Allergan's first quarter sales up 8.8%

IRVINE, Calif.--Allergan, Inc. (NYSE:AGN) reported worldwide sales increased by 8.8% or $33 million over the first quarter last year, at constant currency rates. Including the effects of currency, worldwide sales for the quarter ended March 30, 2001 were $396.1 million, an increase of 5.3% over $376.2 million reported in last year's first quarter.

"It's been a blockbuster period for product approvals for Allergan. The recent approvals for Lumigan and Alphagan P by the U.S. Food and Drug Administration, BOTOX Cosmetic by the Canadian Health Authorities and Sensar by the Ministry of Health and Welfare in Japan are the result of our aggressive investment in Allergan's research and development pipeline. Additionally, in the consumer eye care business, Allergan received approval for Consept OneStep in Japan and the new 'no rub' claim for Complete in the U.S. and Europe. This focus on technology, along with our full commitment toward the successful launch of these new products, places Allergan at the beginning of a new cycle of growth," said David E.I. Pyott, President and Chief Executive Officer.

At constant currency rates, first quarter worldwide eye care pharmaceutical sales increased 7.5% or $13.5 million compared with the first quarter of 2000. Including the effects of currency, first quarter 2001 worldwide eye care pharmaceutical sales amounted to $188 million, a 5% increase over last year's $179.1 million.

For the first quarter of 2001, worldwide net product sales of Alphagan (Brimonidine Tartrate Ophthalmic Solution 0.2%), indicated for lowering intraocular pressure (IOP) in patients with ocular hypertension or primary open angle glaucoma, were $66.5 million, a 5.1% increase over the same period last year, or a 6.5% increase at constant currency.

During the first quarter of 2001, Allergan received U.S. FDA approval for both Lumigan (Bimatoprost Ophthalmic Solution 0.03%) and Alphagan P (Brimonidine Tartrate Ophthalmic Solution 0.15%) preserved with Purite. Lumigan is indicated for the reduction of elevated intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension who are intolerant of other IOP-lowering medications or insufficiently responsive to another IOP- lowering medication. Alphagan P is a topical treatment for elevated intraocular pressure in patients with glaucoma or ocular hypertension. Lumigan was officially launched the second week of April. Alphagan P is expected to be available in the next six months. Additionally in the quarter, Allergan licensed the right to develop and commercialize ATX-S10, an early stage compound used for photodynamic therapy to treat age-related macular degeneration from Photochemical Co., Ltd. of Japan.

At constant currency rates, ophthalmic surgical sales for the first quarter of 2001 increased 5.7% compared to the prior-year first quarter. Including the effects of currency, sales for the ophthalmic surgical business were $56.7 million during the first quarter of 2001, compared with sales of $56.5 million reported in the same period last year. Slower surgical growth was primarily caused by conditions in the U.S. business. The slowdown in the U.S. economy appears to have negatively impacted both the capital equipment market, including phacoemulsification machines, and the number of elective cataract surgery procedures. The Ministry of Health and Welfare in Japan approved Sensar, Allergan's foldable acrylic intraocular lens indicated for the treatment of cataracts, after the close of the quarter. Additionally, Allergan has expanded its multi-year distribution agreement with SIS AG Surgical Instrument Systems of Biel, Switzerland, to include worldwide rights to commercialize the Amadeus microkeratome used in refractive surgery.

At constant currency rates, contact lens care sales for the first quarter of 2001 decreased 4.7% compared with the first quarter of 2000. Including the effects of currency, sales for the contact lens care business were $65.8 million for the quarter ended March 30, 2001, a decrease of 9.7% over last year's first quarter sales of $72.9 million. While Allergan continued to see sales decline in its hydrogen peroxide-based contact lens care systems, worldwide net product sales for Complete Multi-Purpose Solution, indicated for soft contact lens care, amounted to $31.6 million, a 26.4% increase over the same period last year, or a 32.8% increase at constant currency, in the first quarter of 2001.

During the quarter, Complete Multi-Purpose Solution was approved in the U.S. and Europe for cleaning frequent-replacement (30 days or less) soft contact lenses without having to rub them. Extensive tests, meeting FDA requirements, confirmed that daily use of Complete cleans lenses without rubbing so that this step can be eliminated for many wearers. Following the end of the quarter, the regulatory authorities approved Consept OneStep contact lens care system in Japan.

Allergan believes that quarterly earnings per share for 2001 will increase by approximately 18% in the second quarter and in excess of 20% for the third and fourth quarters when compared with the corresponding prior-year quarters and has increased its 2001 earnings per share objective to $1.93. Based on prevailing currency rates, the Company estimates second quarter 2001 sales in the range of $415 million to $425 million and earnings per share of approximately $0.46 excluding the $40 million one-time charge related to in-process research and development as a result of acquiring Allergan Specialty Therapeutics, Inc. These estimates reflect and anticipate a negative effect from currency of more than 3% on sales.

For detailed financial results, visit http://www.allergan.com/corpinfo/index.htm.