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`
`MYLAN - EXHIBIT 1108
`Mylan Pharmaceuticals Inc. et al. v. Allergan, Inc.
`IPR2016-01127, -01128, -01129, -01130, -01131, & -01132
`
`

`

`)AHC=3! '-=HECI+=6H=I?HEFJ5AAEC)FD=
`
`2=CA B!
`
`=HHO*EACAIA9AI.=HC5A?KHEJEAI+
`Larry Biegelsen - Wells Fargo Securities LLC
`
`FAH=JH
`Operator
`
`0A=@MA?AJJDA)AHC=6DEH@3K=HJAH '-=HECI+=.MECJ@=OI
`Hello and welcome to the Allergan Third Quarter 2009 Earnings Call. Following today's
`FHAIAJ=JEJDAHAME>A=BH=GKAIJE=@=IMAHIAIIEFAH=JH1IJHK?JEI
`presentation, there will be a formal question-and-answer session. (Operator Instructions).
`7JEJDA=EAIMEHA=EEIJAO@A)I=HAGKAIJBJDA?F=OJ@=OI
`Until then, all lines will remain on listen-only mode. As a request of the company, today's
`?BAHA?AEI>AECHA?H@A@1B=OAD=I=O>A?JEIOK=O@EI?A?J=JJDEI
`conference is being recorded. If anyone has any objections, you may disconnect at this
`JEA
`time.
`
`1MK@EAJEJH@K?AJ@=OI?BAHA?ADIJHE0E@=5AEH8E?A2HAIE@AJ
`lwould like to introduce today's conference host, Mr. Jim Hindman, Senior Vice President,
`6HA=IKHO4EI=@1LAIJH4A=JE5EHOK=O>ACE
`Treasury Risk and Investor Relation. Sir, you may begin.
`
`Jim Hindman
`E0E@=
`
`6D=OKAHHO/@HEC
`Thank you, Jerry. Good morning.
`
`9EJDABHJ@=OI?BAHA?A?=EI,=LE@2OJJ+D=EH=BJDA*=H@=@+DEAB
`With me for today's conference call is David Pyott, Chairman of the Board and Chief
`-NA?KJELABBE?AHABB-@M=H@I-NA?KJELA8E?A2HAIE@AJ.E=?A=@*KIEAII
`Executive Officer, Jeff Edwards, Executive Vice President, Finance and Business
`,ALAFAJ+DEAB.E=?E=BBE?AH,H5?JJ9DEJ?KF-NA?KJELA8E?A2HAIE@AJ
`Development, Chief Financial Officer, Dr. Scott Whitcup, Executive Vice President,
`4AIA=H?D=@,ALAFAJ+DEAB5?EAJEBE?BBE?AH=@E*=HM5AEH8E?A
`Research and Development, Chief Scientific Officer, 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=JAAJI6DAIABHM=H@EC
`make in this presentation are forward-looking statements. These fonivard-looking
`IJ=JAAJIHABA?J)AHC=IK@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=I>KIEAIIAI
`Allergan's businesses.
`
`)??H@ECOOKIDK@JF=?AK@KAHAE=?AJDAIABHM=H@ECIJ=JAAJI
`Accordingly, you should not place undue reliance on these fon/vard-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@EKHJDEH@GK=HJAH '
`disclaimer regarding fon/vard-looking statements that is included in our third quarter 2009
`A=HECIHAA=IAMDE?DM=IBKHEIDA@JJDA5-+J@=O.H&=IMA=IKH
`earnings release, which was furnished to the SEC today on Form 8-K, as well as our
`BEECIMEJDJDA5-+HABAHA?A@EJD=J@EI?=EAH
`filings with the SEC referenced in that disclaimer.
`
`DJJFI IAAEC=FD=?=HJE?A% =AHC=G! 'A=HECI?=JH=I?HEFJ F=HJ IECA
`
`

`

`)AHC=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
`IACAJMDAHAMAFHLE@A=@@EJE=EI?A=AKIEBH=JEJD=JHA=JAIJKH
`segment, where we'll provide additional miscellaneous information that relates to our
`>KIEAII7@AH4ACK=JE.,EH@AHJ>A=>AJ@EI?KIIJDEIEBH=JEBHAAO
`business. Under Regulation FD,
`in order to be able to discuss this information freely
`@KHECJDAGK=HJAHMAKIJ>AIKHAJD=JEJEIEJDAFK>E?@=E6DEI?BAHA?A?=
`during the quarter, we must be sure that it is in the public domain. This conference call
`=@=??F=OECMA>?=IJ=HA>AECIEKJ=AKI>H=@?=IJLAHJDA1JAHAJMEJD
`and accompanying webcast are being simultaneous broadcast over the Internet with
`HAF=OI=L=E=>ABHAMAA;K?==??AIIJDEIEBH=JEKHMA>IEJA=J
`replays available for one week. You can access this information on our website at
`MMM=AHC=?
`MAMA/.allergancom.
`
`)JJDEIFEJ1MK@EAJJKHJDA?=LAHJ,=LE@2OJJ
`At this point, I would like to turn the call over to David Pyott.
`
`,=LE@-12OJJ
`David E.|. Pyott
`
`/HA=J6D=OKE/@HEC=@EAI=@CAJA=
`Great. Thank you, Jim. Good morning, ladies and gentleman.
`
`LAH=I=AID=LAFHCHAIIA@E==HEIECJHA@BCHMJD=?HII '1JDAJDEH@
`Overall sales have progressed in an arising trend of growth across 2009. In the third
`GK=HJAHI=AIE?HA=IA@OA=HLAHOA=H>O" BH@=HI>O%J?=?KHHA?EAI
`quarter, sales increased year-over-year by 4.2% from dollars by 7.0% to local currencies,
`@HELA>O=IJHCGK=HJAHEFDJD=E?FD=H=?AKJE?=I=@*6:=IMA=I
`driven by a strong quarter in ophthalmic pharmaceuticals and BOTOX, as well as
`EFHLAAJIE=JDA)AHC=A@E?=>KIEAIIAIMEJDJDAAN?AFJEB)2*),
`improvements in all the Allergan medical businesses, with the exception of LAP-BAND.
`
`)IIJBKHFH@K?J=HAJI=HAIDMECIECIMAHAAAHCECBH=@MJKHE
`As most of our product markets are showing signs were emerging from a downturn in
`?IKAHIIFA@EC/ELAHA?AJLKAIDAHAEI=AIBHIALAH=>KIEAIIAIMDE?D
`consumers spending. Given recent volumes here in sales from several businesses which
`M=IIJHCAHJD=MAD=@BHAIAAA=HEAHEJDAOA=HMA=@AJDAIJH=JACE?@A?EIEJ
`was stronger than we had foreseen earlier in the year, we made the strategic decision to
`ELAIJ=E?HA=IA@@EHA?JJ?IKAH=@LAHJEIECFHCH=IBH78,-4)2*),
`invest an increased direct-to-consumer advertising programs for JUVEDERM, LAP-BAND,
`)66155-4-56)515)IMAMEIDJ=JE?EF=JAJDAHA?LAHOEKH=HAJI=@J>IJ
`LATTISSE, RESTASIS. As we wish to anticipate the recovery in our markets and to boost
`JDAI=AIJH=A?JHOBJDAIA?IKAHB=?ECFH@K?JI
`the sales trajectory of these consumer-facing products.
`
`)IJ=BJDAE?HA=IAB/))25/)ANFA@EJKHAIB!$EE3! '
`Almost all of the increase of non-GAAP SG&A expenditures of $36 million, Q3 2009
`LAHIKI3!B &EI=JJHE>KJ=>AJJDEIE?HA=IA=@J=HCAJA@,6+=@LAHJEIECMEJD?A=H
`versus Q3 of 2008 is attributable to this increase and targeted DTC advertising with clear
`HAJKHAJHE?I9EJDLEHJK=OE?HA=IAE>=IA5/)IFA@ECJDEI@AIJH=JAIJD=J
`return metrics. With virtually no increase in base SG&A spending, this demonstrates that
`MAHA?JEKECJIJHE?JO?JHANFA@EJKHA=?HII=IFA@EC=HA=I=@JD=JMAD=LA
`we're continuing to strictly control expenditure across all spending areas and that we have
`B?KIA@ANFA@EJKHAE,6+MDE?D>OEJI=JKHAEI=L=HE=>AIFA@=@?=>AJKHA@
`focused expenditure in DTC, which by its nature is all variable spend and can be turned
`=@BBH=FE@O@AFA@EC>KIEAII?@EJEI
`on and off rapidly depending on business conditions.
`
`)I=HAIKJIB=BJDAIAB=?JHI=IMAECDJA@>OJDAMA=AECBJDA75@=H
`As a results of all of these factors also weighted by the weakening of the US. dollar
`HA=JELAJIJMA?KHHA?EAI9AD=LAH=EIA@I=AICKE@=?ABHJDABKOA=H>O#
`relative to most well currencies. We have raised sales guidance for the full year by $150
`EEBHJDA>JJA@BJDAH=CA=@EEJDAJFA@BJDAH=CA
`million from the bottom-end of the range and $100 million on the top-end of the range.
`
`DJJFI IAAEC=FD=?=HJE?A% =AHC=G! 'A=HECI?=JH=I?HEFJ F=HJ IECA
`
`

`

`)AHC=3! '-=HECI+=6H=I?HEFJ5AAEC)FD=
`
`2=CA"B!
`
`)JB==CAAJFJAJE=EI>AEC@EHA?JA@J?HHA?JOBHA?=IJECJDAID=FABJDA
`A lot of management potential is being directed to correctly forecasting the shape of the
`A?E?HA?LAHOE @AECJDAEF=?JB=BKOA=HB?FAJEJEBH*6:
`economic recovery in 2010, modeling the impact of a full year of competition for BOTOX
`+IAJE?=@*6:6DAH=FAKJE?EJDA75=@?J=EECJDAEF=?JBCAAHE?IJ
`Cosmetic and BOTOX Therapeutic in the US. and containing the impact of generics to
`KH75FDJD=CO>KIEAII
`our US. ophthalmology business.
`
`.HJDAJDEH@GK=HJAHMAHA?H@A@/))2A=HECIFAHID=HAB%MEJDIJHC
`For the third quarter, we recorded non-GAAP earnings per share of $0.70 with strong
`FAH=JE=?JHIEF=?AMAHA=>AJE?HA=IA/))2A=HECIFAHID=HA>O
`operational controls in place, we're able to increase non-GAAP earnings per share by
`%%LAHJDAHAIKJIB3!B &=@OA=HJ@=JA>O#MAEAN?AIIBI=AI
`7.7% over the results of Q3 of 2008 and year-to-date by 10.5% well in excess of sales
`CHMJD
`growth.
`
`1JAHIB4,MAIFAJ=$%EE=/))2>=IEIO=HCE=OKFJDA
`In terms of R&D, we spent a $167 million on a non-GAAP basis, only marginally up on the
`ANFA@EJKHAE3 B ')@K@AHJDA=@KIJA@=&EEIFAJE3!B &6DEI
`expenditure in Q2 of 2009. And under the adjusted a 180 million spent in Q3 of 2008. This
`EI=?IAGKA?ABJDA?FAJEB=OANFAIELA2D=IA111JHE=IIK?D=I*6:
`is a consequence of the completion of many expensive Phase III trials, such as BOTOX
`BH?DHE?ECH=EA74,-:BH>JD48=@6418)415)+78)1=@;)4:
`for chronic migraine, OZURDEX for both, RVO and TRIVARIS, ACUVAIL and ZYMAR X,
`A=HEAHJDEIOA=H
`earlier this year.
`
`)ICELAJDA=FFHFHE=JA?=KJEEH=FECKFANFA@EJKHA=JJDAIJ=HJBHJDAOA=H
`Also given the appropriate caution in ramping up expenditure at the start for the year,
`MDAMAMAHAIJEEJDAE@IJBHA?AIIE=@JDACAHHA=?JE?O?AB4,MAHA
`when we were still in the midst of recession and the longer reaction cycle of R&D, we're
`MIJAFFECKF=OAMFHA?JI
`now stepping up many new projects.
`
`1JAHIBKHIJH=JACE?EJAJMAMK@D=LAEA@JIFA@HA4,=@MA>JD
`In terms of our strategic intent, we would have liked to spend more on R&D and we'll both
`EEJE=JA=@ANA?KJAHAFHCH=I@KHECJDAHA=E@AHB '?JEKECEJ 
`initiate and execute more programs during the remainder of 2009 continuing into 2010.
`
`0MALAH=FIEJELAJABHJDACJAHABBE?EA?OBKH>KIEAII4,=J)AHC=
`However on a positive note, for the long-term efficiency of our business, R&D at Allergan
`EI=>AJ?@K?J?EE?=JHE=I=JK?DMAHANFAIAJD=EJDAF=IJ)IMAD=LA
`is able to conduct clinical trials at much lower expense than in the past. As we have
`ABH?A@?AHJ=EJHE=IIK??AIIBKO?JH=?JA@MAHH=JAIBH+4I=@D=LALA@J
`enforced certain trials, successfully contracted lower rates from CROs and have moved to
`=CHA=JAHFHFHJEBKHJHE=IJMAH?IJ?=JEILAHIA=I
`a greater proportion of our trials to lower cost locations overseas.
`
`B?KHIA4,EIJ=>KJJDAANFA@EJKHA>KJEJEI=>KJHAIKJI6JDEIA@MAHA
`Of course, R&D is not about the expenditure but it is about results. To this end, we're
`FA=IA@JD=JMA?JEKAJ@AIJH=JAIJHC4,FH@K?JELEJO5E?AJDA=IJA=HECI
`pleased that we continue to demonstrate strong R&D productivity. Since the last earnings
`?=MAD=LABEA@MEJD75.,)JDABMECFH@K?JI*6:BH?DHE?ECH=EA=@
`call, we have filled with US. FDA the following products, BOTOX for chronic migraine and
`=IBH=@KJIF=IJE?EJO=IMA=I74,-:MEJD=@@EJE=E@E?=JEBKLAEJEI=@
`also for adult spasticity, as well as OZURDEX with additional indication of uveitis and
`=@AI?AJKIAB)2*),
`adolescent use of LAP-BAND.
`
`4AC=H@ECFK>E?=JEBI?EAJEBE?@=J=JDAKIAB*6:E?DHE?ECH=EA2D=IA
`Regarding publication of scientific data on the use of BOTOX in chronic migraine, Phase
`111@=J=MAHAFHAIAJA@=JJDA1JAH=JE=0A=@=?DA?BAHA?AE5AFJA>AH0MALAH
`III data were presented at the International Headache conference in September. However,
`KH=HJE?AIK>EIIE=BJAHIALAH=HALEAM?O?AIM=IBE=OJ=??AFJA@BHFK>E?=JE
`our article submission after several review cycles was finally not accepted for publication
`>OJDA=MIKEJ=@MEIDHJO>AIK>EJJA@J=JDAHMAHAIFA?JA@A@E?=KH=
`by the lawsuit and will shortly be submitted to another well respected medical journal.
`
`DJJFI IAAEC=FD=?=HJE?A% =AHC=G! 'A=HECI?=JH=I?HEFJ F=HJ IECA
`
`

`

`)AHC=3! '-=HECI+=6H=I?HEFJ5AAEC)FD=
`
`2=CA#B!
`
`2IEJELA7LAEJEI2D=IA111@=J=MAHAFHAIAJA@=JJDA4AJE=IK>IFA?E=J@=O=J))=IJ
`Positive Uveitis Phase III data were presented at the Retinal sub-special today at AAL last
`MAA4AC=H@ECFH@K?J=FFHL=IMALA>AAJHOEC=IJHECBIK??AIIAI71/)E
`week. Regarding product approvals we've been trying a string of successes. LUMIGAN in
`=F=MDE?D=K?DA@?J>AH71/)E-KHFAE@E?=JA@BH.EHIJEA
`Japan which launched on October, LUMIGAN 0.1% in Europe indicated for First-Line
`6HA=JAJJ/=K?=D=I>AAHA?A@A@BH=FFHL=>OJDA?EJJAABH
`Treatment to Glaucoma has been recommended for approval by the committee for
`A@E?E=FH@K?JIBH=HAJEC=KJDHE=JE)@71/)D=I=I>AA
`medicinal products for marketing authorization. And LUMIGAN 0.1% has also been
`=FFHLA@E*H=E
`approved in Brazil.
`
`)+78)1D=I>AA=FFHLA@=@=K?DA@E75=@)6155-EHA=1.H=?AMA
`ACUVAIL has been approved and launched in US. and LATISSE in Korea. In France, we
`HA?AELA@=FFHL=BH*6:BHKFFAH=@MAHE>IIF=IJE?EJOE?DE@HA
`received approval for BOTOX for upper and lower limbs spasticity in children.
`
`6KHECJJDAFAHBH=?ABJDA>KIEAIIAI1?A?AMEJD*6:MDE?DD=I
`Turning to the performance of the businesses, l'll commence with BOTOX, which has
`FAHBHA@K?DIJHCAHJD=MAD=@=JE?EF=JA@5=AIEJDAGK=HJAHCHAM!OA=H
`performed much stronger than we had anticipated. Sales in the quarter grew 3.0% year-
`LAHOA=H@=HI=@#&J?=?KHHA?EAI>KJJDAFE?KFECHMJDHA=JELAJ3 
`over-year on dollars and 5.8% to local currencies, but the pickup in growth relative to Q2
`OA=HLAHOA=HE>JDJDA+IAJE?=@6DAH=FAKJE?>KIEAIIAI
`year-over-year in both the Cosmetic and Therapeutic businesses.
`
`5=AIB*6:>JD+IAJE?=@6DAH=FAKJE?MAHAF=HJE?K=HOIJHCE)IE=2=?EBE?
`Sales of BOTOX both Cosmetic and Therapeutic were particularly strong in Asia-Pacific
`=@=JE)AHE?=9AHAFA=IA@MEJD*6:6DAH=FAKJE?EICHMECMH@ME@AHA
`and Latin America. We're pleased with BOTOX Therapeutic is growing worldwide, more
`IJHCOJD=A=HOEJDAOA=H6DAH=FAKJE?D=LA?=KIA@=JJDAJDAHD=BBJDA>KIEAII
`strongly than early in the year. Therapeutic have caused at the other half of the business
`=HALAHOBAM9=5JHAAJ?KIJAHIKHLAOI=HA?@K?JA@5B=HEF=?JBH?FAJEJE
`are very few Wall Street customer surveys are conducted. So far, impact from competition
`>JDEJDA75=@-KHFAD=LA>AAAIIJD=MA@ANFA?JA@
`both in the US. and Europe have been less than we'd expected.
`
`1JDA75=AIJDAJE?>KIEAIIJDALAH==HAJD=IANF=@A@=I,OIFHJ?=AJJDA
`In the US. aesthetic business, the overall market has expanded as Dysport came onto the
`I?AA,KAJJDA>EC=JEI=A@A@>OJDA.,)J?=HHOKJ4-5FHCH=IBH>JD
`scene. Due to the obligations amended by the FDA to carry out REMS programs for both
`,OIFHJ=@*6:FHLEIE?KIJAHI=HA?IJ=JOHAE@A@JD=JJDAHAEI==?B
`Dysport and BOTOX, provision customers are constantly reminded that there is a lack of
`EJAH?D=CA=>EEJO>AJMAA>JKEKJNEKEJI=@JDAHA=HAL=E@@IA?LAHIE
`interchangeability between botulinum toxin units and there are no valid dose conversion
`H=JEI>AJMAAJDAFH@K?JI
`ratios between the products.
`
`1=@@EJE*6:>AABEJIBH OA=HIBANFAHEA?AEJDA75BHJDA*6:
`In addition, BOTOX benefits from 20 years of experience in the US. for the BOTOX
`>H=@)@IALAOA=HIBANFAHEA?AIE?AJDA.,)=FFHL=B*6:+IAJE?)@
`brand. And seven years of experience, since the FDA approval of BOTOX Cosmetic. And
`=I>AABEJIBHDECDALAIB?KIJAH=@FDOIE?E=I=JEIB=?JE
`also benefits from high levels of customer and physician satisfaction.
`
`*=IA@E?KIJAHIKHLAOIEJIAAIJD=J*6:D=IOIJ=EEJA@=KJJ=HAJ
`Based in customer surveys, it seems that BOTOX has only lost a limited amount to market
`ID=HA=@=IECEBE?=J=KJJ,OIFHJKIAIJ=@IBHBHAAI=FAI=IFDOIE?E=I
`share and a significant amount to Dysport use stands from free samples, as physicians
`ANFAHEAJ=@DMJE?HFH=JAJDEIFH@K?JEJJDAEHFH=?JE?AI
`experiment and how to incorporate this product into their practices.
`
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`
`

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`,6+=@LAHJEIECFIJA@KJIJ=@ECCHMJDJDA  E?=?KHHA?EAI6DEI
`?HHAIF@IJA@=HAJCHMJDEJDA75HAFHJA@>OL=HEKIF==@I=AI=JJDA
`=HCEMAHA=I=BBA?JA@>OLAHIA=I=HAJIIK?D=IHA=6KHAO=@F=HJIB=JE
`)AHE?=
`
`)I@HOAOAEIE?HA=IECOK@AHIJ@=I=FHCHAIIELA@EIA=IA>OFDJD=CEIJI
`E?HA=IA@EK>AHIBFDOIE?E=I=HAE?HFH=JEC4-56)515EJJDAEHFH=?JE?AI
`
`1JDAJDEH@GK=HJAHI=AIB71/)E?K@EC/).46E?HA=IA@"E?=
`?KHHA?EAI=IMAANFAHEA?A@LAHOIJHCCHMJDBH/).46E==HAJIMDAHAEJEI
`=L=E=>AE-KHFA=JE)AHE?==@F=HJIB)IE=
`
`1+==@=71/)EIBBJ=IJHCIJ=HJ1-KHFA)20)/)D=I>AA
`=BBA?JA@>OJDA=K?DBCAAHE?IEJDA=E=HAJ>KJEJEI>AECBBIAJ>OIJHC
`+*1/)CHMJD2618-M=I=K?DA@EJDAGK=HJAHE2=@=@+*1/)E
`6KHAO
`
`DJJFI IAAEC=FD=?=HJE?A% =AHC=G! 'A=HECI?=JH=I?HEFJ F=HJ IECA
`
`

`

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`
`2=CA%B!
`
`EC=JJDALAH=75>KIEAII8AHEIF==@141HAFHJ)AHC=CHMECOA=HJ
`Looking at the overall US. business, Verispan and lRl report Allergan growing year-to-
`@=JA5AFJA>AH= 1JDAFHAI?HEFJEFD=H=?AKJE?==HAJ)AHC=EICHMEC
`date September a 12.0%. In the prescription pharmaceutical market, Allergan is growing
`OA=HJ@=JA=!#E=?GKEIEJE@=HI1==HAJCHMEC=J'JDKI=EC
`year-to-date a 13.5% in acquisition dollars. In a market growing at 9.1% thus making
`)AHC=JDAB=IJAHCHMEC=H?F=O
`Allergan the faster growing major company.
`
`1JDA=HJEBE?E=JA=HI=HAJMDE?DD=I>AAEF=?JA@>O@A?EAIE?IKAHIFA@EC
`In the artificial tears market, which has been impacted by declines in consumer spending,
`141HAFHJIKHJA=HI>KIEAII@A?EEC&=@IECID=HA=IMAD=LA?I?EKIO
`lRl reports our tears business declining 10.8% and loosing share, as we have consciously
`HAIKH?AI>ADE@4-56)515HA=JELAJKH4-.4-50>H=@I)JDKCDMAD=LAHA?AJO
`resources behind RESTASIS relative to our REFRESH brands. Although we have recently
`E?HA=IA@KHABBHJI>ADE@>JD4-.4-50=@2618-
`increased our efforts behind both REFRESH and OPTIVE.
`
`1JDA75MA=K?DA@JMEFHJ=JFH@K?JI74,-:=@)+78)1+KIJAH
`In the US, we launched two important products OZURDEX and ACUVAIL. Customer
`HA=?JEJ74,-:EKH?EE?=@=J=D=I>AALAHOB=LH=>A1BMAJAEJMEJDJDA
`reaction to OZURDEX in our clinical data has been very favorable. If we note it with the
`=@FJEHAE>KHIAAJI?O?AEJCAHJD=BHFHAI?HEFJEBFD=H=?AKJE?=I
`adoption reimbursements cycle, it longer than for prescription of pharmaceuticals.
`
`)+78)1D=IFH?AA@JJDAHA=FH@K?JEFHLAAJIHA=JELAJ)+7)4MEJDJDA
`ACUVAIL has proceed to the real product improvements relative to ACULAR with the
`?LAEA?ABJMLAHIKIBKHJEAI=@=O@IECMEJD=@@EJE=?BHJ@KAJEJI
`convenience of two versus four times a day dosing with additional comfort due to its
`BHK=JE=@KEJ@IAFHAIAHLA@BH=J
`formulation and unit dose non-preserved format.
`
`1JDAIENJDMAAFIJ=K?D8AHEIF=IDMI)+78)1=HA=@O=J'BLAH=AM
`In the sixth week post-launch, Verispan shows ACUVAIL already at 19% of overall new
`FHAI?HEFJEIBJDAAOJ)64--5KIDEAFD1=@@EJEJFH@K?J=@L=J=CAI
`prescriptions of the key to NATRELLE Sunshine (ph). In addition to product advantages,
`)+78)1AOI=C@JEAH FIEJEBIJ==CA@IJ=H==CA@?=HA
`ACUVAIL enjoys a good tier 2 position of most managed -- most major managed care
`BHK=HEAI
`formularies.
`
`4AC=H@EC)20)/)MAD=LACFHAF=HA@BHJDA=K?DBJDACAAHE?>HEE@EA
`Regarding ALPHAGAN, we have long prepared for the launch of the generic brimonidine
`#>O)?FKHIKAEJ=HO=JO>A=HECE?AIACH=JA@>O)AHC=
`0.15% by Alcon, pursue into a royalty bearing license granted by Allergan.
`
`1=HKEC=??KJA@@M=IJMAA>OJDA75,EIJHE?J+KHJE,A=M=HAJDAK@CA
`In a ruling accounted down last week by the US. District Court in Delaware, the judge
`KFDA@JDAL=E@EJOB=BELABJDAF=JAJI?LAHEC)20)/)2MMA?=
`upheld the validity of all five of the patents covering ALPHAGAN P. Now we can
`??AJH=JA=KHABBHJI)20)/)2>AEC=IIKHA@IK>A?JJ=O=FFA=
`concentrate all our efforts on ALPHAGAN P 0.1% being assured subject to any appeal,
`>KJKHF=JAJJIJ=JAANJA@IKJE  
`but our patent to state extends until 2022.
`
`)IBJDAMAAA@EC?J>AH$BH8AHEIF=I=AIBAMFHAI?HEFJEIB)20)/)
`As of the week ending October 16 for Verispan, sales of new prescriptions of ALPHAGAN
`#MAHA@MJ! BJDA).)/)FH@K?JEA)IFDOIE?E=ID=LALA@BH
`0.15% were down to 32% of the ALFAGAN product line. As physicians have moved from
`@AHLAHIEIB)20)/)JJDAAMAIJCAAH=JEBMEJDMAH@HKCANFIKHABH
`older versions of ALPHAGAN to the newest generation of 0.1 with lower drug exposure for
`JDAEHF=JEAJI
`their patients.
`
`.H=?JKHECEJDAFHAI?HEFJEIB+*1/)JDAFHFHJEB)20)/)#MEJDEJ
`Fracturing in the prescriptions of COMBIGAN, the proportion of ALPHAGAN 0.15% with it
`ANFIA@JCAAHE?EF=?JEI@MJ BJDALAH=?@EJOEBH=?DEIA
`exposed to generic impact is down to 21% of the overall commodity in franchise.
`
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`
`

`

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`
`2=CA&B!
`
`9EJD)20)/)D@ECIJHCJEAH FIEJEIIJ==CA@?=HABHK=HEAI
`With ALPHAGAN 0.1% holding strong tier 2 positions on most managed care formularies
`>JDE '=@=HA=@OIA?KHA@BH 9AHA>AEC@EECAJEKHABBHJIJ?J=E
`both in 2009 and already secured for 2010. We're being diligent in our efforts to contain
`JDAEF=?JJKH)20)/)=@+*1/)BH=?DEIAE 
`the impact to our ALPHAGAN and COMBIGAN franchise in 2010.
`
`5E?=HA5E?=HAI=AIB$ 'EEHAJD=@K>A@LAHIKI3!B &FHFAA@
`Skin care. Skin care sales of $62.9 million more than doubled versus Q3 of 2008 propelled
`>OJDAH=FEI=AIJDA>JD)6155-=@)+-BBIAJ>O=EH@A?EAE
`by the ramp in sales the both LATISSE and ACZONE offset by a minor decline in
`:B=?JHOI=AIMEJD6)4)+
`X-factory sales with TAZORAC.
`
`)6155-I=AIB !MAHAIK>IJ=JE=ODECDAHJD=JDA!EEHAFHJA@E3 
`LATISSE sales of $22.3 were substantially higher than the $13.1 million reported in Q2.
`)JDAAJHE?IBHJDEI>H=@MAHALAHOIJHC9EJDE?HA=IAIE?IKAH>H=@
`All the metrics for this brand were very strong. With increases in consumer brand
`=M=HAAII?IKAH=FJEJK@AIBHJDAFH@K?JFDOIE?E=FHAI?HEFJEI=@HAH@AHEC
`awareness, consumer aptitudes for the product, physician prescriptions and reordering
`H=JAI=IMA=IMDAI=A@A=@=@IJ=HJHAFAEIDECH@AHI
`rates, as well as wholesale demand and start replenishing orders.
`
`5E?AJDA>ACEECBKH24?=F=ECMAD=LAI?HA@LAH%#EEA@E=
`Since the beginning of our PR campaign, we have scored over 750 million media
`EFHAIIEIIE?A=FFHL==JJDAA@.,)=FFHL=JM=H@IJDAA@B &
`impressions, since approval at the end -- FDA approval towards the end of 2008.
`
`5EFEBOECBKH,6+=@LAHJEIAAJJ=JA=OMAD=LAIAA=IK>IJ=JE=FE?KFE=
`Simplifying of our DTC advertisement to late May, we have seen a substantial pickup in all
`>H=@AJHE?I=@=I?IKAH@A=@)66155-M=IHA?AJO=K?DA@EHA=
`brand metrics and also consumer demand. LATTISSE was recently launched in Korea.
`
`4AC=H@EC)+-MAHAANFAHEA?ECIABJDA@HEECJH=?BI?HEFJIEEAMEJD
`Regarding ACZONE, we're experiencing some of the drilling track of scripts inline with
`JDAHHA?AJO=K?DA@AM@HKCI
`other recently launched new drugs.
`
`1KHCO>KIEAII3!I=AI@A?HA=IA@>O 'J"&EEEKIJIAGKAJE=O
`In urology business, Q3 sales decreased by 12.9% to $14.8 million in just sequentially
`MAHJD=JDA$EEE3 6DEIEIHABH=?JEBJDAF=JJAHBMDAI=AH@AHI
`lower than the 16.1 million in Q2. This is refraction of the pattern of wholesale orders.
`
`6DAHAHAE=>AA=IKHAFAHBH=?AEIJDACHMJDB5)+674):4EJD=J
`The more reliable measure performance is the growth of SANCTURA XR in that
`=?GKEIEJE@=HIBH8AHEIF=MDE?DHAFHJI=E?HA=IAEJDAJDEH@GK=HJAHB'
`acquisition dollars for Verispan, which reports an increase in the third quarter of 10.9%
`OA=HLAHOA=H=@= ##OA=HJ@=JA
`year-over-year and a 25.5% year-to-date.
`
`.KHJDAHJKH@A?EIEJHA@K?AJDAIEABKHI=AIHC=E=JEE.A>HK=HOMEJD
`Further to our decision to reduce the size of our sales organization in February, with
`)AHC=??AJH=JECKHI=AIBH?AIJDAKHCOIFA?E=JO9AHAFA=IA@JD=JMA
`Allergan concentrating our sales forces on the urology specialty. We're pleased that we
`AJAHA@EJ=F=HJAHIDEFMEJD3KEJEAIBHJDA?LAH=CABJDACAAH=FH=?JEAH
`entered into a partnership with Quintiles for the coverage of the general practioner
`?D=A3KEJEAIME>A@AJ=EEC5)+674):4BHJDA>ACEECBLA>AH
`channel. Quintiles will be detailing SANCTURA XR from the beginning of November.
`)AHC=ME?JEKAJHA?H@=I=AI=@MEFHLE@AHO=JOF=OAJJ3KEJEAI
`Allergan will continue to record all sales and will provide royalty payment to Quintiles.
`4AC=H@EC
`Regarding
`
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`
`

`

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`
`2=CA'B!
`
`4AC=H@ECB=?E==AIJDAJE?IMAHAFHJA@3!I=AI@A?HA=IAB%'E75@=HI=@
`Regarding facial aesthetics, we reported Q3 sales decrease of 7.9% in US. dollars and
`@A?HA=IAJ#E?=?KHHA?EAIEIEIA=@ECEJAHIBHA=FAHBH=?AEJAHB
`decrease to 5.0% in local currencies is misleading in terms of real performance in term of
`BEAHI
`fillers.
`
`5DHJO>ABHAMA?IA@KH.HAJ+=EBHE=+=CAB=?EEJOMA=@A=IJIDEFAJI
`Shortly before we closed our Fremont California Collagen facility, we made last shipments
`B+=CAFH@K?JIE3! &JDAIALAH=JDEH@F=HJEAIJD=JKIA=HJDFA@E?=@JDAH
`of Collagen products in Q3 2008, the several third parties that use an orthopedic and other
`@AH=KIAI
`non-dermal uses.
`
`5JHEFFECKJJDA$EEEI=AIBJDAIAE@KIJHE=FH@K?JI5=AIB?HA@AH=
`Stripping out the $6.1 million in sales of these industrial products. Sales of core dermal
`BEAHI=?JK=OE?HA=IA@E@=HI>O '>O$J?=?KHHA?EAI*=IA@==OIEI
`fillers actually increased in dollars by 2.9%, by 6.1% to local currencies. Based on analysis
`B?FAJEJHI=AI=@E=HAJHAIA=H?DEJIAAIJD=JMAHAC=EEC=HAJID=HAE
`of competitor sales and in market research, it seems that we're gaining market share in
`@AH=BEAHIMH@ME@A
`dermal fillers worldwide.
`
`KJIE@AJDA75I=AIE?HA=IA@LAHOIJHCO>JDE75@=HI=@E?=
`Outside the US, sales increased very strongly both in US. dollars and in local
`?KHHA?EAIMEJDIJHCCHMJDE)IE=2=?EBE?=JE)AHE?==@E-KHFA9AALA
`currencies, with strong growth in Asia-Pacific, Latin America and in Europe. We even
`HA?H@A@IJHC@K>A@ECEJCHMJD
`recorded strong double-digit growth.
`
`78,-4M=I=K?DA@E6=EM==@1@E==@87)M=IEJH@K?A@EJDA
`JUVEDERM was launched in Taiwan and India and VOLUMA was introduced in the
`=@@EJE==HAJIB)HCAJE=+>E==@+DEAE=JE)AHE?=1JDA75JDA
`additional markets of Argentina, Colombia and Chile in Latin America. In the US, the
`=HAJ?JEKAIJ@A?EA>KJKHJH=?EC@=J=IDMI?JEKAE=HAJID=HAC=EI
`market continues to decline, but our tracking