ALLERGAN

GROWTH PHARMA LEADER

JPMORGAN CONFERENCE
January 9, 2017

Brent Saunders
Chairman and CEO

ALLERGAN CAUTIONARY STATEMENTS

FORWARD LOOKING STATEMENTS

This communication includes statements that refer to estimated or anticipated future events and are forward-looking statements. We have based our forward-looking statements on managements beliefs and assumptions
based on information available to our management at the time these statements are made. Such forward-looking statements reflect our current perspective of our business, future performance, existing trends and
information as of the date of this filing. These include, but are not limited to, our beliefs about future revenue and expense levels and growth rates, prospects related to our strategic initiatives and business strategies,
including the integration of, and synergies associated with, strategic acquisitions, express or implied assumptions about government regulatory action or inaction, anticipated product approvals and launches, business
initiatives and product development activities, assessments related to clinical trial results, product performance and competitive environment, and anticipated financial performance. Without limiting the generality of the
foregoing, words such as may, will, expect, believe, anticipate, plan, intend, could, would, should, estimate, continue, or pursue, or the negative or other variations thereof or comparable terminology, are
intended to identify forward-looking statements. The statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. We caution the reader that these
statements are based on certain assumptions, risks and uncertainties, many of which are beyond our control. In addition, certain important factors may affect our actual operating results and could cause such results to differ
materially from those expressed or implied by forward-looking statements. These factors include, among others, the inherent uncertainty associated with financial projections; the anticipated size of the markets and
continued demand for Allergans existing products; Allergans ability to successfully develop and commercialize new products; Allergans ability to conform to regulatory standards and receive requisite regulatory approvals;
availability of raw materials and other key ingredients; uncertainty and costs of legal actions and government investigations; fluctuations in Allergans operating results and financial condition, particularly given our
manufacturing and sales of branded products; risks associated with acquisitions, mergers and joint ventures, such as difficulties integrating businesses, uncertainty associated with financial projections, projected synergies,
restructuring, increased costs, and adverse tax consequences; the results of the ongoing business following the completion of the divestiture of Allergans generics business to Teva; our compliance with federal and state
healthcare laws, including laws related to fraud, abuse, privacy security and others; generic product competition with our branded products; uncertainty associated with the development of commercially successful branded
pharmaceutical products; costs and efforts to defend or enforce technology rights, patents or other intellectual property; the effect of the expiration of patents on our branded products and the potential for increased
competition from generic manufacturers; competition between branded and generic products; Allergans potential infringement of others proprietary rights; our dependency on third-party service providers and third-party
manufacturers and suppliers that in some cases may be the only source of finished products or raw materials that we need; Allergans competition with certain of our significant customers; the impact of our returns,
allowance and chargeback policies on our future revenue; successful compliance with governmental regulations applicable to Allergans and Allergans respective third party providers facilities, products and/or businesses;
the difficulty of predicting the timing or outcome of product development efforts and regulatory agency approvals or actions, if any; Allergans vulnerability to and ability to defend against product liability claims and obtain
sufficient or any product liability insurance; the effect of intangible assets and resulting impairment testing and impairment charges on our financial condition; Allergans ability to obtain additional debt or raise additional
equity on terms that are favorable to Allergan; difficulties or delays in manufacturing; global economic conditions; Allergans ability to continue foreign operations in countries that have deteriorating political or diplomatic
relationships with the United States; Allergans ability to continue to maintain global operations and the exposure to the risks and challenges associated with conducting business internationally; risks associated with tax
liabilities, or changes in U.S. federal or international tax laws to which we are subject, including the risk that the Internal Revenue Service disagrees that Allergan is a foreign corporation for U.S. federal tax purposes; risks of
fluctuations in foreign currency exchange rates; risks associated with cyber-security and vulnerability of our information and employee, customer and business information that Allergan stores digitally; Allergans ability to
maintain internal control over financial reporting; changes in the laws and regulations, affecting among other things, availability, pricing and reimbursement of pharmaceutical products; the highly competitive nature of the
pharmaceutical industry; Allergans ability to successfully navigate consolidation of our distribution network and concentration of our customer base; the difficulty of predicting the timing or outcome of pending or future
litigation or government investigations; developments regarding products once they have reached the market; risks related to Allergans incorporation in Ireland, such as changes in Irish law and such other risks and other
uncertainties detailed in Allergans periodic public filings with the Securities and Exchange Commission, including but not limited to Allergans Annual Report on Form 10-K for the year ended December 31, 2015 and
Quarterly Report on Form 10-Q for the quarter ended September 30, 2016; and from time to time in Allergans other investor communications. Except as expressly required by law, Allergan disclaims any intent or obligation
to update or revise these forward-looking statements.
Final results:
Detailed GAAP and non-GAAP 2016 financial results and 2017 financial outlook will be available along with the Company's fourth quarter and full year 2016 earnings report in February 2017.

LONG TERM PRIORITIES TO DRIVE GROWTH

AND SHAREHOLDER RETURN
Strong, diversified
sustainable
revenue growth

Growth

Pipeline

Advance and deliver

the pipeline

Execution
Industry
leading margins

Margins

Capital
Allocation

Allocate capital to
maximize
shareholder return

WHAT MAKES ALLERGAN A STRONG SUSTAINABLE

LONG-TERM GROWTH COMPANY
Diverse, broad based revenues with leadership position in 7 therapeutic areas
Strong and sustainable growth in all therapeutic areas with Medical Aesthetics
and IBS growing at 10%+

Low exposure to significant U.S. price pressure1

~40%2 of global revenues not exposed to U.S drug pricing risk
High percentage is cash pay (~20%)
~30% of global revenues is US Medicare/Medicaid/DoD/VA
~30% of global revenues is traditional US commercial

Contribution of new product launches is accelerating

Contribution annualizing at ~$400M in 2016 with strong future growth anticipated
Manageable future LOE headwinds
Minastrin (03/2017); Rapaflo/Canasa (12/2018); Delzicol (3/2020); Saphris (12/2020)
Namenda XR (01/2020)3
1
2
3

All figures based on Non-GAAP 2016 revenues

Includes International, US Medical Aesthetics, US Botox therapeutics
Current planning assumption: Gx launch assumed Q4 2017

11 NEW PRODUCT LAUNCHES DURING 2016/2017

EXPECTED TO GENERATE ~$5B* IN PEAK SALES

NEW
PRODUCT
LAUNCHES

New
Indications

Launched in 2016

* Includes sales from Linzess 72mcg and Vollure XC and Volbella XC in new markets
All figures based on Non-GAAP

STRONG R&D PIPELINE TO DRIVE FUTURE GROWTH WITH

6 STARS IN PHASE 3 IN 2017
AESTHETIC &
DERMATOLOGY

CNS

14

Atogepant

29

Migraine
Prevention

Mid-to-late
Stage
Programs

WH

22

Acute
Migraine

ESMYA
Fibroids

EYE CARE

MDD

Ubrogepant

65+

Rapastinel

6 Stars
in
Phase 3

Abicipar
AMD
DME

9
Cenicriviroc
NASH

Relamorelin
Diabetic
Gastroparesis

URO
GI
AI, Other
6

6 STARS IN PHASE 3 WITH POTENTIAL TOTAL PEAK

SALES OF UP TO $13B
Program
ESMYA

ABICIPAR
Cenicriviroc
(CVC)
UBROGEPANT
ATOGEPANT
RAPASTINEL
RELAMORELIN

TA/Indication

MOA

Uterine
Fibroids

Selective progesterone receptor

modulator

AMD

Recombinant designed ankyrin

repeat protein. Potent blocker
of all forms of soluble VEGF-A

DME
NASH

Dual CCR2/CCR5 inhibitor

Acute

(migraine)

Prophylaxis

2018
2020
2022
2021

$1B-$2B

$1.5B-$3B

Oral CGRP antagonism

2022
NMDA receptor modulator

Diabetic
Ghrelin agonist
Gastroparesis

All figures based on Non-GAAP

Key Highlight

$1.5B-$2B

2020

(migraine)

MDD

Year
Estimated
Launch Peak Sales

$1B-$2B

2021

2021

$1B-$2B
$1B-$2B

Potential to offer first oral non-invasive long-term

treatment option for women suffering from UF
Rapid and sustained reduction in bleeding with
marked improvement in quality of life
Reduction in injection burden is a significant
unmet need
Offers sustained efficacy with fewer injections
Foundational therapy for NASH targeting inflammation
and fibrosis and for future combination therapy
Reduction in markers of inflammation
Improvement in fibrosis in patients with fibrosis F2/F3
First oral CGRP drugs for both acute treatment
and prophylaxis of migraine
CGRP antagonists have proven efficacy in
episodic and chronic migraine
Novel NMDA receptor agonist in new paradigm for
the treatment of depression w/ rapid onset of action
Data suggest rapid and sustained antidepressant
effects after single IV doses
No new prokinetic therapy approved in more than 30
years
Improvement in composite endpoint of nausea,
abdominal pain, post-prandial fullness, bloating

ALLERGAN COMMITTED TO MAINTAINING INDUSTRY

LEADING MARGINS
Estimated 2016 Gross Margin

Average

Estimated 2016 Operating Margin

8
Source: 2016 Thomson consensus non-GAAP estimates.

CAPITAL ALLOCATION TO MAXIMIZE SHAREHOLDER VALUE

Friendly shareholder
return actions

DEBT PAYMENT

INVEST FOR GROWTH

Strategic profile of stepping
stones

Completed total of $15

Billion share repurchase

program1

Dividend initiation

beginning Q1 2017

Total debt reduction in

2016 of ~$10B

$6.5B in contractual

maturities over the next 18

months

Strong fit within our 7 TAs

Durable assets with better
potential under AGN
ownership
Pipeline
Transactions
Accretive
Transactions

Commitment to grow
dividend annually

Maintain investment
grade credit rating

ASR settlement to be completed by Q3 2017

All figures are Non-GAAP

Balance among these type

of investments

ADDING ACCRETIVE AND R&D OPPORTUNITIES

THROUGH STEPPING STONE M&A
> Creates world-class aesthetic, regenerative medicine business
in plastic surgery
> Immediately accretive; expected to generate ~$450 million in revenues,
~75% gross margin and ~40% operating margin in 2016
> Licensing agreement for rights to microbiome GI development programs
> Expands Allergans innovative GI pipeline with preclinical compounds
targeting UC, CD and future compounds for IBS
> Option arrangement marks Allergans entry into Parkinsons Disease,
important adjacency to Companys innovative CNS development pipeline
> Lead compound, LTI-291, represents compelling opportunity for treatment
of Parkinsons Disease in a subpopulation with specific genetic mutations

10

MY 2017 PRIORITIES TO DRIVE STRONG SHAREHOLDER

RETURN
> Further advance 6 stars
> Advance and strengthen
all 7 TAs

Mid-single digit revenue

growth*

Growth

> Maintain top tier

operating margin
Operating expenses
grow less than sales,
Downward pressure on
gross margin due to
product mix

Pipeline

> ~14 major pharma and

device submissions

Execution
Margins

Capital
Allocation

> Dividend initiation

> ASR completion
> Balance investments
between pipeline and
accretive deals

> Double-digit EPS growth

* Key assumptions: excludes LifeCell; assumes Namenda XR Gx launch in 4Q 2017 and stable revenues of Restasis
Revenue growth, gross margin, operating expenses and EPS refer to non-GAAP

11

APPENDIX

12

ESMYA (ULIPRISTAL ACETATE) : BREAKTHROUGH TREATMENT

FOR UTERINE FIBROIDS (UF)
Mechanism of Action

Key Differentiators/Market Opportunity

> First in class oral selective

progesterone receptor
modulator (SPRM) for
uterine fibroids
> Acts in endometrium,
fibroids and pituitary

> First and only non-invasive (once daily oral) long-term

medical treatment option for women suffering from
uterine fibroids
> Fast onset of action to absence of bleeding
> No negative effects on Estradiol levels; good safety
profile
> Gives option for women to delay or avoid surgery
> ~8-9M symptomatic moderate to severe patients in the
US1

Phase 3 results: Efficacy in bleeding

control

% of Patients
97.5% CI (%)

First US phase 3 study (VENUS 1) confirmed efficacy observed in EU

registration studies with fast onset of action and improvements in bleeding with
high rates of absence of bleeding after only one treatment cycle (3 months)

80
60

** p<0.0001
compared to placebo

40

**
47.2

**
58.3

20
0

1.8

Placebo (N=56) UPA 5 mg (N=53)

UPA=ulipristal acetate
All revenue figures based on Non-GAAP

UPA 10 mg
(N=48)

Development Status
> Approved in CAN and EU, Phase 3 in US
> 1st Phase 3 study in US met co-primary
endpoints (Venus I); 2nd phase 3 topline results
expected 1H 2017 (Venus II)
> Expected launch in 2018 with peak sales
$1B-$2B US

1Bulun

(NEJM 2013)

13

ABICIPAR : NEXT STEP IN THE STANDARD OF CARE

(ANTI-VEGF) FOR AMD
Mechanism of Action

DARPin
binding to
VEGF
target

Key Differentiators/Market Opportunity

> Recombinant designed

ankyrin repeat protein
(DARPin)
Highly potent blocker of all
forms of soluble VEGF-A

> Current anti-VEGFs require intensive monitoring +

frequent re-administration via intravitreal injection
> Can provide long-term benefits in visual recovery
and reduction of macular edema
> Decreases the number of injections and office visits

> Reduces burden to patients and healthcare

providers

Phase 2 results: Long duration of effect

REACH Stage 3

> Prevalence of late neovascular AMD in North

America estimated ~1.2%

Efficacy: Mean Change in BCVA From Baseline

BCVA Mean Change From Baseline
(Letters SE)

12
Abicipar 2.0 mg (n=23)
Abicipar 1.0 mg (n=25)

10

> AMD:
>
> DME:
>

Ranibizumab 0.5 mg (n=16)

Abicipar 2.0 mg (n = 23)

Abicipar 1.0 mg (n = 25)

Ranibizumab 0.5 mg (n = 16)

4
2
0
Baseline

mITT with LOCF

Week 1

Week 4

Development Status

Week 8

Week 12

Week 16

Week 20

In phase 3. Results expected 2018

Expected launch in 2020
Phase 3 to start 2017
Expected launch in 2022

Klein et al. Ophthalmology 2007; 114: 253-262

Klein et al. Ophthalmology 1992; 99: 933-943
Kahn et al. Am J Epidemiol 1977; 106: 17-32

Assessment Visits (week)

14

CVC : FOUNDATIONAL THERAPY FOR NASH AND CORNERSTONE

FOR FUTURE COMBINATION THERAPY
Mechanism of Action

Key Differentiators/Market Opportunity

> First-in-Class once-daily

NAFLD
Oral CCR2/5 Inhibitor
targeting inflammation
and fibrosis
> Additional NASH
Cenicriviroc
Evogliptin AKN-083
therapies in development
targeting key pathways
Adapted from Arun Sanyal, NASH Symposium, Paris, June 2015
of NASH (FRX agonist /
HCC, hepatocellular carcinoma; NAFLD, nonalcoholic fatty liver disease;
NASH, nonalcoholic steatohepatitis
DDP4 inhibitor)
NASH

Inflammation

Fibrosis

Metabolic
Abnormality

Phase 2b results: Phase III endpoint met

> Phase 2b: in patients with NASH and liver fibrosis, improvement in fibrosis
by at least one stage and no worsening of steatohepatitis after 1
year of treatment
Phase III Endpoint

Primary Endpoint
25

Subjects (%)

20

Placebo

CVC

P = 0.519

P = 0.023
20%

19%
15

16%

10

P = 0.494
8%

10%

6%

0
2-point Improvement
in NAS AND No
Worsening of Fibrosis

N=144

N=145

Complete Resolution of
Improvement in
NASH AND No
Fibrosis Stage AND No
Worsening of Fibrosis
Worsening of NASH

N=144

N=145

N=144

> First-in-Class once-daily Oral CCR2/5 Inhibitor targeting

inflammation and fibrosis
> One of the few agents in development directly impacting
fibrosis
> Safety comparable to placebo
> ~10.7M F2/F3 NASH patients expected in the US by 2030

Development Status
> Improvement in fibrosis by at least one stage and
no worsening of steatohepatitis after 1 year of
treatment in patients with fibrosis F2/F3 will be
primary efficacy endpoint in Phase 3
> Phase 3 expected to start 2H 2017
> Expected launch in 2021 with peak sales
$1.5B-$2B in US

N=145

CVC, cenicriviroc; ITT, intent-to-treat (missing data counted as failure); NAS,

nonalcoholic fatty liver disease activity score

All revenue figures based on Non-GAAP

> NASH is becoming the leading cause of liver transplant

and liver cancer surpassing Hepatits C

15
15

UBROGEPANT / ATOGEPANT : FIRST ORAL CGRP ANTAGONISTS IN

MIGRAINE
Mechanism of Action

Key Differentiators/Market Opportunity

Oral CGRP antagonists:

> No major innovations in the migraine field since ~2 decades

> Inhibit vasodilatation

peripherally

> MoA validated, but currently no CGRP antagonists approved

> CGRP antagonism is a migraine specific development

> Oral prophylaxis preferred by a significant segment of patients

> Inhibit migraine pain

transmission centrally

> MoA different from triptans

> Better tolerability than current SOC expected

> Promise acute AND

prophylactic efficacy with
excellent tolerability

> High innovative potential:

> Ubrogepant as first in class treatment of acute migraine
> Atogepant as first oral CGRP antagonists for migraine prophylaxis

Phase 2 results: Efficacy in 2 hour pain

freedom
Ubrogepant 2-Hour Pain Freedom

Development Status
Ubrogepant for treatment of acute migraine:
> Phase 3 started in July 2016 in US
> EU study start planned for 1H 2017
> First results expected 2018
Atogepant for migraine prophylaxis:

1 mg

10 mg

25 mg

50 mg

100 mg

> Large dose range finding study started in August

2016 in episodic migraine prophylaxis
> First results expected 2018
16

RAPASTINEL: A NOVEL NMDA MODULATOR AS A RAPID ACTING

ANTIDEPRESSANT
Mechanism of Action

Key Differentiators/Market Opportunity

> Novel class of NMDA receptor modulators

> Differentiation from current antidepressants

NMDA modulation without direct interaction

with glycine site
Rapid antidepressant activity in animal models
Action via a direct LTP-like, NMDA receptor-triggered
process of enhanced synaptic plasticity
Pharmacology different from ketamine

> IV administration (weekly in Phase 3 acute trials)

as add-on to SOC antidepressants

Phase 2a results: Efficacy with single

dose

Promises antidepressant activity within hours (vs. within

weeks of continued dosing)

> Differentiation from ketamine/esketamine:

> Available preclinical and clinical data indicate

Very good safety and tolerability

Low propensity for psychotic or dissociative side effects
Low abuse liability

Development Status
> Global development program:

Phase 2 single
dose study

US Phase 3 program started in October 2016

(3 acute studies, 1 long term maintenance study)
Ongoing open label safety study
Phase 1 PK study for Japan ongoing
Consultation with EMA planned for 2017

> First Phase 3 results expected 2019

> Additional indications under consideration
Data suggest rapid and sustained antidepressant effects after single
IV doses of 5 mg/ kg or 10 mg/kg

17

RELAMORELIN: NOVEL PROKINETIC TREATMENT

FOR GASTROPARESIS
Mechanism of Action
> Ghrelin receptor agonist to
improve gastric emptying
and gastrointestinal motility
> Enhanced efficacy, better
plasma stability and a
longer circulating half-life
compared to native ghrelin

Phase 2b results: Four-symptom

composite change in baseline
Change from Baseline (SE)

Four-symptom composite1: substantial efficacy from baseline demonstrated by week 12

Key Differentiators/Market Opportunity

> Significant unmet need for alternative therapy
given the limitations of metoclopramide (Reglan)
through risk of tardive dyskinesia and the
withdrawal of cisapride (Propulsid)
> No new prokinetic therapy approved more than 30
years
> Estimated 2.3 million type 1 and type 2 diabetic
patients with moderate or severe gastroparesis

18

Development Status
> Global Phase 3 trial moving forward

Four-Symptom Composite
Change from Baseline Pooled Doses

> FDA has granted fast track review status to

Relamorelin
> Expected Launch Year in 2021 with peak sales
($1B-$2B US)
1. Nausea, abdominal pain, post-prandial fullness, bloating

All revenue figures based on Non-GAAP

18

CONTINUING STEPPING STONE M&A: ASSEMBLY BIOSCIENCES

& LYSOSOMAL THERAPEUTICS

>

Opportunity

Opportunity

Potential next-generation, highly selective

first oral approach to developing microbiome
treatments for leading diseases within one
of Allergans largest TAs (GI)

Entry into Parkinsons Disease with potential

first-in-class compounds and possible utility
across the full spectrum of PD

Key Differentiators/Market Opportunity

Key Differentiators/Market Opportunity

R&D collaboration to develop next-generation microbiome treatments for

gastrointestinal disorders, specifically IBD and IBS

>

Option arrangement to acquire LTI

>

5%-10% of PD patients present with a specific genetic mutation of the

GBA1 gene, causing lack of activity of the enzyme Gcase. These patients
have a more rapid progression of Parkinsons disease

>

Abnormalities in the intestinal microbiome are fundamentally important

to the development of a number of GI disorders including IBS and IBD

>

Potential utility of microbiome technology in treating a number of GI

disorders

>

The LTI compounds are being developed to restore activity of the GCase
enzyme

>

Allergan has significant clinical and commercial leadership experience

in GI

>

May have utility across the entire spectrum of PD

>

Parkinson's affects up to 1 million people in the US and doctors diagnose

as many as 60,000 new cases each year

>

Natural adjacency for Allergan given our significant leadership in CNS

>

Potential for application in other disorders, both in GI and other TAs

Key Terms
>

Upfront payment of $50 Million for WW rights to develop, commercialize

UC, CD and IBS compounds

>

Shared development costs through POC studies; Allergan will assume all
post-POC development costs

1Bulun

(NEJM 2013)

Key Terms
>

Option to acquire LTI for an undisclosed amount following

completion of LTI-291 Phase 1b study

19