Valeant Pharmaceuticals Reports 2011 Second Quarter Financial Results

MISSISSAUGA, Ontario, Aug. 4, 2011 /PRNewswire/ --

  • 2011 Second Quarter Total Revenue $609 million, including $40 million related to Trobalt milestone
  • Total pro forma revenue growth for the combined company was approximately 27%
    • Excluding the impact of foreign exchange, acquisitions and milestones, pro forma organic growth was approximately 4%
    • Also excluding impact from Diastat and Efudex, pro forma organic growth for the combined company was approximately 7%
  • 2011 Second Quarter GAAP EPS $0.17; Cash EPS $0.73,
    • Includes $0.06 gain from Cephalon investment
  • 2011 Second Quarter GAAP Cash Flow from Operations was $227 million; Adjusted Cash Flow from Operations was $260 million  
  • 2011 Cash EPS Guidance raised to $2.70 - $3.00

Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) announces second quarter financial results for 2011.

“The second quarter once again demonstrated the strength of our diversified business model,” stated J. Michael Pearson, chairman and chief executive officer.  “While the organic growth in our U.S. operations faced a number of headwinds this quarter, such as a tough comparison to the second quarter of 2010 when Legacy Biovail product sales were at unusually high levels, coupled with lower than expected results delivered by partnered Legacy Biovail generic products, we still delivered solid pro forma organic growth.  We remain confident that our full year pro forma organic growth should be approximately 8 percent due in part to the strong performance from our businesses in Europe, Latin America, Canada and Australia. In addition, we are pleased to report that our cash flow from operations generation was particularly robust this quarter, demonstrating the solid execution of our business strategy.”

Revenue

Total revenue was $609.4 million in the second quarter of 2011 as compared to $238.8 million in the second quarter of 2010.  Included in total revenue for 2011 was $40.0 million of alliance and royalty revenue related to the milestone payment for European launch of retigabine (Trobalt) from GlaxoSmithKline (GSK).  Product sales were $530.0 million in the second quarter of 2011, as compared to $231.2 million in the year-ago quarter.  These increases are primarily due to the acquisition of Valeant Pharmaceuticals International (Legacy Valeant) by Biovail Corporation (Legacy Biovail) which was completed in September 2010. In connection with the acquisition, Biovail was renamed Valeant Pharmaceuticals International, Inc.  GAAP results for the second quarter of 2010 only reflect Legacy Biovail revenues and do not include any revenues from Legacy Valeant.  

Total pro forma revenue growth for the combined company (Legacy Biovail and Legacy Valeant) was approximately 27% for the second quarter of 2011. Pro forma organic revenue growth for the combined company, excluding the impact of foreign exchange and acquisitions, was approximately 4% for the second quarter of 2011. Also, excluding the genericization impact from Diastat and Efudex, pro forma organic revenue growth for the combined company was approximately 7%.  

Operating Expenses and Gain on Investments

The Company’s cost of goods sold, excluding amortization of intangibles, was $169.9 million in the second quarter of 2011 and represented 32% of product sales.  This number in the second quarter of 2011 included $18.2 million in acquisition step up and amortization primarily related to the acquisition of PharmaSwiss.  Excluding the adjustments, cost of goods for the second quarter of 2011 was 29% of product sales.  

Selling, General and Administrative expenses were $149.7 million in the second quarter of 2011, which includes a $16.1 million step-up in stock based compensation expenses related to the acquisition of Legacy Valeant.  Excluding the step-up in stock based compensation, SG&A was approximately 25% of product sales and service and other revenue. Research and Development expenses were $17.8 million in the second quarter of 2011, or approximately 3% of revenue.

In connection with an offer to acquire Cephalon, Inc., Valeant acquired approximately 1.0 million shares of common stock of Cephalon.  Subsequently, Cephalon agreed to be acquired by Teva Pharmaceuticals Industries Inc. and consequently, Valeant disposed of its entire investment, which resulted in a realized gain of approximately $0.06 diluted earnings per share.

Net Income and Cash Flow from Operating Activities

The Company reported net income of $56.4 million for the second quarter of 2011, or $0.17 per diluted share.  On a Cash EPS basis, income was $240.2 million, or $0.73 per diluted share.

GAAP cash flow from operating activities was $227 million in the second quarter of 2011, and adjusted cash flow from operations was $260 million in the second quarter of 2011.  

Securities Repurchase Program

Since March 31st, 2011, under Valeant’s securities repurchase program, the Company repurchased an additional $68 million principal amount of the 5.375% senior convertible notes due 2014, for an aggregate purchase price of $244 million, bringing the aggregate repurchases to $247 million of the $350 million face value of the 5.375% convertible notes.

2011 Guidance

The Company is raising its previous Cash EPS guidance to $2.70 to $3.00 in 2011, as compared to prior guidance of $2.65 to $2.90.

Conference Call and Webcast Information

The Company will host a conference call and a live Internet webcast along with a slide presentation today at 10:00 a.m. ET (7:00 a.m. PT), August 4, 2011 to discuss its second quarter financial results for 2011. The dial-in number to participate on this call is (877) 295-5743, confirmation code 84713375. International callers should dial (973) 200-3961, confirmation code 84713375. A replay will be available approximately two hours following the conclusion of the conference call through August 11, 2011 and can be accessed by dialing (855) 859-2056, or (404) 537-3406, confirmation code 84713375. The live webcast of the conference call may be accessed through the investor relations section of the Company’s corporate website at www.valeant.com.

About Valeant

Valeant Pharmaceuticals International, Inc. (NYSE/TSX:VRX) is a multinational specialty pharmaceutical company that develops and markets a broad range of pharmaceutical products primarily in the areas of neurology, dermatology and branded generics. More information about Valeant can be found at www.valeant.com.

Forward-looking Statements

This press release may contain forward-looking statements, including, but not limited to, statements regarding our expected growth and Cash EPS guidance for 2011.  Forward-looking statements may be identified by the use of the words “anticipates,” “expects,” “intends,” “plans,” “should,” “could,” “would,” “may,” “will,” “believes,” “estimates,” “potential,” or “continue” and variations or similar expressions. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in the Company's most recent annual or quarterly report filed with the Securities and Exchange Commission (“SEC”) and risks and uncertainties as detailed from time to time in Valeant’s filings with the SEC and the Canadian Securities Administrators (“CSA”), which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. Valeant undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect actual outcomes.

Note on Guidance

The guidance contained in this press release is only effective as of the date given, August 4, 2011, and will not be updated or confirmed until the Company publicly announces updated or affirmed guidance.

Non-GAAP Information  

To supplement the financial measures prepared in accordance with generally accepted accounting principles (GAAP), the company uses non-GAAP financial measures that exclude certain items, such as amortization of inventory step-up, amortization of alliance product assets & property, plant and equipment step up, stock-based compensation step-up, contingent consideration fair value adjustments, restructuring, integration and acquisition-related costs, acquired in-process research and development ("IPR&D"), legal settlements outside the ordinary course of business, amortization and other non-cash charges, amortization of deferred financing costs, debt discounts and ASC 470-20 (FSP APB 14-1) interest, loss on extinguishment of debt, (gain) loss on investments, net, and adjusts tax expense to cash taxes. Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. By disclosing non-GAAP financial measures, management intends to provide investors with a meaningful, consistent comparison of the company’s core operating results and trends for the periods presented. Non-GAAP financial measures are not prepared in accordance with GAAP.  Therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

Contact Information:
Laurie W. Little
949-461-6002
laurie.little@valeant.com

Financial Tables follow.

Valeant Pharmaceuticals International, Inc.

Table 1

Condensed Consolidated Statement of Income

For the Three and Six Months Ended June 30, 2011 and 2010














Three Months Ended




Six Months Ended




June 30,




June 30,



(In thousands, except per share data)

2011


2010

(a)

% Change


2011


2010

(a)

% Change













Product sales

$        530,035


$        231,245


NM


$         1,030,456


$              443,278


NM

Alliance and royalty

65,988


4,647


NM


124,402


8,996


NM

Service and other

13,364


2,879


NM


19,555


6,132


NM

Total revenues

609,387


238,771


NM


1,174,413


458,406


NM













Cost of goods sold (exclusive amortization of












  intangible assets shown separately below)

169,912


63,850


NM


339,199


122,805


NM

Cost of services

3,395


3,372


NM


6,605


6,679


NM

Cost of alliances

-


-


NM


30,735


-


NM

Selling, general and administrative ("SG&A")

149,657


45,094


NM


289,163


88,607


NM

Research and development

17,764


23,644


NM


31,434


36,221


NM

Contingent consideration fair value adjustments

1,752


-


NM


2,138


-


NM

Acquired in-process research and development

2,000


10,242


NM


4,000


61,245


NM

Legal settlements

2,000


-


NM


2,400


-


NM

Restructuring and acquisition-related costs

29,495


10,458


NM


48,541


11,071


NM

Amortization of intangible assets

114,946


33,299


NM


226,989


66,599


NM


490,921


189,959




981,204


393,227



Operating income

118,466


48,812




193,209


65,179















Interest expense, net

(81,987)


(9,718)




(149,935)


(19,357)



Loss on extinguishment of debt

(14,748)


-




(23,010)


-



Gain (loss) on investments, net

21,158


(392)




22,927


(547)



Other income, net including translation and exchange

847


667




3,654


44















Income before (recovery of) provision for income taxes

43,736


39,369




46,845


45,319















(Recovery of) provision for income taxes

(12,624)


5,400




(15,997)


14,500















Net income

$          56,360


$          33,969




$              62,842


$                30,819















Earnings per share:
























Basic:












Net income

$              0.19


$              0.21




$                  0.21


$                    0.19



Shares used in per share computation

303,426


158,510




303,587


158,449















Diluted:












Net income

$              0.17


$              0.21




$                  0.19


$                    0.19



Shares used in per share computation

331,369


161,019




332,130


160,115















(a) Prior year amounts have been modified to conform to the 2011 disclosure.



Valeant Pharmaceuticals International, Inc.

Table 2


Reconciliation of GAAP EPS to Adjusted Non-GAAP (Cash) EPS

For the Three and Six Months Ended June 30, 2011 and 2010























Three Months Ended


Six Months Ended




June 30,


June 30,


(In thousands, except per share data)


2011


2010


2011


2010

(a)











Net income


$   56,360


$ 33,969

(a)

$   62,842


$   30,819












Non-GAAP adjustments (b)(c):










Inventory step-up (d)


16,262


-


46,171


-


Alliance product assets & pp&e step-up (e)


275


-


19,340


-


Stock-based compensation step-up (f)


16,070


-


39,407


-


Contingent consideration fair value adjustments


1,752


-


2,138


-


Restructuring, integration and acquisition-related costs (g)


29,495


10,458


48,541


11,071


Acquired in-process research and development


2,000


10,242


4,000


61,245


Legal settlements


2,000


-


2,400


-


Amortization and other non-cash charges


116,869


35,950


231,397


72,078




184,723


56,650


393,394


144,394


Amortization of deferred financing costs, debt discounts and ASC 470-20 (FSP APB 14-1) interest


3,138


4,169


6,348


8,282


Loss on extinguishment of debt


14,748


-


23,010


-


(Gain) loss on investments, net


-


392


(1,769)


547


Tax


(18,724)


700


(38,497)


5,000


Total adjustments


183,885


61,911


382,486


158,223












Adjusted income


$ 240,245


$ 95,880


$ 445,328


$ 189,042












GAAP earnings  per share - diluted


$       0.17


$     0.21


$       0.19


$       0.19












Adjusted Non-GAAP (Cash) earnings per share - diluted


$       0.73


$     0.60


$       1.34


$       1.18


Non-GAAP benefit from the out-license of Cloderm (e)






$       0.06




Adjusted Non-GAAP (Cash) earnings per share - diluted (excluding the Non-GAAP










   benefit from the out-license of Cloderm) (e)






$       1.28
























Shares used in diluted per share calculation - Adjusted Non-GAAP (Cash) earnings per share


331,369


161,019


332,130


160,115






















(a) Prior year non-GAAP adjustments have been modified to conform to the 2011 disclosure.


(b) To supplement the financial measures prepared in accordance with generally accepted accounting principles (GAAP), the company uses non-GAAP financial measures that exclude certain items, such as amortization of inventory step-up, amortization of alliance product assets & pp&e step up, stock-based compensation step-up, contingent consideration fair value adjustments, restructuring, integration and acquisition-related costs, acquired in-process research and development ("IPR&D"), legal settlements outside the ordinary course of business, amortization and other non-cash charges, amortization of deferred financing costs, debt discounts and ASC 470-20 (FSP APB 14-1) interest, loss on extinguishment of debt, (gain) loss on investments, net, and adjusts tax expense to cash taxes. Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. By disclosing non-GAAP financial measures, management intends to provide investors with a meaningful, consistent comparison of the company’s core operating results and trends for the periods presented. Non-GAAP financial measures are not prepared in accordance with GAAP.

Therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP.

(c) This table includes Adjusted Non-GAAP (Cash) Earnings Per Share, which is a non-GAAP financial measure that represents earnings per share, excluding amortization of inventory step-up, alliance product assets & pp&e step up, stock-based compensation step-up, contingent consideration fair value adjustments, restructuring, integration and acquisition-related costs, acquired in-process research and development ("IPR&D"), legal settlements outside the ordinary course of business, amortization and other non-cash charges, amortization of deferred financing costs, debt discounts and ASC 470-20 (FSP APB 14-1) interest, loss on extinguishment of debt, (gain) loss on investments, net, and adjusts tax expense to cash taxes.

(d) ASC 805, accounting for business combinations requires an inventory fair value step-up. The impact of the amortization of this step-up is included in cost of goods sold. For the three and six months ended June 30, 2011 the total impact is $16.3 million and $46.2 million, respectively. For the three and six months ended June 30, 2011 a total of  $1.0 million and $27.4 million related to the merger with Valeant Pharmaceutical International, respectively and $15.3 million and $18.8 million related to the acquisition of Pharma Swiss SA on March 10, 2011, respectively.

(e) Alliance product assets & pp&e step-up represents the step up to fair market value from Legacy Valeant's original cost resulting from the merger of Legacy Valeant into Legacy Biovail. The impact of the amortization of this step-up is included in cost of alliance and royalty & SG&A. For the three and six months ended June 30, 2011 the total impact is $0.3 million and $19.3 million, respectively.

(f) Total stock-based compensation for the three and six months ended June 30, 2011 was $ 25.6 million and $55.5 million, of which $16.1 million and $39.4 million reflect the amortization of the fair value step-up increment resulting from the merger, respectively.

(g) Restructuring, integration and acquisition-related costs for the three and six months ended June 30, 2011 represent costs related to the merger of Legacy Valeant and Legacy Biovail. These include $13.0 million and $17.1 million related to facility related costs, $5.3 million and $10.2 million related to contract cancellation fees, consulting, legal and other, $4.4 million and $9.3 million related to employee severance costs, $0.3 million and $3.6 million related to increases in deferred stock unit values related to directors retired as a result of the merger between Legacy Valeant and Legacy Biovail, $1.9 million and $3.4 million related to acquisition costs, $3.3 million and $3.3 million related to manufacturing integration, and $1.3 million and $1.6 million related to wind down costs, respectively.



Valeant Pharmaceuticals International, Inc.

Table 3

Statement of Revenue - by Segment

For the Three and Six Months Ended June 30, 2011 and 2010

(In thousands)



Three Months Ended



June 30,

Revenue (a)(b)


2011

GAAP


2010

GAAP


%

Change

(c)


2011

currency

impact


2011

excluding

currency

impact

non-GAAP


%

Change

(c)

 U.S. Neurology & Other


$                         234,503


$ 159,074


47%


$          -


$          234,503


47%

 U.S. Dermatology


109,854


41,418


165%


(203)


109,651


165%

 Total U.S.


344,357


200,492


72%


(203)


344,154


72%

Canada/Australia


83,999


28,884


191%


(7,099)


76,900


166%

Specialty Pharmaceuticals


428,356


229,376


87%


(7,302)


421,054


84%

Branded Generics - Europe


116,300


9,395


1138%


(19,173)


102,016


986%

Branded Generics - Latin America


64,731


-


NM


(2,598)


59,383


NM

Branded Generics


181,031


9,395


NM


(21,771)


161,399


NM

Total revenue


$                         609,387


$ 238,771


155%


$ (26,934)


$          582,453


144%


















Six Months Ended



June 30,

Revenue (a)(b)


2011


2010


%

Change

(c)


2011

currency

impact


2011

excluding

currency

impact


%

Change

(c)

 U.S. Neurology & Other


$                         444,102


$ 307,378


44%


$          -


$          444,102


44%

 U.S. Dermatology


262,560


80,392


227%


(218)


262,342


226%

 Total U.S.


706,662


387,770


82%


(218)


706,444


82%

Canada/Australia


154,244


53,396


189%


(11,593)


142,651


167%

Specialty Pharmaceuticals


860,906


441,166


95%


(11,811)


849,095


92%

Branded generics - Europe


192,393


17,240


1016%


(14,358)


178,035


933%

Branded generics - Latin America


121,114


-


NM


(8,608)


112,506


NM

Branded Generics


313,507


17,240


NM


(22,966)


290,541


NM

Total revenue


$                      1,174,413


$ 458,406


156%


$ (34,777)


$       1,139,636


149%



(a) Note: Currency effect for constant currency sales is determined by comparing 2011 reported amounts adjusted to exclude currency impact, calculated using 2010 monthly average exchange rates, to the actual 2010 reported amounts. Constant currency sales is not a GAAP-defined measure of revenue growth. Constant currency sales as defined and presented by us may not be comparable to similar measures reported by other companies.

(b) See footnote (b) to Table 2.

(c) The % change reflects revenue for the combined company for the three and six months ended June 30, 2011 as compared to Legacy Biovail alone for the three and six months ended June 30, 2010.



Valeant Pharmaceuticals International, Inc.

Table 4

Reconciliation of GAAP Statement of Cost of Goods Sold to Non-GAAP Statement Cost of Goods Sold - by Segment

For the Three and Six Months Ended June 30, 2011

(In thousands)




Three Months Ended


Six Months Ended


Cost of goods sold (a)


June 30,


June 30,




2011

as reported

GAAP


%

of

product

sales


2011

fair value

step-up

adjustment to

inventory and

amortization

(b)


2011

excluding fair

value step-up

adjustment to

inventory and

amortization

non-GAAP


%

of

product

sales


2011

as reported

GAAP


% of

product

sales


2011

fair value

step-up

adjustment to

inventory and

amortization

(b)


2011

excluding fair

value step-up

adjustment to

inventory and

amortization

non-GAAP


%

of

product

sales


U.S. Neurology & Other


$       35,391


19%


$                1,918


$             33,473


18%


$       81,775


21%


$              13,320


$             68,455


17%


U.S. Dermatology


12,291


15%


-


12,291


15%


46,994


27%


7,696


39,298


22%


Canada/Australia


23,694


29%


699


22,995


28%


44,927


30%


3,466


41,461


27%


Branded Generics - Europe


72,218


64%


15,275


56,943


50%


112,222


60%


20,579


91,643


49%


Branded Generics - Latin America


26,018


40%


287


25,731


40%


52,546


43%


4,981


47,565


39%
























Corporate


300




-


300




735




-


735




























$     169,912


32%


$              18,179


$           151,733


29%


$     339,199


33%


$              50,042


$           289,157


28%























 (a) See footnote (b) to Table 2.  

 (b) For the three and six months ended June 30, 2011 U.S. Neurology and Other and U.S. Dermatology include $0 and $9.4 million and $0 and $7.7 million of fair value step-up adjustment to inventory, respectively and in the three and six months ended June 30, 2011 U.S. Neurology and Other includes $2.0 million and $3.9 million of amortization, respectively.  



Valeant Pharmaceuticals International, Inc.

Table 5

Consolidated  Balance Sheet and Other Data

(In thousands)



As of


As of



June 30,


December 31,

5.1

Cash

2011


2010







Cash and cash equivalents

$            238,945


$           394,269


Marketable securities

2,954


6,083


Total cash and marketable securities

$            241,899


$           400,352












Debt










Convertible notes

$            102,617


$           417,555


Senior notes

4,326,672


2,185,822


Term loan A facility

-


975,000


Revolving credit facility

100,000


-


Other

17,500


16,900



4,546,789


3,595,277


Less: Current portion

(17,500)


(116,900)



$         4,529,289


$        3,478,377








5.2

Summary of Cash Flow Statement

Three Months Ended



June 30,



2011


2010


Cash flow provided by (used in):










Net cash provided by (used in) operating activities (GAAP)

$            226,656


$           108,913


Restructuring and acquisition-related costs

29,495


10,458


Payment of legal settlements

2,000


-


Effect of ASC 470-20 (FSP APB 14-1)

2,712


-


Working capital change related to Zovirax transaction (a)

(28,671)


-


Working capital change related to Elidel

8,471


-


Tax benefits from stock options exercised (b)

7,566


-


Non-Cash adjustments to Income Taxes Payable

13,730


-


Changes in working capital related to restructuring and





  acquisition-related costs

(2,419)


-


Adjusted cash flow from operations (Non-GAAP) (c)

$            259,540


$           119,371











 (a) Includes reversal of one time impact to accounts receivable, inventory and accounts payable associated with Zovirax transaction and launch of 30g ointment recorded in Q1.  

 (b) Includes stock option tax benefit which will reduce taxes in future periods.  

 (c) See footnote (b) to Table 2.  



Valeant Pharmaceuticals International



Table 6

Pro Forma Organic Growth - by Segment

For the Three and Six Months Ended June 30, 2011

(In thousands)






















Three Months Ended



June 30,



(b)
June QTD
2011


(b) (c)

June QTD
2010


%   Change


(a) June QTD 2011 currency impact


June QTD excluding currency impact


%   Change


(d) (e)

June QTD acquisition impact at 2010 rates


June QTD excluding currency & acquisition impact


June QTD
growth at constant currency, net of acquisitions

U.S. Dermatology


$            79,596


$          77,015


3%


$             (11)


$             79,585


3%


$           (1,069)


$           78,516


2%

U.S. Neurology & Other (f)


190,360


203,296


-6%


-


190,360


-6%


-


190,360


-6%

 Total U.S.


269,956


280,311


-4%


(11)


269,945


-4%


(1,069)


268,876


-4%

Canada/Australia


82,507


65,562


26%


(7,266)


75,241


15%


(1,191)


74,050


13%

Specialty pharmaceuticals


352,463


345,873


2%


(7,277)


345,186


0%


(2,260)


342,926


-1%

Branded generics - Latin America


64,732


51,771


25%


(5,348)


59,384


15%


-


59,384


15%

Branded generics - Europe


112,840


50,179


125%


(13,977)


98,863


97%


(40,507)


58,356


16%

Branded Generics


177,572


101,950


74%


(19,325)


158,247


55%


(40,507)


117,740


15%

Total product sales


530,035


447,823


18%


(26,602)


503,433


12%


(42,767)


460,666


3%

Total Royalty, Alliance & Service Revenue


79,352


43,642


82%


-


79,352


82%


18,318


97,670


124%

Total Revenue (h)


609,387


491,465




(26,602)


582,785




(24,449)


558,336


14%

Less Milestones


(46,500)


-




-


(46,500)




-


(46,500)



Total Adjusted Revenue


$          562,887


$        491,465


15%


$      (26,602)


$           536,285


9%


$         (24,449)


$         511,836


4%




















Add: JV Revenue (g)


$                 641


$                 32




$                -


$                  641




$                  -


$                641






















Total


$          563,528


$        491,497


15%


$      (26,602)


$           536,926


9%


$         (24,449)


$         512,477


4%




















Organic Growth - Excluding Diastat & Efudex



















Diastat Adjustment


$              3,085


$          13,822


-78%


$                -


$               3,085


-78%


$                  -


$             3,085


-78%

 U.S. Neurology & Other


187,275


189,474


-1%


-


187,275


-1%


-


187,275


-1%




















Efudex Adjustment


3,275


4,338


-25%


-


3,275


-25%


-


3,275


-25%

 U.S. Dermatology


76,321


72,677


5%


(11)


76,310


5%


(1,069)


75,241


4%

Total product sales


523,675


429,663


22%


(26,602)


497,073


16%


(42,767)


454,306


6%

Total Organic Revenue


$          556,527


$        473,305


18%


$      (26,602)


$           529,925


12%


$         (24,449)


$         505,476


7%
























Six Months Ended



June 30,



(b)
June YTD
2011


(b) (c)

June YTD
2010


%   Change


(a) June YTD 2011 currency impact


June YTD excluding currency impact


%   Change


(d) (e)

June YTD acquisition impact at 2010 rates


June YTD excluding currency & acquisition impact


June YTD
growth at constant currency, net of acquisitions

U.S. Dermatology


$          175,400


$        150,514


17%


$             (36)


$           175,364


17%


$           (7,600)


$         167,764


11%

U.S. Neurology & Other (f)


394,416


393,009


0%


-


394,416


0%


(20,625)


373,791


-5%

 Total U.S.


569,816


543,523


5%


(36)


569,780


5%


(28,225)


541,555


0%

Canada/Australia


151,103


124,340


22%


(11,708)


139,395


12%


(5,034)


134,361


8%

Specialty pharmaceuticals


720,919


667,863


8%


(11,744)


709,175


6%


(33,259)


675,916


1%

Branded generics - Latin America


121,115


93,829


29%


(8,608)


112,507


20%


(6,471)


106,036


13%

Branded generics - Europe


188,422


99,730


89%


(14,119)


174,303


75%


(55,429)


118,874


19%

Branded Generics


309,537


193,559


60%


(22,727)


286,810


48%


(61,900)


224,910


16%

Total product sales


1,030,456


861,422


20%


(34,471)


995,985


16%


(95,159)


900,826


5%

Total Royalty, Alliance & Service Revenue


143,957


78,728


83%


-


143,957


83%


30,481


174,438


122%

Total Revenue (h)


1,174,413


940,150




(34,471)


1,139,942




(64,678)


1,075,264



Less Milestones


(83,000)


-




-


(83,000)




-


(83,000)



Total Adjusted Revenue


$       1,091,413


$        940,150


16%


$      (34,471)


$        1,056,942


12%


$         (64,678)


$         992,264


6%




















Add: JV Revenue (g)


$                 871


$                 64




$                -


$                  871




$                  -


$                871






















Total


$       1,092,284


$        940,214


16%


$      (34,471)


$        1,057,813


13%


$         (64,678)


$         993,135


6%




















Organic Growth - Excluding Diastat & Efudex



















Diastat Adjustment


$            10,999


$          29,686


-63%


$                -


$             10,999


-63%


$                  -


$           10,999


-63%

 U.S. Neurology & Other


383,417


363,323


6%


-


383,417


6%


(20,625)


362,792


0%




















Efudex Adjustment


4,905


14,645


-67%


-


4,905


-67%


-


4,905


-67%

 U.S. Dermatology


170,495


135,869


25%


(36)


170,459


25%


(7,600)


162,859


20%

Total product sales


1,014,552


817,091


24%


(34,471)


980,081


20%


(95,159)


884,922


8%

Total Organic Revenue


$       1,075,509


$        895,819


20%


$      (34,471)


$        1,041,038


16%


$         (64,678)


$         976,360


9%






















(a) See footnote (a) to Table 3.

(b) See footnote (b) to Table 2.

(c) Combined Legacy Biovail and Legacy Valeant product sales and royalty, alliance and service revenue.

(d) All prior year acquisitions included in organic growth.

(e) 2011 increases/decreases related to acquisitions/divestitures, respectively are included on a pro forma basis

(f)  2010 data includes adjustments for timing of revenues on certain partnered products of $2.9M in June QTD and $5.8M in June YTD.

(g) Represents JV revenue not included in Consolidated Valeant revenues

(h) 2010 Includes Legacy Biovail GAAP revenues of $238.8M and $458.4M and Legacy Valeant GAAP revenues of $255.6M and $487.6M for Q2 and Q2 YTD respectively , adjusted per note f.



(Logo: http://photos.prnewswire.com/prnh/20101025/LA87217LOGO)

SOURCE Valeant Pharmaceuticals International, Inc.



RELATED LINKS
http://www.valeant.com

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