                                                                                                                                                                                                       
 Weighted average number of shares outstanding                                                                                                                                                                                                    299.8                                  304.2         
                                                                                                                                                                                                                                                                                                       
 Net shares assumed issued using the treasury stock method for                                                                                                                                                                                    5.3                                    5.8           
 
options and non-vested equity shares and share units outstanding                                                                                                                                                                                                                                     
 
during each period based on average market price                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                  305.1                                  310.0         
 Diluted earnings per share attributable to Allergan, Inc. stockholders                                                                                                                                                                    $      1.06                            $      0.90          
                                                                                                                                                                                                                                                                                                       
 Non-GAAP earnings per share adjustments:                                                                                                                                                                                                                                                              
 Expenses (income) from changes in fair value of contingent consideration and integration and transaction costs associated with business combinations                                                                                             (0.02  )                               0.03          
 Amortization of intangible assets                                                                                                                                                                                                                0.06                                   0.06          
 Impairment of an in-process research and development asset related to technology acquired in connection with the 2011 acquisition of Vicept Therapeutics, Inc. and a prepaid royalty asset associated with the Sanctura® franchise               0.05                                   --            
 Impairment of a non-marketable equity investment                                                                                                                                                                                                 --                                     0.01          
                                                                                                                                                                                                                                                                                                       
 Non-GAAP diluted earnings per share attributable to Allergan, Inc. stockholders                                                                                                                                                           $      1.15                            $      1.00          
                                                                                                                                                                                                                                                                                                       
 Year over year change                                                                                                                                                                                                                                                  15.0  %                        
                                                                                                                                                                                                                                                                                                       


 ALLERGAN, INC.                                                                                                                                                                                                                                                                                                                                                 
 Reconciliation of Non-GAAP Earnings and Diluted Earnings Per Share Attributable                                                                                                                                                                                                                                                                                
 to Allergan, Inc. Stockholders                                                                                                                                                                                                                                                                                                                                 
 (Unaudited)                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                
 In millions, except per share amounts                                                                                                                                                                                                                                                             Twelve months ended                                          
                                                                                                                                                                                                                                                                                                   December 31,                          December 31,           
                                                                                                                                                                                                                                                                                                   2012                                  2011                   
                                                                                                                                                                                                                                                                                                                                                                
 Net earnings attributable to Allergan, Inc.                                                                                                                                                                                                                                                       $      1,098.8                        $      934.5           
                                                                                                                                                                                                                                                                                                                                                                
 Non-GAAP pre-tax adjustments:                                                                                                                                                                                                                                                                                                                                  
 Fair market value inventory adjustment rollout associated with the purchases of distributor businesses                                                                                                                                                                                                   0.3                                   0.4             
 Expenses from changes in fair value of contingent consideration and integration and transaction costs associated with business combinations                                                                                                                                                              7.5                                   13.8            
 Aggregate charges for external costs for stockholder derivative and tax litigation associated with the DOJ settlement and other legal contingency expenses                                                                                                                                               9.7                                   3.4             
 Expenses related to the realignment of various business functions and the restructuring of the obesity intervention business                                                                                                                                                                             2.4                                   0.2             
 Research and development expenses related to upfront licensing fees associated with the license and collaboration agreements with Molecular Partners AG for technology that has not achieved regulatory approval and related transaction costs                                                           62.8                                  45.1            
 Amortization of intangible assets                                                                                                                                                                                                                                                                        107.8                                 104.0           
 Impairment of an in-process research and development asset related to technology acquired in connection with the 2011 acquisition of Vicept Therapeutics, Inc. and a prepaid royalty asset associated with the Sanctura® franchise                                                                       22.3                                  --              
 Net restructuring charges                                                                                                                                                                                                                                                                                5.7                                   4.6             
 Interest expense associated with changes in estimated taxes related to uncertain tax positions included in prior year filings                                                                                                                                                                            0.9                                   --              
 Unrealized loss (gain) on derivative instruments                                                                                                                                                                                                                                                         15.3                                  (11.1    )      
 Cumulative net expense for fixed asset impairment, a gain from the substantially complete liquidation of Allergan`s investment in a foreign subsidiary and intangible asset impairment resulting from the discontinued development of the EasybandTM Remote Adjustable Gastric Band System               --                                    8.9             
 Upfront payment and subsequent milestone payment for the FDA acceptance of an NDA filing for technology that has not achieved regulatory approval associated with a collaboration and co-promotion agreement with MAP Pharmaceuticals, Inc. and related transaction costs                                --                                    80.6            
 Costs associated with tax audit settlements for prior years` filings                                                                                                                                                                                                                                     --                                    2.0             
 Impairment of an in-process research and development asset related to a tissue reinforcement technology acquired in connection with the 2010 acquisition of Serica Technologies, Inc.                                                                                                                    --                                    4.3             
 Additional costs for the termination of a third-party agreement primarily related to the promotion of Sanctura XR®                                                                                                                                                                                       --                                    3.3             
 Non-cash interest expense associated with amortization of convertible debt discount                                                                                                                                                                                                                      --                                    7.3             
 Gain on sale of investments                                                                                                                                                                                                                                                                              --                                    (1.9     )      
 Impairment of a non-marketable equity investment                                                                                                                                                                                                                                                         --                                    3.2             
                                                                                                                                                                                                                                                                                                          1,333.5                               1,202.6         
                                                                                                                                                                                                                                                                                                                                                                
 Tax effect for above items                                                                                                                                                                                                                                                                               (68.9    )                            (70.8    )      
 Change in estimated taxes related to uncertain tax positions included in prior year filings                                                                                                                                                                                                              7.7                                   --              
 Non-GAAP earnings attributable to Allergan, Inc.                                                                                                                                                                                                                                                  $      1,272.3                        $      1,131.8         
                                                                                                                                                                                                                                                                                                                                                                
 Weighted average number of shares outstanding                                                                                                                                                                                                                                                            301.5                                 304.4           
                                                                                                                                                                                                                                                                                                                                                                
 Net shares assumed issued using the treasury stock method for                                                                                                                                                                                                                                            5.6                                   5.5             
 options and non-vested equity shares and share units outstanding                                                                                                                                                                                                                                                                                               
 
during each period based on average market price                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                
 Dilutive effect of assumed conversion of convertible notes outstanding                                                                                                                                                                                                                                   --                                    0.3             
                                                                                                                                                                                                                                                                                                          307.1                                 310.2           


 Diluted earnings per share attributable to Allergan, Inc. stockholders                                                                                                                                                                                                                            $  3.58           $  3.01      
                                                                                                                                                                                                                                                                                                                                  
 Non-GAAP earnings per share adjustments:                                                                                                                                                                                                                                                                                         
 Expenses from changes in fair value of contingent consideration and integration and transaction costs associated with business combinations                                                                                                                                                          0.03              0.04      
 Aggregate charges for external costs for stockholder derivative and tax litigation associated with the DOJ settlement and other legal contingency expenses                                                                                                                                           0.03              0.01      
 Research and development expenses related to upfront licensing fees associated with the license and collaboration agreements with Molecular Partners AG for technology that has not achieved regulatory approval and related transaction costs                                                       0.15              0.13      
 Amortization of intangible assets                                                                                                                                                                                                                                                                    0.24              0.23      
 Impairment of an in-process research and development asset related to technology acquired in connection with the 2011 acquisition of Vicept Therapeutics, Inc. and a prepaid royalty asset associated with the Sanctura® franchise                                                                   0.05              --        
 Net restructuring charges                                                                                                                                                                                                                                                                            0.01              0.02      
 Unrealized loss (gain) on derivative instruments                                                                                                                                                                                                                                                     0.03              (0.02  )  
 Cumulative net expense for fixed asset impairment, a gain from the substantially complete liquidation of Allergan`s investment in a foreign subsidiary and intangible asset impairment resulting from the discontinued development of the EasybandTM Remote Adjustable Gastric Band System           --                0.03      
 Upfront payment and subsequent milestone payment for the FDA acceptance of an NDA filing for technology that has not achieved regulatory approval associated with a collaboration and co-promotion agreement with MAP Pharmaceuticals, Inc. and related transaction costs                            --                0.16      
 Impairment of an in-process research and development asset related to a tissue reinforcement technology acquired in connection with the 2010 acquisition of Serica Technologies, Inc.                                                                                                                --                0.01      
 Additional costs for the termination of a third-party agreement primarily related to the promotion of Sanctura XR®                                                                                                                                                                                   --                0.01      
 Non-cash interest expense associated with amortization of convertible debt discount                                                                                                                                                                                                                  --                0.01      
 Impairment of a non-marketable equity investment                                                                                                                                                                                                                                                     --                0.01      
 Change in estimated taxes related to uncertain tax positions included in prior year filings                                                                                                                                                                                                          0.02              --        
                                                                                                                                                                                                                                                                                                                                  
 Non-GAAP diluted earnings per share attributable to Allergan, Inc. stockholders                                                                                                                                                                                                                   $  4.14           $  3.65      
                                                                                                                                                                                                                                                                                                                                  
 Year over year change                                                                                                                                                                                                                                                                                      13.4  %               
                                                                                                                                                                                                                                                                                                                                  


 ALLERGAN, INC.                                                                                                                                                                                                                             
 Supplemental Non-GAAP Information                                                                                                                                                                                                          
 (Unaudited)                                                                                                                                                                                                                                
                                                                                                                                                                                                                                            
                                        Three months ended                                                                                                                                                                                  
                                        December 31,                     December 31,               $ change in net sales                                                    Percent change in net sales                                    
                                               2012                             2011                Total                  Performance                Currency               Total                  Performance               Currency      
 in millions                                                                                                                                                                                                                                
 Eye Care Pharmaceuticals               $      706.1                     $      659.1               $   47.0               $     54.0                 $    (7.0   )          7.1     %              8.2     %                 (1.1   )%     
 Botox/Neuromodulator                          474.6                            415.3                   59.3                     61.2                      (1.9   )          14.3    %              14.7    %                 (0.4   )%     
 Skin Care                                     77.4                             69.7                    7.7                      7.7                       --                11.0    %              11.0    %                 --            
 Urologics                                     (4.1     )                       14.5                    (18.6  )                 (18.6  )                  --                (128.3  )%             (128.3  )%                --            
 Total Specialty Pharmaceuticals               1,254.0                          1,158.6                 95.4                     104.3                     (8.9   )          8.2     %              9.0     %                 (0.8   )%     
                                                                                                                                                                                                                                            
 Breast Aesthetics                             91.4                             86.4                    5.0                      5.7                       (0.7   )          5.8     %              6.6     %                 (0.8   )%     
 Obesity Intervention                          36.8                             46.9                    (10.1  )                 (9.8   )                  (0.3   )          (21.5   )%             (20.9   )%                (0.6   )%     
 Facial Aesthetics                             102.4                            90.9                    11.5                     12.1                      (0.6   )          12.7    %              13.3    %                 (0.6   )%     
 Total Medical Devices                         230.6                            224.2                   6.4                      8.0                       (1.6   )          2.9     %              3.6     %                 (0.7   )%     
                                                                                                                                                                                                                                            
 Product net sales                      $      1,484.6                   $      1,382.8             $   101.8              $     112.3                $    (10.5  )          7.4     %              8.1     %                 (0.7   )%     
                                                                                                                                                                                                                                            
 Selected Product Net Sales (a):                                                                                                                                                                                                            
 Alphagan P, Alphagan, and              $      118.5                     $      110.2               $   8.3                $     9.3                  $    (1.0   )          7.5     %              8.4     %                 (0.9   )%     
 Combigan                                                                                                                                                                                                                                   
 Lumigan Franchise                             170.2                            159.8                   10.4                     12.3                      (1.9   )          6.5     %              7.7     %                 (1.2   )%     
 Total Glaucoma Products                       290.8                            272.5                   18.3                     21.2                      (2.9   )          6.7     %              7.8     %                 (1.1   )%     
 Restasis                                      212.0                            196.0                   16.0                     15.8                      0.2               8.1     %              8.0     %                 0.1    %      
 Latisse                                       24.9                             24.6                    0.3                      0.3                       --                1.2     %              1.2     %                 --            
                                                                                                                                                                                                                                            
 Domestic                                      61.1     %                       62.1     %                                                                                                                                                  
 International                                 38.9     %                       37.9     %                                                                                                                                                  
                                                                                                                                                                                                                                            


 ALLERGAN, INC.                                                                                                                                                                                                                             
 Supplemental Non-GAAP Information                                                                                                                                                                                                          
 (Unaudited)                                                                                                                                                                                                                                
                                                                                                                                                                                                                                            
                                        Twelve months ended                                                                                                                                                                                 
                                        December 31,                     December 31,               $ change in net sales                                                     Percent change in net sales                                   
                                               2012                             2011                Total                  Performance                Currency                Total                 Performance               Currency      
 in millions                                                                                                                                                                                                                                
 Eye Care Pharmaceuticals               $      2,692.2                   $      2,520.2             $   172.0              $     244.2                $    (72.2   )          6.8    %              9.7     %                 (2.9   )%     
 Botox/Neuromodulator                          1,766.3                          1,594.9                 171.4                    202.1                     (30.7   )          10.7   %              12.7    %                 (2.0   )%     
 Skin Care                                     298.4                            260.1                   38.3                     38.8                      (0.5    )          14.7   %              14.9    %                 (0.2   )%     
 Urologics                                     27.7                             56.8                    (29.1  )                 (29.1  )                  --                 (51.2  )%             (51.2   )%                --            
 Total Specialty Pharmaceuticals               4,784.6                          4,432.0                 352.6                    456.0                     (103.4  )          8.0    %              10.3    %                 (2.3   )%     
                                                                                                                                                                                                                                            
 Breast Aesthetics                             377.1                            349.3                   27.8                     36.8                      (9.0    )          8.0    %              10.5    %                 (2.5   )%     
 Obesity Intervention                          159.5                            203.1                   (43.6  )                 (40.3  )                  (3.3    )          (21.5  )%             (19.8   )%                (1.7   )%     
 Facial Aesthetics                             387.6                            362.7                   24.9                     35.8                      (10.9   )          6.9    %              9.9     %                 (3.0   )%     
 Total Medical Devices                         924.2                            915.1                   9.1                      32.3                      (23.2   )          1.0    %              3.5     %                 (2.5   )%     
                                                                                                                                                                                                                                            
 Product net sales                      $      5,708.8                   $      5,347.1             $   361.7              $     488.3                $    (126.6  )          6.8    %              9.1     %                 (2.3   )%     
                                                                                                                                                                                                                                            
 Selected Product Net Sales (a):                                                                                                                                                                                                            
 Alphagan P, Alphagan, and              $      453.2                     $      419.4               $   33.8               $     44.4                 $    (10.6   )          8.1    %              10.6    %                 (2.5   )%     
 Combigan                                                                                                                                                                                                                                   
 Lumigan Franchise                             622.6                            612.7                   9.9                      29.8                      (19.9   )          1.6    %              4.9     %                 (3.3   )%     
 Total Glaucoma Products                       1,085.8                          1,042.9                 42.9                     74.1                      (31.2   )          4.1    %              7.1     %                 (3.0   )%     
 Restasis                                      792.0                            697.1                   94.9                     97.1                      (2.2    )          13.6   %              13.9    %                 (0.3   )%     
 Latisse                                       97.3                             93.6                    3.7                      4.2                       (0.5    )          4.0    %              4.5     %                 (0.5   )%     
                                                                                                                                                                                                                                            
 Domestic                                      60.9     %                       60.2     %                                                                                                                                                  
 International                                 39.1     %                       39.8     %                                                                                                                                                  
                                                                                                                                                                                                                                            


 (a)        Percentage change in selected product net sales is calculated on amounts reported to the nearest whole dollar. Total glaucoma products include the Alphagan and Lumigan franchises.  


 ALLERGAN, INC.                                                                                                                  
 Reconciliation of GAAP Diluted Earnings Per Share Expectations                                                                  
 To Non-GAAP Diluted Earnings Per Share Expectations                                                                             
 (Unaudited)                                                                                                                     
                                                                                                                                 
                                                                                                   First Quarter 2013            
                                                                                                   Low               High        
                                                                                                                                 
 GAAP diluted earnings per share attributable to Allergan, Inc. stockholders expectations(a)       $     0.86        $     0.88  
                                                                                                                                 
 Amortization of intangible assets                                                                       0.08              0.08  
 Non-GAAP diluted earnings per share expectations                                                  $     0.94        $     0.96  
                                                                                                                                 
                                                                                                                                 
                                                                                                   Full Year 2013                
                                                                                                   Low               High        
                                                                                                                                 
 GAAP diluted earnings per share attributable to Allergan, Inc. stockholders expectations(a)       $     4.45        $     4.53  
                                                                                                                                 
 Amortization of intangible assets                                                                       0.30              0.30  
 Non-GAAP diluted earnings per share expectations                                                  $     4.75        $     4.83  
                                                                                                                                 


 (a)    GAAP diluted earnings per share expectations exclude any potential impact of future unrealized gains or losses on derivative instruments, changes in contingent consideration, restructuring charges and stockholder derivative and tax litigation costs related to the 2010 DOJ settlement and other legal contingency expenses that may occur but that are not currently known or determinable.  


Allergan
Jim Hindman (714) 246-4636 (investors)
Joann Bradley (714) 246-4766 (investors)
David Nakasone (714) 246-6376 (investors)
Bonnie Jacobs (714) 246-5134 (media)
Cathy Taylor (714) 246-5551 (media) 



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