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`
`MYLAN - EXHIBIT 1101
`Mylan Pharmaceuticals Inc. et al. v. Allergan, Inc.
`IPR2016-01127, -01128, -01129, -01130, -01131, & -01132
`
`

`

`)AHC=2?)/*HAJ5=K@AHI3  $4AIKJI-=HECI+=6H=I?HEFJ5AAEC)FD=
`
`2=CA B!"
`
`Aaron Gal - Sanford C. Bernstein & Co. LLC
`)=H/=5=BH@+*AHIJAE++
`
`5K=J5K=HE*=B)AHE?=AHHEO?D
`Sumant S. Kulkarni - Bank of America Merrill Lynch
`
`+DHEIJFDAH5?DJJ2HC=5A?KHEJEAI+
`Christopher Schott - JPMorgan Securities LLC
`
`Marc Goodman - UBS Securities LLC
`=H?/@=7*55A?KHEJEAI+
`
`Ken Cacciatore - Cowen & Co. LLC
`A+=??E=JHA+MA++
`
`,=LE@=HEI9AI.=HC5A?KHEJEAI+
`David Maris - Wells Fargo Securities LLC
`
`E=L)>H=D=+EJECHKF/>==HAJI1?*HAH
`Liav Abraham - Citigroup Global Markets, Inc. (Broker)
`
`7AH4=BB=J-LAH?HA/HKF+
`Umer Raffat - Evercore Group LLC
`
`1HE=4BBAHEKD5A?KHEJEAI75)1?
`lrina R. Koffler - Mizuho Securities USA, Inc.
`
`FAH=JH
`Operator
`
`/@HECO=AEI,HJDO=@1ME>AOKH?BAHA?AFAH=JHJ@=O)JJDEI
`Good morning. My name is Dorothy, and I will be your conference operator today. At this
`
`JEA1MK@EAJMA?AALAHOAJJDA)AHC=IA?@GK=HJAHA=HECI
`time,
`I would like to welcome everyone to the Allergan second quarter earnings
`
`?BAHA?A?=)EAID=LA>AAF=?A@KJAJFHALAJ=O>=?CHK@EIA
`conference call. All lines have been placed on mute to prevent any background noise.
`
`)BJAHJDAIFA=AHIHA=HIJDAHAME>A=GKAIJE=@=IMAHIAIIE
`After the speakers' remarks, there will be a question-and-answer session.
`
`6D=OK1MK@MEAJJKHJDA?BAHA?ALAHJEI=,A.H=?AI?8E?A
`Thank you. lwould now like to turn the conference over to Lisa DeFrancesco, Vice
`
`2HAIE@AJB1LAIJH4A=JEI==OK=O>ACEOKH?BAHA?A
`President of Investor Relations. Ma'am, you may begin your conference.
`
`Lisa M. DeFrancesco - Vice President-Investor Relations
`EI=,A.H=?AI?8E?A2HAIE@AJ1LAIJH4A=JEI
`
`6D=OK,HJDO=@C@HECALAHOA1@EAJMA?AOKJJDA)AHC=
`Thank you, Dorothy, and good morning, everyone. I'd like to welcome you to the Allergan
`
`IA?@GK=HJAH $A=HECI?BAHA?A?=
`second quarter 2016 earnings conference call.
`
`-=HEAHJDEIHECMAEIIKA@=FHAIIHAA=IAHAFHJEC)AHC=A=HECIBH
`Earlier this morning, we issued a press release reporting Allergan earnings from
`
`?JEKECFAH=JEIBHJDAGK=HJAHA@A@KA! $6DAFHAIIHAA=IA=@KH
`continuing operations for the quarter ended June 30, 2016. The press release and our
`
`IE@A@A?MDE?DMA=HAFHAIAJECJDEIHEC=HA=L=E=>AKH?HFH=JAMA>IEJA=J
`slide deck which we are presenting this morning are available on our corporate website at
`
`MMM=AHC=?9AHA?@K?JEC=ELAMA>?=IJBJDEI?==HAF=OBMDE?DME>A
`MAMA/.allergancom. We're conducting a live webcast of this call, a replay of which will be
`
`=L=E=>AKHMA>IEJA=BJAHEJI??KIE2A=IAJAJD=JJ@=OI?=EI?FOHECDJA@
`available on our website after its conclusion. Please note that today's call is copyrighted
`
`=JAHE=B)AHC==@?=J>AHA>H=@?=IJMEJDKJJDA?F=OIANFHAIIMHEJJA
`material of Allergan and cannot be rebroadcast without the company's express written
`
`consent
`?IAJ
`
`DJJFI IAAEC=FD=?=HJE?A!''%! '=AHC=F?=C>HAJI=K@AHIG  $HAIKJIA=HECI?=JH=I?HEFJ F=HJ IECA
`
`

`

`)AHC=2?)/*HAJ5=K@AHI3  $4AIKJI-=HECI+=6H=I?HEFJ5AAEC)FD=
`
`2=CA!B!"
`
`6KHECJIE@AJM1@=IEAJHAE@OKJD=J@KHECJDA?KHIABJDEI?=
`Turning to slide two, I'd also like to remind you that during the course of this call
`
`==CAAJME=AFHA?JEIHJDAHBHM=H@ECHA=HIHAC=H@ECBKJKHA
`management will make projections or other fon/vard-looking remarks regarding future
`
`ALAJIHJDABKJKHABE=?E=FAHBH=?ABJDA?F=O1JIEFHJ=JJJAJD=JIK?D
`events or the future financial performance of the company. It's important to note that such
`
`IJ=JAAJI=@ALAJI=HABHM=H@ECIJ=JAAJI=@HABA?JKH?KHHAJFAHIFA?JELA
`statements and events are fon/vard-looking statements and reflect our current perspective
`
`BJDA>KIEAIIJHA@I=@EBH=JE=IBJ@=OI@=JA)?JK=HAIKJI=O@EBBAH
`of the business trends and information as of today's date. Actual results may differ
`
`=JAHE=OBH?KHHAJANFA?J=JEI=@FHA?JEI@AFA@EC=K>AHBB=?JHI
`materially from current expectations and projections depending on a number of factors
`
`=BBA?JECJDA)AHC=>KIEAII6DAIAB=?JHI=HA@AJ=EA@EKHFAHE@E?FK>E?BEECI
`affecting the Allergan business. These factors are detailed in our periodic public filings
`
`MEJDJDA5A?KHEJEAI=@-N?D=CA+EIIE)AHC=@EI?=EI=OEJAJH>EC=JE
`with the Securities and Exchange Commission. Allergan disclaims any intent or obligation
`
`JKF@=JAJDAIABHM=H@ECIJ=JAAJIAN?AFJ=IANFHAIIOHAGKEHA@>O=M
`to update these forward-looking statements except as expressly required by law.
`
`6KHECJIE@AJDHAA=@KH=CA@=JDEIHECMEJDKIJ@=OI?==HA *HAJ
`Turning to slide three and our agenda this morning, with us on today's call are: Brent
`
`5=K@AHIKH+-=@2HAIE@AJMDMEFHLE@A=LAHLEAMBKHIA?@GK=HJAH
`Saunders, our CEO and President, who will provide an overview of our second quarter
`
`>KIEAIIDECDECDJI *EAKHOKH+DEAB+AH?E=BBE?AHMDMEFHLE@A=
`business highlights; Bill Meury, our Chief Commercial Officer, who will provide an
`
`LAHLEAMBKH?AH?E=FAHBH=?AEJDAGK=HJAH ,=LE@E?DIKH?DEAB4,
`overview of our commercial performance in the quarter; David Nicholson, our chief R&D
`
`BBE?AHMDMEFHLE@AIAA?JDECDECDJIBHKHFEFAEA=?DEALAAJIE $=@
`officer, who will provide select highlights from our pipeline achievements in 2016 and
`
`IAA?J %KF?ECEAIJAI =@6AII=0E=@KH+DEAB.E=?E=BBE?AHMDME
`select 2017 upcoming milestones; and Tessa Hilado, our Chief Financial Officer, who will
`
`JDA@EI?KIIJDA)AHC=IA?@GK=HJAH?JEKECFAH=JEIHAIKJIEHA@AJ=E)I
`then discuss the Allergan second quarter continuing operations results in more detail. Also
`
`JDA?==@=L=E=>A@KHECJDA3)=HA 2=K*EI=HKH-NA?KJELA+D=EH= 4>
`on the call and available during the Q&A are: Paul Bisaro, our Executive Chairman; Rob
`
`5JAM=HJKH+DEABFAH=JECBBE?AH =@*>*=EAOKH+DEABAC=BBE?AH
`Stewart, our Chief Operating Officer; and Bob Bailey, our Chief Legal Officer.
`
`9EJDJD=J1JKHJDA?=LAHJ*HAJ*HAJ
`With that, I'll turn the call over to Brent. Brent?
`
`*HAJ5=K@AHI2HAIE@AJ+DEAB-NA?KJELABBE?AH,EHA?JH
`Brenton L. Saunders - President, Chief Executive Officer & Director
`
`/HA=JJD=OKEI==@C@HECALAHOA9AD=@=>ECMAA=IJMAAJD=J
`Great, thank you, Lisa, and good morning, everyone. We had a big week last week that
`
`M=IDECDECDJA@>OJDA?FAJEBJDA@ELAIJEJKHABKH/>=/AAHE?I>KIEAIIJ
`was highlighted by the completion of the divestiture of our Global Generics business to
`
`6AL=9EJDEJI?FAJE=@=K?AAJBKHF=IJIAKH)@=,EIJHE>KJE
`Teva. With its completion and announcement of our plans to sell our Anda Distribution
`
`>KIEAII)AHC=D=IJ=A=HIJAFIJM=H@KHC=B>AEC=>H=@A@/HMJD
`business, Allergan has taken major steps toward our goal of being a branded Growth
`
`2D=H=A=@AH1FHK@BJDAFAFAMDMHA@ID=H@BH JDIJ=AJDEI
`Pharma leader. I'm proud of the people who worked so hard for 12 months to make this
`
`@ELAIJEJKHA=HA=EJO>KJ1ALAHAFHK@JD=JJDA)AHC=JA=D=IHA=EA@I
`divestiture a reality, but I'm even more proud that the Allergan team has remained so
`
`B?KIA@ANA?KJE@KHECJDEIJEA;K?=IAAFHBBJD=JB?KIEJDAHAIKJIMA
`focused on execution during this time. You can see proof of that focus in the results we
`
`=HA=K?ECJ@=O
`are announcing today.
`
`6KHECJIE@ABELA $D=I>AA=OA=HBJHAA@KIFIEJELAJH=IEJEBH)AHC=
`Turning to slide five, 2016 has been a year of tremendous positive transition for Allergan,
`
`=@MA=HAMAFIEJEA@J?JEKAJ@AELAHIJHCHAIKJIFMAHA@>OKH/HMJD
`and we are well positioned to continue to deliver strong results, powered by our Growth
`
`2D=H=@A6DEI@AEI>KEJ=HK@BELAAOAAAJI JFEACHMJDMEJDJDAC=
`Pharma model. This model is built around five key elements: top line growth, with the goal
`
`DJJFI IAAEC=FD=?=HJE?A!''%! '=AHC=F?=C>HAJI=K@AHIG  $HAIKJIA=HECI?=JH=I?HEFJ F=HJ IECA
`
`

`

`)AHC=2?)/*HAJ5=K@AHI3  $4AIKJI-=HECI+=6H=I?HEFJ5AAEC)FD=
`
`2=CA"B!"
`
`B@K>A@ECEJCHMJD ?=JACHOA=@AHIDEFEA=?DBKHIALAJDAH=FAKJE?=HA=I 
`of double-digit growth; category leadership in each of our seven therapeutic areas;
`
`?KIJAHEJE=?O FA5?EA?A4,JBKAEL=JE =@FAH=JE=AN?AA?A)@
`customer intimacy; Open Science R&D to fuel innovation; and operational excellence. And
`
`KHJA=EIIK??AIIBKOANA?KJECA=?DBJDAIAAAAJI
`our team is successfully executing on each of these elements.
`
`6KHECJIE@AIENJFEAI=AIBJDA>H=@A@>KIEAII?=AE=J!%>EEKFHA
`Turning to slide six; top line sales of the branded business came in at $3.7 billion; up more
`
`JD='?F=HA@JFHEHOA=HAN?K@EC=A@=14@ELAIJEJKHAI=@.:)@JDA
`than 9% compared to prior year excluding Namenda IR; divestitures; and FX. And the
`
`FAHBH=?AM=I>H=@>=IA@MEJDIJHCHAIKJIBH==IFA?JIBKH>KIEAII5ENB
`performance was broad-based; with strong results from all aspects of our business. Six of
`
`KHIJEFHJ=J>H=@ICHAM@K>A@ECEJIC>=OAN?K@EC.:E?K@EC*JNKF
`our most important brands grew double digits globally excluding FX; including Botox up
`
`$4AIJ=IEIKF EAIIKF!%KHB=EOBBEAHIKF&KH@ANKF!!
`16%; Restasis up 21 %; Linzess up 37%; our family of fillers up 18%; Ozurdex up 33%;
`
`=@AIJHEKF &1LAHOFA=IA@=@EFHAIIA@MEJDJDEIFAHBH=?A
`and Lo Loestrin up 28%. I'm very pleased and impressed with this performance.
`
`)AO=JJHE>KJABKHJA=EI=K?DAN?AA?A=I@AIJH=JA@>OJDAIJHCIJ=HJBH
`A key attribute of our team is launch excellence; as demonstrated by the strong start for
`
`8E>AHE8H=O=H=@O>A=9A=HA=I>KE@ECKHJDAH=FAKJE?=HA=I=@BKHB
`Viberzi; Vraylar; and Kybella. We are also building on our therapeutic areas and four of
`
`JDAIALACHAM>OHAJD=#JDEIGK=HJAH.HAN=FA/1M=IKF'9AI
`the seven grew by more than 50% this quarter. For example; GI was up 19%. Women's
`
`DA=JDM=IKF!"A=MDEAAOA?=HAKH=HCAIJJDAH=FAKJE?=HA=M=IKF=@
`health was up 34%. Meanwhile; eye care; our largest therapeutic area; was up 10%; and
`
`A@E?==AIJDAJE?IAN?K@ECA@E?=@AH=JCOM=IKF"1=LAHOEFHAIIA@MEJD
`medical aesthetics excluding medical dermatology was up 14%.
`I am very impressed with
`
`MD=JKH?AH?E=JA=I?JEKAJ@ALAHO@=OJ=A)AHC=JDAIJ@O=E?
`what our commercial teams continue to do every day to make Allergan the most dynamic
`
`=@AN?EJEC?F=OEKHE@KIJHO*EMEJ=HA=>KJJDA>H=@FAHBH=?A
`and exciting company in our industry. Bill will talk more about the brand performance;
`
`HA?AJ=K?DAI=@KHEJAH=JE=>KIEAIIEKIJ=AJ
`recent launches; and our international business in just a moment.
`
`IE@AIALAIJHCJFEAFAHBH=?A=@KH?JEKA@B?KIFAH=JE=
`On slide seven; strong top line performance and our continued focus on operational
`
`AN?AA?A=@>KIEAIIIEFEBE?=JEHAIKJA@E/))2-25B!!#MDE?DM
`excellence and business simplification resulted in non-GAAP EPS of $3.35; which now
`
`AN?K@AIJDAHAIKJIB)@=KH@EIJHE>KJE>KIEAII
`excludes the results of Anda; our distribution business.
`
`.HKIFAH=JE=AN?AA?AEI==>KJB?KIEC@ECJDAEJJAJDECILAHOMAJ
`For us; operational excellence is all about focusing on doing the little things very well to
`
`A=>AJDAHC=E=JEJ>A?AHAABBE?EAJHAFH@K?JELA=@HAFHBEJ=>A
`enable the organization to become more efficient; more productive; and more profitable.
`
`9EJDJDA?HA=JEB4>5JAM=HJIHA=I+DEABFAH=JECBBE?AHMAD=LAHAAMA@
`With the creation of Rob Stewart's role as Chief Operating Officer; we have renewed
`
`AAHCOD=HEECIOIJAI=@FH?AIIAIJDHKCDKJJDA?F=O=@=EC
`energy on harmonizing systems and processes throughout the company and making
`
`J=HCAJA@ELAIJAJIJKFCH=@A?HEJE?=?=F=>EEJEAI
`targeted investments to upgrade critical capabilities.
`
`)@KHFA5?EA?A4,@AEIMHECJ@HELAEL=JE=?HIIA=?DBKH
`And our Open Science R&D model is working to drive innovation across each of our
`
`IALAJDAH=FAKJE?=HA=IKIJJDEIOA=HKH4,JA=D=IIK??AA@A@EC=EEC=FFHL=
`seven therapeutic areas. Just this year; our R&D team has succeeded in gaining approval
`
`BH!=HFD=H==@@ALE?AFH@K?JI=@EA=HIK>EIIEI,=LE@MEFHLE@A
`for 13 major pharma and device products and nine major submissions. David will provide
`
`HA@AJ=EI=JAHEJDAFHAIAJ=JE
`more details later in the presentation.
`
`DJJFI IAAEC=FD=?=HJE?A!''%! '=AHC=F?=C>HAJI=K@AHIG  $HAIKJIA=HECI?=JH=I?HEFJ F=HJ IECA
`
`

`

`)AHC=2?)/*HAJ5=K@AHI3  $4AIKJI-=HECI+=6H=I?HEFJ5AAEC)FD=
`
`2=CA#B!"
`
`FA5?EA?AFHLE@AIKIMEJD=?FAEC?FAJEJELAIJH=JACE?=@L=J=CA=I
`Open Science provides us with a compelling competitive strategic advantage, as
`
`ALE@A?A@>OKH$#FKIE@J=JAIJ=CA@ALAFAJFHCH=I=OBMDE?D?K@
`evidenced by our 65-plus mid to late-stage development programs, many of which could
`
`>AC=A?D=CECJHA=JAJI
`be game-changing treatments.
`
`6KHECJ?=FEJ==?=JEIE@AAECDJKHHA=@A@>==?AIDAAJFHLE@AIKIMEJD
`Turning to capital allocation on slide eight, our reloaded balance sheet provides us with
`
`IECEBE?=JBANE>EEJOJ@AFO?=FEJ=JID=HAD@AHIE?K@ECELAIJECEKHID=HA
`significant flexibility to deploy capital to shareholders, including investing in our share
`
`HAFKH?D=IAFHCH=@A>JHAF=OAJ=@=@@EJE=ELAIJAJECHMJDFFHJKEJEAI
`repurchase program, debt repayment, and additional investment in growth opportunities.
`
`9AIJ=HJMEJD=>KJ#>EEEID=HAHAFKH?D=IAFHCH=@KHECJDAHAIJB $
`We'll start with about $5 billion in share repurchase program during the rest of 2016,
`
`>KOEC=IK?D=IFHK@AJOFIIE>AEJDAFA=HAJ)IMAD=LAI=E@>ABHAEB
`buying as much as prudently possible in the open market. As we have said before, if
`
`B=LH=>A=HAJ?@EJEIFAHIEIJMAD=LAJDA?=F=?EJOJ?IE@AH>KOECJDA=@@EJE=
`favorable market conditions persist, we have the capacity to consider buying the additional
`
`#>EEK@AHJDA>EE=KJDHE=JEFHLE@A@>OKH*=H@B,EHA?JHI
`$5 billion under the $10 billion authorization provided by our Board of Directors.
`
`1=@@EJEJJDAID=HAHAFKH?D=IAFHCH=MAD=LAF=E@@M@A>JMDE?DIDK@
`In addition to the share repurchase program, we have paid down debt, which should
`
`HAEBH?AKHELAIJAJCH=@A?HA@EJH=JECI6AII=MEFHLE@A=@@EJE=@AJ=E@KHEC
`reinforce our investment-grade credit ratings. Tessa will provide additional detail during
`
`DAHFHAIAJ=JE-LAMEJDJDIAF=IMALAFHAIAHLA@?=F=?EJOBHAJD= >EE
`her presentation. Even with those plans, we've preserved capacity of more than $20 billion
`
`JELAIJBHCHMJD=@=?GKEHA=@@EJE=IJAFFECIJA=IIAJIJAAFKHFEFAEABK
`to invest for growth and acquire additional steppingstone assets to keep our pipeline full
`
`=@FHLE@ABKABHIKIJ=E=>AJFEACHMJDEKHJDAH=FAKJE?=HA=IKHC=EIJ
`and provide fuel for sustainable top line growth in our therapeutic areas. Our goal is to
`
`=NEEAID=HAD@AHL=KALAHJDACJAH
`maximize shareholder value over the long term.
`
`MAJAJKHJDA?=LAHJ*EAKHOKH+DEAB+AH?E=BBE?AH
`Now let me turn the call over to Bill Meury, our Chief Commercial Officer.
`
`9EE=AKHO+DEAB+AH?E=BBE?AH
`William J. Meury - Chief Commercial Officer
`
`6D=I*HAJ/@HECALAHOA6KHECJIE@AMAD=@=IJHCGK=HJAH=@
`Thanks, Brent. Good morning, everyone. Turning to slide 10, we had a strong quarter, and
`
`KHB?KI?=JACHOA=@AHIDEFEIFH@K?ECHAIKJILAH=@A=@BHKHFH@K?JIEI
`our focus on category leadership is producing results. Overall demand for our products is
`
`IJHC=@EFAAJ=JEAJHE?I=K?DF=I=HADECDMDE?DEI=?HA@EJJKHI=AI
`strong and implementation metrics on launch plans are high, which is a credit to our sales
`
`=@=HAJECJA=I@AIJE?=O=@EJAH=JE=O5=AIBHIENBIALAJDAH=FAKJE?
`and marketing teams domestically and internationally. Sales for six of seven therapeutic
`
`=HA=IE?HA=IA@=J=DECDIECA@ECEJH@K>A@ECEJH=JALAHIKIFHEHOA=HEJDAIA?@
`areas increased at a high single-digit or double-digit rate versus prior year in the second
`
`GK=HJAHAN?K@ECJDAEF=?JBBHAECAN?D=CA=@@ELAIJEJKHAI
`quarter excluding the impact of foreign exchange and divestitures.
`
`1AOA?=HAI=AIE?HA=IA@>OFMAHA@>O?JEKA@IJHACJDBH4AIJ=IEI=@
`ln eye care, sales increased by 10%, powered by continued strength from Restasis and
`
`KH@AN5=AIBH4AIJ=IEIE?HA=IA@>O >=IA@IJHCFDOIE?E==@?IKAH
`Ozurdex. Sales for Restasis increased by 21% based on strong physician and consumer
`
`FHJE=@ME@AIFHA=@BHK=HO?LAH=CAKH@AN?JEKA@J@AELAHIJHC
`promotion and widespread formulary coverage. Ozurdex continued to deliver strong
`
`HAIKJIC>=OMEJD!CHMJDEJDA7EJA@5J=JAI=@!"CHMJDEEJAH=JE=
`results globally, with 30% growth in the United States and 34% growth in international
`
`=HAJI@HELA>OEJIANF=@A@@E=>AJE?=?K=HA@A==>A
`markets, driven by its expanded diabetic macular edema label.
`
`DJJFI IAAEC=FD=?=HJE?A!''%! '=AHC=F?=C>HAJI=K@AHIG  $HAIKJIA=HECI?=JH=I?HEFJ F=HJ IECA
`
`

`

`)AHC=2?)/*HAJ5=K@AHI3  $4AIKJI-=HECI+=6H=I?HEFJ5AAEC)FD=
`
`2=CA$B!"
`
`1=AIJDAJE?II=AIE?HA=IA@>O"@HELA>O?JEKA@IJHCFAHBH=?ABH
`In aesthetics, sales increased by 14%, driven by continued strong performance from
`
`*JN=@BEAHI1B=?J*JND=@EJIIJHCAIJGK=HJAHEJDA7EJA@5J=JAIEJDA=IJJM
`Botox and fillers. In fact, Botox had its strongest quarter in the United States in the last two
`
`OA=HI)@@EJE=OMALA=E@=IJHCBK@=JEJ@HELA@A=@EJDAIA?@D=BB
`years. Additionally, we've laid a strong foundation to drive demand in the second half of
`
`JDAOA=H=@E %=IMA6DAFHIFA?JIBHJDEI>KIEAII=@JDA=HAJ@O=E?IE
`the year and in 2017 as well. The prospects for this business and the market dynamics in
`
`JDABKJKHA=HAAN?AAJHAJD=JIDHJO
`the future are excellent, more on that shortly.
`
`1/1EAIIKHB=CIDEFFH@K?J?JEKA@JFH@K?AKJIJ=@ECHAIKJIKF!%
`ln GI, Linzess, our flagship product, continued to produce outstanding results, up 37%
`
`OA=HLAHOA=H)@EFHJ=JO8E>AHEEIBBJ=IJHCIJ=HJMEEJIIA?@BK
`year over year. And importantly, Viberzi is off to a strong start. Now in its second full
`
`GK=HJAHFIJ=K?DFHAI?HEFJEI=@HE@AHI=HA?E>EC=J=DECDH=JA?IEIJAJOMAA
`quarter post-launch, prescriptions and riders are climbing at a high rate consistently week
`
`over week.
`LAHMAA
`
`)@BE=OMA?JEKAJIAAIJHCCHMJDEKHMAIDA=JDKHCO=@=JE
`And finally, we continue to see strong growth in our women's health, urology, and anti-
`
`infective businesses.
`EBA?JELA>KIEAIIAI
`
`IE@AOK?=IAAJD=J@A=@BHEAII=@8E>AHEEILAHOIJHC.H>JD
`On slide 11, you can see that demand for Linzess and Viberzi is very strong. For both
`
`FH@K?JICHMJDD=I=@ME?JEKAJ>ABKAA@>O?LAHIEBJDA6+=HAJ
`products, growth has and will continue to be fueled by conversion of the OTC market,
`
`E?HA=IA@KIA>O>JDC=IJHAJAHCEIJI=@FHE=HO?=HAFDOIE?E=I=@=HAJ
`increased use by both gastroenterologists and primary care physicians, and market-
`
`A=@ECFHJEBHK=HO?LAH=CA.H8E>AHEKHAMAIJ/1FH@K?JJDAK>AHB
`leading promotion formulary coverage. For Viberzi, our newest GI product, the number of
`
`FHAI?HE>AHI@K>A@EJDAIA?@GK=HJAH=@FDOIE?E=BAA@>=?D=I>AAFIEJELA
`prescribers doubled in the second quarter, and physician feedback has been positive.
`
`*=IA@I=AI8E>AHEEIJHA@EC=J=FFHNE=JAO'BEAII@KHECJDAI=AJEA
`Based on sales, Viberzi is trending at approximately 90% of Linzess during the same time
`
`FAHE@FIJ=K?D
`period post-launch.
`
`6KHECJIE@A =@O>A=MDE?DEIE@E?=JA@BHIK>AJ=B=JHA@K?JEH@K>A
`Turning to slide 12 and Kybella, which is indicated for submental fat reduction or double
`
`?DEIJH=JACE?=OO>A=ANF=@IKHB=?E=EA?J=>AFH@K?JEAMDE?DE?K@AI*JN
`chin, strategically Kybella expands our facial injectable product line, which includes Botox
`
`=@KHBEAHIO>A=FEAAHI=AM?=JACHOBB=?E=EA?J=>AI1JMEIAHLA=I=
`and our fillers. Kybella pioneers a new category of facial injectables. It will serve as a
`
`C=JAM=OJJDAMAHB=?A=@MEFAKF=AJEHAOAM=HAJB?IKAHIE?K@EC
`gateway to the lower face and will open up an entirely new market of consumers, including
`
`=AI)@BE=OO>A=MEIAHLA=I=JHKAFH=?JE?A>KE@AHBHKH?KIJAHIE?K@EC
`males. And finally, Kybella will serve as a true practice builder for our customers, including
`
`@AH=JCEIJI=@F=IJE?IKHCAI
`dermatologists and plastic surgeons.
`
`9ALAHC=EA@JDA=K?DEJJMFD=IAI9AIK??AIIBKO?FAJA@JDABEHIJFD=IA
`We've organized the launch into two phases. We successfully completed the first phase,
`
`JH=EECHAJD='H'BJDAAOEA?JH>=IAEJDA7EJA@5J=JAI9AHA
`training more than 9,000 or 90% of the key injector base in the United States. We're
`
`AN=?JOMDAHAMAAA@J>AEJAHIBFDOIE?E=A@K?=JE=@JH=EEC9AHAME
`exactly where we need to be in terms of physician education and training. We're now in
`
`JDAFH?AIIBE?ECBB2D=IA MDAHAMA=HA?HA=JEC=M=HAAII=@@A=@=C
`the process of kicking off Phase 2, where we are creating awareness and demand among
`
`?IKAHIMDE?DME>A>IJA@>OKH,6+?=F=EC>ACEECJDEIJD
`consumers, which will be boosted by our DTC campaign beginning this month.
`
`DJJFI IAAEC=FD=?=HJE?A!''%! '=AHC=F?=C>HAJI=K@AHIG  $HAIKJIA=HECI?=JH=I?HEFJ F=HJ IECA
`
`

`

`)AHC=2?)/*HAJ5=K@AHI3  $4AIKJI-=HECI+=6H=I?HEFJ5AAEC)FD=
`
`2=CA%B!"
`
`6DEIFH@K?JEI=EFHJ=JCHMJD@HELAH=@MEBHJEBOKHA=@AHIDEFFIEJEE
`This product is an important growth driver and will fortify our leadership position in
`
`=AIJDAJE?A@E?EAKH4,JA=EIMHEC@ALAFEC=@@EJE=AM=AIJDAJE?=@
`aesthetic medicine. Our R&D team is working on developing additional new aesthetic and
`
`JDAH=FAKJE?E@E?=JEIBHO>A=MDE?DMDA=@@A@JJDAIK>AJ=B=JE@E?=JE
`therapeutic indications for Kybella, which when added to the submental fat indication
`
`?K@=AO>A==I=HCA=I*JN+IAJE?LAHJEA
`could make Kybella as large as Botox Cosmetic over time.
`
`6KHECJIE@A!=@8H=O=H8H=O=HM=I=K?DA@EE@=H?DEJDA7EJA@5J=JAI
`Turning to slide 13 and Vraylar, Vraylar was launched in mid-March in the United States
`
`BHI?DEFDHAE==@=E=1JAHAIJ>OFIO?DE=JHEIJI=@IAA?JFHE=HO?=HAFDOIE?E=I
`for schizophrenia and mania. Interest by psychiatrists and select primary care physicians
`
`EILAHODECD9ALAD=@KJEFAA@K?=JE=ALAJIMDAHAJDA=JJA@=?AHA=?DA@
`is very high. We've had multiple educational events where the attendance reached
`
`=FFHNE=JAOFDOIE?E=I9AHALAHOA?KH=CA@>OMD=JMAHAIAAEC=@DA=HEC
`approximately 100 physicians. We're very encouraged by what we're seeing and hearing
`
`HECDJM)FFHNE=JAO"FIO?DE=JHEIJID=LAKIA@8H=O=H=@MAANFA?JJD=J
`right now. Approximately 4,000 psychiatrists have used Vraylar, and we expect that
`
`K>AHJ?E>J>OOA=HA@*=IA@IE@FAHBH=?AIB=HMAHA
`number to climb to 10,000 by year end. Based on solid performance so far, we're
`
`ANF=@ECKHI=AIBH?A?LAH=CABDIFEJ=I=@AJ=DA=JDB=?EEJEAI)IOK?=
`expanding our sales force coverage of hospitals and mental health facilities. As you can
`
`IAAJDAIE@AFHAI?HEFJEALAIBH8H=O=H=HA?F=H=>AJJMHA?AJ=@
`see on the slide, prescription levels for Vraylar are comparable to two recent and
`
`IK??AIIBKO=K?DA@=JOFE?==JEFIO?DJE?I=JK@==@4ANKJE9A@IAA=?D=CEC
`successfully launched atypical antipsychotics, Latuda and Rexulti. We do see a changing
`
`BJDACK=H@LAHJEAEJDEI=HAJMEJDAM=JOFE?=IHAF=?ECJDA@AHAI6DA
`of the guard over time in this market with new atypicals replacing the older ones. The
`
`BKJKHAB8H=O=H?=>A@AI?HE>A@=IJDEC>KJLAHOFHEIEC
`future of Vraylar can be described as nothing but very promising.
`
`6KHECJIE@A"=@KHAOA?=HABH=?DEIAMAHA?JEKECJ=@@JKHFIEJE=I=
`Turning to slide 14 and our eye care franchise, we're continuing to add to our position as a
`
`A=@ECAOA?=HA?F=OMEJDEL=JELAFH@K?JIBH@HOAOA=@C=K?=9AANFA?J
`leading eye care company with innovative products for dry eye and glaucoma. We expect
`
`J=K?D4AIJ=IEI,2.EJDABKHJDGK=HJAH=@JDA6HKA6A=HMDE?DEI==I=
`to launch Restasis MDPF in the fourth quarter, and then True Tear, which is a nasal
`
`AKHIJEK=JHEJDABEHIJGK=HJAHB %5MAD=LAJMAMFH@K?JIBH@HOAOAJ
`neurostimulator, in the first quarter of 2017. So we have two new products for dry eye to
`
`?FAAJ4AIJ=IEI=@KH=HAJA@=HJEBE?E=JA=HFH@K?JEA*JD=K?DAIME>A
`complement Restasis and our marketed artificial tear product line. Both launches will be
`
`IKFFHJA@>O==HCAHI=AIBH?AABBHJJFDJD=CEIJI=@FJAJHEIJI=@
`supported by a larger sales force effort to ophthalmologists and optometrists and
`
`ANJAIELA?IKAH=@LAHJEIEC=@A@K?=JE
`extensive consumer advertising and education.
`
`6DAFHIFA?JIBHCHMJDEJDA@HOAOA=HAJ=HAAN?AAJ6DA?@EJEEIHA?AELEC
`The prospects for growth in the dry eye market are excellent. The condition is receiving
`
`HA=JJAJE@KAJEJIEF=?JLEIEFIJFKJ?AI=@GK=EJOBEBA1JIME@AO
`more attention due to its impact on vision, post-op outcomes, and quality of life. It's widely
`
`HA?CEA@JD=JMDAJDAHEJIE@HIECDJJDHA=JAEC@HOAOAIDK@>AJHA=JA@HA
`recognized that whether it's mild or sight threatening, dry eye should be treated more
`
`=CCHAIIELAO)AHC=EIBKO?EJJA@JJDEI=HA==@MEJDKJEFAFH@K?JIJDA
`aggressively. Allergan is fully committed to this area and with multiple products on the
`
`=HAJ=@E@ALAFAJ
`market and in development.
`
`1JAHIBC=K?=MAD=LAKH:-/A5JAJMDE?DEI=EE=OEL=IELA
`In terms of glaucoma, we have our XEN Gel Stent, which is a minimally invasive
`
`FH?A@KHAJMAH121B=?JEJ=OJKHKJJ>AJDAIJABBA?JELAAMFHAIIKHA
`procedure to lower IOP. In fact, it may turn out to be the most effective new pressure-
`
`MAHEC=CAJJDA=HAJ/=K?=EIJDALAHCAB=JH=IBH=JE.H@A?=@AI
`lowering agent on the market. Glaucoma is on the verge of a transformation. For decades,
`
`AOA@HFJDAH=FOD=I>AAJDAIJ=@=H@B?=HAECBHM=H@EE=OEL=IELA
`eye drop therapy has been the standard of care. Looking fon/vard, minimally invasive
`
`BEJAHECHIKHCE?=FH?A@KHAIMEHA@K?AHAEE=JAJDAAA@BHAOA@HFIMDE?D=HA
`filtering or surgical procedures will reduce or eliminate the need for eye drops, which are
`
`DJJFI IAAEC=FD=?=HJE?A!''%! '=AHC=F?=C>HAJI=K@AHIG  $HAIKJIA=HECI?=JH=I?HEFJ F=HJ IECA
`
`

`

`)AHC=2?)/*HAJ5=K@AHI3  $4AIKJI-=HECI+=6H=I?HEFJ5AAEC)FD=
`
`2=CA&B!"
`
`ABBA?JELA>KJ=HAB?KHIA=II?E=JA@MEJDM?FE=?AH=JAI:-M=IHA?AJO
`effective but are of course associated with low compliance rates. XEN was recently
`
`=K?DA@EEJAH=JE==HAJI=@MABHM=H@JEJIFJAJE==FFHL==@
`launched in 10 international markets, and we look forward to its potential approval and
`
`=K?DEJDA7EJA@5J=JAIANJOA=H
`launch in the United States next year.
`
`6KHECJIE@A#=@KHEJAH=JE=>KIEAIII=AIEKHEJAH=JE=>KIEAII
`Turning to slide 15 and our international business, sales in our international business
`
`JJ=A@HAJD=%#EEEJDAIA?@GK=HJAH=E?HA=IALAHIKIFHEHOA=H
`totaled more than $750 million in the second quarter, a 10% increase versus prior year.
`
`9AIJAH-KHFAEIKH=HCAIJHACE=@MAANFA?J)IE=2=?EBE?ME>AKHA=@EC
`Western Europe is our largest region, and we expect Asia-Pacific will be our leading
`
`EJAH=JE=CHMJD?JHE>KJHA@E?==AIJDAJE?I=@AOA?=HA=?DHKH>KIEAII
`international growth contributor. Medical aesthetics and eye care anchor our business
`
`EJAH=JE=O5=AIBHKHA@E?==AIJDAJE?I>KIEAIIE?HA=IA@=J=@K>A@ECEJH=JA
`internationally. Sales for our medical aesthetics business increased at a double-digit rate
`
`EALAHOEJAH=JE=HACE5=AIBH*JN=@KHBEAHEAIFA?EBE?=OMAHAKF!
`in every international region. Sales for Botox and our filler line specifically were up 13%
`
`=@ !HAIFA?JELAO
`and 23% respectively.
`
`6DAA@E?==AIJDAJE?I=HAJEIFEIA@BH==HANF=IELAHJDAANJIALAH=OA=HI
`The medical aesthetics market is poised for a major expansion over the next several years
`
`BH=K>AHBHA=II.EHIJ=JJEJK@AIJM=H@I=AIJDAJE?I=HA?D=CEC=HK@JDA
`for a number of reasons. First, attitudes towards aesthetics are changing around the
`
`MH@)M=HAAII=@@A=@EIHEIECBH-KHFAJ)IE=2=?EBE?J=JE)AHE?=
`world. Awareness and demand is rising from Europe to Asia-Pacific to Latin America.
`
`5A?@HAFDOIE?E=I=HAFH=?JE?EC=AIJDAJE?A@E?EAALAHO@=O1B=?J1M=I