Allergan reports 13 percent growth; board of directors declares quarterly dividend.

IRVINE, Calif.--(BUSINESS WIRE)--Oct. 18, 1995--Allergan, Inc. (NYSE:AGN) announced third quarter 1995 worldwide sales of $273.6 million, an increase of 13 percent over the third quarter of 1994.

Excluding the impact of foreign currency changes, sales increased 10 percent over the third quarter of 1994.

Net earnings for the third quarter of 1995 were $34.2 million compared to $30.2 million, an increase of 13 percent over the same period in 1994. Earnings per share for the third quarter 1995 were $0.53 compared to $0.47, an increase of 13 percent.

Allergan's board of directors declared a third quarter dividend of $0.12 per share, payable December 8, 1995, to stockholders of record on November 17, 1995.

Commenting on the results of the third quarter, Allergan President and CEO William C. Shepherd said, "The successful integration of recent acquisitions contributed to the growth in the quarter. The performance is a direct result of a global employee population that is internally aligned and customer focused."

Sales for the first nine months of 1995 were $764.1 million, a 13 percent increase over the same period in 1994. Excluding the impact of foreign currency changes, sales for the first nine months of 1995 increased 9 percent over the same period in 1994. "Our objective to reach $1 billion in sales during the fourth quarter is on track," said Shepherd.

During the second quarter of 1995, Allergan contributed $50 million to Allergan-Ligand Retinoid Therapeutics, Inc. (ALRT). Excluding the impact of the ALRT contribution, earnings per share for the first nine months were $1.29 per share, an increase of $0.10 per share or 8 percent over the first nine months of 1994.

Eye Care Business Unit Performance

Pharmaceutical

Worldwide sales for the eye care pharmaceutical business were $112.3 million for the third quarter of 1995, a 12 percent increase over the third quarter of 1994. Sales for the first nine months of 1995 were $297.2 million, a 5 percent increase over the first nine months of 1994.

During the second quarter, Allergan acquired Laboratorios Frumtost SA, a company operating in Brazil for 25 years in the eye care market. Sales of Frumtost products contributed $8.3 million to pharmaceutical sales in the third quarter of 1995. Excluding the impact of these products, the pharmaceutical business grew 3 percent during the first nine months of 1995.

During the third quarter, Allergan filed an application with the FDA for approval to market brimonidine (AGN190342) for the chronic indication of ocular hypertension and open angle glaucoma.

Surgical

Worldwide sales for the ophthalmic surgical business were $47.5 million during the third quarter of 1995, an increase of 34 percent over the third quarter of 1994. Sales for the first nine months of 1995 were $136.0 million, a 41 percent increase over the first nine months of 1994.

Sales of Ioptex and OMS products contributed $17.7 million to surgical sales in 1995. Excluding the impact of these products, the surgical business grew 22 percent during the first nine months of 1995.

The AMO(R) DIPLOMAX(TM), which is used to perform phacoemulsification during cataract surgery, will be officially launched at the American Academy of Ophthalmology later this month. The AMO(R) DIPLOMAX(TM) is the first OMS phaco-technology system introduced by Allergan since the acquisition of OMS in January 1995.

Optical

Worldwide sales for the Optical contact lens care business were $90.5 million for the third quarter of 1995, an increase of 1 percent over the third quarter 1994. Sales for the first nine months of 1995 were $269.1 million, an 8 percent increase over the first nine months of 1994.

During the quarter, the redemption of 50 percent ownership of Santen Pharmaceutical was completed, giving Allergan 100 percent ownership of the Santen-Allergan joint venture. Also in August, Allergan entered into an agreement with Formosa Optical Company Limited to promote Allergan contact lens care products in Taiwan and the People's Republic of China.

Skin Care Business Unit

Sales for Allergan Herbert (skin care) products were $11.1 million during the third quarter of 1995, an increase of 25 percent over the same period last year. Sales for the first nine months of 1995 were $27.4 million, an 11 percent increase over the first nine months of 1994.

During the quarter, Allergan acquired the assets of Herald Pharmacal, a leader in the aesthetic skin care market. Sales of Herald Pharmacal products contributed $2.4 million to skin care sales.

In July 1995, an application to market tazarotene, a topical retinoid for the treatment of psoriasis and acne, was filed with the FDA. The file includes the results of the initial clinical trial and seven additional Phase III clinical trials with more than 2,000 patients. Tazarotene regulatory filings in Europe will begin later this year.

Also during the quarter, the FDA cleared for marketing Azelex(TM) (azelaic acid) for the topical treatment of mild to moderate inflammatory acne vulgaris.

Botox(R)/Neural Care Business Unit

Neural care worldwide sales for Botox(R) (Botulinum Toxin Type A) purified neurotoxin complex were $12.2 million for the third quarter of 1995. This represents an increase of 42 percent over the $8.6 million in sales during the third quarter of 1994. Sales for the first nine months of 1995 were $34.4 million, a 37 percent increase over the first nine months of 1994.

Additional Financial Highlights

Gross profit increased $22.7 million or 14 percent during the third quarter of 1995. The gross profit margin was 69.4 percent, a slight increase from 69.1 percent for the same period last year due to sales mix shifts. SG&A expenses for the third quarter of 1995 were $112.0 million, an increase of $12.5 million over the same period last year. The increase is associated with acquired businesses. During the first nine months of 1995, research and development expenditures were essentially flat as retinoid development costs incurred in 1995 were billed to ALRT.

Operating income for the third quarter 1995 was $50.1 million compared to $41.6 million in 1994, an increase of 20 percent. Excluding the impact of the $50.0 million ALRT contribution during the second quarter of 1995, net earnings for the first nine months were $82.9 million, an increase of $7.0 million or 9 percent over the first nine months of 1994.

Total debt increased $30.2 million during the third quarter to $315.8 million. The increase during the quarter is principally attributable to the acquisition of Herald Pharmacal. Net debt was $231.2 million at the end of the third quarter.

Allergan, Inc., a global health care company headquartered in Irvine, California, develops, manufactures, and markets specialty therapeutic products for eye and skin care and neuromuscular disorders. A technology-driven company, Allergan is working to be the partner of choice for ever better specialty health care.

The following tables represent condensed consolidated statements of income, condensed consolidated balance sheets, and a statement of net sales by division. -0-

                      ALLERGAN, INC.
        Condensed Consolidated Statements of Income

in millions, except per share

                          Three Months            Nine Months
                         Ended Sept. 30,       Ended Sept. 30,

                                     pct Inc                pct Inc
                       1995    1994  (Dec)     1995   1994   (Dec)

Net Sales            $273.6  $242.2   13pct   $764.1  $677.0  13 pct

Costs and expenses

     Cost of
      sales           83.6    74.9              236.4   205.8
     Gross
      profit         190.0   167.3              527.7   471.2
     Selling,
      general
      and admin-
      istrative      112.0    99.5              331.9   281.9
     Research &
      develop-
      ment            27.9    26.2               79.9    80.0
     Contri-
      bution
      to ALRT            -       -               50.0      -
     Operating
      Income          50.1    41.6   20pct       65.9   109.3 (40)pct
      Interest
       income          2.3     2.2                7.3     5.9
      Interest
       expense        (4.7)   (3.2)             (10.2)   (8.2)
      Other, net       1.2     3.4                6.0     3.7
     Interest and
      other, net      (1.2)    2.4                3.1     1.4
   Total costs
    and
    expenses         224.7   198.2               695.1   566.3
   Earnings
    before
    income
    taxes and
    minority
    interest          48.9    44.0                69.0   110.7
   Provision for
    income taxes      14.4    13.1                35.0    32.9
   Minority
    interest           0.3     0.7                 1.1     1.9
   Net
   Earnings         $ 34.2  $ 30.2   13pct      $ 32.9  $ 75.9 (57)pct
   Net earnings
    per common
    share:          $ 0.53  $ 0.47   13pct      $ 0.51  $ 1.19 (57)pct
   Weighted
    average
    number of
    common shares
    outstanding       65.1    64.0                64.7    63.8

                     ALLERGAN, INC.
         Condensed Consolidated Balance Sheets

   in millions                    September 30, December 31,
                                       1995       1994

   Assets

   Cash and equivalents             $   84.6   $  130.7
   Trade receivables, net              207.5      179.7
   Inventories                         112.4       96.8
   Other current assets                 95.2       78.3

   Total current assets                499.7      485.5

   Property, plant and equipment,
    net                                338.0      314.8
   Other noncurrent assets             385.9      259.5

   Total assets                     $1,223.6   $1,059.8

   Liabilities and stockholders'
    equity

   Notes payable                    $   54.8   $   48.6
   Accounts payable                     47.7       59.9
   Accrued expenses and income taxes   180.2      215.2

   Total current liabilities           282.7      323.7

   Long-term debt                      261.0       83.7
   Other liabilities                    48.4       38.5
   Minority interest                      -        10.6
   Stockholders' equity                631.5      603.3

   Total liabilities and
    stockholders' equity            $1,223.6   $1,059.8

                      ALLERGAN, INC.
                   Net Sales by Division

                          Three Months      Nine Months
   in millions       Ended September 30, Ended September 30,

                         1995     1994     1995     1994

   Pharmaceuticals     $112.3   $ 99.9    $297.2   $281.8
   Surgical              47.5     35.4     136.0     96.6
   Optical Lens Care     90.5     89.4     269.1    248.8

      Total Eye Care    250.3    224.7     702.3    627.2

   Skin Care             11.1      8.9      27.4     24.7
   Botox                 12.2      8.6      34.4     25.1

      TOTAL NET SALES  $273.6   $242.2    $764.1   $677.0

   Domestic            44 pct   49 pct    44 pct   48 pct
   International       56 pct   51 pct    56 pct   52 pct

CONTACT: Allergan, Irvine

Jeff D'Eliscu, 714/246-4636 (work)

714/675-9475 (home)