Allergan Announces Collaboration With Pierre Fabre Dermatologie.

IRVINE, Calif.--(BW HealthWire)--Feb. 9, 1999--Allergan, Inc. (NYSE: AGN) announced today the formation of a long-term marketing, sales and development partnership with Pierre Fabre Dermatologie, an affiliate of the private French company, Pierre Fabre, to commercialize Allergan's proprietary psoriasis compound, tazarotene (ZORAC(R)), in continental Europe and nearby territories. The primary goals of the partnership are to rapidly grow the European market penetration of ZORAC(R) gel for psoriasis and to provide Allergan with a strong European commercial partner for certain dermatology products in development.

Under the terms of the agreement, Pierre Fabre and Allergan will collaborate to commercialize ZORAC(R) gel for psoriasis and other future dermatological indications and to further develop and commercialize other ZORAC(R) dosage forms. Specifically, Pierre Fabre receives exclusive development, registration and commercialization rights for ZORAC(R) gel and certain successor products for its European territory. In exchange, Allergan receives up front fees and milestone payments upon successful launch of ZORAC(R) in new markets. Allergan also will receive royalties on ZORAC(R) net sales.

"Allergan is very excited about this commercialization and development collaboration with Pierre Fabre Dermatologie, a leading consumer and prescription dermatology company in Europe," said David E.I. Pyott, President and Chief Executive Officer of Allergan. "The relationship with Pierre Fabre provides Allergan with an established, highly respected European marketing partner committed to making ZORAC(R) products commercially successful throughout Europe. This partnership provides a European outlet for Allergan's pipeline of innovative products that satisfy unmet and underserved needs, while focusing Allergan's ongoing commercial dermatology efforts in North America where the Company has an established portfolio of products. Therefore, we believe this European partnership has the potential to produce incremental value for Allergan's shareholders over the coming years."

"This alliance with Allergan represents an outstanding opportunity for Pierre Fabre to further solidify and strengthen its very successful dermatology franchise for the years to come," said Alain Benoit, Pierre Fabre Vice President, Corporate Licensing. "The two companies provide a unique blend of world class talents: Pierre Fabre's European market leadership in consumer and prescription dermatology with Allergan's retinoid chemistry, pioneering retinoid patent portfolio and dermatology development expertise."

Allergan will continue its research and development activities in the field of receptor selective retinoids for dermatology, specifically its current programs for RAR agonist/inverse agonist compounds for psoriasis and mucocutaneous toxicity. Many of these R&D activities are being conducted through Allergan Specialty Therapeutics, Inc. (ASTI) (Nasdaq: ASTI), formed by Allergan to conduct research and development of potential pharmaceutical products based primarily on Allergan's retinoid and neuroprotective technologies and to commercialize such products, most likely through licensing to Allergan, Inc.

Any of the above statements that refer to Allergan's estimated or anticipated future results or product performance are forward-looking and reflect the Company's current analysis of existing trends and information. Actual results may differ from current expectations based on a number of factors affecting Allergan's businesses, including new product performance, competitive conditions and products, changing market conditions, the success of collaborative relationships with Pierre Fabre, the timing and uncertainty of results of research, development and regulatory processes, particularly as they relate to ZORAC(R) and Allergan's and ASTI's retinoid technologies, and the performance, including consumer acceptance, of new products, including ZORAC(R) and other retinoid products. In addition, matters generally affecting the economy, such as currency exchange rates and the state of the economy worldwide, can affect the Company's results. These forward-looking statements represent the Company's judgment only as of the date of this press release. Actual results could differ materially from expectations reflected in this release. As a result, the reader is cautioned not to rely on these forward-looking statements. The Company disclaims any intent or obligation to update these forward-looking statements.

Additional information concerning these factors can be found in press releases as well as as in Allergan's public periodic filings with the Securities and Exchange Commission, including the discussion under the heading "Certain Factors and Trends Affecting Business" in Allergan's 1997 Form 10-K. These filings are available publicly and upon request from Allergan's Investor Relations Department: 714-246-4636 or on the internet at http://www.allergan.com.

The Pierre Fabre Group is a privately held pharmaceutical and consumer research, development and marketing company based in Castres, France. The Pierre Fabre Group estimates its annual turnover at approximately US$1.5 billion, derived from a diverse product portfolio which includes dermatology, oncology, neurology, urology and immunology pharmaceutical products, as well as over-the-counter pharmaceuticals, dermocosmetic and cosmeceutical products, phyto pharmaceutical products and homeopathy. It employs more than 8,000 people worldwide.

Allergan, Inc. headquartered in Irvine, California, is a technology-driven, global health care company, providing eye care and specialty pharmaceutical products worldwide. Allergan develops and commercializes products in the eye care pharmaceutical, ophthalmic surgical device, over-the-counter contact lens care, movement disorder, and dermatological markets that deliver value to our customers, satisfy unmet medical needs and improve patients' lives.