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`
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`
`MYLAN - EXHIBIT 1107
`Mylan Pharmaceuticals Inc. et al. v. Allergan, Inc.
`IPR2016-01127, -01128, -01129, -01130, -01131, & -01132
`
`

`

`)AHC=1?3 '-=HECI+=6H=I?HEFJ5AAEC)FD=
`
`2=CA B!
`
`Ken Cacciatore - Cowen and Co.
`A+=??E=JHA+MA=@+
`
`John Boris - Citi
`D*HEI+EJE
`
`FAH=JH
`Operator
`
`0A=@MA?AJJDA)AHC=BEHIJGK=HJAH 'A=HECI?=.MECJ@=OߣI
`Hello, and welcome to the Allergan first quarter 2009 earnings call. Following today’s
`
`FHAIAJ=JEJDAHAME>A=BH=GKAIJE=@=IMAHIAIIE6@=OߣI?BAHA?A?=
`presentation, there will be a formal question-and-answer session. Today’s conference call
`
`is scheduled to conclude at 9:00 am Pacific Time.
`EII?DA@KA@J??K@A=J' =2=?EBE?6EA
`
`6AIKHAJD=JMA=HA=>AJ=??@=JAGKAIJEIBH=I=OF=HJE?EF=JI=I
`To ensure that we are able to accommodate questions from as many participants as
`
`FIIE>AMA=IJD=JA=?DBOKEEJJ==NEKBJMGKAIJEIFAH=JH
`possible, we ask that each of you limit to a maximum of two questions. (Operator
`
`1IJHK?JEI)JJDAHAGKAIJBJDA?F=OJ@=OߣI?BAHA?AEI>AECHA?H@A@1B
`Instructions) At the request of the company, today’s conference is being recorded. If
`
`=OAD=I=O>A?JEIOK=O@EI?A?J=JJDEIJEA
`anyone has any objections, you may disconnect at this time.
`
`1MK@EAJEJH@K?AJ@=OߣI?BAHA?ADIJHE0E@=5AEH8E?A2HAIE@AJ
`lwould like to introduce today’s conference host, Mr. Jim Hindman, Senior Vice President,
`
`6HA=IKHO4EI=@1LAIJHHA=JEI5EHOK=O>ACE
`Treasury Risk and Investor relations. Sir, you may begin.
`
`Jim Hindman
`E0E@=
`
`6D=OK2=J/@HEC9EJDABHJ@=OߣI?BAHA?A?=EI,=LE@2OJJ
`Thank you, Pat. Good morning. With me for today’s conference call is David Pyott,
`
`+D=EH=BJDA*=H@=@+DEAB-NA?KJELABBE?AH ABB-@M=H@I-NA?KJELA8E?A
`Chairman of the Board and Chief Executive Officer; Jeff Edwards, Executive Vice
`
`2HAIE@AJ.E=?A=@*KIEAII,ALAFAJ+DEAB.E=?E=BBE?AH ,H5?JJ9DEJ?KF
`President, Finance and Business Development, Chief Financial Officer; Dr. Scott Whitcup,
`
`-NA?KJELA8E?A2HAIE@AJ4AIA=H?D=@,ALAFAJ=@E*=HM5AEH8E?A
`Executive Vice President, Research and Development and Jim Barlow, Senior Vice
`
`2HAIE@AJ=@+HFH=JA+JHAH
`President and Corporate Controller.
`
`*ABHAMALA=DA=@1MK@EAJHAE@OKJD=J?AHJ=EIJ=JAAJIJD=JMAME
`Before we move ahead, I would like to remind you that certain statements that we will
`
`=AEJDEIFHAIAJ=JE=HABHM=H@ECIJ=JAAJ6DAIABHM=H@EC
`make in this presentation are fonivard-looking statement. These fonivard-looking
`
`IJ=JAAJIHABA?J)AHC=ߣIK@CAJ=@==OIEIO=IBJ@=O=@=?JK=HAIKJI
`statements reflect Allergan’s judgment and analysis only as of today and actual results
`
`=O@EBBAH=JAHE=OBH?KHHAJANFA?J=JEI>=IA@=K>AHBB=?JHI=BBA?JEC
`may differ materially from current expectations based on a number of factors affecting
`
`)AHC=ߣI>KIEAIIAI)??H@ECOOKIDK@JF=?AK@KAHAE=?AJDAIABHM=H@
`Allergan’s businesses. Accordingly you should not place undue reliance on these fon/vard-
`
`ECIJ=JAAJI
`looking statements.
`
`.H=HAJDHKCD@EI?KIIEBJDAHEII=@K?AHJ=EJEAI=II?E=JA@MEJDJDABHM=H@
`For a more thorough discussion of the risks and uncertainties associated with the fon/vard-
`
`ECIJ=JAAJIJ>A=@AEJDEI?BAHA?A?==@MA>?=IJMAHABAHOKJJDA
`looking statements to be made in this conference call and webcast, we refer you to the
`
`@EI?=EAHHAC=H@ECBHM=H@ECIJ=JAAJIJD=JEIE?K@A@EKHBEHIJGK=HJAH '
`disclaimer regarding fon/vard-looking statements that is included in our first quarter 2009
`
`A=HECIHAA=IAMDE?DM=IBKHEIDA@JJDA5-+J@=OBH&=IMA=IKHBEECI
`earnings release, which was furnished to the SEC today on form 8-K, as well as our filings
`
`with the SEC referenced in that disclaimer.
`MEJDJDA5-+HABAHA?A@EJD=J@EI?=EAH
`
`DJJFI IAAEC=FD=?=HJE?A!"%%=AHC=E?G 'A=HECI?=JH=I?HEFJ F=HJ IECA
`
`

`

`)AHC=1?3 '-=HECI+=6H=I?HEFJ5AAEC)FD=
`
`2=CA!B!
`
`9AMEBMKFJDAGKAIJE=@=IMAHIAIIEBJDEI?=MEJD=IDHJEIJAO
`We will follow-up the question-and-answer session of this call with a short listen-only
`
`IACAJMDAHAMAMEFHLE@A=@@EJE=EI?A=AKIEBH=JEJD=JHA=JAIJKH
`segment where we will provide additional miscellaneous information that relates to our
`
`>KIEAII7@AHHACK=JE.,EH@AHJ>A=>AJ@EI?KIIJDEIEBH=JEBHAAO@KHEC
`business. Under regulation FD, in order to be able to discuss this information freely during
`
`JDAGK=HJAHMAKIJ>AIKHAJD=JJDEIEIEJDAFK>E?@=E6DEI?BAHA?A?==@
`the quarter, we must be sure that this is in the public domain. This conference call and
`
`=??F=OECMA>?=IJ=HA>AECIEKJ=AKIO>H=@?=IJLAHJDA1JAHAJMEJDHAF=OI
`accompanying webcast are being simultaneously broadcast over the Internet, with replays
`
`available for one week. You can access this information on our website at
`=L=E=>ABHAMAA;K?==??AIIJDEIEBH=JEKHMA>IEJA=J
`
`MMM=AHC=?
`MAMA/.allergancom.
`
`)JJDEIFEJ1MK@EAJJKHJDA?=LAHJ,=LE@2OJJ
`At this point, I would like to turn the call over to David Pyott.
`
`,=LE@2OJJ
`David Pyott
`
`6D=OKE/@HEC=@EAI=@CAJAALAH=I=AIEJDABEHIJGK=HJAH
`Thank you, Jim. Good morning ladies and gentlemen. Overall sales in the first quarter
`
`@A?HA=IA@$!E@=HI>AEC=BBA?JA@>OJDAIJHACJDBJDA75@=HLAHIKIJDAH
`decreased 6.3% in dollars, being affected by the strength of the US dollar versus other
`
`?KHHA?EAI=HK@JDAMH@@H=CCEC@MI=AI>O#'>=IEIFEJI=@EEAMEJDJDA
`currencies around the world, dragging down sales by 590 basis points and inline with the
`
`BK?IJMAߣLACELA=JJDA>ACEECBJDEIOA=HKHBHAECAN?D=CAEF=?J>AECE
`full cost we’ve given at the beginning of this year, our foreign exchange impact being in
`
`JDAH=CAB"J&
`the range of 4% to 8%.
`
`=?=?KHHA?O>=IEII=AI@A?HA=IA@>O"CELAJDAEF=?JBJDAHA?AIIE
`On a local currency basis, sales decreased by 0.4% given the impact of the recession,
`
`F=HJE?K=HOKHAA?JELA?=IDF=O>KIEAIIAI9AMAHADMALAHFA=IA@MEJDKH
`particularly on our elective cash pay businesses. We were however pleased with our
`
`FH@K?JI=AI=J''#EEMDAHA=JJDAJFA@BJDACKE@=?AMAߣLAFHLE@A@BH3
`product sales at $995 million where at the top end of the guidance we’ve provided for Q1,
`
`MDE?DMAߣLA>AACELA=I=H=CAB'$EEJ>EE.KHJDAHHA=I>=IA@
`which we’ve been given as a range of $960 million to $1 billion. Furthermore, also based
`
`BAA@>=?BH=O?KIJAHIEJEI?A=HJD=J*JND=I>AAJDAIJHAIEEAJF=HJB
`on feedback from many customers, it is clear that Botox has been the most resilient part of
`
`=BKH?=IDF=O>KIEAIIAI
`all of our cash pay businesses.
`
`4AC=H@ECA=HECIMACAAH=JA@/))2@EKJA@A=HECIFAHID=HAB##MDE?D
`Regarding earnings, we generated non-GAAP diluted earnings per share of $0.55, which
`
`M=I!&LAHJDA?F=H=>AK>AHE3B &=@?BHJ=>OLAHJDACKE@=?A
`was 3.8% over the comparable number in Q1 of 2008 and comfortably over the guidance
`
`FHLE@A@=JJDAIJ=HJBJDAOA=H=IMA=FFEA@CHA=J=JJAJEJ==CAAJBKH?IJI
`provided at the start of the year, as we applied great attention to management of our costs
`
`=@B?KIA@KHIFA@ECDECDHAJKH=HA=IBANFA@EJKHA
`and focused our spending on high return areas of expenditure.
`
`/))24,ANFA@EJKHA=I=FAH?AJ=CABI=AIM=IO$!=@EIANFA?JA@J
`Non-GAAP R&D expenditure, as a percentage of sales was only 16.3% and is expected to
`
`>ADECDAHLAHJDA?KHIABJDAOA=H=IMAIJ=HJKFAMFHA?JI9AMAHA=I=>AJ
`be higher over the course of the year as we startup new projects. We were also able to
`
`E?HA=IA4,ABBE?EA?OACJE=JAJMAH?JH=?JFHE?AIBH+4I=@>AABEJA@BH
`increase R&D efficiency, negotiate to lower contract prices from CROs and benefited from
`
`?KHHA?OHAC=H@ECLAHIA=I4,ANFA@EJKHA
`currency regarding overseas R&D expenditure.
`
`5E?AJDA>ACEECBJDAOA=HKH=>EEJOJBHA?=IJJHA@I=?HIIJDAMH@D=I
`Since the beginning of the year, our ability to forecast trends across the world has
`
`EFHLA@?IE@AH=>OALAHJDAAII=OK?AHJ=EJEAIHA=EBHMDE?DHA=IMA
`improved considerably. Nevertheless, many uncertainties remain, for which reason we
`
`D=LAJ=A@A@=OBKHBKOA=HCKE@=?AHAC=H@ECI=AIHA=HECI
`have not amended any of our full year guidance regarding sales or earnings.
`
`DJJFI IAAEC=FD=?=HJE?A!"%%=AHC=E?G 'A=HECI?=JH=I?HEFJ F=HJ IECA
`
`

`

`)AHC=1?3 '-=HECI+=6H=I?HEFJ5AAEC)FD=
`
`2=CA"B!
`
`6DAOA=HD@I=OFHEIEC?=J=OIJIBHFAHBH=?A=IMAD=LAFJAJE=FH@K?J
`The year holds many promising catalysts for performance, as we have potential product
`
`=FFHL=IEJDA7EJA@5J=JAI=ABH*JNBHFIJIJHAKFFAHE>IF=IJE?EJO
`approvals in the United States alone for Botox, for post-stroke, upper limb spasticity,
`
`KEC==HAKF2IKH@AN)+7)4:KL@AHE@?=EA=@ID=FA@CA5JOA
`Lumigan are up 0.01%, Posurdex, ACULAR X, Juvéderm, lidocaine, and shaped gel Style
`
`"*HA=IJ1F=J)@@EJE=OHAC=H@ECJDAJHA=JAJB?DHE?ECH=EAMAߣHA
`410 Breast Implant. Additionally, regarding the treatment of chronic migraine, we’re
`
`EJAH=?JECMEJDJDA.,)=@DFAJBEAIDHJOJDAHA=BJAH.KHJDAHHAMAANFA?JJDA
`interacting with the FDA and hope to file shortly thereafter. Furthermore, we expect the
`
`=FFHL=BKEC=E=F=
`approval of Lumigan in Japan.
`
`4AC=H@EC*JN=@JDA=FFHL=B,OIFHJBH>JD?AHLE?=@OIJE==@C=>A=HEAI
`Regarding Botox and the approval of Dysport for both cervical dystonia and glabellar lines,
`
`MA?AJA@OAIJAH@=OJD=JJDA.,)D=IHAGKAIJA@JD=J)AHC=?IE@AHI?AHJ=E
`we commented yesterday that the FDA has requested that Allergan considers certain
`
`?=II=>AECJD=JMA=IIKAEIBK@EJDA,OIFHJF=?=CAEIAHJE?K@EC=4-5
`class labeling, that we assume is found in the Dysport package insert, including a REMS
`
`FHCH==@B?KHIAMAD=LAJOAJIAAJDA,OIFHJ=>A
`program and of course we have not yet seen the Dysport label.
`
`9A=HAFA=IA@JD=JJDA.,)D=IAFD=IEA@JD=JJDA@IECKEJI=HA@EBBAHAJ>AJMAA
`We are pleased that the FDA has emphasized that the dosing units are different between
`
`JDAFH@K?JI=@JDA?EE?=@IAIANFHAIIA@EKEJI=HAJEJAH?D=CA=>ABHA
`the products and the clinical doses expressed in units are not interchangeable from one
`
`FH@K?JJ=JDAH+AH?E=OMA>AEALAJD=JA@K?=JE=>KJEJAH?D=CA=>EEJO
`product to another. Commercially, we believe that education, about non-interchangeability
`
`B>JKEKJNEFH@K?JIME?=KIAFDOIE?E=IJ?=HABKO?IE@AHJDA=@FJEBJDEI
`of botulinum toxin products will cause physicians to carefully consider the adoption of this
`
`FHJMDAJDAOD=LAJDAFH=?JE?=ANFAHEA?AKHFHA@E?J=>AKJ?AIMEJD*JN=
`port, when they have the practical experience, our predictable outcomes with Botox, a
`
`DECDOAIJ=>EIDA@>H=@=A
`highly established brand name.
`
`9EJDJDA?FAJEBJDA.,)ߣII=BAJOHALEAMB*JN=@ ?=HEJOMD=JJDA.,)
`With the completion of the FDA’s safety review of Botox and clarity on what the FDA
`
`MK@EAEKF@=JA@=>AEC=@EAH4-5MADFAJD=JMAߣ>A=>AJ>J=E=
`would like in updated labeling and inner REMS, we hope that we’ll be able to obtain a
`
`JEAO=?JEKH=FFE?=JEBH=FFHL=BFIJIJHAKFFAHE>IF=IJE?EJOE=@KJI
`timely action on our application for approval of post-stroke, upper limb spasticity in adults,
`
`MDE?DM=ICH=JA@FHEHEJOHALEAMMEJD=2,7.)@=JAE3 
`which was granted priority review with a PDUFA date in Q2.
`
`+AJECJDAFAHBH=?ABKHE@ELE@K=>KIEAIIAI1ߣIJ=HJMEJD*JN9DAHAMA
`Commenting the performance of our individual businesses, I’ll start with Botox. Where we
`
`MAHAFA=IA@MEJDJDAHAIEEA?OBI=AI=@>AEALAJD=JJDA@HELAHIBCHMJD=HAKJE
`were pleased with the resiliency of sales and believe that the drivers of growth are multi-
`
`B=?JHE=DECDF=JEAJI=JEIB=?JEMEJDJDAFH@K?JIFAHBH=?A>=IA@ OA=HIB
`factorial, high patient satisfaction with the products performance based on 20 years of
`
`KIAJDAGK=EJOBJDA*JN>H=@=@JDAFHE?AFEJIHA=JELAJJDAHDECDAHFHE?A@
`use, the quality of the Botox brand and the price points relative to other higher priced
`
`aesthetic treatments.
`=AIJDAJE?JHA=JAJI
`
`5=AI@A?EA@#&E75@=HI>KJEJJK?DA@=CHMJDB%E?=?KHHA?O
`Sales declined 5.8% in US dollars, but it touched a growth of 0.7% in local currency.
`
`*=IA@KH==OIEIBMH@ME@A?FAJEJEEJMK@IAAJD=JJDA=HAJE3" &
`Based on our analysis of worldwide competition, it would seem that the market in Q4 2008
`
`@A?EA@=J=>KJ =J?IJ=J?KHHA?O=@JD=JMAC=EA@=EJJAID=HAEJDAJF
`declined at about 2% at constant currency and that we gained a little share in the top 10
`
`C>==HAJ.HJDABKOA=H &MAAIJE=JAJD=J*JNAOA@&!=HAJID=HA
`global market. For the full year 2008, we estimate that Botox enjoyed 83% market share
`
`B=?ECBELAJDAHFH@K?JI
`facing five other products.
`
`DJJFI IAAEC=FD=?=HJE?A!"%%=AHC=E?G 'A=HECI?=JH=I?HEFJ F=HJ IECA
`
`

`

`)AHC=1?3 '-=HECI+=6H=I?HEFJ5AAEC)FD=
`
`2=CA#B!
`
`1-KHFAMAAIJE=JAJD=JMAߣHA=EJ=EEC=HAJID=HAALA=IAH?D=IAJAHA@
`In Europe, we estimate that we’re maintaining market share, even as Merck has entered
`
`=HAJI=HK@JDAHACEMEJDAA=@JDA?FAJEJELAIAJIMAJBHJMJJDHAA
`markets around the region with Zemen and the competitive sets went from two to three
`
`F=OAHI1JDA7EJA@5J=JAI=@+==@=MAD=LA@H=MKJ@AJ=EA@F=IJANA?KJA
`players. In the United States and Canada, we have drawn out detailed plans to execute
`
`=C=EIJJDA=HHEL=B?FAJEJE>JDEJDAJDAH=FAKJE?=@=AIJDAJE?=HA=I
`against the arrival of competition both in the therapeutic and aesthetic arenas.
`
`4AC=H@ECBKJKHA@HELAHIBCHMJDMA=HAFA=IA@JD=J*JN8EIJ=MDE?DEIJDA=ABH
`Regarding future drivers of growth, we are pleased that Botox Vista, which is the name for
`
`*JN+IAJE?D=I>AA=K?DA@E=F==@*JNMECHM>AJJAHEAIE+DE=1
`Botox Cosmetic has been launched in Japan and Botox, will grow better lines in China. In
`
`=F=MA=IIA?KHA@=FFHL=BH*JNBHKLAEA?AHA>H=F=IO
`Japan we also secured approval for Botox forjuvenile cerebral palsy.
`
`LECJAOA?=HAFD=H=?AKJE?=II=AI@A?EA@E75@=HI>O!&LAHIKI3
`Moving onto eye care pharmaceuticals, sales declined in US. dollars by 3.8% versus Q1
`
`B &CHMEC !E?=?KHHA?EAIJDEI?JH=IJMEJD)AHC=ߣIA@=HAJCHMJD
`of 2008, growing 2.3% in local currencies, this contrast with Allergan’s end market growth
`
`HAFHJA@>O15/>=BH3"BEJDA=HAJCHMEC=J$IJBJDAHA=IBH
`reported by IMS Global for Q4 of 10% in the market growing at 6%. Most of the reason for
`
`JDEIL=HE=?AECHMJDH=JAIEAIEJDA75>KIEAII)JDKCD=OA=H=C=JJDAA@B
`this variance in growth rates lies in the US. business. Although, a year ago at the end of
`
`=H?D &ELAJHEAIMAHA=JJDAMAHA@BKHJ=HCAJH=CABMDAI=AELAJHO
`March 2008 inventories were at the lower end of our target range of wholesale inventory,
`
`JDAOMAHAIJEDECDAHJD=JDAIEJK=JE=JJDAA@B=H?D '
`they were still higher than the situation at the end of March, 2009.
`
`1JAHIBA@=HAJ@A=@E3BJDA7EJA@5J=JAI8AHEIF= IDMI=?GKEIEJE
`In terms of end-market demand in Q1 of the United States, Verispan shows acquisition
`
`@=HCHMJD=J"!=@=LAH==HAJCHMEC=J'!MEJD)AHC=KJF=?EC=
`dollar growth at 14.3%, and an overall market growing at 9.3% with Allergan outpacing all
`
`JDA=H?FAJEJHIEJDALAH==HAJ=IMA=IEJDAFDJD=CO+D=A1
`the major competitors in the overall market as well as in the Ophthalmology Channel. In
`
`3)AHC=AOA@=HA?H@L=KA=HAJID=HAB!&EJDALAH==HAJ=@
`Q1, Allergan enjoyed a record value market share of 30.8% in the overall market and
`
`!# EJDAFDJD=CO+D=A
`35.2% in the Ophthalmology Channel.
`
`BBIAJJECJDEIIJHC75FD=H=?AKJE?=FAHBH=?AM=IJDA=HAJBH6+=HJEBE?E=
`Offsetting this strong U.S. pharmaceutical performance was the market for OTC artificial
`
`JA=HIMDE?DD=IIMA@@M?IE@AH=>O=IEJEIIK>A?JJKJAHF?AJIFA@EC
`tears, which has slowed down considerably as it is subject to outer pocket spending
`
`@A?EIEI6DA=HAJEJDABEHIJGK=HJAH=IHAFHJA@>O141CHAMO"E@=HI=@
`decisions. The market in the first quarter as reported by lRl grew only 0.4% in dollars and
`
`)AHC=ߣIJEAHEA@A?EA@!=IMA?I?EKIOLA@HAIKH?AI=@@AJ=EECABBHJI
`Allergan’s tier line declined 13% as we consciously moved resources and detailing efforts
`
`BH4-.4-50=@KHJDAH6+>H=@J4-56)515MDE?DBBAHI=K?DCHA=JAH
`from REFRESH and our other OTC brand to RESTASIS, which offers a much greater
`
`FJAJE=EJDAIDHJJAH
`potential in the short term.
`
`2KJJECJDAJMFEA?AIBJDA>KIEAIIJCAJDAHAOAFD=H=?AKJE?=I6+JA=HI
`Putting the two pieces of the business together, eye pharmaceuticals no OTC tears,
`
`JCAJDAH)AHC=A@=HAJ75@A=@=IA=IKHA@>O8AHEIF==@141CHAM
`together Allergan end market US. demand, as measured by Verispan and lRl grew
`
`=IJ!LAHIKI3B &4AC=H@EC4-56)515FAHBH=?AMA=HAFA=IA@JD=J
`almost 13% versus Q1 of 2008. Regarding RESTASIS performance, we are pleased that
`
`8AHEIF=HAFHJICHMJDE=?GKEIEJE@=HI#$LAHIKI3B &
`Verispan reports growth in acquisition dollars, 15.6% versus Q1 of 2008.
`
`DJJFI IAAEC=FD=?=HJE?A!"%%=AHC=E?G 'A=HECI?=JH=I?HEFJ F=HJ IECA
`
`

`

`)AHC=1?3 '-=HECI+=6H=I?HEFJ5AAEC)FD=
`
`2=CA$B!
`
`9A>AEALAJD=JKH@AJ=EECABBHJI=@E?HA=IA@ELAIJAJE,6+LAHJDA?KHIAB
`We believe that our detailing efforts and increased investment in DTC over the course of
`
`JDEIOA=HME?JEKAJ@HELAIJHCCHMJD9AIDK@FEJJD=JI?HEFJCHMEIGKEJA
`this year will continue to drive strong growth. We should point that script grow is quite
`
`KHAE=>A=I=A=IKHABFAHBH=?A=IMABEALAHDECDAH=KJBKEJIFAHI?HEFJ
`unreliable as a measure of performance as we fill ever higher amount of units per script.
`
`/HMJDEJDIA=HAJIACAJIMDE?DMAB?KIA@MAHADECDO=JJH=?JELA
`Growth in those market segments on which we focused were highly attractive.
`
`8AHEIF=HAFHJA@=?GKEIEJE@=H=HAJCHMJDBBHC=K?=!BH
`Verispan reported acquisition dollar market growth of 10% for glaucoma, 31% for non-
`
`IJAHE@==JEEB==JHEAI=@BH=JEEBA?JELAIMEJD)AHC=FAHBHECMAE
`steroidal anti-inflammatories and 10% for anti-infectives with Allergan performing well in
`
`A=?DIACAJ1C=K?=MAߣHAFA=IA@MEJDJDAKFJE?B+>EC=MDE?DM
`each segment. ln glaucoma we’re pleased with the up-tick of Combigan, which now
`
`IJ=@I=J!&BJDAJH=EECFHAI?HEFJEIB+I=J=??KJEC>JD>H=@=@CAAHE?I
`stands at 38% of the trailing prescriptions of Cosalt, accounting both brand and generics.
`
`)FD=C=2M?IJEJKJAI"$BJDAJH=EECFHAI?HEFJEIBJDA)FD=C=
`Alphagan P, 0.1%, now constitutes 46% of the trailing prescriptions of the Alphagan
`
`>H=@A@BH=?DEIA2AHBH=?AE>JDJDAIAFH@K?JIEIIJHC=IMAFHAF=HABHJDA
`branded franchise. Performance in both these products is strong as we prepare for the
`
`=K?DB==KJDHEA@CAAHE?B)FD=C=2#E3"BJDEIOA=H6DAO=HA=
`launch of an authorized generic of Alphagan P 0.15% in Q4 of this year. The only area
`
`JD=JMA=HA@EII=JEIBEA@MEJDKHFAHBH=?AEIJD=JBKEC=MDAHAJDAID=HAEI
`that we are dissatisfied with our performance is that of Lumigan, where the share is
`
`IJ=C=J>AEC=BBA?JA@>OJDACLAH@KA=FFHL=BKEC=
`stagnant, being affected by the long overdue approval of Lumigan 0.01%.
`
`9A=HAMHECMEJDJDA.,)JHAILA==@EEIJH=JELAEIIKAMDE?DMA>AEALAEI
`We are working with the FDA to resolve an administrative issue which we believe is
`
`@A=OECJDA=FFHL=9AHA=EDFABKJD=JJDEI?=I>AHAILA@9AߣHA=JA=IJ
`delaying the approval. We remain hopeful that this can soon be resolved. We’re at least
`
`FA=IA@MEJDKEC=D=I>AA=FFHLA@>O0A=JD+==@=E)FHE
`pleased with Lumigan 0.01% has been approved by Health Canada in April.
`
`KJIE@AJDA75MAߣHA=IFA=IA@MEJDKHFAHBH=?A)?HIIJDA-KHFA=7E
`Outside the US. we’re also pleased with our performance. Across the European Union,
`
`)AHC=HA=EIJDAB=IJAIJCHMEC?F=O=CIJJDA=HF=OAHIMEJD?JEKEC
`Allergan remains the fastest growing company amongst the major players, with continuing
`
`ID=HAC=EIEKHB?KIA@=HA=IBC=K?==@JA=HI6DEI@AIFEJAFHE?A?KJIEJDA
`share gains in our focused areas of glaucoma and tears. This, despite price cuts in the
`
`7=@JDA=K?DBJDABEHIJ)FD=C=CAAHE?IEJDA7/AH=O=@F=HJIB
`UK. and the launch of the first Alphagan generics in the UK. Germany and parts of
`
`Scandinavia.
`5?=@E=LE=
`
`9A=HAFA=IA@MEJDJDALAHOIJHCKFJE?>JDBH/=BHJ=@+>EC=E-KHFA
`We are pleased with the very strong up-tick both for Ganfort and Combigan in Europe,
`
`MDAHABEN?>E=JEBFH@K?JIM=??KJBHHAJD=!BJDAJJ==HAJ9A
`where fix combination of products now account for more than 30% of the total market. We
`
`?JEKAJIA?KHA=OAM?KJHO=FFHL=I=@FKID@AAFAHEJ=OAM
`continue to secure many new country approvals and push deeper into many new
`
`AAHCEC=HAJI
`emerging markets.
`
`1+DE=BH=OMAߣHAIAECKHFH@K?JI@EHA?JOJDHKCD=AM=HCAI=AIBH?AJD=J
`In China for May, we’re selling our products directly through a new, large sales force that
`
`MAD=LAAIJ=>EIDA@9AHA?AELA@JDABMEC=FFHL=I )FD=C=2E*H=E
`we have established. We received the following approvals; Alphagan P 0.1% in Brazil,
`
`)FD=C=2#E-COFJ=@+>EC=E0CCAOC=K?=FH@K?JI
`Alphagan P 0.15%in Egypt, and Combigan in Hong Kong. Key glaucoma products
`
`HA?AELA@F=JEAJHAE>KHIAAJKEC==@/=BHJE4=E=+>EC==@/=BHJ
`received patient reimbursement. Lumigan and Ganfort in Romania, Combigan and Ganfort
`
`DJJFI IAAEC=FD=?=HJE?A!"%%=AHC=E?G 'A=HECI?=JH=I?HEFJ F=HJ IECA
`
`

`

`)AHC=1?3 '-=HECI+=6H=I?HEFJ5AAEC)FD=
`
`2=CA%B!
`
`E2=@ +>EC==@6KHAO FJELA5AIEJELAKHKEJ@IAFH@K?JM=I=K?DA@E
`in Poland; Combigan and Turkey; Optive Sensitive, our unit dose product was launched in
`
`/AH=O=@1J=O=@FJELAM=I=FFHLA@EJDA7AJDAH=@I5MA@A.E=@
`Germany and Italy and Optive was approved in the U.K., Netherlands, Sweden, Finland,
`
`5MEJAH=@2=@=@0KC=HO
`Switzerland, Poland and Hungary.
`
`1=JE)AHE?=MA=?DEALA@JDAA=@AHIDEFFIEJEE=HJEBE?E=JA=HIBHJDABEHIJJEA
`In Latin America, we achieved the leadership position in artificial tears for the first time
`
`ALAH=@EIJDAB=IJAIJCHMEC=H?F=OEJDAHACE1)IE=MAߣHAAOECLAHO
`ever and is the fastest growing major company in the region. In Asia we’re enjoying very
`
`DECDCHMJDE1@E==@E5KJDA=IJ)IE=4AC=H@ECIE?=HAI=AIE?HA=IA@"#
`high growth in India and in Southeast Asia. Regarding skin care, sales increased 45%,
`
`@HELA>O=JEIIA=@)?A
`driven by Latisse and Aczone.
`
`9AߣHA@AECDJA@>OJDAHAIFIABFDOIE?E=I=@?IKAHIJ=JEIIA6DAHAߣI>AA
`We’re delighted by the response of physicians and consumers to Latisse. There’s been
`
`?IE@AH=>AEJAHAIJ=?HIIJDAA@E=MEJDMALAH!EEA@E=EFHAIIEIJ
`considerable interest across the media with well over 300 million media impressions to-
`
`@=JA*HIDEA@IME=?J=IJDAFH@K?JIFAIFAHI,EHA?JJ+IKAH)@LAHJEIEC
`date. Brook shields will act as the product spokesperson. Direct-to-Consumer Advertising
`
`ME?A?AIDHJO
`will commence shortly.
`
`6DA EEBEEJE=I=AIB=JEIIAE?K@AIJ?ECOKH>JDFDOIE?E=IߣBBE?AI=@
`The $12 million of initial sales of Latisse include stocking your both physicians’ offices and
`
`FD=H=?AKJE?=MDAI=AHI=IMA=IIDEFAJI@EHA?JJFDOIE?E=IBBE?AIEJAHIB
`pharmaceutical wholesalers, as well as shipments direct-to-physicians offices in terms of
`
`?IKFJE9A=HAFA=IA@MEJDJDAHAH@AHH=JAI)?AEIJH=?ECEEAMEJDJDAH
`consumption. We are pleased with the reorder rates. Aczone is tracking in line with other
`
`HA?AJO=K?DA@=?A@HKCIEJAHIB=HAJID=HA
`recently launched acne drugs in terms of market share.
`
`1JAHIB6=H=?=?GKEIEJE@=H@A=@=IHAFHJA@>OL=HEKIIF=EIB=JJJDA
`In terms of Tazorac acquisition dollar demand as reported by various span, is flat to the
`
`FHEHOA=HMEJD:B=?JHOI=AI@M@KAJI=?D=CAIE?D=AELAJHO;A=HJ
`prior year with X factory sales down due to small changes in channel inventory. Year-to-
`
`@=JA.A>HK=HO75=?A=HAJD=ICHM "EL=KAIJEK=JA@>OIALAH=AM
`date February, U.S. acne market has grown 24% in value, stimulated by several new
`
`FH@K?J=K?DAI=IMA=IJDA57JDECDAHFHE?A@FH@K?JI
`product launches as well as the SKU to higher priced products.
`
`1JDAKHCO=HA=I=AI=HA@M #LAHIKIFHEHOA=H=IMDAI=AIJ?EC
`In the urology area, sales are down 25% versus prior year, as wholesale stocking
`
`??KHHA@=JJDAJEAB=K?DE3B &9AߣHAFA=IA@JD=J5=?JKH=:4EI
`occurred at the time of launch in Q1 of 2008. We’re pleased that Sanctura XR is
`
`FAHBHECMAEJDAMAHALABI=AIBH?A@AFOAJIE?AMAANEJA@JDACAAH=
`performing well in the lower level of sales force deployment since we exited the general
`
`FH=?JE?A?D=AE.A>HK=HO
`practice channel in February.
`
`,KHEC3MA=@AIK>IJ=JE=FHCHAIIMEJDIA?KHEC==CA@?=HABHK=HO
`During Q1, we made substantial progress with securing managed care formulary
`
`?LAH=CA=J6EAH ALAE>JD?AH?E==@2=HJ,F=I9A=HAE=@L=?A@
`coverage at Tier-2 level in both commercial and Part D plans. We are in advanced
`
`@EI?KIIEIMEJDJDA?FHJEF=HJAH1JDA=HAJF=?AJDAKEGKAAIIBKH
`discussions with the co-promotion partner. In the marketplace, the uniqueness of our
`
`FH@K?JEIMA=FFHA?E=JA@
`product is well appreciated.
`
`4AC=H@ECB=?E==AIJDAJE?IKHI=AIB@AH=BEAHI@A?EA@ #E75@=HI=@
`Regarding facial aesthetics, our sales of dermal fillers declined 21.5% in US dollars and
`
`!$E?=?KHHA?O=HAJ?@EJEIMAHAF=HJE?K=HOMA=EJDA7EJA@5J=JAI
`13.6% in local currency. Market conditions were particularly weak in the United States,
`
`HA=JELAJJDAHHACEIBJDAMH@9ADMALAH>AEALAJD=JMA=OD=LA=HCE=O
`relative to other regions of the world. We however believe that we may have marginally
`
`DJJFI IAAEC=FD=?=HJE?A!"%%=AHC=E?G 'A=HECI?=JH=I?HEFJ F=HJ IECA
`
`

`

`)AHC=1?3 '-=HECI+=6H=I?HEFJ5AAEC)FD=
`
`2=CA&B!
`
`C=EA@ID=HAEJDA75=IMAI@KL@AH=?HIIKHAJMHB=??KJIE>JD
`gained share in the US. as we sold Juvéderm across our network of accounts, in both
`
`@AH=JCO=@F=IJE?IKHCAHO=@IKFFHJA@JDA>H=@>JDMEJD,6+=@FK>E?
`dermatology and plastic surgery and supported the brand both with DTC and public
`
`relations activities.
`HA=JEI=?JELEJEAI
`
`1+==@=IJHCFAHBH=?ABKHKL@AHFKIE@?=EAFH@K?JI=@JDAH=FE@
`In Canada, strong performance of our Juvéderm plus lidocaine products and the rapid
`
`IMEJ?DJJDAIAANJCAAH=JEFH@K?JIIKCCAIJJD=JMAMED=LA=JDAHMEAH?A
`switch to these next generation products suggest that we will have another winner once
`
`JDAIAFH@K?JI=HA=FFHLA@EJDA7EJA@5J=JAI1-KHFAJDA=HAJD=I=I>AA
`these products are approved in the United States. In Europe, the market has also been
`
`IBJ@KAJMA=A?E??@EJEIF=HJE?K=HOE5KJDAH-KHFA=@E=@@EJEMA
`soft due to weak economic conditions, particularly in Southern Europe and in addition, we
`
`>AEALAJD=JMAߣLAIJIA=HAJID=HA=IMAFD=IA@KJ=@@AAFD=IEA@IA
`believe that we’ve lost some market share as we phased out and de-emphasized some
`
`@AHMAHFHE?A@FH@K?JIE?JEAJ=-KHFA
`older, lower priced products in continental Europe.
`
`1)IE=)KIJH=E==@=JE)AHE?=MAߣHACHMECH=FE@OCELA=OAM?KJHO
`In Asia, Australia and Latin American, we’re growing rapidly, given many new country
`
`FH@K?JHACEIJH=JEI=@=HAC=EECIECEBE?=J=HAJID=HAMEJDJDAKL@AHFKI
`product registrations and are gaining significant market share with the Juvéderm plus
`
`E@?=EAFH@K?JIFAHBHECIJHCOE)KIJH=E=5EC=FHA=@0CC6DA
`lidocaine products performing strongly in Australia, Singapore and Hong Kong. The
`
`KL@AHFKIE@?=EAFH@K?JIMAHAKIJ=K?DA@=?HII=JE)AHE?=E3 
`Juvéderm plus lidocaine products werejust launched across Latin America in Q2.
`
`6KHECJ>HA=IJ=AIJDAJE?II=AI@A?HA=IA@>O#%E@=HI=@ E?=
`Turning to breast aesthetics, sales decreased by 15.7% in dollars and 10.2% in local
`
`?KHHA?O EJDA75LKA@A?EAIEJDA=HAJMAHABBIAJ>OJDAFE?KFEL=KA=I
`currency; in the US, volume declines in the market were offset by the pick up in value as
`
`JDA=HAJJH=IEJEIBHI=EAJIEE?ACA)I)AHC=D=@>AA@EIFHFHJE=JAO
`the market transitions from saline to silicone gel. As Allergan had been disproportionately
`
`MA=AHEJDAI=EAIACAJJDEI=OD=LA=E@A@KHE?HA=IAE=HAJID=HA9A
`weaker in the saline segment, this may have aided our increase in market share. We
`
`>AEALAJD=JMAA@A@KF>OC=EEC=HCE=ID=HAE3ALA=IMADA@FHE?AI
`believe that we ended up by gaining marginal share in Q1 even as we held prices.
`
`)IJDAHA?AIIEIFHA=@=HK@JDAMH@MAANFAHEA?A@@K>A@ECEJI=AI@A?EAIE
`As the recession spread around the world, we experienced double-digit sales declines in
`
`?=?KHHA?OEJDAFAH=JECHACEIKJIE@AJDA755EE?ACAEF=JIMAHA
`local currency in the operating regions out