<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 June 30, 2000

                                       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 August 4, 2000, 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 JUNE 30, 2000


                                      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                           9-10

    ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES
             ABOUT MARKET RISK                                               11

             CERTAIN FACTORS AND TRENDS AFFECTING ALLERGAN
             SPECIALTY THERAPEUTICS, INC. AND ITS BUSINESSES              12-15

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>
                                                                                                        Inception
                                               Quarter Ended                Six Months Ended          (November 12,
                                                 June 30,                        June 30,                1997) to
                                          --------------------------    --------------------------       June 30,
                                              2000          1999            2000           1999            2000
                                          -----------    -----------    -----------    -----------     -----------

<S>                                       <C>            <C>            <C>            <C>             <C>
Revenues                                  $       861    $     2,342    $     1,841    $     4,492     $    17,994

Costs and expenses:
     Research and development                  14,066         11,957         30,006         22,646         115,092
     Technology fees                            1,375          1,375          2,750          2,750          14,770
     General and administrative                   175            327            551            611           2,682
                                          -----------    -----------    -----------    -----------     -----------
     Total costs and expenses                  15,616         13,659         33,307         26,007         132,544
                                          -----------    -----------    -----------    -----------     -----------
Loss before income taxes                      (14,755)       (11,317)       (31,466)       (21,515)       (114,550)
Provision for taxes                               344            874            796          1,475           7,326
                                          -----------    -----------    -----------    -----------     -----------
Net loss                                  $   (15,099)   $   (12,191)   $   (32,262)   $   (22,990)    $  (121,876)
                                          ===========    ===========    ===========    ===========     ===========

Basic and diluted loss per share          $     (4.61)   $     (3.72)   $     (9.85)   $     (7.02)    $    (37.23)
                                          ===========    ===========    ===========    ===========     ===========
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>
                                                            June 30,  December 31,
                                                             2000         1999
                                                           ---------  ------------
<S>                                                        <C>          <C>
                                     ASSETS

Cash                                                       $      94    $      47
Investments                                                   74,013      105,252
Prepaid technology fees                                        4,192        5,292
Other assets                                                     739        1,431
                                                           ---------    ---------
                                                           $  79,038    $ 112,022
                                                           =========    =========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

 Liabilities:
    Payable to Allergan, Inc.                              $   4,781    $   6,047
    Accounts payable and accrued liabilities                       1           --
                                                           ---------    ---------
                 Total liabilities                             4,782        6,047

 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                        (655)      (1,198)
    Deficit accumulated during development stage            (121,876)     (89,614)
                                                           ---------    ---------
                 Total stockholders' equity                   74,256      105,975
                                                           ---------    ---------
                                                           $  79,038    $ 112,022
                                                           =========    =========
</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>
                                                                              Inception
                                                       Six Months Ended     (November 12,
                                                            June 30,           1997) to
                                                     --------------------      June 30,
                                                       2000        1999          2000
                                                     --------    --------   -------------
<S>                                                  <C>         <C>          <C>
OPERATING ACTIVITIES:
   Net loss                                          $(32,262)   $(22,990)    $(121,876)
   Noncash item included in net loss:
      Deferred income tax                                  53        (335)         (167)
   Changes in operating assets and liabilities:
      Other assets                                        267         301          (123)
      Prepaid technology fees                           1,100        (600)       (4,192)
      Payable to Allergan, Inc.                        (1,266)       (371)        4,781
      Accounts payable and accrued liabilities              1           3             1
                                                     --------    --------     ---------

           Net cash used in operating activities      (32,107)    (23,992)     (121,576)

INVESTING ACTIVITIES:
   Purchases of investments                            (2,092)     (4,373)     (194,617)
   Sales and maturities of investments                 34,246      28,430       119,500
                                                     --------    --------     ---------

           Net cash provided by/(used in)
             investing activities                      32,154      24,057       (75,117)

FINANCING ACTIVITIES:
   Issuance of common stock                                --          --       200,001
   Offering costs                                          --          --        (3,214)
                                                     --------    --------     ---------

           Net cash provided by financing
             activities                                    --          --       196,787
                                                     --------    --------     ---------

Net increase in cash                                       47          65            94

Cash - beginning of period                                 47          --            --
                                                     --------    --------     ---------
Cash - end of period                                 $     94    $     65     $      94
                                                     ========    ========     =========
Supplemental disclosure of cash paid for taxes       $    471    $  1,772     $   7,551
                                                     ========    ========     =========
</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 unaudited 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
    six month period ended June 30, 2000 and for the period from inception to
    June 30, 2000 are not necessarily indicative of the results to be expected
    for the year ending December 31, 2000.

    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 six month periods
    ended June 30, 2000 and 1999 and for the period from inception to June 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>
                                                                                                 Inception
                                        Quarter Ended                Six Months Ended           (November 12,
                                           June 30,                      June 30,                 1997) to
                                 -------------------------       -------------------------        June 30,
                                    2000            1999            2000            1999            2000
                                 ---------       ---------       ---------       ---------      ------------
<S>                              <C>              <C>            <C>             <C>             <C>
Loss during period
  (in thousands)                 $ (15,099)      $ (12,191)      $ (32,262)      $ (22,990)      $(121,876)

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     $   (4.61)      $   (3.72)      $   (9.85)      $   (7.02)      $  (37.23)
</TABLE>

2.  Comprehensive Income (Loss)

    SFAS No. 130, "Reporting Comprehensive Income," established standards for
    reporting comprehensive income and its components. Other comprehensive
    income (loss) for the quarters and six months ended June 30, 2000 and 1999
    were comprised of unrealized gains (losses) on investments. Other
    comprehensive income (loss) for the quarters and six month periods ended
    June 30, 2000 and 1999 and for the period from inception to June 30, 2000
    are as follows:

<TABLE>
<CAPTION>
                                                                    Quarter Ended June 30,
                                     -------------------------------------------------------------------------------------
(in thousands)                                        2000                                           1999
                                     ----------------------------------------        -------------------------------------
                                                       Tax                                          Tax
                                     Before-tax     (expense)     Net-of-tax         Before-tax   (expense)    Net-of-tax
                                       amount       or benefit      amount             amount     or benefit     amount
                                     ----------     ----------    ----------         ----------   ----------   ----------
<S>                                  <C>            <C>           <C>                <C>          <C>          <C>
Unrealized holding gain (loss)
  arising during period                 $735           $(299)      $    436           $(764)         $303       $   (461)
                                        ====           =====                          =====          ====
Net loss                                                            (15,099)                                     (12,191)
                                                                   --------                                     --------
Total comprehensive loss                                           $(14,663)                                    $(12,652)
                                                                   ========                                     ========
</TABLE>


                                       7

<PAGE>   8

Allergan Specialty Therapeutics, Inc.

Notes to Condensed Financial Statements

2.  Comprehensive Income (Loss) (Continued)

<TABLE>
<CAPTION>
                                                                   Six Months Ended June 30,
                                   ---------------------------------------------------------------------------------------
(in thousands)                                        2000                                         1999
                                   ----------------------------------------        ---------------------------------------
                                                     Tax                                             Tax
                                   Before-tax      (expense)    Net-of-tax         Before-tax     (expense)    Net-of-tax
                                     amount       or benefit      amount             amount      or benefit      amount
                                   ----------     ----------    ----------         ----------    ----------    ----------
<S>                                <C>            <C>           <C>                <C>           <C>           <C>
Unrealized holding gain
  (loss) arising during period        $915          $(372)       $    543           $(1,723)        $720        $ (1,003)
                                      ====          =====                           =======         ====

Net loss                                                          (32,262)                                       (22,990)
                                                                 ---------                                      --------

Total comprehensive loss                                         $(31,719)                                      $(23,993)
                                                                 ========                                       ========
</TABLE>

<TABLE>
<CAPTION>

(in thousands)                                Inception to June 30, 2000
                                    ------------------------------------------------
                                    Before-tax        Tax (expense)         Net of
                                      amount           or benefit         tax amount
                                    ----------        -------------       ----------
<S>                                 <C>               <C>                 <C>
Unrealized holding loss
  arising during period              $(1,104)             $449            $    (655)
                                     =======              ====

Net loss                                                                   (121,876)
                                                                          ---------
Total comprehensive loss                                                  $(122,531)
                                                                          =========
</TABLE>

                                       8

<PAGE>   9

                      ALLERGAN SPECIALTY THERAPEUTICS, INC.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS FOR THE QUARTER ENDED JUNE 30, 2000

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, 1999 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 $861,000 and
$1,942,000 for the quarters ended June 30, 2000 and 1999, respectively, and
$1,841,000 and $4,092,000 for the six month periods ended June 30, 2000 and
1999, respectively. ASTI earned investment income of $17,094,000 for the period
from inception through June 30, 2000. Interest and investment income were 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 $14,066,000 and $11,957,000 for the
quarters ended June 30, 2000 and 1999, respectively, and $30,006,000 and
$22,646,000 for the six month periods ended June 30, 2000 and 1999,
respectively. Research and development expenses were $115,092,000 for the period
from inception through June 30, 2000. ASTI has paid technology fees of $825,000
and $1,675,000 to Allergan during the quarters ended June 30, 2000 and 1999,
respectively, and $1,650,000 and $3,350,000 for the six month periods ended June
30, 2000 and 1999, respectively. ASTI has paid technology fees of $18,962,000
for the period from inception to June 30, 2000.

Provision for taxes were $344,000 and $874,000 for the quarters ended June 30,
2000 and 1999, respectively and $796,000 and $1,475,000 for the six month
periods ended June 30, 2000 and 1999, respectively. Provision for taxes for the
period from inception through June 30, 2000 was $7,326,000. 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 loss for the quarters ended June 30, 2000 and 1999 were
$15,099,000 or $4.61 per share and $12,191,000 or $3.72 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 JUNE 30, 2000 (Continued)

RESULTS OF OPERATIONS (Continued)

For the six month periods ended June 30, 2000 and 1999, ASTI's net losses were
$32,262,000 or $9.85 per share and $22,990,000 or $7.02 per share, respectively.
ASTI's net loss for the period from inception through June 30, 2000 was
$121,876,000 or $37.23 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 research and development of ASTI Products and to conduct related activities.
Funds not immediately required for research and development activities will be
invested in investment grade securities.

At June 30, 2000, ASTI had $74,013,000 in investments. 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.

Additionally, 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.

At the time of its formation, ASTI was projected to spend its funds over a
five-year period. The Board of Directors of ASTI recently approved a research
and development plan for the year ending December 31, 2000 which, if executed in
its entirety, would represent an acceleration in spending on ASTI's research and
development programs. This potential accelerated spending is the result of the
acceptance by ASTI of more research and development projects as well as more
rapid research and development of compounds than anticipated at the time of
ASTI's formation. ASTI anticipates the acceleration of spending could result in
the use of substantially all of the funds available for research and development
remaining in ASTI in the first half of 2001. Pursuant to ASTI's Restated
Certificate of Incorporation and Allergan's rights as the sole holder of all of
the ASTI Class B Common Stock, Allergan has certain rights (but no obligation)
to purchase all of the ASTI Class A Common Stock. Allergan's purchase rights,
which expire if not exercised by the 90th day after the date on which Allergan
receives notice that the amount of cash and marketable securities held by ASTI
is less than $15 million, are summarized in ASTI's Prospectus dated March 6,
1998.


                                       10

<PAGE>   11

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. 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.


                                       11

<PAGE>   12

                      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, 1999, 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 commenced operations in 1998 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
    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.


                                       12

<PAGE>   13

Allergan Specialty Therapeutics, Inc.

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

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   Patent protection generally has been important in the pharmaceutical
    industry. Therefore, ASTI's financial success may depend in part upon
    Allergan obtaining patent protection for the technologies incorporated in
    ASTI Products. Allergan will determine which patent applications to pursue,
    and the expense of obtaining and maintaining patents covering Developed
    Technology will be paid by ASTI during the term of the Research and
    Development Agreement.

    However, there can be no assurance that patents will be issued covering any
    products, or that any existing patents or patents issued in the future will
    be of commercial benefit. In addition, it is impossible to anticipate the
    breadth or degree of protection that any such patents will afford, and there
    can be no assurance that any such patents will not be successfully
    challenged in the future. If Allergan is unsuccessful in obtaining or
    preserving patent protection, or if any products rely on unpatented
    proprietary technology, there can be no assurance that others will not
    commercialize products substantially identical to such products.

    Patents have been issued to third parties covering various therapeutic
    agents, products and technologies. There can be no assurance that any ASTI
    Products, Developed Technology Products or Pre-Selection Products will not
    infringe patents held by third parties. In such event, licenses from such
    third parties would be required, or their patents would have to be designed
    around. There can be no assurance that such licenses would be available or
    that they would be available on commercially attractive terms, or that any
    necessary redesign could be successfully completed.


                                       13

<PAGE>   14

Allergan Specialty Therapeutics, Inc.

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

    Allergan licenses certain intellectual property from third parties which it
    will sublicense to ASTI pursuant to the Technology License Agreement. Under
    the terms of certain of its license agreements, Allergan may be obligated to
    exercise diligence and make certain royalty and milestone payments as well
    as incur costs related to filing and prosecuting the underlying patents.
    Each agreement is terminable by either party upon notice if the other party
    defaults in its obligations. Should Allergan default under any of its
    agreements, Allergan and therefore ASTI may lose their rights to market and
    sell products based upon such licensed technology. In addition, there can be
    no assurance that Allergan's licensors will meet their obligations to
    Allergan pursuant to such licenses. In such event, ASTI's results of
    operations and business prospects would be materially and adversely
    affected.

o   Because Allergan may develop and/or market products (including Developed
    Technology Products and Pre-Selection Products) for its own account,
    independent of ASTI, that compete directly with ASTI Products, Allergan and
    ASTI may have conflicting interests with respect to certain products and/or
    certain markets. In addition, ASTI Products, Developed Technology Products
    and Pre-Selection Products may compete with one another. Allergan Technology
    excludes, and ASTI will have no rights with respect to, any topical
    formulation of Tazarotene. Allergan is currently marketing a topical
    formulation of Tazarotene for the treatment of psoriasis and acne in the
    United States and Canada under the brand name "Tazorac" and outside of the
    United States and Canada under the brand name "Zorac."

o   The terms of the Allergan/ASTI Agreements and ASTI's Restated Certificate of
    Incorporation were not determined on an arm's-length basis and certain terms
    may limit ASTI's activities and its market value. ASTI's Restated
    Certificate of Incorporation prohibits ASTI from taking or permitting any
    action that might impair Allergan's rights under the Purchase Option. Prior
    to the expiration of the Purchase Option, ASTI may not, without the consent
    of the holders of ASTI Class B Common Stock, merge or liquidate, or sell,
    lease, exchange, transfer or dispose of any substantial assets, or amend its
    Restated Certificate of Incorporation to alter the Purchase Option, ASTI's
    authorized capitalization, or the provisions of the Restated Certificate of
    Incorporation governing ASTI's Board of Directors. Because Allergan owns all
    of the outstanding Class B Common Stock, Allergan is able to influence
    significantly or control the outcome of any of the foregoing actions
    requiring approval by the Class B stockholders of ASTI. The ability of
    Allergan to significantly influence or control such matters, together with
    the provisions of ASTI's Restated Certificate of Incorporation eliminating
    the right of the ASTI stockholders to call special meetings of stockholders,
    could affect the liquidity of the ASTI Shares and have an adverse effect on
    the price of the ASTI Shares, and may have the effect of delaying or
    preventing a change in control of ASTI, including transactions in which
    stockholders might otherwise receive a premium for their shares over the
    current market price. Neither the terms of the ASTI/Allergan Agreements nor
    ASTI's Restated


                                       14

<PAGE>   15

Allergan Specialty Therapeutics, Inc.

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

    Certificate of Incorporation prohibit Allergan from transferring its ASTI
    Class B Common Stock. The special rights accorded to the holder or holders
    of the ASTI Class B Common Stock will expire upon expiration of the Purchase
    Option.

    So long as the Purchase Option is exercisable, the market value of the ASTI
    Shares will be limited by the Purchase Option exercise price. The Purchase
    Option exercise price was not determined on an arm's-length basis. The
    Purchase Option exercise price was determined by Allergan, giving
    consideration to the structure of the Distribution, ASTI's planned business,
    the Allergan/ASTI Agreements, advice given by Merrill Lynch, Pierce, Fenner
    & Smith Incorporated, and such other factors as Allergan deemed appropriate.

    The existence of the Purchase Option and Allergan's rights as holder of the
    ASTI Class B Common Stock may inhibit ASTI's ability to raise capital.
    Additional capital raised by ASTI, if any, would most likely reduce the per
    share proceeds available to holders of ASTI Shares if the Purchase Option
    were exercised. The existence of the Purchase Option and Allergan's rights
    as the holder of the ASTI Class B Common Stock may inhibit a change of
    control and may make an investment in ASTI Shares less attractive to certain
    potential stockholders, which could adversely affect the liquidity and
    market value of ASTI Shares.

    If Allergan exercises its License Option for any ASTI Product, Allergan will
    have the right to commercialize the product with third parties on such terms
    as Allergan deems appropriate. In such event, payments from Allergan to ASTI
    with respect to the ASTI Products will be based solely on sublicensing
    revenues received from such third parties.

o   Each of the current executive officers of ASTI is employed by or retained as
    a consultant to Allergan and receives compensation solely from Allergan,
    which may further contribute to Allergan's ability to influence
    significantly or control the outcome of actions taken by ASTI.

o   ASTI has granted Allergan the License Option, which is exercisable on a
    product-by-product and country-by-country basis. During the term of the
    License Option for each ASTI Product, ASTI will not be able to license such
    ASTI Product to any party other than Allergan. Furthermore, ASTI may perform
    research with respect to product candidates which become ASTI Products only
    if recommended by Allergan and accepted by ASTI. In particular, Allergan
    performs Pre-Selection Work with respect to various product candidates. If
    such product candidates do not become ASTI Products, ASTI will have no
    rights with respect thereto except the right to receive limited royalties
    from Allergan on commercial sales of such products, if any.


                                       15

<PAGE>   16

Allergan Specialty Therapeutics, Inc.

PART II - OTHER INFORMATION

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

     The annual meeting of stockholders of the registrant was held on April 28,
2000. At such meeting, five directors, constituting the entire Board of
Directors, were re-elected to serve on the Board of Directors until the next
annual meeting of stockholders. The names of the persons elected as directors
are:

                              William C. Shepherd
                            Lester J. Kaplan, Ph.D.
                              Alan J. Lewis, Ph.D.
                              Gary L. Neil, Ph.D.
                          Marvin E. Rosenthale, Ph.D.

     The only other matter considered by the stockholders at the annual meeting
was ratification of the selection of KPMG LLP as independent auditors of the
registrant for the fiscal year ended December 31, 2000.

     The holders of the Class B Common Stock, voting as a class, were entitled
to elect one director, and the holders of the Class A Common Stock, voting as a
class, were entitled to elect four directors. The holders of both Class A and
Class B Common Stock voted together as a single class on all other matters.

     In the election of directors, Lester J. Kaplan, Ph.D. received 1,000 votes
of the Class B Common Stock, representing 100% of the issued and outstanding
shares of such class. The holders of the Class A Common Stock voted as follows:

                                                                   Broker
Election of Directors              For            Withheld       Non-Votes
---------------------              ---            --------       ---------
William C. Shepherd             2,721,175          3,437            0
Alan J. Lewis, Ph.D.            2,720,137          4,475            0
Gary L. Neil, Ph.D.             2,721,285          3,327            0
Marvin E. Rosenthale, Ph.D.     2,720,112          4,500            0

     With respect to the ratification of KPMG LLP as independent auditors for
the year ending December 31, 2000, the Class A and Class B shares voted together
as a single class, as follows:

                                                                  Broker
          For            Against             Abstain             Non-Votes
          ---            -------             -------             ---------
       2,723,456           668                1,488                  0

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: August 11, 2000                      ALLERGAN SPECIALTY THERAPEUTICS, INC.


                                           /s/ James M. Hindman
                                           -------------------------------------
                                               James M. Hindman
                                               Chief Financial Officer
                                               and Duly Authorized Officer



                                       17


<PAGE>   18

                                 EXHIBIT INDEX

        EXHIBIT
        NUMBER                    DESCRIPTION
        -------                   -----------

         27.1                Financial Data Schedule