850693--2/26/2010--ALLERGAN

related topics

{product, liability, claim}

{operation, international, foreign}

{product, candidate, development}

{property, intellectual, protect}

{customer, product, revenue}

{financial, litigation, operation}

{regulation, government, change}

{regulation, change, law}

{cost, regulation, environmental}

{personnel, key, retain}

{acquisition, growth, future}

{debt, indebtedness, cash}

{tax, income, asset}

{competitive, industry, competition}

{condition, economic, financial}

{loan, real, estate}

We operate in a highly competitive business. Adverse U.S. and international economic conditions may reduce consumer demand for our products, causing our sales and profitability to suffer. We could experience difficulties obtaining or creating the raw materials or components needed to produce our products and interruptions in the supply of raw materials or components could disrupt our manufacturing and cause our sales and profitability to decline. Our future success depends upon our ability to develop new products, and new indications for existing products, that achieve regulatory approval for commercialization. Our product development efforts may not result in commercial products. If we are unable to obtain and maintain adequate protection for our intellectual property rights associated with the technologies incorporated into our products, our business and results of operations could suffer. We may be subject to intellectual property litigation and infringement claims, which could cause us to incur significant expenses and losses or prevent us from selling our products. Importation of products from Canada and other countries into the United States may lower the prices we receive for our products. Our ownership of real property and the operation of our business will continue to expose us to risks of environmental liabilities. A disruption at certain of our manufacturing sites would significantly interrupt our production capabilities, which could result in significant product delays and adversely affect our results. We may experience losses due to product liability claims, product recalls or corrections. Negative publicity concerning the safety of our products may harm our sales, force us to withdraw products and cause a decline in our stock price. Health care initiatives and other third-party payor cost-containment pressures could impose financial burdens or cause us to sell our products at lower prices, resulting in decreased revenues. We are subject to risks arising from currency exchange rates, which could increase our costs and may cause our profitability to decline. We are subject to risks associated with doing business internationally. The consolidation of drug wholesalers and other wholesaler actions could increase competitive and pricing pressures on pharmaceutical manufacturers, including us. Our failure to attract and retain key managerial, technical, scientific, selling and marketing personnel could adversely affect our business. Acquisitions of technologies, products, and businesses could disrupt our business, involve increased expenses and present risks not contemplated at the time of the transactions. Compliance with the extensive government regulations to which we are subject is expensive and time consuming, and may result in the delay or cancellation of product sales, introductions or modifications. Compliance with the requirements of federal and state laws pertaining to the privacy and security of health information may be time consuming, difficult and costly, and if we are unable to or fail to comply, our business may be adversely affected. If we market products in a manner that violates health care fraud and abuse laws, we may be subject to civil or criminal penalties. We could be adversely affected by violations of the U.S. Foreign Corrupt Practices Act and similar worldwide anti-bribery laws. If our collaborative partners do not perform, we will be unable to develop and market products as anticipated. Unanticipated changes in our tax rates or exposure to additional income tax liabilities could affect our profitability. The terms of our debt agreements impose restrictions on us. Failure to comply with these restrictions could result in acceleration of our substantial debt. Were this to occur, we might not have, or be able to obtain, sufficient cash to pay our accelerated indebtedness. Litigation may harm our business or otherwise distract our management. Our publicly-filed SEC reports are reviewed by the SEC from time to time and any significant changes required as a result of any such review may result in material liability to us and have a material adverse impact on the trading price of our common stock.

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850693--2/26/2010--ALLERGAN_INC