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`
`DJJFI IAAEC=FD=?=HJE?A!$"#%!$=AHC=F?=C>HAJI=K@AHIG! #HAIKJIA=HECI?=JH=I?HEFJ F=HJ IECA
`
`MYLAN - EXHIBIT 1104
`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!
`
`=H?/@=7*55A?KHEJEAI+
`Marc Goodman - UBS Securities LLC
`
`E=L)>H=D=+EJECHKF/>==HAJI1?*HAH
`Liav Abraham - Citigroup Global Markets, Inc. (Broker)
`
`/HACC/E>AHJ,AKJI?DA*=5A?KHEJEAI1?
`Gregg Gilbert - Deutsche Bank Securities, Inc.
`
`1HE=4ELE@BBAHEKD5A?KHEJEAI75)1?
`Irina Rivkind Koffler - Mizuho Securities USA, Inc.
`
`,=LE@44EIECAHHC=5J=AO++
`David R. Risinger - Morgan Stanley & Co. LLC
`
`4O/=5=BH@+*AHIJAE++
`Ronny Gal - Sanford C. Bernstein & Co. LLC
`
`,KC=I,6I=*=H?=OI+=FEJ=1?
`Douglas D. Tsao - Barclays Capital, Inc.
`
`)HEA/0AH=/@=5=?DI+
`Ariel G. Herman - Goldman Sachs & Co.
`
`7AH4=BB=J-LAH?HA151
`Umer Raffat - Evercore ISI
`
`5K=J5K=HE*=B)AHE?=AHHEO?D
`Sumant S. Kulkarni - Bank of America Merrill Lynch
`
`6E+DE=C*61/+
`Tim Chiang - BTIG LLC
`
`FAH=JH
`Operator
`
`/@HECO=AEI==@1ME>AOKH?BAHA?AFAH=JHJ@=O)JJDEIJEA
`Good morning. My name is Nan, and I will be your conference operator today. At this time,
`1MK@EAJMA?AALAHOAJJDA)AHC=6DEH@3K=HJAH-=HECI+=6D=OK1
`I would like to welcome everyone to the Allergan Third Quarter Earnings Call. Thank you. I
`MK@MEAJJKHJDA?BAHA?ALAHJEI=,A.H=?AI?8E?A2HAIE@AJ1LAIJH
`would now like to turn the conference over to Lisa DeFrancesco, Vice President, Investor
`4A=JEI2A=IAC=DA=@
`Relations. Please go ahead.
`
`EI=,A.H=?AI?8E?A2HAIE@AJ1LAIJH4A=JEI
`Lisa M. DeFrancesco - Vice President, Investor Relations
`
`6D=OK==@C@HECALAHOA1@EAJMA?AOKJJDA)AHC=JDEH@
`Thank you, Nan, and good morning everyone. I'd like to welcome you to the Allergan third
`GK=HJAH #A=HECI?BAHA?A?=-=HEAHJDEIHECMAEIIKA@=FHAIIHAA=IA
`quarter 2015 earnings conference call. Earlier this morning we issued a press release
`HAFHJEC)AHC=A=HECIBH?JEKECFAH=JEIBHJDAJDEH@GK=HJAHA@A@
`reporting Allergan earnings from continuing operations for the third quarter ended
`5AFJA>AH! #6DAFHAIIHAA=IA=@KHIE@A@A?MDE?DMA=HAFHAIAJECJDEI
`September 30, 2015. The press release and our slide deck, which we are presenting this
`HEC=HA=L=E=>AKH?HFH=JAMA>IEJA=JMMM=AHC=?9AHA?@K?JEC=
`morning, are available on our corporate website at MAMA/.allergancom. We're conducting a
`ELAMA>?=IJBJDEI?==HAF=OBMDE?DME>A=L=E=>AKHMA>IEJA=BJAHEJI
`live webcast of this call, a replay of which will be available on our website after its
`??KIE2A=IAJAJD=JJ@=OI?=EI?FOHECDJ=JAHE=B)AHC==@?=J>A
`conclusion. Please note that today's call is copyright material of Allergan and cannot be
`HA>H=@?=IJMEJDKJJDA?F=OIANFHAIIA@MHEJJA?IAJ
`rebroadcast without the company's expressed written consent.
`
`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@A 1@=IEAJHAE@OKJD=J@KHECJDA?KHIABJDEI?===CAAJ
`Turing to slide 2, I'd also like to remind you that during the course of this call, management
`ME=AFHA?JEIHJDAHBHM=H@ECHA=HIHAC=H@ECBKJKHAALAJIHJDA
`will make projections or other fonivard-looking remarks regarding future events or the
`BKJKHABE=?E=FAHBH=?ABJDA?F=O1JIEFHJ=JJJAJD=JIK?DIJ=JAAJI
`future financial performance of the company. It's important to note that such statements
`=@ALAJI=HABHM=H@ECIJ=JAAJI=@HABA?JKH?KHHAJFAHIFA?JELAB>KIEAII
`and events are fonivard-looking statements and reflect our current perspective of business
`JHA@I=@EBH=JE=IBJ@=OI@=JA
`trends and information as of today's date.
`
`)?JK=HAIKJI=O@EBBAH=JAHE=OBH?KHHAJANFA?J=JEI=@FHA?JEI@AFA@EC
`Actual results may differ materially from current expectations and projections depending
`JDAK>AHBB=?JHI=BBA?JECJDA)AHC=>KIEAII6DAIAB=?JHI=HA@AJ=EA@EKH
`on the number of factors affecting the Allergan business. These factors are detailed in our
`FK>E?FAHE@E?BEECIMEJDJDA5A?KHEJEAI=@-N?D=CA+EIIE)AHC=@EI?=EI
`public periodic filings with the Securities and Exchange Commission. Allergan disclaims
`=OEJAJH>EC=JEJKF@=JAJDAIABHM=H@ECIJ=JAAJIAN?AFJ=IANFHAIIO
`any intent or obligation to update these fonivard-looking statements, except as expressly
`HAGKEHA@>O=M
`required by law.
`
`)JJDEIJEA=I=HAIKJBJDAFHAIIHAA=IA)AHC=EIIKA@?J>AH ' #
`At this time, as a result of the press release Allergan issued on October 29, 2015,
`?BEHECJDA?F=OD=I>AA=FFH=?DA@>O2BEAH=@EIEFHAEE=HOBHEA@O
`confirming the company has been approached by Pfizer and is in preliminary friendly
`@EI?KIIEIHAC=H@EC=FJAJE=>KIEAII?>E=JEJH=I=?JEJDA?F=OMEJ
`discussions regarding a potential business combination transaction, the company will not
`>AEIIKEC=OBE=?E=BHA?=IJIJD=J?K@HAGKEHA=@@EJE=HAFHJECK@AH4KA &B
`be issuing any financial forecasts that could require additional reporting under Rule 28 of
`JDA1HEIDJ=ALAHHKAI
`the Irish takeover rules.
`
`9EJDKIJ@=OI?==HA*HAJ5=K@AHIKH+-=@2HAIE@AJMDMEFHLE@A=
`With us on today's call are Brent Saunders, our CEO and President, who will provide an
`LAHLEAMBKHJDEH@GK=HJAH?JEKECFAH=JEI>KIEAIIDECDECDJI=@6AII=0E=@
`overview of our third quarter continuing operations business highlights, and Tessa Hilado,
`KH+DEAB.E=?E=BBE?AHMEJDA@EI?KIIJDA)AHC=JDEH@GK=HJAH?JEKEC
`our Chief Financial Officer, will then discuss the Allergan third quarter continuing
`FAH=JEIHAIKJIEHA@AJ=E
`operations results in more detail.
`
`)IJDA?==@=L=E=>A@KHECJDA3)=HA2=K*EI=HKH-NA?KJELA+D=EH= 
`Also on the call and available during the Q&A are Paul Bisaro, our Executive Chairman;
`*>5JAM=HJ2HAIE@AJB/>=/AAHE?I=@+AH?E=FAH=JEI *EAKHO
`Bob Stewart, President of Global Generics and Commercial Operations; Bill Meury,
`2HAIE@AJB*H=@A@2D=H= ,=LE@E?DI-NA?KJELA8E?A2HAIE@AJ=@2HAIE@AJ
`President of Branded Pharma; David Nicholson, Executive Vice President and President
`B/>=*H=@I4, 2=K=L=HHA2HAIE@AJB1JAH=JE=*H=@I 2DEEFFA
`of Global Brands R&D; Paul Navarre, President of International Brands; Philippe
`5?D=EI2HAIE@AJB)AHC=A@E?==@*>*=EAOKH+DEABAC=BBE?AH
`Schaison, President of Allergan Medical, and Bob Bailey, our Chief Legal Officer.
`
`9EJDJD=J1MEJKHJDA?=LAHJ*HAJ
`With that, I will turn the call over to Brent.
`
`Brenton L. Saunders - Chief Executive Officer and President
`*HAJ5=K@AHI+DEAB-NA?KJELABBE?AH=@2HAIE@AJ
`
`6D=EI==@C@HECALAHOA1JICHA=JJ>AMEJDOKJHALEAMKHHAIKJIBH
`Thank, Lisa, and good morning, everyone. It's great to be with you to review our results for
`JDAJDEH@GK=HJAHB #9AHA>LEKIO>AALAHO>KIO=OBHJI=@KHJA=I
`the third quarter of 2015. We're obviously been very busy on many fronts and our teams
`?JEKAJ>KE@JDAAJKMAD=LAD=@=OA=H6DEIAJKMEFHFAKH
`continue to build on the momentum we have had all year. This momentum will propel our
`BKJKHACHMJD
`future growth.
`
`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@A#)AHC=IJDEH@GK=HJAHFAHBH=?AEKIJH=JAIJD=JMA?JEKAJ
`Turning to slide 5. Allergan's third quarter performance illustrates that we continue to
`ANA?KJAJDABKHFE=HIBKHCHMJDIJH=JACO.EHIJFAH=JE=AN?AA?AEIOEA@EC
`execute on the four pillars of our growth strategy. First, operational excellence is yielding
`AN?AFJE=BE=?E=FAHBH=?A=@IJHCHAIKJIE?JEKECFAH=JEIAO
`exceptional financial performance and strong results in continuing operations, key
`FH@K?JI=@AOCACH=FDEAI5A?@JDAH=FAKJE?=HA=A=@AHIDEFEIA=@ECJ@K>A
`products and key geographies. Second, therapeutic area leadership is leading to double-
`@ECEJCHMJD=C=OBKHBH=?DEIAI6DEH@KHFH@K?JELA=@EL=JELA4,
`digit growth among many of our franchises. Third, our productive and innovative R&D
`ACEA?JEKAIJFH@K?AKHJA=EIECBHM=H@JIDM?=IECKH4,
`engine continues to produce. Our team is looking fonivard to showcasing our R&D
`FEFAEAJDAIK??AIIMALAD=@JDEIOA=H=@JDA@AFJDBKHFEFAEA=?HII=IALA
`pipeline, the success we've had this year and the depth of our pipeline across all seven
`JDAH=FAKJE?=HA=I=JAHJ@=O=J4,@=O)@MA=HAANA?KJECIJH=JACE?>KIEAII
`therapeutic areas later today at R&D day. And we are executing on strategic business
`@A=IE?K@ECKH6AL=JH=I=?JEA=HEAHEJDAGK=HJAHJ=MKIJB?KICHMEC
`deals including our Teva transaction earlier in the quarter, to allow us to focus on growing
`KH>KIEAII
`our business.
`
`9EJDJDA=K?AAJBKHF=IJ?>EAKHC>=CAAHE?I>KIEAIIMEJD6AL=E
`With the announcement of our plans to combine our global generics business with Teva in
`=@A=MHJD=FFHNE=JAO"#>EEMA=HAMHAFHJECKH/AAHE?I>KIEAII=I
`a deal worth approximately $40.5 billion, we are now reporting our Generics business as
`@EI?JEKA@FAH=JEI)JDKCDJDA>KIEAIIHAIKJI=HA?IE@=JA@EJ=IECAEA
`discontinued operations. Although the business results are consolidated into a single line
`EJDAE?AIJ=JAAJKH/>=/AAHE?IJA=?JEKAIJFAHBHMA
`in the income statement, our Global Generics team continues to perform well.
`
`1EFHAIIA@MEJDJDA?JEKA@AJKEJDA>KIEAII=@FHK@BJDA
`I'm impressed with the continued momentum in the business and proud of the
`FAHBH=?ABJDEIJA=.HAN=FAJDA/AAHE?I4,JA=D=IIK>EJJA@ #AM
`performance of this team. For example, the Generics R&D team has submitted 25 new
`),)IEJDA75JDEIOA=HMEJD$BJDAFJAJE=BEHIJJBEAI6DEIJA=EIJDACAB
`ANDAs in the US this year, with 16 of them potential first-to-files. This team is the gem of
`JDACAAHE?IE@KIJHO=@JDAO=HAJH=?JIK>EJ=FFHNE=JAO!#=FFE?=JEI>O
`the generics industry, and they are on track to submit approximately 35 applications by
`OA=HA@
`year end.
`
`KJIE@AJDA75MABEA@LAH=JDKI=@=HAJEC=KJDHE=JEIE?HEJE?==HAJI6DEI
`Outside the US, we filed over a thousand marketing authorizations in critical markets. This
`OA=HMAD=LAHA?AELA@=FFHL==@=K?DA@LAH #FH@K?JIEJDA75=@JDAIAAM
`year, we have received approval and launched over 25 products in the US, and these new
`=K?DAI=HA=@@ECJKHHAIKJI1JAH=JE=OJDAJA=IEJDA74KIIE==@JDAH
`launches are adding to our results. Internationally, the teams in the UK, Russia and other
`-=IJAH-KHFA==HAJI?JEKAJ@AELAHIJHCFAHBH=?A6DAFHAEJACH=JE
`Eastern European markets continue to deliver strong performance. The pre-integration
`MHMEJD6AL=EICECMA=@MAHA=E?EJJA@J?IECJDAJH=I=?JE@KHEC
`work with Teva is going well, and we remain committed to closing the transaction during
`JDABEHIJGK=HJAHB $
`the first quarter of 2016.
`
`6DEIF=J@ELAIJJDA/>=/AAHE?I>KIEAII=MIKIJ@H==JE?=OIEFEBOKH
`This plan to divest the Global Generics business allows us to dramatically simplify our
`FAH=JECIJHK?JKHAID=HFAKHB?KIIALA?HAJDAH=FAKJE?=HA=I=@HA=@KH
`operating structure, sharpen our focus on seven core therapeutic areas and reload our
`?=FEJ=IJHK?JKHAJ?JEKAKHJH=IBH=JE9A=HA?BE@AJJD=JMA=HA?HA=JECJDA
`capital structure to continue our transformation. We are confident that we are creating the
`IJ@O=E??F=OECHMJDFD=H=
`most dynamic company in growth pharma.
`
`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!
`
`MAJAJKHJJDA?JEKECFAH=JEI>KIEAIIFAHBH=?AEJDAJDEH@GK=HJAH
`Now let me turn to the continuing operations business performance in the third quarter.
`KHJDEH@GK=HJAHAJHALAKACHAM'=OA=HLAHOA=H>=IEIJ">EE=I=
`Our third quarter net revenue grew 90% on a year-over-year basis to $4.1 billion as a
`HAIKJBJDA)AHC==?GKEIEJE=FHBH=>=IEII=AICHAM@AIFEJAJDAII
`result of the Allergan acquisition. On a proforma basis, sales grew 10% despite the loss
`BAN?KIELEJOABKH=HCAIJFH@K?JI=A@=14MDE?DANFAHEA?A@CAAHE?
`of exclusivity on one of our largest products, Namenda IR, which experienced generic
`?FAJEJEEJDAGK=HJAH
`competition in the quarter.
`
`5JHCI=AIEAOFH@K?JI=?HIIKH>KIEAII@HLA$#E?HA=IAE/))2
`Strong sales in key products across our business drove 65% increase in non-GAAP
`A=HECIFAHID=HAJ!"&A=MDEA/))2-*16,)HIAJ >EE=@?=ID
`earnings per share to $3.48. Meanwhile, non-GAAP EBITDA rose to $2 billion and cash
`BMBHFAH=JEIAN?K@EC4,=IIAJ=?GKEIEJEIHAIJHK?JKHEC=@EJACH=JE
`flow from operations excluding R&D asset acquisitions, restructuring and integration
`F=OAJIM=I%>EEEJDAGK=HJAH
`payments was $1.7 billion in the quarter.
`
`KH>KIEAII?JEKAIJ@HELAIJHCFAHBH=?AHAJD=D=BBKHFH@K?JI=HA
`Our business continues to drive strong performance. More than half of our products are
`@AELAHEC@K>A@ECEJLKA@HELACHMJD=FHBH=>=IEIOA=HLAHOA=H>H=@
`delivering double-digit volume-driven growth. On a proforma basis, year-over-year brand
`HALAKAE?HA=IA@A=HO!AN?K@EC=A@=14@ELAIJEJKHAI=@JDAEF=?JB
`revenue increased nearly 13% excluding Namenda IR, divestitures and the impact of
`BHAECAN?D=CA
`foreign exchange.
`
`IE@A&KHCHMJDEJDAGK=HJAHM=I>H=@>=IA@-N?K@ECJDAEF=?JBBHAEC
`On slide 8, our growth in the quarter was broad-based. Excluding the impact of foreign
`?KHHA?OMA@HLA@K>A@ECEJCHMJDBHA=@EC>H=@I=?HIIAOBH=?DEIAIIK?D=I
`currency, we drove double-digit growth from leading brands across key franchises such as
`*6:4AIJ=IEIEAIIAIJHE=@5=FDHEI9A?JEKAJIE@EBOKH
`BOTOX, Restasis, Linzess, Lo Loestrin and Saphris. We continue to solidify our
`A=@AHIDEFEAO?=JACHEAIMEJDAM=K?DAI=@=FFHL=IKHHA?AJ=K?DAI
`leadership in key categories with new launches and approvals. Our recent launches,
`E?K@EC)8;+),)8)+-==HE?EAJJ==@;*-)=HA=FAHBHECMA
`including AWCAZ, DALVANCE, Namzaric, Liletta and KYBELLA, are all performing well,
`IKFFHJA@>OIJHCFHJE==?JELEJEAIEC=DA=@MAME?JEKAJ@HELACHMJD
`supported by strong promotional activities. Looking ahead, we will continue to drive growth
`JDHKCDAM=FFHL=I=@KF?EC=K?DAIE?K@EC81*-41E=BAMMAAI=@
`through new approvals and upcoming launches, including VIBERZI in a few weeks and
`84);)4EJDABEHIJGK=HJAHB $
`VRAYLAR in the first quarter of 2016.
`
`1=@@EJEJFHCHAII=@AEKH4,FEFAEAMA=HA=IIJHACJDAECJDAH=FAKJE?
`In addition to progress made in our R&D pipeline, we are also strengthening therapeutic
`=HA=A=@AHIDEFJDHKCDAM=?GKEIEJEIBEFHJ=JFHCH=I1AOA?=HAMA?JEKA
`area leadership through new acquisitions of important programs. In eyecare, we continue
`J=@@IDJIC=E@ALAFAJFFHJKEJEAIBH@HOAOA@EIA=IA=@AOA?=HAMEJD
`to add shots on goal in development opportunities for dry eye disease and eyecare with
`JDA=?GKEIEJEB)GKA5OIEAJCA=@?KALAEAJCAMDE?DMAKIJ
`the acquisition of AqueSys, Mimetogen and Oculeve. Mimetogen, which wejust
`=K?A@JDEIHEC>HECI=LAJFE?=BHK=JE@HOAOAJHA=JAJJD=J?K@
`announced this morning, brings a novel topical formulation dry eye treatment that could
`FJAJE=O>AKIA@=A=@E?>E=JEMEJDJDAH@HOAOAJDAH=FEAI6DEI=@@I=
`potentially be used alone and in combination with other dry eye therapies. This adds a
`2D=IA111FHCH=BKHJDAHIJHACJDAECKH@HOAOAFEFAEACELECKIJDAFJAJE=J
`Phase III program further strengthening our dry eye pipeline, giving us the potential to
`=K?DIENAMFH@K?JILAHJDAANJBELAOA=HI
`launch six new products over the next five years.
`
`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?IMA?FAJA@JDA=?GKEIEJEBOJDAH=BHEJIA=@ECFH@K?J;*-)
`In aesthetics, we completed the acquisition of Kythera for its leading product KYBELLA,
`=@@EC=IKHCE?=JHA=JAJBHIK>AJ=BKAIIH@K>A?DE9A=I
`adding a non-surgical treatment for submental fullness, or double chin. We also
`=K?A@JDEIHECJDA=?GKEIEJEBHJDM@A@E?=1L=JE@ALAFAHB=
`announced this morning the acquisition of Northwood Medical Innovation, developer of an
`EL=JELAEF=JJA?DCOA=H.@A=H.@EI=A@E?=@ALE?ABHJDA?HHA?JEB
`innovative implant technology, earFold. earFold is a medical device for the correction of
`FHEAJA=HI
`prominent ears.
`
`1+5MA?FAJA@JDA=?GKEIEJEB=KHANMDE?D=@@IFJAJE=>HA=JDHKCD
`ln CNS, we completed the acquisition of Naurex, which adds potential breakthrough
`JHA=JAJIE@AFHAIIE=@ME>A@EI?KIIA@E@AJ=E=JAHJDEIHEC=J4,,=O
`treatments in depression and will be discussed in detail later this morning at R&D Day.
`)@E/1MAHA?AJO?FAJA@JDA=?GKEIEJEB?AH?E=HECDJIJ+IJA=EHA
`And in GI, we recently completed the acquisition of commercial rights to Constella in more
`JD="EJAH=JE==HAJI6DEI=@@I=EFHJ=JFH@K?JBHKH?AH?E=JA=
`than 40 international markets. This adds an important product for our commercial team
`EJAH=JE=O=@DAFIFIEJEKIBHJDAFJAJE=J=@@AM/1JDAH=FEAIEA
`internationally and helps position us for the potential to add new GI therapies like
`AKN=@EAJKHFH@K?JBBAHECBHEJAH=JE=?KIJAHI
`eluxadoline to our product offering for international customers.
`
`*ABHA1JKHJDA?=LAHJ6AII=JHALEAMKHBE=?E=FAHBH=?AEJDAJDEH@GK=HJAH
`Before I turn the call over to Tessa to review our financial performance in the third quarter,
`1M=JA@JJK?DKH4,,=O=@HA?AJ?AJ=HOFH@K?JFHE?EC=JAHJDEI
`I wanted to touch on our R&D Day and recent commentary on product pricing. Later this
`HEC,=LE@E?DI*EAKHO=@2DEEFFA5?D=EIMECELA=KF@=JAJDA
`morning, David Nicholson, Bill Meury and Philippe Schaison will give an update on the
`FEFAEA=@JDA?AH?E=FJAJE=EJ?J=EI9A>AEALAJD=JFAFAME>ACEJJ=A
`pipeline and the commercial potential it contains. We believe that people will begin to take
`HA=?JELAJE?ABKHFEFAEA=BJAHJ@=OIAAJEC
`more active notice of our pipeline after today's meeting.
`
`9EJDHAJD=%FHA?JIEE@J=JAIJ=CA@ALAFAJMAD=LAKJEFAFHCH=I
`With more than 70 projects in mid to late stage development, we have multiple programs
`EA=?DBKHJDAH=FAKJE?=HA=IJDAFKIIKIJ=EA=@AHIDEFEJDA=HA=IMDAHAMA
`in each of our therapeutic areas to help us sustain leadership in the areas where we
`?DIAJ?FAJA9A=HA>KE@EC=IKIJ=E=>AEL=JEACEAJFMAHKHJFEA
`choose to compete. We are building a sustainable innovation engine to power our top-line
`FAHBH=?A=@JDAH=FAKJE?=HA=A=@AHIDEFMAEJJDABKJKHA2A=IAEKIBH=
`performance and therapeutic area leadership well into the future. Please join us for an
`AN?EJEC@=O>ACEECE=>KJ=DKH
`exciting day beginning in about an hour.
`
`6KHECJFHE?EC2HE?ECD=I>AAEJDADA=@EAI=@BA=JKHA@EJDAFHAIE@AJE=
`Turning to pricing. Pricing has been in the headlines and featured in the presidential
`@A>=JAI*KJAJIJFHAJA@JD=JJDEIEI=JFE?JD=JD=IKIJ=FFA=HA@EJDAAMI1JI
`debates. But let's not pretend that this is a topic that has just appeared in the news. It's
`>AA=B?KIBH=OOA=HI9AMJD=J?IJEI=?IJ=J??AH IEIF=JEAJ
`been a focus for many years. We know that cost is a constant concern; so is patient
`=??AIIJA@E?=EL=JE)AHC=IAAIJIJHEAJDAHECDJ>==?A>AJMAA?=HA=@
`access to medical innovation. Allergan seeks to strike the right balance between care and
`?IJ9AFAH=JAE=FAI?EA?A@A@ALAFECFHEIECFH@K?JIJD=JBHAGKAJO
`cost. We operate in an open science model, developing promising products that frequently
`HECE=JAMEJDI=AH?F=EAI6DAIA?F=EAIBJA=?JDAEBH=IJHK?JKHAJ>HEC
`originate with smaller companies. These companies often lack the infrastructure to bring
`JDAEHFH@K?JIJDHKCDANFAIELA=JAIJ=CAJHE=IHJDA?AH?E=FHAIA?AJHA?KF
`their products through expensive late stage trials or the commercial presence to recoup
`JDAEH4,ELAIJAJI6DAEL=JEA?IOIJAEIBKBJDAIAI=AH?F=EAIMD
`their R&D investments. The innovation ecosystem is full of these smaller companies who
`D=LAANJH=H@E=HOE@A=I=@>HEE=JI?EAJEIJI9AM=JJ>AJDA=CAJBHJDAEHCHA=J
`have extraordinary ideas and brilliant scientists. We want to be the magnet for their great
`E@A=IEJDEIAMEL=JEA?IOIJA
`ideas in this new innovation ecosystem.
`
`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!
`
`KH@AEI@AIECA@J>HECJDAIAANJH=H@E=HOE@A=IJ=HAJKH4,IJ=BBEIHA
`Our model is designed to bring these extraordinary ideas to market. Our R&D staff is more
`JD= FAFAIJHC6DAO>EEAHAIKH?AIJDAFHACK=JHO=KJDHEJEAI=HK@
`than 2,000 people strong. They mobilize resources to help regulatory authorities around
`JDAMH@=IIAIII=BAJO=@ABBE?=?OBKHFH@K?JIMDEAFHLE@EC@=J=JF=OAHIJ
`the world assess safety and efficacy of our products while providing data to payers to
`HABA?JJDAEHL=KAAJIB=?AEJJDEIABBHJEI?IJO=@BJAHABA?JA@EJDA?IJB
`reflect their value. Let's face it, this effort is costly and often reflected in the cost of
`A@E?EA=@EJEIA=IOJEIIJDAIECEBE?=JL=KAJDAOHAFHAIAJ6DAOHA@K?AJDAAA@
`medicine, and it is easy to miss the significant value they represent. They reduce the need
`BHDIFEJ=E=JEIKHCAHOBMKFLEIEJI=@HA@EHAA@E?=?IAGKA?AI
`for hospitalization, surgery, follow-up visits and more dire medical consequences.
`
`)AHC=D=I=DAHEJ=CAEMECDA=JDIOIJAA?E?ILAHOMA=@MAM=JJ
`Allergan has a heritage in knowing health system economics very well, and we want to
`=AIKHAF=JEAJID=LA=??AIIJEFHJ=JA@E?EAIEA=OBKHFAAHIMAD=LA
`make sure patients have access to important medicines. Like many of our peers, we have
`F=JEAJ=IIEIJ=?AFHCH=IJ=AIKHAJD=JF=JEAJID=LA=??AIIJKHA@E?EAI
`patient assistance programs to make sure that patients have access to our medicines
`HAC=H@AIIBJDAEH=>EEJOJF=O
`regardless of their ability to pay.
`
`9A=HA>@E=?GKEHEC=@ELAIJECEFHEIECJHA=JAJIBHIAHEKI@EIA=IAIߝ
`We are bold in acquiring and investing in promising treatments for serious diseases —
`)DAEAHIIALAHA@AFHAIIEC=K?=@A>EEJ=JECC=IJHEJAIJE=?@EJEIKH
`Alzheimer's, severe depression, glaucoma, debilitating gastrointestinal conditions. Our
`>KIEAII@A@AIJELLAFKH?D=IEC@FH@K?JI=HA=@OEJDA=HAJF=?A=@
`business model does not involve purchasing old products already in the marketplace and
`J=ECAN?AIIELAFHE?AE?HA=IAI9AFHABAHJ=?GKEHAE@J=JAIJ=CA@HKCI=@ELAIJ
`taking excessive price increases. We prefer to acquire mid to late stage drugs and invest
`ANJAIELAOEJDAEH@ALAFAJ6=AJDIA@A?EIEIJDAFFAFAMEJDKAJ
`extensively in their development. To make those decisions to help people with unmet
`A@E?=AA@IHAGKEHAIKIJ>KE@>HE@CAIMEJDFDOIE?E=I=?=@AE?A@E?=?AJAHI
`medical needs requires us to build bridges with physicians, academic medical centers,
`CLAHAJHACK=JHI=@ELAJHIBJDAIAA?KAIIJD=JJDAOIAAKI=F=HJAH
`government, regulators and inventors of these molecules so that they see us a partner
`MDID=HAIEJDAEH@A@E?=JEJEFHLAFAFAIMA>AEC
`who shares in their dedication to improve people's well being.
`
`1BOK=JKHHA?AJ@ALAFAJ=?GKEIEJEIEJI==>KJELAIJECEE@A=IJD=J?=
`If you look at our recent development acquisitions, it's all about investing in ideas that can
`DAF?D=CAJDAM=OA@E?EAEIFH=?JE?A@9D=J=AIJDA>EFD=H=?AKJE?=E@KIJHO
`help change the way medicine is practiced. What makes the biopharmaceutical industry
`CHA=J 1LAJEIJD=J?D=CAELAI9AME?JEKAJKIAKHHAIKH?AIJ=@L=?A
`great? Inventions that change lives. We will continue to use our resources to advance
`JHA=JAJIBHKAJA@E?=AA@I=@JJ=FEJJDAMH@I>AIJE@A=IJ=@L=?A?=HA
`treatments for unmet medical needs and to tap into the world's best ideas to advance care
`BHF=JEAJI9AME@JDEI>KJMAME?JEKAJIJHEAJDA=FFHFHE=JA>==?A>AJMAA
`for patients. We will do this, but we will continue to strike the appropriate balance between
`?=HA=@?IJ
`care and cost.
`
`1?IECKHJA=?JEKAIJB?KIANA?KJE=@KHHAIKJIE@E?=JAJD=JMA=HA
`In closing, our team continues to focus on execution and our results indicate that we are
`AN?AFJE=OIEA@=J@AELAHECIJHCFAH=JECHAIKJIMDEA=I@ECIKHFHEIEC
`exceptionally skilled at delivering strong operating results while also doing surprising
`JDECIJ=AKH?F=OJDAIJ@O=E?=@>@EDA=JD?=HA1=IFHK@B
`things to make our company the most dynamic and bold in healthcare. I am so proud of
`JDEIJA=IFAHBH=?A=@1ECBHM=H@JMD=JMA?=@MEJDJDAIJHACJD=@
`this team's performance and I'm looking fonivard to what we can do with the strength and
`B?KIKIJ>H=@A@FD=H=?AKJE?=I
`focus on just branded pharmaceuticals.
`
`9EJDJD=JM1@EAJJKHJDA?=LAHJ6AII=
`With that, now I'd like to turn the call over to Tessa.
`
`Maria Teresa Hilado - Chief Financial Officer
`=HE=6AHAI=0E=@+DEAB.E=?E=BBE?AH
`
`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!
`
`6D=OK*HAJ/@HECALAHOA6KHECJIE@A KHLAH=HAIKJIBHJDA
`Thank you, Brent. Good morning, everyone. Turning to slide 12. Our overall results for the
`JDEH@GK=HJAHEIIE@A!1JDAJDEH@GK=HJAHMA@AELAHA@LAHOIJHCOA=HLAHOA=H
`third quarter is on slide 13. In the third quarter we delivered very strong year-over-year
`FAHBH=?A=/))2>=IEI?IE@=JA@HALAKABHJDAJDEH@GK=HJAHM=I"
`performance. On a non-GAAP basis, consolidated revenue for the third quarter was $4.1
`>EE=E?HA=IAB'LAHIKIJDEH@GK=HJAH "
`billion, an increase of 90% versus third quarter 2014.
`
`/))24,ELAIJAJBHJDAGK=HJAHM=I!#EE?F=HA@J' EEE
`Non-GAAP R&D investment for the quarter was $305 million compared to $192 million in
`JDAFHEHOA=HFAHE@/))25/)=I=FAH?AJ=CABHALAKAM=I "=
`the prior year period. Non-GAAP SG&A as a percentage of revenue was 22.4%, a
`@A?HA=IAB!FAH?AJ=CAFEJILAHJDAFHEHOA=HGK=HJAH=I=HAIKJBJDAIOAHCEAI
`decrease of 3.1 percentage points over the prior year quarter as a result of the synergies
`HA=EA@BHHA?AJ=?GKEIEJEI
`realized from recent acquisitions.
`
`)@KIJA@-*16,)BHJDAGK=HJAHM=I >EE=E?HA=IAB$&LAHIKIJDAFHEHOA=H
`Adjusted EBITDA for the quarter was $2 billion, an increase of 168% versus the prior year,
`@HELA>OIJHCHALAKAI=@DECDAHCHII=HCEI=?HII>KIEAIIIACAJI
`driven by strong revenues and higher gross margins across business segments. Non-
`/))2A=HECIFAH@EKJA@ID=HABHJDAGK=HJAHE?HA=IA@$#J!"&?F=HA@J
`GAAP earnings per diluted share for the quarter increased 65% to $3.48 compared to
` FAH@EKJA@ID=HAEJDAJDEH@GK=HJAHB "
`$2.11 per diluted share in the third quarter of 2014.
`
`KH/))2J=NH=JAM=I&"EJDAGK=HJAH6DEIH=JAM=I>AMANFA?J=JEI@HELA
`Our non-GAAP tax rate was 8.4% in the quarter. This rate was below expectations driven
`FHE=HEO>OJDA=?=JEBJDAAJEHAEJAHAIJANFAIAJ?JEKECFAH=JEIA=HECI
`primarily by the allocation of the entire interest expense to continuing operations earnings.
`6DEIH=JA?K@?D=CA>OFJAJE=HAF=OAJB@A>JKFJDA?IABJDA6AL=
`This rate could change by potential repayment of debt upon the close of the Teva
`JH=I=?JE
`transaction.
`
`+=IDBMBHFAH=JEIBHJDAJDEH@GK=HJAHM=I>EEEF=?JA@>OHA?AJ=IIAJ
`Cash flow from operations for the third quarter was $1 billion impacted by recent asset
`=?GKEIEJEI-N?K@EC=?GKEIEJEHA=JA@HAIJHK?JKHEC=@EJACH=JEF=OAJIKH
`acquisitions. Excluding acquisition related restructuring and integration payments, our
`JDEH@GK=HJAH?=IDBMBHFAH=JEIMK@>A%>EE
`third quarter cash flow from operations would be $1.7 billion.
`
`5E@A!6KHECMJKH75*H=@IHAIKJIIE@A!6DA>KIEAII@AELAHA@IJHC
`Slide 13. Turning now to our US Brands results on slide 13. The business delivered strong
`FAHBH=?AOA=HLAHOA=H75*H=@IHALAKAM=I ">EEBHJDAGK=HJAHKF#
`performance year-over-year. US Brands revenue was $2.4 b