<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, 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.


                                                          33-0779207
      A DELAWARE CORPORATION                     IRS EMPLOYER IDENTIFICATION


                   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 3, 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 SEPTEMBER 30, 2000


                                      INDEX

<TABLE>
<CAPTION>
                                                                           Page
                                                                           ----
<S>                                                                        <C>

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                           9-11

    ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES
             ABOUT MARKET RISK                                               12

             CERTAIN FACTORS AND TRENDS AFFECTING ALLERGAN
             SPECIALTY THERAPEUTICS, INC. AND ITS BUSINESSES              13-16

PART II - OTHER INFORMATION

    ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K                                17

Signature                                                                    18

Exhibits
</TABLE>


                                       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                    Nine Months Ended          (November 12, 1997)
                                   September 30,                       September 30,                   to
                           -----------------------------       -----------------------------      September 30,
                              2000              1999              2000              1999              2000
                           -----------       -----------       -----------       -----------    ------------------
<S>                        <C>               <C>               <C>               <C>            <C>

Revenues                   $       565       $     1,293       $     2,406       $     5,785       $    18,559

Costs and expenses:
     Research and
       development              15,561            12,762            45,567            35,408           130,653
     Technology fees             1,375             1,375             4,125             4,125            16,145
     General and
       administrative              303               262               854               873             2,985
                           -----------       -----------       -----------       -----------       -----------

     Total costs and
       expenses                 17,239            14,399            50,546            40,406           149,783
                           -----------       -----------       -----------       -----------       -----------

Loss before income
  taxes                        (16,674)          (13,106)          (48,140)          (34,621)         (131,224)
Provision for taxes                230             2,003             1,026             3,478             7,556
                           -----------       -----------       -----------       -----------       -----------

Net loss                   $   (16,904)      $   (15,109)      $   (49,166)      $   (38,099)      $  (138,780)
                           ===========       ===========       ===========       ===========       ===========

Basic and diluted
  loss per share           $     (5.16)      $     (4.62)      $    (15.02)      $    (11.64)      $    (42.39)
                           ===========       ===========       ===========       ===========       ===========

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,
                                                                    2000            1999
                                                                -------------    ------------
<S>                                                             <C>              <C>

                                     ASSETS

Cash                                                              $      98       $      47
Investments                                                          59,936         105,252
Prepaid technology fees                                               3,642           5,292
Other assets                                                            447           1,431
                                                                  ---------       ---------

                                                                  $  64,123       $ 112,022
                                                                  =========       =========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

 Liabilities:
        Payable to Allergan, Inc.                                 $   6,207       $   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                            (91)         (1,198)
        Deficit accumulated during
          development stage                                        (138,780)        (89,614)
                                                                  ---------       ---------

                 Total stockholders' equity                          57,916         105,975
                                                                  ---------       ---------

                                                                  $  64,123       $ 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
                                                           Nine Months Ended           (November 12, 1997)
                                                             September 30,                      to
                                                     ----------------------------          September 30,
                                                       2000                1999                2000
                                                     --------            --------      -------------------
<S>                                                  <C>                 <C>                 <C>

OPERATING ACTIVITIES:
        Net loss                                     $(49,166)           $(38,099)           $(138,780)
        Noncash item included in net loss:
                 Deferred income tax                       91                 433                 (129)
        Changes in operating assets
          and liabilities:
                 Other assets                             133                 495                 (257)
                 Prepaid technology fees                1,650                (900)              (3,642)
                 Payable to Allergan, Inc.                160                 (91)               6,207
                 Accounts payable and
                   accrued liabilities                     --                 (23)                  --
                                                     --------            --------            ---------

                 Net cash used in operating
                   activities                         (47,132)            (38,185)            (136,601)

INVESTING ACTIVITIES:
        Purchases of investments                       (2,767)             (5,884)            (195,292)
        Sales and maturities of investments            49,950              44,169              135,204
                                                     --------            --------            ---------

                 Net cash provided by/
                   (used in) investing
                   activities                          47,183              38,285              (60,088)

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

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

Net increase in cash                                       51                 100                   98

Cash - beginning of period                                 47                  --                   --
                                                     --------            --------            ---------

Cash - end of period                                 $     98            $    100            $      98
                                                     ========            ========            =========

Supplemental disclosure of cash
  paid for taxes                                     $    761            $  3,485            $   7,841
                                                     ========            ========            =========
</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 accounting principles generally accepted in the United
         States of America. The results of operations for the three and nine
         month periods ended September 30, 2000 and for the period from
         inception to September 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 accounting
         principles generally accepted in the United States of America 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 three and nine month periods ended September 30,
         2000 and 1999 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               Inception
                                  September 30,                         September 30,             (November 12, 1997)
                         ------------------------------        ------------------------------      to September 30,
                             2000               1999               2000               1999               2000
                         -----------        -----------        -----------        -----------     -------------------
<S>                      <C>                <C>                <C>                <C>             <C>
Loss during period
  (in thousands)         $   (16,904)       $   (15,109)       $   (49,166)       $   (38,099)       $  (138,780)

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          $     (5.16)       $     (4.62)       $    (15.02)       $    (11.64)       $    (42.39)
</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 three and nine month periods ended
         September 30, 2000 and 1999 were comprised of unrealized gains (losses)
         on investments. Other comprehensive income (loss) for the three and
         nine month periods ended September 30, 2000 and 1999 and for the period
         from inception to September 30, 2000 are as follows:

<TABLE>
<CAPTION>
                                                                Quarter Ended September 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                        $953           $(389)         $    564            $(75)               $31          $    (44)
                                 ====           =====                              ====                ===

Net loss                                                        (16,904)                                             (15,109)
                                                               --------                                              -------

Total comprehensive loss                                       $(16,340)                                            $(15,153)
                                                               ========                                             ========
</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,
                               ---------------------------------------------------------------------------------------------
(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                         $1,868          $(761)           $  1,107        $(1,797)           $750          $ (1,047)
                                 ======          =====                            =======            ====

Net loss                                                           (49,166)                                         (38,099)
                                                                  --------                                         --------

Total comprehensive loss                                          $(48,059)                                        $(39,146)
                                                                  ========                                         ========

<CAPTION>
                                       Inception to September 30, 2000
                              --------------------------------------------------
(in thousands)                Before-tax          Tax (expense)         Net of
                                amount             or benefit         tax amount
                              ----------          -------------       ----------
<S>                           <C>                 <C>                 <C>
Unrealized holding loss
  arising during period         $(152)                $61             $     (91)
                                =====                 ===

Net loss                                                               (138,780)
                                                                      ---------

Total comprehensive loss                                              $(138,871)
                                                                      =========
</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, 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 Company's annual report on
Form 10-K for the year ended December 31, 1999 and with the Company's Financial
Statements and the notes thereto presented in Item 1 above. As used herein,
capitalized terms have the same meaning as set forth in the Company's annual
report on Form 10-K for the year ended December 31, 1999.

RESULTS OF OPERATIONS

Net interest and investment income earned on investments were $565,000 and
$1,293,000 for the quarters ended September 30, 2000 and 1999, respectively, and
$2,406,000 and $5,785,000 for the nine month periods ended September 30, 2000
and 1999, respectively. ASTI earned investment income of $18,559,000 for the
period from inception through September 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 $15,561,000 and $12,762,000 for the
quarters ended September 30, 2000 and 1999, respectively, and $45,567,000 and
$35,408,000 for the nine month periods ended September 30, 2000 and 1999,
respectively. Research and development expenses were $130,653,000 for the period
from inception through September 30, 2000. ASTI has paid technology fees of
$825,000 and $1,675,000 to Allergan during the quarters ended September 30, 2000
and 1999, respectively, and $2,475,000 and $5,025,000 for the nine month periods
ended September 30, 2000 and 1999, respectively. ASTI has paid technology fees
of $19,787,000 for the period from inception to September 30, 2000.

Provision for taxes were $230,000 and $2,003,000 for the quarters ended
September 30, 2000 and 1999, respectively and $1,026,000 and $3,478,000 for the
nine month periods ended September 30, 2000 and 1999, respectively. Provision
for taxes for the period from inception through September 30, 2000 was
$7,556,000. ASTI expects to have taxable income as a result of the U.S. Internal
Revenue Service requirement to capitalize technology fees and its election to
capitalize research and development expenses for tax purposes.


                                       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, 2000 (Continued)

RESULTS OF OPERATIONS (Continued)

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 September 30, 2000 and 1999 were
$16,904,000 or $5.16 per share and $15,109,000 or $4.62 per share, respectively.

For the nine month periods ended September 30, 2000 and 1999, ASTI's net losses
were $49,166,000 or $15.02 per share and $38,099,000 or $11.64 per share,
respectively. ASTI's net loss for the period from inception through September
30, 2000 was $138,780,000 or $42.39 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 as well as for all of ASTI Class B Common Stock. 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 are invested in
investment grade securities.

At September 30, 2000, ASTI had $59,936,000 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. As previously reported, if ASTI's current research and
development plan is executed in its entirety, spending on ASTI's research and
development programs will be accelerated as compared to the projection provided
at the time of ASTI's formation. 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 as early as the first half of 2001. Pursuant to
ASTI's


                                       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, 2000 (Continued)

LIQUIDITY AND CAPITAL RESOURCES (Continued)

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.


                                       11
<PAGE>   12

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.


                                       12
<PAGE>   13

                      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.


                                       13
<PAGE>   14

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.


                                       14
<PAGE>   15

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


                                       15
<PAGE>   16

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.


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<PAGE>   17

Allergan Specialty Therapeutics, Inc.

PART II - OTHER INFORMATION

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.


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<PAGE>   18

                                    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 13, 2000                ALLERGAN SPECIALTY THERAPEUTICS, INC.


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


                                       18

<PAGE>   19

                                 EXHIBIT INDEX


Exhibit
Number                            Description
-------                           -----------

 27.1                       Financial Data Schedule