- Revenue up 31%, 45% at constant exchange rates - GAAP EPS $0.45,
Cash EPS $0.58 - GAAP Cash Flow from Operations $52 million;
Adjusted Cash Flow from Operations $65 million - Increased guidance
for 2009 is Cash EPS of $2.10 - $2.20 - Both NDA and MAA
submissions for retigabine completed in October ALISO VIEJO,
Calif., Nov. 2 /PRNewswire-FirstCall/ -- Valeant Pharmaceuticals
International (NYSE:VRX) today announced third quarter financial
results for 2009. "Valeant continues to perform well, generating
strong earnings growth in the third quarter," stated J. Michael
Pearson, chairman and chief executive officer. "All of our
businesses are growing and generating positive cash flows this
quarter. In particular, I would like to note our 18% organic growth
rate from total product sales, at constant currency, and our $65
million of adjusted cashflow from operations." Revenues: Total
revenue was $220.3 million in the third quarter of 2009 as compared
to $168.4 million in the third quarter of 2008, an increase of 31%.
Product sales in the Specialty Pharmaceuticals segment were $101.6
million in the third quarter of 2009, as compared to $70.1 million
in the third quarter of 2008, an increase of 45%. At constant
exchange rates, Specialty Pharmaceuticals product sales increased
47%. Within the Specialty Pharmaceuticals segment, alliance and
service revenue was $25.6 million in the third quarter of 2009,
which included an $8.5 million profit share related to the 1%
clindamycin and 5% benzoyl peroxide product (IDP-111) that was
launched by Mylan in August 2009, $5.0 million related to the Dow
services business, and $3.8 million of revenue from the
GlaxoSmithKline (GSK) collaboration. Because the company entered
into the GSK collaboration agreement in October 2008 and acquired
Dow in December 2008, no alliance or service revenue was recorded
in the third quarter of 2008. Product sales in Branded Generics -
Latin America were $40.7 million in the third quarter of 2009 as
compared to $42.6 million in the same period in 2008, a decrease of
5%. At constant exchange rates, product sales in Latin America in
the third quarter of 2009 increased 19% as compared to the third
quarter of 2008. Product sales in Branded Generics - Europe were
$40.2 million in the third quarter of 2009 as compared to $40.4
million in the same period in 2008, essentially flat. At constant
exchange rates, product sales in Europe in the third quarter of
2009 increased 29% as compared to the third quarter of 2008.
Ribavirin royalties were $12.2 million in the third quarter of 2009
as compared to $15.2 million in the third quarter of 2008, a
decrease of 20%. This expected decrease is entirely attributable to
the expiration of royalty terms in certain European countries on
the ten-year anniversary of product launches in the respective
countries. Operating Expenses/Earnings: The company's cost of goods
sold was 29% of product sales for the third quarter of 2009 as
compared to 28% in the third quarter of 2008. Selling, general and
administrative expenses decreased 6% in the third quarter of 2009
to $67.2 million as compared to $71.5 million in the third quarter
of 2008, primarily attributable to the benefit of cost reduction
activities and exchange rates, partially offset by increased costs
attributable to acquisitions. Research and development costs
decreased 51% to $11.3 million in the third quarter of 2009 as
compared to $23.2 million in the same period in 2008 primarily as a
result of the company's new leveraged R&D model. Net interest
expense increased to $12.8 million in the third quarter of 2009 as
compared to $7.0 million in the third quarter of 2008, reflecting
interest expense related to $365 million aggregate principal amount
of senior notes issued in June 2009. Income from continuing
operations was $37.6 million for the third quarter of 2009, or
$0.45 per diluted share, as compared to a loss from continuing
operations of $7.3 million, or a loss of $0.08 per diluted share,
for the third quarter of 2008. On a non-GAAP Cash EPS basis,
adjusted income from continuing operations was $48.8 million, or
$0.58 per diluted share, in the third quarter of 2009 as compared
to adjusted income from continuing operations of $16.7 million, or
$0.19 per diluted share, in the third quarter of 2008. GAAP
cashflow from operations for the third quarter of 2009 was $52
million, which includes the impact of ASC 470-20 (FSP APB 14-1) and
acquisition transaction costs. Adjusted cashflow from operations
for the third quarter of 2009 was $65 million. 2009 Guidance: The
company is updating its previous Cash EPS target and is now
targeting Cash EPS between $2.10 and $2.20 in 2009, up from prior
guidance of $1.90 to $2.10. Retigabine Update: The company, along
with its collaboration partner GSK, completed both the New Drug
Application (NDA) and the Marketing Authorisation Application (MAA)
submissions for retigabine on October 30, 2009. Conference Call and
Webcast Information: Valeant will host a conference call and a live
Internet webcast along with a slide presentation today at 10:00
a.m. EST (7:00 a.m. PST) to discuss its third quarter financial
results for 2009. The dial-in number to participate on this call is
(877) 295-5743, confirmation code 34747409. International callers
should dial (973) 200-3961, confirmation code 34747409. A replay
will be available approximately two hours following the conclusion
of the conference call through November 16, 2009 and can be
accessed by dialing (800) 642-1687, or (706) 645-9291, confirmation
code 34747409. The company will webcast the conference call live
over the Internet. The webcast may be accessed through the investor
relations section of Valeant's corporate Web site at
http://www.valeant.com/. About Valeant: Valeant Pharmaceuticals
International (NYSE:VRX) is a multinational specialty
pharmaceutical company that develops and markets a broad range of
pharmaceutical products primarily in the areas of neurology and
dermatology. More information about Valeant can be found at
http://www.valeant.com/. Forward-looking Statements: This press
release may contain forward-looking statements, including, but not
limited to, statements regarding guidance with respect to expected
non-GAAP cash earnings per share. 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, 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. Non-GAAP Information: To supplement the
consolidated financial results prepared in accordance with
generally accepted accounting principles (GAAP), the company uses
non-GAAP financial measures that exclude certain items, such as
acquisition transaction fees, special charges and credits including
acquired IPR&D, restructuring, asset impairments and
dispositions, amortization expense, gain on early extinguishment of
debt, the new non-cash accounting charge for interest on the
convertible debt related to ASC 470-20 (FSP APB 14-1), which the
company adopted on January 1, 2009, and the non-GAAP tax effect of
such charges. Management does not consider the excluded items part
of day-to-day business or reflective of the core operational
activities of the company as they result from transactions outside
the ordinary course of business. 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 more 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. A
reconciliation of GAAP to non-GAAP measures can be found in the
table below. The company has provided guidance with respect to Cash
Earnings Per Share, which is a non-GAAP financial measure that
represents earnings per share, excluding certain items, such as
acquisition transaction fees included within SG&A, special
charges and credits including acquired IPR&D, restructuring,
asset impairments and dispositions, amortization expense, gain on
early extinguishment of debt, the new non-cash accounting charge
for interest on the company's convertible debt related to ASC
470-20 (FSP APB 14-1) and the tax effect of such charges. The
company has not provided a reconciliation of these forward-looking
non-GAAP financial measures due to the difficulty in forecasting
and quantifying the exact amount of the items excluded from the
non-GAAP financial measures that will be included in the comparable
GAAP financial measures. Financial Tables, including a
reconciliation of GAAP to non-GAAP financial measures, follow.
Contact: Laurie W. Little Valeant Pharmaceuticals 949-461-6002
Valeant Pharmaceuticals International Table 1 Statement of Income
For the Three and Nine Months Ended September 30, 2009 and 2008
Three Months Ended Nine Months Ended (In thousands, September 30,
September 30, except per ------------------ ------------------
share data) 2009 2008 % Change 2009 2008 % Change -------- --------
-------- -------- -------- -------- Product sales $182,529 $153,181
19% $502,227 $431,142 16% Service revenue 5,035 - NM 17,379 - NM
Alliance revenue (a) 32,754 15,243 115% 70,333 42,821 64% -------
-------- -------- -------- Total revenues 220,318 168,424 31%
589,939 473,963 24% ------- -------- -------- -------- Cost of
goods sold 52,295 42,698 22% 134,742 126,327 7% Cost of services
4,047 - NM 13,710 - NM Selling, general and administrative
("SG&A") 67,230 71,458 -6% 193,981 211,669 -8% Research and
development costs, net 11,296 23,239 -51% 29,176 75,100 -61%
Special charges and credits including acquired in-process research
and development (b) - - NM 1,974 - NM Restructuring, asset
impairments and dispositions 307 3,527 NM 3,212 4,294 NM
Amortization expense 17,616 11,488 53% 51,725 37,616 38% -------
-------- -------- -------- 152,791 152,410 0% 428,520 455,006 -6%
------- -------- -------- -------- Income from operations 67,527
16,014 161,419 18,957 Interest expense, net (12,843) (6,987)
(26,847) (23,736) Gain (loss) on early extinguishment of debt (155)
(14,882) 7,221 (14,882) Other expense, net including translation
and exchange (1,350) (1,556) (786) (3,389) ------- --------
-------- -------- Income (loss) from continuing operations before
income taxes 53,179 (7,411) 141,007 (23,050) Provision (benefit)
for income taxes 15,545 (148) 39,541 33,726 ------- --------
-------- -------- Income (loss) from continuing operations 37,634
(7,263) 101,466 (56,776) Income (loss) from discontinued
operations, net (354) 210,154 (131) 187,134 ------- --------
-------- -------- Net income $37,280 $202,891 $101,335 $130,358
======= ======== ======== ======== Earnings per share: Basic:
Income (loss) from continuing operations $0.46 $(0.08) $1.23
$(0.64) Discontinued operations - 2.39 - 2.10 ------- --------
-------- -------- Basic earnings per share $0.46 $2.31 $1.23 $1.46
======= ======== ======== ======== Shares used in per share
computation 81,907 87,988 82,407 89,123 ======= ======== ========
======== Diluted: Income (loss) from continuing operations $0.45
$(0.08) $1.21 $(0.64) Discontinued operations (0.01) 2.39 - 2.10
------- -------- -------- -------- Diluted earnings per share $0.44
$2.31 $1.21 $1.46 ======= ======== ======== ======== Shares used in
per share computation 83,869 87,988 84,040 89,123 ======= ========
======== ======== (a) See Table 3. (b) Special charges and credits
including acquired in-process research and development for the nine
months ended September 30, 2009 relates primarily to the
acquisition of product rights to market Opana in Canada, Australia
and New Zealand. Valeant Pharmaceuticals International Table 2
Reconciliation of GAAP EPS to Cash EPS For the Three and Nine
Months Ended September 30, 2009 and 2008 Three Months Ended Nine
Months Ended September 30, September 30, (In thousands, except per
share ------------------ ------------------ data) 2009 2008 2009
2008 ------- ------- -------- ------- Income (loss) from continuing
operations $37,634 $(7,263) $101,466 $(56,776) Non-GAAP adjustments
(a): Acquisition transaction fees 2,832 - 3,741 - Special charges
and credits including acquired in-process research and development
- - 1,974 - Restructuring, asset impairments and dispositions 307
3,527 3,212 4,294 Amortization expense 17,616 11,488 51,725 37,616
------ ------ ------ ------ 20,755 15,015 60,652 41,910 ASC 470-20
(FSP APB 14-1) interest 2,176 3,797 8,350 11,176 (Gain) loss on
early extinguishment of debt 155 14,882 (7,221) 14,882 Tax (11,911)
(9,715) (33,463) 17,376 ------- ------- -------- ------- Total
adjustments 11,175 23,979 28,318 85,344 Adjusted income from
continuing operations $48,809 $16,716 $129,784 $28,568 =======
======= ======== ======= GAAP earnings (loss) per share - diluted
$0.45 $(0.08) $1.21 $(0.64) ======= ======= ======== ======= Cash
earnings per share - diluted $0.58 $0.19 $1.54 $0.32 =======
======= ======== ======= Shares used in diluted per share
calculation - GAAP earnings (loss) per share 83,869 87,988 84,040
89,123 ======= ======= ======== ======= Shares used in adjusted
diluted per share calculation - Cash earnings per share 83,869
89,788 84,040 90,321 ======= ======= ======== ======= (a) To
supplement the financial measures prepared in accordance with
generally accepted accounting principles (GAAP), the company uses
non-GAAP financial measures notably cash earnings per share,
organic growth and adjusted cash flow from operations that exclude
certain items, such as acquisition transaction fees, special
charges and credits including acquired in-process research and
development, restructuring, asset impairments and dispositions,
amortization expense, ASC 470-20 (FSP APB 14-1) interest, gain
(loss) on early extinguishment of debt, the non-GAAP tax effect of
such charges, fluctuations in exchange rates and product sales from
recent acquisitions. 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
more 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. This table includes Cash
Earnings Per Share, which is a non-GAAP financial measure that
represents earnings per share, excluding acquisition transaction
fees included within SG&A, special charges and credits
including acquired in-process research and development,
restructuring, asset impairments and dispositions, amortization
expense, ASC 470-20 (FSP APB 14-1) interest, gain on early
extinguishment of debt and the non-GAAP tax effect of such charges.
Valeant Pharmaceuticals International Table 3 Statement of Revenue
- by Segment For the Three and Nine Months Ended September 30, 2009
and 2008 (In thousands) Three Months Ended Nine Months Ended 3.1
Revenue September 30, September 30, -------------------------
------------------------- 2009 2008 % Change 2009 2008 % Change
-------- ------- -------- -------- ------- -------- Specialty
pharmaceuticals U.S. Dermatology (a) $27,194 $17,116 59% $87,648
$60,109 46% Neurology & Other 48,162 31,421 53% 126,014 87,787
44% -------- -------- -------- -------- Total U.S. (a) 75,356
48,537 55% 213,662 147,896 44% Canada 15,831 15,203 4% 46,150
42,827 8% Australia (a) 10,429 6,384 63% 24,750 18,044 37% --------
-------- -------- -------- 101,616 70,124 45% 284,562 208,767 36%
Divested business - - NM - 5,784 NM -------- -------- --------
-------- Specialty pharmaceuticals product sales 101,616 70,124 45%
284,562 214,551 33% Alliance 20,594 - NM 32,351 - - Service 5,035 -
NM 17,379 - Total specialty pharmaceuticals revenue 127,245 70,124
81% 334,292 214,551 56% Branded generics - Latin America product
sales 40,679 42,627 -5% 108,061 99,708 8% Branded generics - Europe
product sales (a) 40,234 40,430 0% 109,604 116,883 -6% Alliances
(ribavirin royalties only) 12,160 15,243 -20% 37,982 42,821 -11%
-------- -------- -------- -------- Total revenue $220,318 $168,424
31% $589,939 $473,963 24% ======== ======== ======== ======== Total
product sales included above $182,529 $153,181 19% $502,227
$431,142 16% 3.2 Currency impact and revenue excluding currency
impact (b)(c) Three Months Ended September 30,
------------------------------------------- 2009 excluding 2009
currency currency impact impact 2008 % Change -------------
---------- ---- -------- Specialty pharmaceuticals U.S. $- $75,356
$48,537 55% Canada 1,012 16,843 15,203 11% Australia 717 11,146
6,384 75% ------- -------- -------- 1,729 103,345 70,124 47%
Divested business - - - NM ------- -------- -------- Specialty
pharmaceuticals product sales 1,729 103,345 70,124 Alliance -
20,594 - Service 98 5,133 - Total specialty pharmaceuticals revenue
1,827 129,072 70,124 84% Branded generics - Latin America product
sales 10,062 50,741 42,627 19% Branded generics - Europe product
sales 12,076 52,310 40,430 29% Alliances (ribavirin royalties only)
- 12,160 15,243 -20% ------- -------- -------- Total revenue
$23,965 $244,283 $168,424 45% ======= ======== ======== Total
product sales included above $23,867 $206,396 $153,181 35% Nine
Months Ended September 30,
---------------------------------------------- 2009 excluding 2009
currency currency impact impact 2008 % Change -------------
--------- ---- -------- Specialty pharmaceuticals U.S. $- $213,662
$147,896 44% Canada 6,880 53,030 42,827 24% Australia 4,766 29,516
18,044 64% ------- -------- -------- 11,646 296,208 208,767 42%
Divested business - - 5,784 NM ------- -------- -------- Specialty
pharmaceuticals product sales 11,646 296,208 214,551 Alliance -
32,351 - Service 635 18,014 - Total specialty pharmaceuticals
revenue 12,281 346,573 214,551 62% Branded generics - Latin America
product sales 29,468 137,529 99,708 38% Branded generics - Europe
product sales 41,037 150,641 116,883 29% Alliances (ribavirin
royalties only) - 37,982 42,821 -11% ------- -------- --------
Total revenue $82,786 $672,725 $473,963 42% ======= ========
======== Total product sales included above $82,151 $584,378
$431,142 36% Three Months Nine Months Ended Ended September 30,
September 30, --------------- --------------- 2009 2008 2009 2008
------- ------- ------- ------- 3.3 Alliance Revenue Segment
---------------- --------- Ribavirin royalty Alliances $12,160
$15,243 $37,982 $42,821 1% clindamycin and 5% benzoyl peroxide (IDP
111) profit share Specialty 8,535 - 8,535 - Other royalties
Specialty 2,281 - 7,920 - License payments Specialty 6,000 - 6,000
- GSK collaboration Specialty 3,778 - 9,896 - ------- -------
------- ------- Total alliance revenue $32,754 $15,243 $70,333
$42,821 ======= ======= ======= ======= (a) Product sales in the
U.S., Australia, Branded generics - Latin America and Branded
generics - Europe in the three months ended September 30, 2009
include the sales of products acquired in the fourth quarter of
2008 from Coria in the U.S. and DermaTech in Australia, products
acquired in the second quarter 2009 from Emo-Farm in Branded
generics - Europe and in Australia and products acquired in the
third quarter 2009 from Tecnofarma S.A de C.V. in Branded generics
- Latin America of $10.8 million, $3.0 million, $3.0 million, $1.8
million and $4.7 million, and $30.0 million, $6.7 million, $5.3
million, $2.3 million and $4.7 million in the nine months ended
September 30, 2009, respectively. (b) Note: Currency effect for
constant currency sales is determined by comparing 2009 reported
amounts adjusted to exclude currency impact, calculated using 2008
monthly average exchange rates, to the actual 2008 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. (c) See footnote (a) to Table 2. Valeant Pharmaceuticals
International Table 4 Statement of Cost of Goods Sold and Non-GAAP
Operating Income - by Segment For the Three and Nine Months Ended
September 30, 2009 and 2008 (In thousands) 4.1 Cost of Three Months
Ended Nine Months Ended goods sold September 30, September 30,
--------------------------- ------------------------- % of % of %
of % of product product product product 2009 sales 2008 sales 2009
sales 2008 sales ---- ----- ---- ----- ---- ----- ---- -----
Specialty pharmaceuticals $22,246 22% $15,918 23% $55,790 20%
$45,585 21% Branded generics - Latin America 13,141 32% 13,600 32%
30,637 28% 37,145 37% Branded generics - Europe 16,852 42% 13,191
33% 48,253 44% 44,489 38% Corporate 56 (11) 62 (892) -------
------- -------- -------- $52,295 29% $42,698 28% $134,742 27%
$126,327 29% ======= ======= ======== ======== 4.2 Non-GAAP
operating income excluding currency impact (a)(b) Three Months
Ended September 30,
------------------------------------------------------- 2009 2009
excluding % of currency currency % of % of 2009 revenue impact
impact revenue 2008 revenue ---- ------- -------- ----------------
---- ------- Specialty pharmaceuticals $64,449 51% $680 $65,129 50%
$5,043 7% Branded generics - Latin America 13,078 32% 3,118 16,196
32% 11,171 26% Branded generics - Europe 12,009 30% 3,616 15,625
30% 16,005 40% ------- ------ ------- ------- 89,536 43% 7,414
96,950 42% 32,219 21% Alliances & Corporate (1,254) - (1,254)
(1,189) ------- ------ ------- ------- $88,282 40% $7,414 $95,696
39% $31,030 18% ======= ====== ======= ======= Nine Months Ended
September 30,
-------------------------------------------------------- 2009 2009
excluding % of currency currency % of % of 2009 revenue impact
impact revenue 2008 revenue ---- ------- -------- ----------------
---- ------- Specialty pharmaceuticals $158,533 47% $4,616 $163,149
47% $9,532 4% Branded generics - Latin America 40,692 38% 11,384
52,076 38% 16,047 16% Branded generics - Europe 29,303 27% 10,137
39,440 26% 35,779 31% -------- ------- -------- ------- 228,528 41%
26,137 254,665 40% 61,358 14% Alliances & Corporate (6,457) -
(6,457) (490) -------- ------- -------- ------- $222,071 38%
$26,137 $248,208 37% $60,868 13% ======== ======= ======== =======
(a) See footnote (a) to Table 2 and footnote (b) to Table 3. (b)
Non-GAAP operating income of $88.3 million and $222.1 million for
the three and nine months ended September 30, 2009 excludes the
following GAAP items from GAAP operating income of $67.5 million
and $161.4 million: acquisition transaction fees included within
SG&A of $2.8 million and $3.8 million, special charges and
credits including acquired in-process research and development of
$0 million and $2.0 million, restructuring, asset impairments and
dispositions of $0.2 million and $3.2 million and amortization
expense of $17.6 million and $51.7 million, respectively. Non-GAAP
operating income of $31.0 million and $60.9 million for the three
and nine months ended September 30, 2008 excludes the following
GAAP items from GAAP operating income of $16.0 million and $19.0
million: restructuring, asset impairments and dispositions of $3.5
million and $4.3 million and amortization expense of $11.5 million
and $37.6 million, respectively. Valeant Pharmaceuticals
International Table 5 Consolidated Balance Sheet and Other Data (In
thousands) As of As of September 30, December 31, 5.1 Cash 2009
2008 ------------- ------------ Cash and cash equivalents $261,559
$199,582 Marketable securities 124,350 19,193 -------- --------
Total cash and marketable securities $385,909 $218,775 ========
======== 5.2 Summary of Cash Flow Statement Three Months Ended Nine
Months Ended September 30, September 30, ------------------
------------------ 2009 2008 2009 2008 -------- ------- --------
------- Cash flow provided by (used in): Operating activities,
continuing operations (GAAP) $51,580 $2,589 $133,863 $58,646 Effect
of ASC 470-20 (FSP APB 14-1) (a)(b) 12,351 - 35,338 - Acquisition
transaction fees (a)(b) 861 - 1,727 - -------- ------- --------
------- Operating activities, continuing operations (Non-GAAP)
(a)(b) 64,792 2,589 170,928 58,646 Operating activities,
discontinued operations (426) 13,986 (2,860) 9,632 Investing
activities (GAAP) (c) (48,157) 424,567 (235,751) 512,284
Acquisition transaction fees (a)(b) (861) - (1,727) - --------
------- -------- ------- Investing activities (Non-GAAP) (a)(b)(c)
(49,018) 424,567 (237,478) 512,284 Financing activities (GAAP) (c)
(90,401) (374,017) 171,374 (373,463) Effect of ASC 470-20 (FSP APB
14-1) (a)(b) (12,351) - (35,338) - -------- ------- --------
------- Financing activities (Non-GAAP) (a)(b)(c) (102,752)
(374,017) 136,036 (373,463) Effect of exchange rate changes on cash
and cash equivalents (c) 3,343 (12,162) (4,649) 4,799 --------
------- -------- ------- Net increase (decrease) in cash and cash
equivalents (c) (84,061) 54,963 61,977 211,898 Net increase
(decrease) in marketable securities (c) 16,991 (33,935) 105,157
(2,373) -------- ------- -------- -------- Net increase (decrease)
in cash and marketable securities (c) $(67,070) $21,028 $167,134
$209,525 ======== ======= ======== ======== (a) See footnote (a) to
Table 2. (b) Cash flow for the three and nine months ended
September 30, 2009 includes $12.4 million and $35.3 million
relating to payments of accreted interest on long-term debt and
notes payable made during these periods as determined by and
pursuant to ASC 470-20 (FSP APB 14-1), $0 million and $9.0 million
for acquisition transaction fees related to the purchase of
Emo-Farm in Poland, $0.7 million and $0.7 million for acquisition
fees related to the purchase of Tecnofarma in Mexico and $0.2
million and $0.2 million for acquisition fees related to the
purchase of PFI in Australia, respectively. (c) Includes results
from discontinued operations. Three Months Ended 5.3 GSK
Collaboration - Retagibine September 30, 2009 -------------------
Valeant SG&A $9 Valeant R&D 7,456 ------- 7,465 GSK
incurred cost 10,019 ------- $17,484 ======= Equalization
(difference between individual partner costs and 50% of total)
$(1,277) ======= Three Months Ended September 30, 2009
--------------------------------------- Alliance Balance sheet
revenue SG&A R&D ------------- ---------- ------ ----
Accounting impact Upfront payment from GSK $125,000 $- $- $-
Release from upfront payment in prior quarters (30,481) - - -
Incurred cost in current quarter - - 9 7,456 Release from upfront
payment in current quarter (12,520) (3,778) (358) (8,384) -------
Remaining upfront payment from GSK $81,999 - - - =======
Equalization payable to GSK $(1,277) - 349 928 ======= ------- ---
--- $(3,778) $- $- ======= === === Valeant Pharmaceuticals
International Supplemental Table Reconciliation of Product Sales
Excluding Acquisitions and Currency Impact For the Three Months
Ended September 30, 2009 and 2008 (In thousands) Three Months Ended
September 30, 2009
------------------------------------------------- 2009 2009
excluding acquisition 2009 currency & 2009 impact at currency
acquisition as reported 2009 rates impact impact -----------
----------- -------- ----------- Specialty pharmaceuticals U.S.
$75,356 $(10,756) $- $64,600 Canada 15,831 - 1,012 16,843 Australia
10,429 (4,857) 446 6,018 -------- -------- ------- --------
Specialty pharmaceuticals product sales 101,616 (15,613) 1,458
87,461 Branded generics - Latin America product sales 40,679
(4,673) 8,786 44,792 Branded generics - Europe product sales 40,234
(3,038) 11,050 48,246 -------- -------- ------- -------- Total
product sales $182,529 $(23,324) $21,294 $180,499 ======== ========
======= ======== Three Months Ended September 30, 2008
---------------------------------------- Q3 2009 growth at constant
currency, net 2008 as reported of acquisitions ----------------
---------------------- Specialty pharmaceuticals U.S. $48,537 33%
Canada 15,203 11% Australia 6,384 -6% -------- Specialty
pharmaceuticals product sales 70,124 25% Branded generics - Latin
America product sales 42,627 5% Branded generics - Europe product
sales 40,430 19% -------- Total product sales $153,181 18% ========
See footnote (a) to Table 2. (Logo:
http://www.newscom.com/cgi-bin/prnh/20081125/VALEANTLOGO)
http://www.newscom.com/cgi-bin/prnh/20081125/VALEANTLOGO
http://photoarchive.ap.org/ DATASOURCE: Valeant Pharmaceuticals
International CONTACT: Laurie W. Little of Valeant Pharmaceuticals,
+1-949-461-6002, Web Site: http://www.valeant.com/
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