Allergan Announces Collaboration With Santen for Brimonidine in Japan Market; Preliminary Statement on Second Quarter Revenue.

IRVINE, Calif.--(BW HealthWire)--July 7, 1998--Allergan (NYSE:AGN), today announced the signing of agreements granting Santen Pharmaceutical Co., Ltd. (Osaka: 4536) exclusive distribution rights for brimonidine in Japan only. Brimonidine, a selective alpha2 agonist which significantly lowers intraocular pressure, is widely marketed on an international basis by Allergan under the brand name of ALPHAGAN(r). ALPHAGAN(r), which has FDA marketing approval for lowering of intraocular pressure in patients with open-angle glaucoma coma or ocular hypertension, is presently one of the leading medical glaucoma pharmaceuticals within the U.S. market.

Under the agreements, Santen will assume responsibility for future product development of brimonidine and for obtaining Ministry of Health approval for the product in Japan. The agreements also provide Allergan with the right, but not the obligation, to co-promote or co-market brimonidine in Japan.

The agreements provide for a series of development milestone payments which are to be paid to Allergan by Santen. The agreements provide that Allergan will manufacture brimonidine finished goods for Santen and, in return, Santen will pay Allergan a percentage of Santen's net revenue from sales of the product in Japan. Additionally, Santen will make a royalty payment to Allergan for their use of an Allergan trade name.

"This collaboration with Santen allows Allergan to maximize the value of this important medical therapy in Japan, the world's second largest pharmaceutical market. Partnering with Japan's premier eye care pharmaceutical company is an initial step in achieving our goal of engaging in the sale of ophthalmic pharmaceuticals in the Japanese market. Santen has demonstrated its ability to establish a market leadership position in the area of glaucoma therapy and this partnership will capitalize on that capability. Importantly, the structure of the transaction will allow Allergan to optimize the value of the asset in the near term while providing the company with the ability to co-promote or co-market the technology in the future," said Allergan President and Chief Executive Officer David E.I. Pyott.

"It is important to both the short-term and long-term prosperity of Allergan and our shareholders that we continually identify the means to create value from our excellent portfolio of products and technology. Furthermore, Allergan will continue to seek out the most effective channels to fully leverage commercialization opportunities. This relationship with Santen, coupled with Allergan's existing high performing team in Japan, will serve to move Allergan closer to its goal of improving our performance to that of a top quartile company," Mr. Pyott said.

Preliminary Second Quarter Revenue Data

Based upon preliminary revenue information for the second quarter ended Friday, June 26, 1998, the Company experienced stronger than anticipated worldwide revenue primarily as a result of continued growth of ALPHAGAN(r) and BOTOX(r), as well as strong sales of other pharmaceutical products to wholesalers in the U.S. The Company believes that this U.S. wholesaler demand level may exceed current U.S. in-market demand.

Any of the above statements that refer to the Company's estimated or anticipated future results 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 competitive conditions and changing market conditions, consumer demand for product in wholesaler inventories, the timing and uncertainty of the regulatory process in Japan and performance, including patient acceptance, of new products. These forward-looking statements represent the Company's judgment only as of the date of this press release. Actual results could differ materially from those projected in this release. As a result, the reader is cautioned not to rely on these forward-looking statements. The company disclaims, however, any intent or obligation to update these forward-looking statements.

Allergan, Inc., headquartered in Irvine, California, is a technology-driven, global health care company, providing eye care and specialty pharmaceutical products throughout the world. Allergan develops and commercializes products in the eye care pharmaceutical, ophthalmic surgical device, over-the-counter contact lens care, movement disorder and dermatological markets.

    CONTACT:  Allergan Inc., Irvine
               Jeff Edwards (investor)
               714/246-4636 (office)
               714/367-0643 (home)
                 or
               Ryan Abbate (media)
               714/246-4219 (office)
               714/497-3028 (home)