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JUNE 2006 Volume 9 Issue 4

BOTOX® Product & Service Markets

Dermal filler injections represent a large portion of total U.S. non-surgical cosmetic procedure expenditures, according to 2005 statistics gathered and published by the American Society for Aesthetic Plastic Surgery (ASAPS). In 2005, BOTOX injections accounted for 10% of total procedure expenditures (surgical and non-surgical combined).

Frowning's A Downer!

The future for BOTOX sales and procedures may be even better, if early results from a very small scale study are substantiated in larger clinical trials. As noted in a June 2006 L.A. Times article, findings from a very small research study (May 2006 issue of Dermatologic Surgery) indicated that depression was eliminated in nine of ten women who were treated with BOTOX injections into forehead furrows or frown lines. The results correlate with psychological research studies which suggest that smiling helps people feel better. More research is needed, but Allergan Inc. has a history of diligently investigating and expanding BOTOX uses to grow the brand.

Procedure Data

ASAPS data indicates that BOTOX injections accounted for approximately $1.3 billion of the $4.2 billion projected for all non-surgical expenditures nationwide.[1] Since 1997, the number of BOTOX injections increased from 65,157 to 3,294,782 in 2005. [2]

Competitive Factors:

Calculations using ASAPS data indicate that BOTOX accounted for an estimated 59% of all dermal filler procedure expenditures cited in the 2005 National Average for Physicians/Surgeons Fees Per Procedure table (page 11):

• Autologous Fat

• BOTOX

• Bovine Collagen

• Calcium Hydroxylapatite (Radiance)

• Human Collagen (Alloderm, Autologen, CosmoDerm, CosmoPlast, etc.)

• Hyaloronic Acid (Hylaform, Juvederm, Restylane, etc.)

• Poly-L-Lactic Acid(Sculptra)

• Polymethyl Methacrylate (Artecoil and Artefill).

Market Revenues (BOTOX):

Allergan's BOTOX franchise continues to grow. According to the Company's Annual Report 2005, BOTOX sales rose from $705 million in 2004 to $831 million in 2005. In the facial aesthetics segment, Allergan is creating new markets with BOTOX Cosmetic / VISTABEL® / VISTABEX™, and acquisition of Inamed is expanding cross-selling opportunities to dermatologists, medical aesthetic specialists, and plastic surgeons.

Good growth has been demonstrated in 2006, as well. First quarter financial information (Form 10-Q) shows that BOTOX / Neuromodulator sales increased from $176.3 million in 2005 to $223.0 million in 2006.

[1] "2005 National Average for Physician/Surgeon Fees Per Procedure" in 2005 Cosmetic Surgery National Data Bank Statistics (page 11), published by the American Society for Aesthetic Plastic Surgery, www.surgery.org

[2] "2005 National Average for Physician/Surgeon Fees Per Procedure" in 2005 Cosmetic Surgery National Data Bank Statistics (page 8), published by the American Society for Aesthetic Plastic Surgery, www.surgery.org