Contents:

Chapter 1. Executive summary 4 Key findings 4 Historical and forecast ethical sales performance 5 Therapeutic strategy 6 Launch and expiry outlook 8 Externalization, geographic and molecule type strategies 10 Externalization strategy 11 Geographic strategy 12 Molecule type strategy 12 SWOT analysis 13 Strengths 13 Weaknesses 14 Opportunities 15 Threats 16 Chapter 2. Corporate history 27 Key findings 27 Background 28 Key corporate developments 28 M&A history 29 Acquired by SmithKline Beckman 29 Allergan Spun-out from SmithKline Beckman 30 Acquisition of Oculinum 30 Divestment of Allergan Humphrey 30 Divestment of contact lens businesses 30 Five acquisitions were made in and around 1995 30 Allergan Specialty Therapeutics (ASTI) spun-out 31 Allergan Specialty Therapeutics (ASTI) re-acquired 31 Bardeen Sciences set-up 31 Advanced Medical Optics (AMO) spun-out 31 Bardeen Sciences acquired 31 Oculex acquired 32 Acquisition of Inamed 32 Current corporate structure 32 Allergan Medical 33 Current management team 34 Chapter 3. Historical performance 35 Key findings 35 Introduction 36 Revenue and growth rate analysis, 2002-05 36 Revenue and growth rate vs. peer set 37 Product analysis, 2002-05 39 Growth drivers 39 Botox 39 Restasis 40 Lumigan 41 Growth resistors 41 Alphagan 41 Operating revenue and cost analysis, 2002-05 42 Operating revenue/cost analysis 44 Chapter 4. Forecast performance 47 Key findings 47 Introduction 48 Revenue and growth rate, 2005-11 48 Product analysis, 2005-11 50 Ethical sales are forecast to become increasingly dependent on Botox 52 Pipeline products contribute little to 2011 sales 52 Growth drivers 53 Botox is set to provide the majority of Allergans ethical sales growth 53 Restasis is forecast to be Allergans fastest-growing product 54 Posurdex offers significant upside if shown to be efficacious in AMD 54 Lumigan is set to grow with the prostaglandin class 55 Growth resistors 55 Alphagan P faces a slow decline over the period to 2011 55 Key strategic products 56 Therapy area analysis, 2005-11 57 CNS 59 Other 60 Therapy area focus 61 Launches and expiries analysis, 2005-11 64 Launch portfolio 64 Combigan and Ganfort are not expected to launch in the US 65 Forecast to launch in 2008, Posurdex is Allergans key pipeline product 65 Triamcinolone appears to be a back-up for Posurdex 66 Memantines potential remains unclear 66 Launch schedule 67 Core portfolio 68 Expiry portfolio 70 Generic Alphagan P 0.15% will accelerate the decline in Alphagan P sales 70 Zorac is not expected to face generic competition until H2 2011 70 Restasis sales offset the decline in other expiry products but earlier generics are possible 71 Launch/core/expiry configuration 72 Externalization analysis, 2005-11 75 Geographic analysis, 2005-11 80 Molecule type analysis, 2005-11 84 Chapter 5. Key products and competitors 89 Key findings 89 Overview 90 Ophthalmology 91 Alphagan P 91 Overview 91 Sales forecast 92 Newsflow 92 Competitive landscape 93 Future growth 97 Restasis 99 Overview 99 Sales forecast 100 Newsflow 101 Competitive landscape 101 Future growth 102 Lumigan 105 Overview 105 Sales forecast 106 Newsflow 107 Competitive landscape 107 Future market growth 109 Posurdex 111 Overview 111 Sales forecast 112 Newsflow 112 Competitive landscape 113 Future growth 114 CNS 117 Botox 117 Overview 117 Sales forecast 118 Newsflow 119 Competitive landscape 120 Future sales 121 R&D pipeline 125 Chapter 6. Appendix 127 IMS vs. company-reported data reconciliation 127 References 130 Abbreviations 130 Exchange rates List of Tables Table 1: Allergan Corporate Executive Committee 34 Table 2: Peer set overview 37 Table 3: Operating revenue/cost analysis ($m), 2002-05 42 Table 4: Operating cost ratio analysis (% of total revenues), 2002-05 44 Table 5: Product portfolio overview, sales ($m), 2005-11 50 Table 6: Therapy area overview, sales ($m), 2005-11 57 Table 7: Launch portfolio overview, sales ($m), 2005-11 64 Table 8: Core portfolio overview, sales ($m), 2005-11 68 Table 9: Expiry portfolio overview, sales ($m), 2005-11 70 Table 10: Externally developed portfolio, sales ($m), 2005-11 75 Table 11: Molecule type overview, sales ($m), 2005-11 84 Table 12: Key products overview 90 Table 13: Alphagan P: overview 91 Table 14: Alphagan P: sales forecast ($m), 2005-11 92 Table 15: Alphagan P: newsflow 92 Table 16: Restasis: overview 99 Table 17: Restasis: sales forecast ($m), 2005-11 100 Table 18: Restasis: newsflow 101 Table 19: Lumigan: overview 105 Table 20: Lumigan: sales forecast ($m), 2005-11 106 Table 21: Lumigan: newsflow 107 Table 22: Posurdex: overview 111 Table 23: Posurdex: sales forecast ($m), 2005-11 112 Table 24: Posurdex: newsflow 112 Table 25: Botox: overview 117 Table 26: Botox: sales forecast ($m), 2005-11 118 Table 27: Botox: newsflow 119 Table 28: Allergans R&D pipeline (Phase I-registration) 125 Table 29: Allergans R&D pipeline (Phase I-registration) 126 Table 30: Exchange rates, 2005 List of Figures Figure 1: Historical and forecast ethical sales performance (% CAGR), Allergan and its Mid Pharma peer set 5 Figure 2: Therapeutic focus vs. Mid Pharma peer set (%), 2005 6 Figure 3: Launch, core and expiry, absolute sales growth, 2005-11 (sales as % of 2005 sales), Allergan 8 Figure 4: Launch, core and expiry, absolute sales growth, 2005-11 (sales as % of 2005 sales), peer set 9 Figure 5: Molecule type, externalization and geographic market dependency (%) vs. peer set, 2005 10 Figure 6: Molecule type, externalization and geographic market dependency (%) vs. peer set, 2011 11 Figure 7: SWOT analysis of Allergan 13 Figure 8: M&A History 29 Figure 9: Current corporate structure 32 Figure 10: Revenue & growth rate (ethical sales) ($m), 2002-05 36 Figure 11: Ethical revenue ($m) and growth rate (%) vs. peer set, 2002-05 38 Figure 12: Growth drivers/resistor products of historical revenue performance ($m), 2002-05 39 Figure 13: Operating revenue/cost analysis ($m), 2002-05 43 Figure 14: Operating cost ratio analysis (% of total revenues), 2002-05 45 Figure 15: Operating cost ratio vs. peer set, 2002-05 46 Figure 16: Ethical revenue ($m) and growth rate (%), 2005-11 48 Figure 17: Top five products by sales ($m), 2005 51 Figure 18: Top five products by sales ($m), 2011 52 Figure 19: Growth drivers and resistors by product, 2005-11 53 Figure 20: Key strategic products, sales ($m), 2005-11 56 Figure 21: Ethical sales by therapy area ($m), 2005-11 58 Figure 22: Growth drivers and resistors by therapy area (%), 2005-11 59 Figure 23: Ethical sales by therapy area (%), 2005-11 61 Figure 24: Therapy area focus compared with peer set (% total ethical sales), 2005 62 Figure 25: Therapy area focus compared with peer set (% total ethical sales), 2011 63 Figure 26: Launch schedule, sales ($m), 2005-11 67 Figure 27: Core products sales growth ($m), 2005-11 69 Figure 28: Expiry schedule, sales ($m), 2005-11 71 Figure 29: Launch, core and expiry, sales ($m), 2005-11 72 Figure 30: Launch, core and expiry, absolute sales growth, 2005-11 (sales as % of 2005 sales), Allergan 73 Figure 31: Launch, core and expiry, absolute sales growth, 2005-11 (sales as % of 2005 sales), peer set 74 Figure 32: Externalization dependency, sales ($m), 2005-11 76 Figure 33: Growth drivers and resistors, externally vs. internally discovered products, sales ($m), 2005-11 77 Figure 34: Externalization dependency vs. peer set, % total sales, 2005 78 Figure 35: Externalization dependency vs. peer set, % total sales, 2011 79 Figure 36: Geographical sales breakdown ($m), 2005-11 80 Figure 37: Growth drivers and resistors by geography, sales ($m), 2005-11 81 Figure 38: US dependency vs. peer set, % total sales, 2005 82 Figure 39: US dependency vs. peer set, % total sales, 2011 83 Figure 40: Growth drivers and resistors by molecule type, sales ($m), 2005-11 85 Figure 41: Molecule type sales breakdown ($m), 2005-11 86 Figure 42: Biologics dependency vs. peer set, % total sales, 2005 87 Figure 43: Biologics dependency vs. peer set, % total sales, 2011 88 Figure 44: Mechanisms by which current treatments reduce intraocular pressure 94 Figure 45: US glaucoma drug sales by class, 2002-05 95 Figure 46: Allergans Alphagan franchise, US Rx 2001-05 96 Figure 47: Prostaglandin class sales in the US, 2002-05 108 Figure 48: IMS vs. company-reported ethical sales discrepancy ($m), 2005 128 Figure 49: IMS vs. company-reported ethical sales forecast growth rates (%), 2005-11 129