850693--3/6/2006--ALLERGAN

related topics

{product, liability, claim}

{operation, international, foreign}

{product, candidate, development}

{property, intellectual, protect}

{regulation, government, change}

{product, market, service}

{cost, operation, labor}

{regulation, change, law}

{customer, product, revenue}

{provision, law, control}

{tax, income, asset}

{competitive, industry, competition}

{acquisition, growth, future}

{cost, regulation, environmental}

We operate in a highly competitive business. Changes in the consumer marketplace and economic conditions may adversely affect sales or product margins of Botox or Botox We could experience difficulties obtaining or creating the raw material needed to produce our products and interruptions in the supply of raw materials 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. Importation of products from Canada and other countries into the United States may lower the prices we receive for our products. Our business will continue to expose us to risks of environmental liabilities. 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 and we may be forced to withdraw products. Health care initiatives and other cost-containment pressures could 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. 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. The consolidation of drug wholesalers and other wholesaler actions could increase competitive and pricing pressures on pharmaceutical manufacturers, including us. We may acquire companies in the future and these acquisitions could disrupt our business. 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. If we market products in a manner that violates health care fraud and abuse laws, we may be subject to civil or criminal penalties. If our collaborative partners do not perform, we will be unable to develop and market products as anticipated. Changes in financial accounting standards to share-based payments are expected to have a significant effect on our reported results. Unanticipated changes in our tax rates or exposure to additional income tax liabilities could affect our profitability. Our merger with Inamed may not be consummated, may not have the benefits we expect or may disrupt our business. Antitrust authorities may attempt to delay or prevent our acquisition of Inamed.

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850693--3/6/2006--ALLERGAN_INC