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May 3 2006, 9:00 AM EST

Allergan Reports First Quarter Operating Results; Pharmaceutical Sales Increased 22 Percent for the First Quarter; Board of Directors Declares First Quarter Dividend

News source: Business Wire

Allergan, Inc. (NYSE:AGN) today announced operating results for the first quarter ended March 31, 2006. Allergan also announced that its Board of Directors has declared a first quarter dividend of $0.10 per share, payable on June 13, 2006 to stockholders of record on May 19, 2006.

Operating Results

For the quarter ended March 31, 2006:

    --  Allergan's net sales were $615.2 million, excluding sales of
        products acquired in the Inamed acquisition, which was
        completed on March 23, 2006.

    --  Pharmaceutical sales increased 22.0 percent, or 23.0 percent
        at constant currency, compared to pharmaceutical sales in the
        first quarter of 2005. Pharmaceutical sales increased 24.0
        percent, or 24.9 percent at constant currency, compared to
        pharmaceutical sales in the first quarter of 2005 adjusted to
        exclude BOTOX(R) sales in Japan as a result of Allergan's
        development and promotion arrangement with GlaxoSmithKline
        (GSK). A reconciliation of the adjustments made from revenue
        reported in accordance with United States Generally Accepted
        Accounting Principles (GAAP) to adjusted revenue is contained
        in the financial tables of this press release.

    --  Allergan reported $3.29 diluted loss per share compared to the
        $0.60 diluted earnings per share reported for the first
        quarter of 2005. In accordance with GAAP, Allergan began
        implementing Statement of Financial Accounting Standards No.
        123 (revised 2004), Shared-Based Payment (FAS 123R) in the
        first quarter of 2006. The reported $3.29 diluted loss per
        share includes a $0.05 per share expense related to the effect
        of expensing stock options in accordance with FAS 123R and
        also includes the following:

        --  purchase accounting adjustments related to acquired
            in-process research and development associated with the
            Inamed acquisition, which were higher than the guidance
            provided on March 27, 2006 (see details contained in the
            financial tables of this press release);

        --  merger-related integration and transition costs associated
            with the Inamed acquisition;

        --  the incurrence of net restructuring charges, primarily
            related to the streamlining of Allergan's research and
            development and select commercial activities throughout
            Europe and the reversal of restructuring charges related
            to the re-organization of Allergan's operations in Japan
            as a result of Allergan's development and promotion
            arrangements with GSK relating to BOTOX(R);

        --  the incurrence of transition and duplicate operating
            expenses related to the streamlining activities throughout
            Europe mentioned above;

        --  the resolution of uncertain income tax positions due to
            completion of the Internal Revenue Service (IRS)
            examination for tax years 2000 through 2002;

        --  the favorable recovery of previously paid state income
            taxes;

        --  the reversal of estimated interest income and expense
            related to previously paid state income taxes and tax
            settlements; and

        --  the effect of an unrealized loss on the mark-to-market
            adjustment to foreign currency derivative instruments.

    The items above included in diluted earnings per share total
    $559.4 million, which consists of $580.4 million pre-tax, less
    $21.0 million related to the provision for income taxes.

    --  The pre-tax costs related to expensing stock options included
        in our statement of operations for the three months ended
        March 31, 2006 are allocated $0.7 million to cost of sales,
        $7.0 million to selling, general and administrative expenses
        and $2.4 million to resear




	
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