Allergan Announces Diabetes Collaboration With Warner-Lambert.

IRVINE, Calif.--(BW HealthWire)--July 22, 1998--Allergan, Inc. (NYSE: AGN) announced today the formation of a multi-year research and development collaboration with the Parke-Davis Pharmaceutical Research Division of Warner-Lambert Company (NYSE: WLA) to identify, develop and commercialize up to two RXR subtype selective retinoid compounds for the treatment of metabolic diseases, including adult onset diabetes, insulin resistant syndromes and dyslipidemias. The primary goal of the collaboration is to rapidly bring to market RXR retinoid compounds that demonstrate significant advantages over currently available therapies for the treatment of adult onset diabetes.

Under the terms of the agreement, Parke-Davis receives exclusive, worldwide development and commercialization rights for up to two RXR subtype selective retinoid preclinical lead compounds identified through the joint efforts of the two companies. In exchange, Allergan will have the opportunity to receive up to $104 million in technology access fees and development milestones, assuming successful development of both lead compounds. Allergan will also be entitled to royalties on net sales of developed products, depending on actual lead compound selection and sales results. Allergan has retained the right to co-promote the second successfully developed compound.

"Allergan is very excited about this strategic collaboration with Parke -Davis, a recognized world leader in the treatment of diabetes," said David E.I. Pyott, President and Chief Executive Officer of Allergan. "This partnership exemplifies Allergan's commitment to work together with biotechnology and larger pharmaceutical companies to create significant shareholder value from our portfolio of products and internal research programs. We believe this partnership has the potential to produce significant new revenue sources from milestone payments, and most importantly, royalties on sales of the resulting products within the rapidly growing multi-billion dollar diabetes market."

"This alliance with Allergan is an outstanding opportunity for Parke-Davis to further solidify and strengthen its very successful diabetes franchise for the years to come," said Wendell Wierenga, Parke-Davis Senior Vice President, Worldwide Preclinical Research, Development and Technologies. "The two companies provide a unique blend of world class talents: Parke-Davis' metabolic disease research, development and marketing with Allergan's retinoid chemistry, molecular biology research, and pioneering retinoid patent portfolio."

Dr. Lester Kaplan, Allergan President of Research and Development, commented, "Parke-Davis' recognized expertise in the metabolic disease area, their experience in research and development partnering, and their corporate commitment to bringing quality products to market quickly, made them our partner of choice in this important therapeutic area."

"The ongoing creation of mutually beneficial early stage partnerships will play an important role in the continued commercial success of Parke-Davis," said Leonard Post, Parke-Davis Vice President, Therapeutics. "We are very enthusiastic about this opportunity to work closely with the Allergan scientific team over the next several years with the goal of producing innovative drugs for diabetes, which could represent real breakthroughs in the quest to improve the quality of life for those suffering from this debilitating disorder."

Allergan will continue other ongoing research and development activities in the field of receptor selective retinoids, specifically its current programs for both RAR and RXR compounds in the areas of dermatology and oncology, either independently or together with other corporate partners. 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.

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 other companies, the timing and uncertainty of results of research, development and regulatory processes, the uncertainties surrounding the ability to identify and develop an RXR compound that will be safe and efficacious in the treatment of adult onset diabetes, and the performance, including consumer acceptance, of new 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.

Warner-Lambert is a worldwide company devoted to discovering, developing, manufacturing and marketing quality pharmaceutical, consumer health care and confectionery products. It employs more than 40,000 people worldwide.

Allergan, Inc., headquartered in Irvine, California, is a technology-driven, global health care company focused on specialty pharmaceutical products for specific disease areas that deliver value to customers, satisfy unmet medical needs and improve patients' lives.

    CONTACT:  Allergan Inc., Irvine
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