The company plans to add 322,000ft² of manufacturing space to the current facility, nearly doubling its existing size.
The construction, commissioning and validation of the facility expansion and production processes are anticipated to be completed by 2020.
The facility, which manufactures several eye-care and dermatological products, currently employs more than 750 people.
A new raw material dispensary, an automated bulk formulation suite and ten new production lines as well as warehousing space will be added as part of the expansion.
After completion, the Waco facility will have the capacity to produce more than 40 different product formulations.
A new testing laboratory and further production capacity will be added to the Waco facility, which was opened in 1989, to meet the increasing demand for Allergan’s products across the world.
Allergan president and CEO Brent Saunders said: "Today’s groundbreaking marks an important milestone for Allergan, strengthening our commitment to our people, operations and the partnership we have built with Waco and the Central Texas communities for 27 years.
"This investment will add highly-skilled jobs to the Waco and Central Texas economies, elevate our manufacturing capabilities and increase our ability to provide more complex medicines to more physicians and their patients around the globe."