Valeant Pharmaceuticals International, Inc. 2015 Annual Meeting May 19, 2015 Laval, Quebec, Canada
Jul 20, 2015
Introductions
Board of Directors
Ronald Farmer
Colleen Goggins
Robert Ingram (Lead Director)
Anders Lönner
Theo Melas-Kyriazi
Robert Power
Norma Provencio
Howard Schiller
Katharine Stevenson
Jeffery Ubben
J. Michael Pearson (Chairman)
Executive Management
Robert Chai-Onn
Dr. Ari Kellen
Laizer Kornwasser
Dr. Pavel Mirovsky
Brian Stolz
Anne Whitaker
Shareholder Voting Results
All Directors
Say on Pay (Executive
Compensation)
PricewaterhouseCoopers
as Auditors
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>90%
>90%
>90%
Forward-looking Statements
Certain statements made in this presentation may constitute forward-looking statements, including, but
not limited to, statements regarding the timing of and outcome of regulatory approvals and commercial
plans with respect to product candidates and product launches, future manufacturing capabilities, debt
reduction, acquisition capacity, shareholder return and future operational performance, including
guidance and outlook with respect to revenue and earnings. Forward-looking statements may generally
be identified by the use of the words “anticipates,” “expects,” “intends,” “plans,” “should,” “could,” “would,”
“may,” “will,” “believes,” “estimates,” “potential,” “target,” 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 and detailed
from time to time in Valeant’s other filings with the Securities and Exchange Commission and the
Canadian Securities Administrators, which factors are incorporated herein by reference. Readers are
cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking
statements speak only as of the date hereof. Valeant 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.
Who Is Valeant? Focused, multinational specialty pharmaceutical company
$75B+ Market Cap
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
Proven track record of delivering industry leading returns to shareholders
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Based on pro forma 2015 revenues excluding effect of inventory
1 Includes contact lens, and surgical devices
By Geography By Business
15%
14%
62%
9% Devices 1
BGx/Gx
OTC /
Solutions Rx
Emerging Markets = ~20%
Highly Diversified Business Portfolio
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United States 64%
Emerging Europe, Africa, &
Middle East 10%
Asia 8%
Western Europe
8%
Canada / Australia
6%
Latin America
4%
(a) Source: IMS
Salix at a Glance
Mid-sized specialty pharma company that is a clear
leader in the GI market
Ranked #1 GI sales force 3 of the past 4 years(a)
Xifaxan:
Approved for Hepatic Encephalopathy (HE) and
Traveler’s Diarrhea
PDUFA date for IBS-D – May 28, 2015
Other major products for Ulcerative Colitis (Apriso and
Uceris) and opioid induced constipation (Relistor) with
attractive growth prospects
Attractive, low-risk short-term pipeline
Xifaxan IBS-D indication
Relistor oral indication (approval expected
2016/2017)
Xifaxan Early decompensated liver cirrhosis
indication
Traveler’s Diarrhea &
Hepatic Encephalopathy (HE)
Ulcerative Colitis
Ulcerative Colitis
Opioid Induced Constipation
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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 Rx and OTC)
Bausch + Lomb (e.g., Contact lens, surgical, ophthalmology Rx, OTC)
Additional external collaborations (e.g., Emerade)
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 US in 2014; rich pipeline of
products for the future sourced from inside, acquisitions and in-
licensing
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Key R&D Milestones for 2015 Product Category Action Status
EnVista Toric Eye Health File PMA 1H 2015 Additional studies requested
To Be Filed mid- 2016
Luminesse™
(Brimonidine) Eye Health File NDA 1H 2015 Filed NDA in March
Vesneo (glaucoma) Eye Health File NDA 1H 2015 On Track
Lotemax Gel Next Gen Eye Health File NDA 2H 2015 Filing delayed until mid-2016
Ultra Multi Focal Eye Health File PMA 1H 2015 Approved
Ultra Toric Eye Health File PMA 2H 2015 Approved
BioTrue Toric Eye Health File PMA 2H 2015 Approved
IDP-118 (moderate to
severe plaque psoriasis) Derm Initiate Phase III 1H 2015 Phase III Initiated
IDP – 120 (novel acne
combination ) Derm Initiate Phase II 2H 2015 On Track
Arestin LCM Oral Health File NDA 2H 2015 On Track
Xifaxan
(IBS-D Indication) Gastrointestinal PDUFA Date May 28 On Track
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Dermatology Launch Products
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Leading branded product for onychomycosis among
dermatologists and podiatrists
Current sales annualizing at >$400M
Recently launched 8 ml bottle; strong uptake
Weekly TRx’s up 100% YTD
New DTC campaign driving further growth
Continued franchise growth with sales up
50% Y/Y
Launch ahead of expectations with current run-rate
greater than $75M
Combined Onexton and Luzu run-rate revenues
~$100M; well above our projection of $75M for 2015
0
5,000
10,000
15,000
20,000
25,000
30,000
DTC TV
Jublia TRx Growth Since Launch
• 1Q 2015 sales >$60 million
• Annualized run rate >$400 million
~25,000
TRxs
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Onexton TRx Growth Since Launch
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
1/9 1/16 1/23 1/30 2/6 2/13 2/20 2/27 3/6 3/13 3/20 3/27 4/3 4/10 4/17 4/24 5/8
Annualized run rate >$75 million
5,946
TRxs
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Ex-U.S. Launches
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Strong launch in Canada
Surpassed generic Lamisil and is now the
number 1 prescribed product for onychomycosis
Launched in Sweden, UK, and Germany
Ongoing registrations around the world
Achieved 25% share in Sweden in less than one
year
200+ launches across EMEA region in 2014
200+ launches expected in 2015
Branded Gx
Launches
Contact Lens Launch Products
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Continuing to sell to capacity
First full manufacturing line installed and
validated, producing commercial product
2nd commercial line expected in Q3 2015
Selected Ex-US launches planned for 2H 2015
Multifocal and Toric offerings approved,
expected to launch in Q4 2015 and Q1 2016
respectively
Three consecutive quarters of 100%+ growth in
the US
Multifocal launch underway
Launched in China Q2, 2015
U.S. Consumer Launch Products
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Continued expansion of the franchise with 9 launches
planned in 2015
26% Y/Y growth in 2014
44% Y/Y growth in Q1, 2015
Expected to achieve revenues ~$150MM in 2015
Fastest growing product in category
18%+ growth Y/Y, ~17% market share
Brand growing 20%, driven by launch of Soothe XP
Recent launch; ~10% market share of category
already achieved
May 28th PDUFA date for IBS-D
Currently in labeling discussions with FDA
Launched Q4, 2014
Only recombinant product available for HAE
Continued strong sales uptake
Uceris tablets launched February 2013
Foam launch expected Q3/4 2015
Expect to file NDA for oral by end of Q2 2015
Salix Late Stage Pipeline and Launch Products
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2015 - Validation of Valeant’s Business Model
Robust organic growth profile
Double-digit organic growth expected in 2015, 2016 and continued strong growth
beyond
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, Luminesse, Ultra
Product acquisitions/licenses – e.g. Emerade, Croma
Strong cash flows and balance sheet
Expected EBITDA >$7.5B in 2016
Commitment to reduce leverage to < 4x by 2H of 2016
Enhanced capacity to continue acquisition activity as well as opportunistically pay
down 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
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$0
$50
$100
$150
$200
$250
2008 2009 2010 2011 2012 2013 2014 2015
VRX
Valeant’s Execution Track Record Valeant Management Team Performance*
USD
>3,000% price
adjusted increase in
VRX share price
(Feb 2008 to today)
Consistently
exceeded
expectations
*Adjusted for Valeant/Biovail merger.
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