what distinguishes us
Allergan is uniquely positioned in the pharmaceutical industry, in large part due to our strong franchises in high-growth specialty markets. With our groundbreaking products and exceptional customer service, we are helping to change the way specialized medicine is practiced.
Our company has a track record of combining strong science with business acumen to anticipate and respond to market need. We combine the lean operating procedures and high-growth characteristics of the specialty model, the diversified product portfolio and global integrated R&D capabilities of much larger pharmaceutical companies, and the strong pipeline characteristics of biotech players. In short, we are large enough to command sufficient resources, yet small enough for nimble execution. And we have a uniquely talented leadership team and work force focused on delivering sustainable growth.
our vision
Quite simply, our vision is to dive deeper and reach further in all that we do. Since our founding, it has been our practice to develop an unparalleled level of insight into the wants and needs of our customers and their patients. Allergan is distinguished by employing more than 50 percent of our current workforce in either R&D or sales, ensuring our efforts are focused on innovation and our customers. This enables us to implement operational strategies that provide the greatest value for the physicians and patients who place their trust in us. And it helps us deliver attractive returns to stockholders.
our commitment
As we look to the future, we seek to deepen our position as a leading specialty pharmaceutical company that is high-growth, results-driven and innovative. We will continue to address unmet medical needs through our highly integrated R&D efforts and through our strong physician/patient focus. For example, we have one of the broadest product pipelines of any company working on retinal diseases such as age-related macular degeneration. Significant progress is expected to be made in treating these diseases over the next decade, and Allergan will be at the forefront of these advances.
Allergan will continue to seek new opportunities to strengthen our positions in our existing specialty businesses, including ophthalmology, neurosciences, medical dermatology and medical aesthetics, and in new ones such as urology and gastroenterology. Most of our discovery and development programs are developed internally, which sets us apart from other specialty pharma companies, but we will continue exploring new market opportunities and search for partnerships and superior technologies that are complementary to our own specialty business model. We will continue to use science and innovation to address unmet medical needs while investing sufficiently into R&D to fuel future growth. This is our unwavering commitment.
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| * | Adjustments to GAAP research and development expense used to calculate research and development expenditures, adjusted for non-GAAP items, include the following: $1.5 million of transition/duplicate operating expenses and a $3.0 million buy-out of a license agreement in 2005, $458.0 million in-process research and development charge in 2003 related to the acquisition of Bardeen Sciences Company, LLC and Oculex Pharmaceuticals, Inc., $0.7 million duplicate operating expenses and $4.0 collaboration expense in 2002, and $40.0 million in-process research and development charge in 2001 related to the acquisition of Allergan Specialty Therapeutics, Inc. GAAP research and development expense was $391.0 million, $345.6 million, $763.5 million, $233.1 million and $227.5 million in 2005, 2004, 2003, 2002 and 2001, respectively. GAAP research and development expense growth (decline) was 13%, (55%), 228%, 2% and 37% for 2005, 2004, 2003, 2002 and 2001, respectively. |