James M. HindmanThank you, Terri. Good morning. With me for today's conference call is David Pyott, Chairman of the Board, President and Chief Executive Officer; Jeff Edwards, Executive Vice President, Finance and Business Development, Chief Financial Officer; Dr. Scott Whitcup, Executive Vice President, Research and Development, Chief Scientific Officer; and Jim Barlow, Senior Vice President and Corporate Controller. Before we move ahead, I would like to remind you that certain statements that we'll make in this presentation are forward-looking statements. These forward-looking statements reflect Allergan's judgment and analysis only as of today, and actual results may differ materially from current expectations based on a number of factors affecting Allergan's businesses. Accordingly, you should not place undue reliance on these forward-looking statements. For a more thorough discussion of the risks and uncertainties associated with the forward-looking statements to be made in this conference call and webcast, we refer you to the disclaimer regarding forward-looking statements that is included in our second quarter 2012 earnings release, which was furnished to the SEC today on Form 8-K, as well as our filings with the SEC referenced in that disclaimer. We will follow up the question-and-answer session of this call with a short listen-only segment, where we will provide additional miscellaneous information that relates to our business. Under Regulation FD, in order to be able to discuss this information freely during the quarter, we must be sure that it is in the public domain. This conference call and accompanying webcast are being simultaneously broadcast over the Internet, with replays available for one week. You can access this information on our website at www.allergan.com. At this point, I would like to turn the call to David Pyott. David E. I. Pyott Great. Thank you, Jim. Good morning, ladies and gentlemen. In the second quarter, Allergan sales grew versus the second quarter 2011 by 8.7% to local currencies. And due to the strength of the U.S. dollar relative to virtually all of the world's currencies by 4.8% in dollars.
Year-to-date, we've been able to grow Allergan's total sales by 9.5% year-over-year in local currencies, despite challenges in the global economy. Benefiting from our global footprint, our international sales in the first half grew double digits in many businesses namely: Ophthalmic pharmaceuticals, BOTOX, dermal fillers and breast aesthetics. In fact, all of our consumer-facing businesses performed rather well so far this year.Regarding operating performance we generated in Q2, non-GAAP diluted earnings per share of $1.07, marking an increase of 11.5% over the prior year and $0.01 over the top end of the range of expectations provided at our last earnings call. Year-to-date, non-GAAP diluted EPS has increased 11.6% versus 2011. In the first half of the year, we have also continued to invest in the long-term success of Allergan, investing $457 million or 11.4% more on R&D on a non-GAAP basis. For a reconciliation to GAAP numbers, please consult our press release. Now commenting on the performance of the individual businesses. Ophthalmic pharmaceutical sales increased in Q2 versus the prior year at a slightly lower rate than normal, at 6.5% in local currencies and 1.9% in dollars, and with year-to-date growth at 9.1% to local currencies and 5.9% in dollars. The year-to-date growth in local currencies is more in line with the historical performance for this business. The Q2 growth rate was dampened by the U.S., which I'll comment further, while international sales grew in local currencies year-over-year, 11.0%, and year-to-date, 12.2%, with double-digit growth in all the 3 -- in all the x U.S. operating regions: Europe, Africa, Middle East, Latin America, Asia-Pacific and Canada. The IMS Global report for the first quarter of 2012, the last period for which data is available, shows Allergan growing in-market at 8% and outperforming Alcon, Novartis when one excludes the retina segment. Compared to the first quarter of 2011, the IMS reports shows Allergan gaining share strongly in glaucoma and in retina on a small base, as well as an uptick in share in artificial tears, driven by the recent launches of OPTIVE Advanced marketed as OPTIVE Plus outside the U.S.
In the U.S., Q2 ex-factory sales growth was limited at 3.3% with year-to-date growth versus prior year at 6.9%. Per IMS, U.S. acquisition dollar sales growth year-to-date June was 11.8%. RESTASIS growth versus prior year per IMS continued on the strong trend, with quarter-to-date June growth of 16.1% and year-to-date growth at 14.1%, as more and more physicians recognize the value of treating dry eye symptoms early in the progression of this disease.Read the rest of this transcript for free on seekingalpha.com