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Jim:    Mr. Pyott, welcome back to Mad Money...

David:     Thanks Jim, it is always a pleasure to be with you. You always do such a great rendition of my company, you should almost be working here.

Jim:    Now, look I have been a proud supporter of your company for many, many years… because I know that to have just a traditional slow growth, high yielding dividend stocks that big pharma has become… we don’t get a lot of capital appreciation, which is what I look to Allergan for.

David:     Well, as you know, we really believe in strength and diversity. As you stated on the pharmaceutical side, which is 70% of our products, reimburse products we did very well. In fact, in ophthalmology for the 7th year in a row, we have been the fastest growing global ophthalmology company world wide.

Jim:    David, I felt a one point today, that because your so identified with Botox… your stock is actually… and that was when things were great… a driver for the stock… I think that to focus to be an ophthalmology stock matters… because people realize that it is not just an all cash business, right?

David:     That is right, that is the strength in diversity. And of course the second key driver is the strength of our R&D pipeline. And today we are very fortunate on top of the recent approval of Latice, which is our eye lash enhancing product, Paycentuate, the original drug is the same one approved for glaucoma now for some 8 years. It is going to be great. But then we have on top of that, 6 products sitting under review at the FDA, 4 drugs and 2 devices.

Jim:    Give us a sense of what could be as big as some of the things that you currently have right now.

David:     Well, I think as a short term driver, the biggest one is going to be Latice, which is going to be another example of where Allergan can create a new category. And for our doctors, the asthetic specialists, this is going to be a great traffic builder in a difficult economy, and of course, appeal to a different demographic than those that have historically looked for Botox and Juviderm.

Jim:    Alright, you better explain to people what Latice does exactly, and why anyone would ask for the product.

David:     Well, particularly for all the ladies in the audience, can you imagine a product that increases the length, darkness and thickness of your eyelashes. I don’t know any woman over certainly teenage years that says, I am not interested in that.

Jim:    Hey, listen I got some woman who makes me up and does that… I can’t figure out what people like about it… but then again I am not an older 63 year older, I am a 63 year old guy… so I get that… now can talk about this lap… you know, we have talked about how you are competing against J&J with the lap band, how is that going?

David:     Pretty good, unfortunately the lap band business economically was affected because the market slowed down. A year ago, the world market was growing 60%, now it is a mere 26%. But we have really held our own, we have held pretty much the same market shares since summer time. And we believe that we have just a shade over 70% market share.

Jim:    Alright, David, help me on this… lap bands, people might not now makes you thin.. which obviously makes you look better, but is also healthier… Botox I kind of regard… it is not healthier… but it sure does make you look better… which do people cut back on more, something that makes them thin, or something that makes them look more youthful?

David:     Unfortunately I think that is related to the price of a procedure, so the higher the cost of a procedure the more likely it is to be affected by cost and the downturn.

Jim:    Are doctor’s cutting the price… is there like a price war with medicines for the first time.. with their… with Restilane… for Juviderm?

David:     Yes, they certainly on the dermo-filler side engaged in some major price discounting. We do, however, have felt that it was appropriate to offer, lets call them promotions, to get patients back into the office. And right now we are offering thru the doctors office, coupons for Botox for $50, and for a second syringe of Juviderm a $100 coupon.

Jim:    Wow, I never thought that you would have to coupon these products… that is interesting… but that will keep your sales going for 2009, won’t it?

David:     Absolutely, and I think as you encapsulated in your opening remarks, our job is to assume that the economy is going to be pretty challenging world wide for the remainder of 2009, make our plans accordingly. And then we got paid to manage our way thru it, and especially emerge with a very strong R&D pipeline at the other side.

Jim:    Excellent, David Pyott, chairman and CEO of Allergan, thank you so much for being on Mad Money.

David:     Thank you.