Jefferies 2015 final

1. Valeant Pharmaceutical
International, Inc.
Jefferies Autumn 2015 Global
Healthcare Conference
November 18, 2015
Laurie W. Little
SVP, Investor Relations

2. Forward-looking Statements
Forward-looking Statements
Certain statements made in this presentation may constitute forward-looking statements, including, but not limited to, statements
regarding projected, estimated and forecasted revenue and sales, anticipated patent exclusivity and projected impact of generic entry
following loss of such patent exclusivity, expected business development activities and deal pipeline, expectations respecting target
levels of inventory of certain Salix products (including timing of reaching such target levels), anticipated product approvals and
product launches (including anticipated timing of and expected impact of such launches and approvals), planned marketing
campaigns (including expected investments in such campaigns) and anticipated impact of such campaigns, anticipated uses of free
cash flow and expected debt paydown and share buybacks. Forward-looking statements may be identified by the use of the words
“anticipates,” “expects,” “intends,” “plans,” “could,” “should,” “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 other risks and uncertainties
detailed from time to time in the Company'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 Pharmaceuticals International, Inc. (“Valeant” or the “Company”) undertakes no obligation to update any of these forward-
looking statements to reflect events or circumstances after the date of this presentation or to reflect actual outcomes, except as
required by law.
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. 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. The Company has provided results with respect to
cash earnings per share, adjusted cash flows from operations and organic product growth rates, which are non-GAAP financial
measures. The Company has not provided a reconciliation of these 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. Reconciliations of historical non-GAAP financials can be found at www.valeant.com.
2

3.  Focused, multinational specialty pharmaceutical company
 Headquartered in Laval, Quebec, Canada (NYSE/TSX: VRX)
 Unconventional Business Model
 Decentralized operating model
 Geographical and product diversity
 Focus on faster-growing geographies and therapeutic categories
 Durable product portfolio with limited patent risk
 Significant cash pay component / low exposure to government reimbursement
 Financially disciplined M&A
 Ownership Culture
 Shareholder friendly executive compensation and corporate governance
 Commitment to Innovation
 Emphasis on bringing new products to the market (output), through internal R&D,
acquisitions and licensing (input)
 Focus on late-stage and lower-risk development projects
Who is Valeant?
3

4. ~$1.0B
Strong Growth Platforms(3)
Eye Health (U.S.) Dermatology Rx (U.S.) Consumer (U.S.)
Ex- US(1) Neurology/Dental/Other (2)
~$1.5B ~$0.6B
~$3.9B ~$2.2B ~$0.8B
Valeant LTM rev
(1) Includes Japan, Canada, Australia, Western Europe and Emerging Markets
(2) Includes Neuro & Other, Oral Health, Aesthetics, Generics. Growth rate excludes
facial injectable sales from 1H 14
(3) Q2 2015 and Q3 2015, excluding pre acquisition sales
(4) Post Acquisition sales, including part of Q1 2015, full Q2 2015 and Q3 2014
4
Neurology/Dental/Other (2) Salix(4)Salix(3) DendreonDendreon(4)
~$0.2B

5. Based on projected 2015 revenues
1 Includes contact lens, and surgical devices
Asia
Latin
America
Central &
Eastern
Europe/
Middle East/
Africa
United
States
Canada /
Australia
By Geography
68%
16%
7%
4%
5%
9%
14%
58%
11%
Devices 1
Gx/BGx
OTC /
Solutions
Rx
7%
Western
Europe
Emerging Markets = ~18%
Highly Diversified Business Portfolio
By Business
5

6. Public Pay
25%75
50%
50%
42%
Cash/Private
Pay
23%
Government
Pay
By Gov‟t Reimbursement
77%
By Number of Products
Top 10 Top 20
43%
28%
Highly Diversified Product Revenue
Based on projected 2015 revenues
No product greater than 10% of revenue
6

7. Limited Patent Risk
2015 2016 2017 2018 2019
Products 1) Xenazine
2) Targretin
1) Ziana
2) Zirgan
3) Visudyne
4) Glumetza
5) Zegerid
1) Lotemax
Gel
2) Macugen
1) Acanya
2) Solodyn
3) Istalol
4) Elidel
1) Zyclara
Annual
2014
Sales
~$335 million ~$190 million ~$115 million ~$400 million ~$30 million
7

8. Ownership Culture
 Relentless focus on organic growth
 Business units leaders are evaluated on organic growth and cash flows
 Each employee has a duty to speak up
 Best idea in the room wins
 Executive compensation tied to long-term shareholder returns
 Front-loaded performance units tied to shareholder returns with
minimum 10% CAGR over 3 years
 Shareholder friendly corporate governance
 ValueAct (major shareholder since 2007) has representation on the
Board of Directors
 Annual executive sessions with top shareholders and Board of Directors
8

9. Valeant’s Approach to Innovation
 Innovation critical to the industry and to Valeant
 We source innovation through our internal R&D, acquisitions, in-
licensing
 We have acquired terrific set of capabilities and technologies over time
 Dow (dermatology)
 B+L (e.g., Ultra, Victus, Stellaris)
 Additional external collaborations (e.g., Cirle navigatino, brodalumab)
 We run a lean R&D model focused on productivity – outputs measured
against inputs
 Leverage industry overcapacity
 Outsource commodity services
 Focus on critical skills and capabilities needed to bring new technologies
to market
 Spend according to promise of programs - for short and long term
 Results of this approach: 20 launches in the U.S. in 2014; rich pipeline
of products for the future sourced from inside, acquisitions and in-
licensing
9

10. asd
Physician
eBlast/Banners
Medical Education
Speaker Programs
Ad Boards
Physician Campaign
Comprehensive JUBLIA Launch Campaign
 Extensive professional education and outreach to
Dermatologists and Podiatrists
 Extensive print, digital and TV advertising to reach consumers
 Over 150 reps supporting launch
Consumer Campaign
Physician Website
Physician
Journal Ads
TV DIGITAL Print
10

11. Launched Early January
 Extensive professional education and outreach: product theaters,
webinars, advisory boards, journal and digital advertising
 Integrated digital, print and TV consumer campaign beginning Q2
 Over 100 sales reps supporting launch
OnextonGel.com
11

12.  Xifaxan TRx‟s up 15% Q3‟15 vs Q2‟15, 25% Q3‟15 vs Q3‟14
 Uceris TRx‟s up 20% Q3‟15 vs Q3‟14, Relistor TRx‟s up 36% Q3‟15 vs Q3‟14,
Apriso TRx‟s up 7% Q3‟15 vs Q3‟14, Ruconest TRx‟s up 29% sequentially Q2 to
Q3
 Inventories reduced to 8-10 weeks; expect to reach our target of 4-6 weeks by end
of year
 Xifaxan Integrated Professional and Consumer Campaign Launched October 5th
Salix Update
TV PRINT DIGITAL
12

13. Bausch + Lomb ULTRA® Launch Highlights
 Revenue: Forecasted to double from
~$45MM in 2015 to $100MM in 2016
 Share: #1 Brand in industry that patients
switched to in Q3 2015
 Distribution: Gained +13k doorways in
„15 resulting in 22k total ECP‟s with
diagnostic fitting sets
 Pipeline: Launching two new products
(multi-focal and toric) to complete the
ULTRA family in „16
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
Mar14
Apr14
May14
Jun14
Jul14
Aug14
Sep14
Oct14
Nov14
Dec14
Jan15
Feb15
Mar15
Apr15
May15
Jun15
Jul15
Aug15
$ Share FRP Category
 2015 DTC Campaign: Delivered over 1B impressions via Digital, Social, and Paid
Search campaign to drive patients to ECP office to request trial
 Doctor Engagement: Large scale ECP educational events to >6k ECP‟s
 Customer partnerships: Secured several strategic partnerships to strengthen
distribution and new product launch uptake
13

14. Bausch + Lomb ULTRA® 2016 Launch Activities
 Launching Bausch + Lomb ULTRA® for
Presbyopia and Astigmatism in 2016
 Expand Bausch + Lomb ULTRA® reach
by 35% of the Market
 Halo effect on Spherical business
 Investing $25MM in DTC campaign
 TV, Digital, Social Media, Search
 In-office Digital Displays to create 360
campaign
 Aggressive Professional Outreach
 Largest Eye Care Professional Share of Voice
within contact lens industry
 High impact launch events to generate
awareness and request of new products
14

15. Sprout Update
 Addyi launched in U.S. on 10/17
 145 reps in the field
 6 Medical Science Liaisons (MSLs) hired
 Launching with prescribing information,
submitting marketing materials to the
Office of Prescription Drug Promotion
(OPDP)
 No plans for direct to consumer (DTC)
advertising at this time
15

16. Valeant Late Stage R&D Portfolio
Product Category Description Expected launch year
EnVista Toric Eye Health Toric IOL 2016/2017
Luminesse Eye Health Red Eye Relief 2016/2017
Vesneo Eye Health Glaucoma 2016
Lotemax Gel Next Gen Eye Health Post-operative pain and inflammation 2018
Ultra Plus Powers Eye Health Contact lens 2016
BioTrue Toric Eye Health Contact lens 2016
IDP-118 Dermatology Moderate to severe plaque psoriasis 2017/2018
IDP-120 Dermatology Novel acne combination 2019
IDP-121 Dermatology Acne 2017
IDP-122 Dermatology Psoriasis 2017
Relistor Oral Gastrointestinal Opioid Induced Constipation 2016
Vitesse Eye Health Ultrasonic Vitrectomy 2016
Next Generation Stellaris Eye Health Phaco/ Vitrectomy 2018
Next Generation Thermage Dermatology Skin Tightening 2016
16

17.  Exceeded top line and bottom line Q3 guidance; 5th consecutive quarter of >10%
organic growth
 Includes negative FX impact of $172M revenues and $0.13 Cash EPS
 Continued outperformance of U.S. businesses, particularly dermatology and
contact lens
 Strong organic growth in China (23%), South Korea (15%), and Mexico (10%)
 Continued strong Salix performance
 IBS-D indication for Xifaxan (including DTC campaign)
 Salix inventories reduced to 8-10 weeks
 Addyi launched 10/17
 Four deals closed in October
 Brodalumab
 Sprout
 Synergetics
 Amoun (expected to close today)
 Strong cash flow from operations
 GAAP cash flow from operations $737M
 90% cash conversion
Q3 2015 Highlights
17

18. Q3 2015 Financial Results
Q3 2015 Q3 2014 Y/Y%
Adjusted
Y/Y% (a)
Total Revenue
$2.8 B
(guidance $2.6 – 2.8B)
$2.1 B 36% 44%
Cash EPS
$2.74
(guidance $2.60 – 2.70)
$2.11 30% 36%
GAAP Cash Flow
from Operations
$737M $619M 19% 26%
Adjusted Cash Flow
from Operations
$865M $771M 12% 18%
a) Negative FX Y/Y Impact: Revenue $172M, Cash EPS $0.13
18

19. Same Store Sales – Y/Y growth rates for businesses that have
been owned for one year or more
Q3 2015 YTD 2015
Total U.S. 22% 27%
Total Developed 16% 19%
Total Emerging Markets 3% 5%
Total Company 13% 15%
Pro Forma – Y/Y growth rates for entire business, including
businesses that have been acquired within the last year
Q3 2015 YTD 2015
Total U.S. 26% 27%
Total Developed 21% 21%
Total Emerging Markets 4% 5%
Total Company 17% 17%
Q3 2015 Organic Growth
19

20. Product
Q3
2014
Q4
2014
Q1
2015
Q2
2015
Q3
2015
1) Xifaxan - - - 148 220
2) Jublia 13 53 62 102 106
3) Wellbutrin XL* 80 82 68 67 92
4) SofLens* 95 89 81 84 84
5) Xenazine 56 52 57 66 73
6) Provenge - - 30 74 69
7) Solodyn 54 61 57 65 66
8) Ocuvite / Preservision* 62 62 60 59 57
9) ReNu* 59 60 53 59 54
10) Glumetza - - - 26 53
Q3 2015 Top 10 Brands
($M)
Top 30 represent 54% of total company revenue
* Sales depressed on 12 of top 30 products due to FX impact
20

21. Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015
Total Revenue $2,056M $2,280M $2,191M $2,732M $2,787
Cost of Goods Sold (% of product sales) 26% 24% 25% 23% 22%
SG&A (% of total revenue) 24% 23% 26% 25% 24%
R&D Expense $59M $59M $56M $81M $102M
Operating Margin (% of total revenue)
(excluding amortization) 47% 50% 47% 49% 50%
Cash EPS (Reported) $2.11 $2.58 $2.36 $2.56 $2.74
GAAP Cash Flow from Operations $619M $816M $491M $411M $737M
Adjusted Cash Flow from Operations $771M $624M $708M $773M $865M
Fully Diluted Share Count 341M 342M 343M 351M 351M
Financial Summary
21

22. Cash Flow (Q1 2014 to Q3 2015)
*Q4 2014 included a one-time $287M gain from the sale of Allergan shares
2014 2015
Q1 Q2 Q3 Q4 Q1 Q2 Q3
GAAP cash flow from
operations
484 376 619 816* 491 411 737
Adjusted cash flow
from operations
636 500 771 624 708 773 865
Adjusted earnings 600 651 719 881 809 897 961
106% 107%Cash conversion 77% 71% 88% 86% 90%
22

23.  Expect to reach ~4-6 weeks target by year end
 Increasing full year Salix net sales estimate from
$1.20B to ~$1.35B
Salix Inventory and Drawdown
Actual
Q2
Actual
Q3
Estimated
Q4
Net Sales (including IBS-D) $313M $461M ~$600M
Inventory Reduction $141M $98M ~$100M
Net Sales Adj. for Inventory
Reduction
$454M $559M ~$700M
Beginning Months on Hand 4 - 5 3 - 3.5 2 - 2.5
Ending Months on Hand 3 - 3.5 2 - 2.5 1 - 1.5
23

24.  Liquidity position at end of Q3
 $1.5B undrawn revolver
 $1.4B of cash
 Cash and revolver used to fund transactions closed in
October
 Free cash flow will be used for a combination of debt
paydown and general corporate purposes
 Committed to debt paydown beyond the mandatory
amortizations required by term loans
 We remain committed to getting net leverage to <4.0x
adjusted pro forma EBITDA by the end of 2016
Balance Sheet Update
24

25. Summary of Valeant’s Business Model
 Robust organic growth profile
 Geographical and product diversification creates lower-risk profile
 Durable product portfolio limits patent expiry exposure
 Rich pipeline of low-risk R&D programs
 Internal development – e.g. IDP-118, IDP-120, Onexton
 Acquisitions – e.g. Vesneo, Brimonidine, Ultra
 Product acquisitions/licenses – e.g. Emerade, Croma, brodalumab
 Strong cash flows and balance sheet
 Absent large transactions, restructuring charges trending to zero
 Convergence of GAAP to non-GAAP cash flows
 Enhanced capacity to continue acquisition activity as well as
opportunistically paydown debt and/or buy back shares
 Disciplined approach to business development
 Continue to be disciplined with capital deployment to generate above
average returns for shareholders
25

26. Valeant Pharmaceutical
International, Inc.
Jefferies Autumn 2015 Global
Healthcare Conference
November 18, 2015
Laurie W. Little
SVP, Investor Relations