<PAGE>   1
================================================================================

                UNITED STATES SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

    For the quarterly period ended September 30, 1999

                                       OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934.


                             COMMISSION FILE NUMBER
--------------------------------------------------------------------------------
                                     0-23641


                      ALLERGAN SPECIALTY THERAPEUTICS, INC.


A DELAWARE CORPORATION                               IRS EMPLOYER IDENTIFICATION
                                                              33-0779207

                   2525 DUPONT DRIVE, IRVINE, CALIFORNIA 92612

                          TELEPHONE NUMBER 714/246-4500


Indicate by a check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

 (1)   X   yes          no
     ------       ------
 (2)   X   yes          no
     ------       ------

Indicate the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date.

As of November 10, 1999, there were 3,272,690 shares of callable Class A common
stock outstanding, and 1,000 shares of Class B common stock outstanding.

<PAGE>   2

                      ALLERGAN SPECIALTY THERAPEUTICS, INC.

                                   FORM 10-Q

                    FOR THE QUARTER ENDED SEPTEMBER 30, 1999

                                      INDEX

                                                                            Page
PART I - FINANCIAL INFORMATION

    ITEM 1 - FINANCIAL STATEMENTS

             Condensed Statements of Operations                                3

             Condensed Balance Sheets                                          4

             Condensed Statements of Cash Flows                                5

             Notes to Condensed Financial Statements                         6-8

    ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
             AND RESULTS OF OPERATIONS                                      9-12

    ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK       13

             CERTAIN FACTORS AND TRENDS AFFECTING ALLERGAN SPECIALTY
             THERAPEUTICS, INC. AND ITS BUSINESSES                         14-15

PART II - OTHER INFORMATION

    ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS              16

    ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K                                 16

Signature                                                                     17

Exhibits


                                       2

<PAGE>   3

PART I - FINANCIAL INFORMATION

                      Allergan Specialty Therapeutics, Inc.
                          (a development stage company)

                       Condensed Statements of Operations
                                   (unaudited)

                        (In thousands, except share data)

<TABLE>
<CAPTION>
                                                                                     November 12,
                                                                                         1999
                                Quarter Ended               Nine Months Ended        (Inception)
                                September 30,                 September 30,               to
                          ------------------------      ------------------------    September 30,
                             1999           1998           1999          1998            1999
                          ---------      ---------      ---------      ---------  -----------------
<S>                       <C>             <C>           <C>            <C>            <C>
Revenues                  $   1,293       $  3,004      $   5,785      $   6,512      $  14,828

Costs and expenses:
     Research and
       development           12,762          8,626         35,408         24,754         71,294
     Technology fees          1,375          1,375          4,125          5,145         10,645
     General and
       administrative           262            284            873            414          1,806
                          ---------      ---------      ---------      ---------      ---------

     Total costs and
       expenses              14,399         10,285         40,406         30,313         83,745
                          ---------      ---------      ---------      ---------      ---------

Loss before income
  taxes                     (13,106)        (7,281)       (34,621)       (23,801)       (68,917)
Provision for taxes           2,003            938          3,478          1,860          5,990
                          ---------      ---------      ---------      ---------      ---------

Net loss                  $ (15,109)     $  (8,219)     $ (38,099)     $ (25,661)     $ (74,907)
                          =========      =========      =========      =========      =========

Basic and diluted
  loss per share          $   (4.62)     $   (2.51)     $  (11.64)     $   (7.84)     $  (22.88)
                          =========      =========      =========      =========      =========

Basic and diluted
  shares outstanding      3,273,690      3,273,690      3,273,690      3,273,690      3,273,690
</TABLE>

See accompanying notes to condensed financial statements.

                                       3

<PAGE>   4

                      Allergan Specialty Therapeutics, Inc.
                          (a development stage company)

                            Condensed Balance Sheets
                                   (unaudited)
                        (In thousands, except share data)

<TABLE>
<CAPTION>
                                                          September 30,     December 31,
                                                              1999              1998
                                                          -------------     ------------
<S>                                                         <C>              <C>
                                         ASSETS

Cash                                                        $     100        $      --
Investments                                                   118,585          158,667
Prepaid technology fees                                         5,623            4,723
Other assets                                                    1,297            1,747
                                                            ---------        ---------
                                                            $ 125,605        $ 165,137
                                                            =========        =========

                          LIABILITIES AND STOCKHOLDERS' EQUITY

 Liabilities:
        Payable to Allergan, Inc.                           $   4,418        $   4,509
        Accounts payable and accrued liabilities                   --              295
                                                            ---------        ---------

                 Total liabilities                              4,418            4,804


 Stockholders' equity:
        Callable Class A Common stock,
          $.01 par value; 6,000,000 shares
          authorized, 3,272,690 issued
          and outstanding                                          33               33
        Class B Common stock,
          $1.00 par value; 1,000 shares
          authorized, issued and outstanding                        1                1
        Additional paid-in capital                            196,753          196,753
        Accumulated other comprehensive (loss)/income            (693)             354
        Deficit accumulated during development stage          (74,907)         (36,808)
                                                            ---------        ---------

                 Total stockholders' equity                   121,187          160,333
                                                            ---------        ---------
                                                            $ 125,605        $ 165,137
                                                            =========        =========
</TABLE>

See accompanying notes to condensed financial statements.

                                       4


<PAGE>   5

                      Allergan Specialty Therapeutics, Inc.
                          (a development stage company)

                       Condensed Statements of Cash Flows
                                   (unaudited)

                                 (In thousands)

<TABLE>
<CAPTION>
                                                      Nine Months Ended             Inception
                                                         September 30,                  to
                                                  --------------------------      September 30,
                                                     1999            1998              1999
                                                  ---------        ---------        ---------
<S>                                               <C>              <C>              <C>
 OPERATING ACTIVITIES:
        Net loss                                  $ (38,099)       $ (25,661)       $ (74,907)
        Non-cash item included in net loss:
                 Deferred income tax                    433               --             (249)
        Changes in operating assets
          and liabilities:
                 Other assets                           495           (1,320)            (570)
                 Prepaid technology fees               (900)          (4,210)          (5,623)
                 Payable to Allergan, Inc.              (91)           3,928            4,418
                 Accounts payable and
                   accrued liabilities                  (23)             955               --
                                                  ---------        ---------        ---------
                 Net cash used in
                   operating activities             (38,185)         (26,308)         (76,931)

INVESTING ACTIVITIES:
        Purchases of investments                     (5,884)        (182,542)        (193,035)
        Sales and maturities of
          investments                                44,169           12,114           73,279
                                                  ---------        ---------        ---------
                 Net cash provided by/
                   (used in) investing
                   activities                        38,285         (170,428)        (119,756)

FINANCING ACTIVITIES:
        Issuance of common stock                         --          200,000          200,001
        Offering costs                                   --           (3,214)          (3,214)
                                                  ---------        ---------        ---------
                 Net cash provided by
                   financing activities                  --          196,786          196,787
                                                  ---------        ---------        ---------

Net increase in cash                                    100               50              100

Cash - beginning of period                               --                1               --
                                                  ---------        ---------        ---------

Cash - end of period                              $     100        $      51        $     100
                                                  =========        =========        =========

Supplemental disclosure of cash
  paid for taxes                                  $   3,485        $   1,531        $   6,730
                                                  =========        =========        =========
</TABLE>

See accompanying notes to condensed financial statements.

                                       5

<PAGE>   6

Allergan Specialty Therapeutics, Inc.

Notes to Condensed Financial Statements

1.    Basis of Presentation and Significant Accounting Policies

      Allergan Specialty Therapeutics, Inc. ("ASTI" or "the Company") was
      incorporated in Delaware on November 12, 1997 and commenced operations on
      March 10, 1998. ASTI was formed for the purpose of conducting research and
      development of potential human pharmaceutical products, and to
      commercialize such products, most likely through licensing to Allergan,
      Inc. (Allergan).

      The Company is subject to risks associated with development stage
      companies. All of the Company's efforts to date have been limited to
      obtaining capital and conducting research and development. The Company
      does not yet generate any revenues from product sales or royalties.
      Research and development is performed by Allergan and the costs incurred
      are reimbursed by ASTI.

      In the opinion of management, the accompanying condensed financial
      statements contain all adjustments (consisting only of normal recurring
      accruals) necessary to present fairly the financial information contained
      therein. These statements do not include all disclosures required by
      generally accepted accounting principles. The results of operations for
      the three and nine month periods ended September 30, 1999 and for the
      period from Inception to September 30, 1999 are not necessarily indicative
      of the results to be expected for the year ending December 31, 1999.

      Use of estimates

      The preparation of financial statements in accordance with generally
      accepted accounting principles requires management to make estimates and
      assumptions that affect the amounts reported in the financial statements
      and accompanying notes. Actual results could differ from those estimates.

      Per share information

      Statement of Financial Accounting Standards (SFAS) No. 128, "Earnings per
      Share," (EPS) requires calculations for "basic earnings per share"
      including only actual weighted shares outstanding and "diluted earnings
      per share" including the effect of any common equivalent shares or other
      items that are dilutive. The Company has no common equivalent shares or
      other items that are dilutive. The reconciliations of the numerators and
      denominators of the basic and diluted loss per share computations for the
      quarter and nine month periods ended September 30, 1999 and 1998 and for
      the period from Inception to September 30, 1999 are as follows:


                                       6

<PAGE>   7

Allergan Specialty Therapeutics, Inc.

Notes to Condensed Financial Statements


1.   Basis of Presentation and Significant Accounting Policies (Continued)

<TABLE>
<CAPTION>
                                 Quarter Ended           Nine Months Ended
                                 September 30,             September 30,            Inception
                           -----------------------     -----------------------   to September 30,
                              1999         1998          1999          1998           1999
                           ---------     ---------     ---------     ---------    --------------
<S>                        <C>           <C>           <C>           <C>            <C>
Loss during period
  (in thousands)           $ (15,109)    $  (8,219)    $ (38,099)    $ (25,661)     $ (74,907)

Basic and diluted
  shares outstanding       3,273,690     3,273,690     3,273,690     3,273,690      3,273,690

Per share loss
  during period            $   (4.62)    $   (2.51)    $  (11.64)    $   (7.84)     $  (22.88)
</TABLE>


      Reclassifications

      Certain reclassifications have been made to prior periods in order to
      conform with current period presentation.

2.    Comprehensive Income (Loss)

      SFAS No. 130, "Reporting Comprehensive Income," established standards for
      reporting comprehensive income and its components. Other comprehensive
      loss is comprised of unrealized loss on investments. Other comprehensive
      loss for the quarters and nine month periods ended September 30,1999 and
      1998 and for the period from Inception to September 30, 1999 are as
      follows:

<TABLE>
<CAPTION>
                                                           Quarter Ended September 30,
                              ------------------------------------------------------------------------------------
                                                1999                                       1998
                              -----------------------------------------    ---------------------------------------
                                                 Tax                                        Tax
                              Before-tax      (expense)      Net-of-tax    Before-tax    (expense)      Net-of-tax
                                amount        or benefit       amount        amount      or benefit       amount
                              ----------      ----------     ----------    ----------    ----------     ----------
                                                                  (in thousands)
<S>                           <C>             <C>            <C>           <C>           <C>            <C>
Unrealized holdings (loss)
  gain arising during period    $(75)             $31         $   (44)       $1,641         $(712)        $   929
                                ====              ===                        ======

Net loss                                                      (15,109)                                     (8,219)
                                                             --------                                     -------

Total other comprehensive
  loss                                                       $(15,153)                                    $(7,290)
                                                             ========                                     =======
</TABLE>


                                       7

<PAGE>   8

Allergan Specialty Therapeutics, Inc.

Notes to Condensed Financial Statements

2.       Comprehensive Income (Loss) (Continued)

<TABLE>
<CAPTION>
                                                          Nine Months Ended September 30,
                              ------------------------------------------------------------------------------------
                                                 1999                                       1998
                              -----------------------------------------    ---------------------------------------
                                                 Tax                                        Tax
                              Before-tax      (expense)      Net-of-tax    Before-tax    (expense)      Net-of-tax
                                amount        or benefit       amount        amount      or benefit       amount
                              ----------      ----------     ----------    ----------    ----------     ----------
                                                                    (in thousands)
<S>                           <C>             <C>            <C>           <C>           <C>            <C>
Unrealized holdings (loss)
  gain arising during period   $(1,797)          $750         $ (1,047)      $1,496        $(761)        $    735
                               =======           ====                        ======
Net loss                                                       (38,099)                                   (25,661)
                                                              --------                                   --------
Total other comprehensive
  loss                                                        $(39,146)                                  $(24,926)
                                                              ========                                   ========
</TABLE>


<TABLE>
<CAPTION>
                                       Inception to September 30, 1999
                              --------------------------------------------------
                                                    Tax
                              Before-tax         (expense)            Net-of-tax
                                amount           or benefit             amount
                              ----------         ----------           ----------
                                               (in thousands)
<S>                           <C>                <C>                  <C>
Unrealized holdings loss
  arising during period        $(1,171)          $    478             $   (693)
                               =======           ========

Net loss                                                               (74,907)
                                                                      --------
Total other comprehensive
  loss                                                                $(75,600)
                                                                      ========
</TABLE>


                                       8

<PAGE>   9

                      ALLERGAN SPECIALTY THERAPEUTICS, INC.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS FOR THE QUARTER ENDED SEPTEMBER 30, 1999

This Quarterly Report on Form 10-Q may contain certain projections, estimates
and other forward-looking statements that involve a number of risks and
uncertainties. While this outlook represents management's current judgment on
the future direction of the business, such risks and uncertainties could cause
actual results to differ materially from any future performance suggested below.
The Company undertakes no obligation to release publicly the results of any
revisions to these forward-looking statements to reflect events or circumstances
arising after the date hereof.

The following should be read in conjunction with the section entitled "--Risks
and Uncertainties" included in the Company's annual report on Form 10-K for the
year ended December 31, 1998 and the Company's Financial Statements and notes
thereto in Item 1 above.

RESULTS OF OPERATIONS

Net interest and investment income earned on investments were $1,293,000 and
$2,504,000 for the quarters ended September 30, 1999 and 1998, respectively, and
$5,385,000 and $6,012,000 for the nine month periods ended September 30, 1999
and 1998, respectively. ASTI earned investment income of $13,928,000 for the
period from Inception (November 12, 1997) through September 30, 1999. Interest
and investment income was earned subsequent to March 10, 1998, the date Allergan
contributed $200 million to ASTI. In the future, as ASTI's funds are used
pursuant to the R&D Agreement and to pay the technology fee pursuant to the
Technology Agreement, lower cash balances will be available for investment and
therefore interest and investment income is expected to decrease.

Research and development expenses were $12,762,000 and $8,626,000 for the
quarters ended September 30, 1999 and 1998, respectively, and $35,408,000 and
$24,754,000 for the nine month periods ended September 30, 1999 and 1998,
respectively. Research and development expenses were $71,294,000 for the period
from Inception through September 30, 1999. ASTI paid technology fees of
$1,675,000 and $2,500,000 to Allergan during the quarters ended September 30,
1999 and 1998, respectively, and $5,025,000 and $9,355,000 for the nine month
periods ended September 30, 1999 and 1998, respectively. ASTI paid technology
fees of $16,268,000 for the period from inception to September 30, 1999, of
which $5,623,000 is included in prepaid technology fees in the accompanying
condensed balance sheet.

Provision for taxes were $2,003,000 and $938,000 for the quarters ended
September 30, 1999 and 1998, respectively and $3,478,000 and $1,860,000 for the
nine month periods ended September 30, 1999 and 1998, respectively. Provision
for taxes for the period from Inception through September 30, 1999 was
$5,990,000. ASTI expects to have taxable income as a result of the requirement
to capitalize technology fees and its election to capitalize research and
development expenses for tax purposes.

The results of operations of ASTI are expected to reflect primarily interest and
investment income on the funds contributed by Allergan, and research and
development expenses related to development of ASTI Products and the Technology
Fee. ASTI's net losses for the quarters ended September 30, 1999 and 1998 were
$15,109,000 or $4.62 per share and $8,219,000 or $2.51 per share, respectively.


                                       9

<PAGE>   10

Allergan Specialty Therapeutics, Inc.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS FOR THE QUARTER ENDED SEPTEMBER 30, 1999 (Continued)

RESULTS OF OPERATIONS (Continued)

For the nine month periods ended September 30, 1999 and 1998, ASTI's net losses
were $38,099,000 or $11.64 per share and $25,661,000 or $7.84 per share,
respectively. ASTI's net loss for the period from Inception through September
30, 1999 was $74,907,000 or $22.88 per share. ASTI is expected to continue to
record significant net losses in future periods, as expenses under its
agreements with Allergan are expected to continue to exceed investment income.

LIQUIDITY AND CAPITAL RESOURCES

On March 9, 1998, Allergan contributed $200 million in cash to ASTI in exchange
for all of the issued and outstanding shares of callable Class A Common Stock of
ASTI. On March 10, 1998, Allergan distributed the Class A shares to holders of
Allergan common stock and ASTI commenced operations. The funds contributed by
Allergan, plus investment income earned thereon, will be used primarily to fund
the development of ASTI Products and to conduct related activities. Funds not
immediately required for development activities will be invested in investment
grade securities.

At September 30, 1999, ASTI had cash on hand of approximately $100,000. The
Company invests its excess cash in money market funds, equity securities and
debt instruments of financial institutions and corporations with strong credit
ratings. The Company has established guidelines with respect to diversification
and maturities in order to maintain safety and liquidity of its investment
portfolio.

At September 30, 1999, ASTI had $118,585,000 in investments. ASTI classifies all
investments as available-for-sale securities with net unrealized holding gains
or losses as a component of other comprehensive income. ASTI liquidates
investments to pay for operating expenses as needed.

Based on anticipated spending levels for the continued development of all the
current ASTI Products, it is expected that ASTI's funds for product development
will be exhausted during the next few years. At that time, product development
funding by ASTI will cease. However, several factors could impact the level and
timing of ASTI funding, including the addition of any new ASTI Products, the
discontinuation of the development of any ASTI Products, any commercial
arrangements between Allergan and other companies which would cause Allergan to
exercise its License Option with respect to any ASTI Product, any change in the
number of projects advancing to or continuing in later stages of development or
any adjustments in the rate of spending on products currently in development.

When ASTI's Available Funds (as defined in the R&D Agreement) are below $15
million, certain events will be triggered. First, Allergan's Purchase Option
with respect to all of the ASTI Class A Common Stock will terminate on the 90th
day after ASTI provides Allergan with a statement that, as of the end of any
calendar month, there are less than $15 million of Available Funds remaining.
Such statement will be accompanied by a report of ASTI's independent auditors.
In addition, Allergan has the right, for 30 days after expiration of the
Purchase Option, to license any or all ASTI Products which have not yet been
licensed, on a product-by-product and country-by-country basis. Allergan is
under no obligation to exercise the Purchase Option or the License Option with
respect to

                                       10

<PAGE>   11

Allergan Specialty Therapeutics, Inc.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS FOR THE QUARTER ENDED SEPTEMBER 30, 1999 (Continued)

LIQUIDITY AND CAPITAL RESOURCES (Continued)

any ASTI Product. In the event that Allergan does not exercise the
Purchase Option or the License Option for all ASTI Products after ASTI's cash
available for product development is exhausted, ASTI will not have funds to
continue or complete development of any remaining products.

YEAR 2000 COMPLIANCE

Most businesses, including the Company, are faced with a potentially serious
threat to their operations, known as the "year 2000 issue" which has been widely
publicized. The year 2000 issue is a general term used to describe the various
problems arising from the inability of computers to properly identify the year
associated with information. This problem could potentially cause system
interruptions or failures or result in systems providing incorrect data. The
effect of the year 2000 issue could impact the performance of operations within
the Company as well as the Company's relationships with third parties, including
vendors and customers who could also experience year 2000 compliance issues.

ASTI understands the importance of identifying and addressing year 2000
compliance issues and places a high priority on the project. However, inasmuch
as ASTI relies almost entirely upon Allergan's operating and accounting systems,
ASTI relies upon Allergan's efforts to ensure that its systems will be year 2000
compliant. Allergan has formed a year 2000 task force (the "Y2K Task Force") to
assess internal operations and the operations of significant suppliers, vendors,
and other providers of goods and services. ASTI has monitored the Y2K Task
Force's certification process.

The certification process is nearly complete and Allergan has indicated that its
Y2K Task Force currently believes Allergan's operating and accounting systems
will be year 2000 compliant without material impact on the financial position,
results of operations or cash flows of either Allergan or ASTI. However, given
that Allergan cannot control or thoroughly assess the compliance of its third
party suppliers, vendors, providers of goods and services, or governmental
agencies with which it interacts or upon which it relies, no assurance can be
made that Allergan, and in turn, ASTI, will not be affected by the inability of
some computer systems and programs to properly process the year 2000 and beyond.

ASTI has not incurred expenses to date to promote or ensure year 2000 compliance
and does not currently anticipate that it will incur such expenses. ASTI does
not anticipate that any future expenses to remedy any 2000 issues would be
material to ASTI's financial position, results of operations or cash flows.


                                       11

<PAGE>   12

Allergan Specialty Therapeutics, Inc.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS FOR THE QUARTER ENDED SEPTEMBER 30, 1999 (Continued)

YEAR 2000 COMPLIANCE (Continued)

In the event that Allergan's operating and accounting systems are not year 2000
compliant or if any of Allergan's significant suppliers, vendors, other
providers of goods or services, or governmental agencies with which it interacts
or upon which it relies, are not year 2000 compliant, ASTI's financial condition
and/or results of operations could be materially adversely affected.


                                       12

<PAGE>   13

                      ALLERGAN SPECIALTY THERAPEUTICS, INC.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ASTI does not use derivative financial instruments in its non-trading investment
portfolio. The Company's primary investment objective is preservation of capital
in order to fund research and development of potential pharmaceutical products
incurred pursuant to the Company's agreement with Allergan, Inc. (See note 2 to
Condensed Financial Statements). As such, the Company invests its excess cash in
investment grade securities consisting of money market funds, equity securities
and debt instruments. Interest and investment income earned on the Company's
investment portfolio is most sensitive to fluctuations in the general level of
U.S. interest rates. The Company mitigates interest rate risk by a program of
diversification so that exposure to risks relating to a single security or
investment manager is minimal. Further, the Company invests in money market
funds and debt instruments with varying maturity dates to correspond to
anticipated research and development expenses. These securities typically bear
minimal credit risk and ASTI has not experienced any losses on its investments
to date due to credit risk.

The Company's investments in equity securities, which are subject to price risk,
are generally invested in companies that have a history of paying dividends. The
Company addresses price risk by a program of diversification so that exposure to
risks relating to a single security is minimal.



                                       13

<PAGE>   14

                      ALLERGAN SPECIALTY THERAPEUTICS, INC.

CERTAIN FACTORS AND TRENDS AFFECTING ASTI AND ITS BUSINESSES

The Company believes that certain statements made by the Company in this report
and in other reports and statements released by the Company constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995, such as comments which express the Company's
opinions about trends and factors which may impact future operating results.
Disclosures which use words such as the Company "believes," "anticipates,"
"expects" and similar expressions are intended to identify forward-looking
statements. Such statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from expectations. Any such
forward-looking statements, whether made in this report or elsewhere, should be
considered in context with the various disclosures made by the Company in its
press releases and publicly filed reports such as the Company's Annual Report on
Form 10-K for the year ended December 31, 1998, which disclosures are
incorporated herein by this reference. In addition to those risks identified
elsewhere in this report on Form 10-Q and those risks described in the Company's
press releases and publicly filed reports, the Company's business and results of
operations are subject to other risks, including the following risk factors:

o     ASTI is a newly formed company and is subject to the risks inherent in the
      establishment of a new business enterprise in the biotechnology industry.
      ASTI will incur substantial losses for several years due to the long-term
      nature of the research and development of pharmaceutical products through
      clinical testing and the regulatory process, which losses may never be
      recovered.

o     There can be no assurance that the ASTI Board of Directors will continue
      the funding of the research and development of all of the current ASTI
      Products or Pre-Selection Work, or that any ASTI Products can be
      successfully researched, developed and/or commercialized within the
      anticipated cost estimates or time frames, if at all. Certain of the ASTI
      Products are at critical stages of research and development, and technical
      and clinical outcomes are impossible to predict. Because of the long-range
      nature of any pharmaceutical product research and development plan,
      research and development of a particular product or project could
      accelerate, slow down or be discontinued, and other unforeseen events
      could occur, all of which would significantly affect the timing and amount
      of ASTI's expenditures on a particular product, or in total. As a result,
      estimates of costs and timing of research and development programs and for
      the use of Available Funds may not be accurate.

o     All ASTI Products, Developed Technology Products and Pre-Selection
      Products will require FDA clearance before such products may be lawfully
      marketed in the United States. Applications for FDA clearance must be
      based on costly and extensive clinical trials designed to demonstrate
      safety and efficacy. Clearance to market such products will also be
      required from corresponding


                                       14

<PAGE>   15

Allergan Specialty Therapeutics, Inc.

CERTAIN FACTORS AND TRENDS AFFECTING ASTI AND ITS BUSINESSES (Continued)

      regulatory authorities in foreign countries before such products may be
      marketed in those countries. There can be no assurance that the necessary
      regulatory clearances and approvals will be obtained in a timely fashion
      or, if obtained, that such clearances and approvals will not be revoked or
      withdrawn.

o     Allergan has contributed $200 million in cash to ASTI. Allergan has no
      obligation to contribute additional funds to ASTI, and, to the best of
      ASTI's knowledge, has no present intention to do so. For the foreseeable
      future, ASTI's only ongoing source of revenue will be investment income
      and certain milestone payments. There can be no assurance that ASTI will
      have sufficient funds to complete the research and development of any or
      all of the ASTI Products.

o     Allergan is not obligated to exercise the License Option for any ASTI
      Product or to exercise the Purchase Option, and Allergan will exercise any
      such option only if it is in Allergan's best interest to do so. The timing
      of the exercise of the Purchase Option is within Allergan's sole
      discretion. The timing of the exercise of the License Option with respect
      to any Licensed Product is also within Allergan's sole discretion and
      thereafter research, development and funding of any such product will be
      controlled by Allergan.

o     ASTI Products, Developed Technology Products and Pre-Selection Products
      are likely to face competition from other therapies for the same
      indications. Competitors potentially include any of the world's
      pharmaceutical and biotechnology companies. A number of companies have
      developed and are developing competing technologies and products.

o     In February 1999, the Financial Accounting Standards Board released a
      revised Exposure Draft of a Proposed Statement of Financial Accounting
      Standards - Consolidated Financial Statements: Purpose and Policy. If
      adopted as a SFAS, the terms of this Exposure Draft could require Allergan
      to include the financial position and results of operations of ASTI in its
      consolidated results on a retrospective basis. It is currently unclear
      what effect, if any, implementation of the proposed statement would have
      on ASTI.


                                       15

<PAGE>   16

Allergan Specialty Therapeutics, Inc.

PART II - OTHER INFORMATION

Item 4. Submission of Matters to a Vote of Security Holders

Item 6. Exhibits and Reports on Form 8-K

        -  Exhibits
           (numbered in accordance with Item 601 of Regulation S-K)

           27.1 -- Financial Data Schedule

        -  Reports on Form 8-K.

           None.



                                       16

<PAGE>   17

                                    SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


Date: November 11, 1999                    ALLERGAN SPECIALTY THERAPEUTICS, INC.



                                           /s/ Dwight J. Yoder
                                           -------------------------------------
                                           Dwight J. Yoder
                                           Chief Financial Officer
                                           and Duly Authorized Officer



                                       17
<PAGE>   18
                                 EXHIBIT INDEX

         EXHIBIT
         NUMBER               DESCRIPTION
         -------              -----------
           27                 Financial Data Schedule