Allergan's R&D Production

In 2009, Allergan USA invested $675 million in research and development .

Allergan's R&D investment in pharmaceuticals and medical devices is among the highest in its category.

Allergan's new product pipeline includes a number of drug candidates with the potential to change clinical practice:

Bromidine Delivery System

Targeted Peptide Chain Endonucleases

Alpha Agonists

Obesity Therapeutics

New Generation of Neuromodulatory DrugsApproved for Marketing in the U.S. between 2009 and 2010. New drugs and indications include:

BOTOX? (botulinum toxin type A), for the treatment of upper limb spasms and chronic migraine headaches in adults

*ACUVAIL? eye drops for the treatment of postoperative pain and inflammation following cataract extraction surgery

*OZURDEX?, a biodegradable, injectable, extended-release steroidal implant for the treatment of retinal diseases

*JUVADE? p>

*JUVEDERM ? XC injectable sodium hyaluronate gel with lidocaine, which was successfully marketed in Europe in 2008

*Not yet approved for marketing in China.

Adjustments were made to the calculation of research and development expenses on a GAAP basis for non-GAAP items, including: $68.7 million in upfront payments for technology, which has not yet been approved by regulatory agencies; $0.3 million for severance benefits for the Arklow Breast Implant Manufacturing Company in Ireland, which was shut down in a phased manner in 2008; and $0.3 million for the 2007 acquisitions of EndoArt, Inc. related to the acquisition of EndoArt, Inc.*** amounted to $72.0 million; $579.3 million related to the acquisition of Enami, Inc. related to the acquisition of Enami, Inc.*** amounted to $579.3 million; $0.2 million for Enami integration and excess costs, and $0.5 million for excess and duplicative operating expenses for 2006; and $1.5 million for excess and duplicative operating expenses for 2005, and the buyout of a license agreement costing 3.0 million dollars. GAAP research and development expenses were $797.9 million, $718.1 million, $1,055.5 million, $388.3 million and $342.9 million for 2008, 2007, 2006, 2005 and 2004, respectively. The percentage increase (decrease) in R&D expenses on a GAAP basis for 2008, 2007, 2006, 2005 and 2004 was 11%, (32%), 172%, 13% and (55%), respectively.