2015 Financial
`Guidance
`Conference Call
`
`January 8, 2015
`
`ACRUX DDS PTY LTD. et al.
`
`EXHIBIT 1610
`
`IPR Petition for
`
`U.S. Patent No. 7,214,506
`
`Page 1 of 21
`
`

`

`Forward-looking Statements
`
`Forward-looking Statements
`Certain statements made in this presentation may constitute forward-looking statements, including, but not limited to, statements
`regarding guidance with respect to expected revenues, non-GAAP cash earnings per share, adjusted cash flows from operations and
`organic product sales growth, future disclosures, patent exclusivity, launches and approvals of products, business development
`activities, share buybacks, and the 2015 strategic initiatives of Valeant Pharmaceuticals International, Inc. (the “Company”). 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. 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.
`
`
`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 preliminary results and guidance 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 preliminary and 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. Reconciliations of historical non-GAAP financials can be
`found at www.valeant.com.
`
`
`Note 1: The guidance in this presentation is only effective as of the date given,
`January 8, 2015, and will not be updated or affirmed unless and until the Company
`publicly announces updated or affirmed guidance.
`
`1
`
`Page 2 of 21
`
`

`

`Agenda
`
` 2014 Review – J. Michael Pearson
`
` 2015 Financial Guidance – Howard Schiller
`
` New 2015 Strategic Initiatives – J. Michael Pearson
`
`
`2
`
`Page 3 of 21
`
`

`

`Q4 Operational Highlights
`
` Strong organic growth across almost all business units
` Expect >12% same store organic growth for total company Q4 and >10% for full year
`
` Expect Bausch + Lomb organic growth >10% for full year
`
` Expect continued strong performance from Jublia and other recent product launches
` Continued progress with key programs in R&D pipeline
` Strong Vesneo (glaucoma) Phase III data – expect to file NDA 1H 2015
`
` Successful IDP – 118 (moderate to severe plaque psoriasis) Phase IIb data – move
`into phase III 1H 2015
`
` Successful IDP – 120 (novel acne combination) data – move into Phase II 2H 2015
`
` Received FDA approval for Onexton (Nov 25) – fourth U.S. approval in 2014
`
` We believe first time any company has received 4 dermatology approvals in one
`year
` Meaningful Business Development activities completed at 2-3 times sales
` Nicox Diagnostics: Acquisition of U.S. Ophthalmic Diagnostics platform
`
` Croma: Global rights to IOLs and Viscoelastics
`
` Marathon (2015): Established specialty hospital portfolio
`
`
`
`
`
`
`
`3
`
`Page 4 of 21
`
`

`

`Jublia Growth Accelerates from DTC
`
`DTC TV
`
` Q4 2014 sales to be >$50 million – annualized run rate
`>$200 million
` Continue heavy DTC advertising as long as growth rate
`continues
` Zero co-pay in effect as long as growth rate continues
`
`
`4
`
`Page 5 of 21
`
`

`

`Q4 Guidance
`
`
`Revenue
`
`
`Cash EPS
`
`
`Adjusted Cash Flow from
`Operations
`
`Fx Impact:
` Revenue
` Cash EPS
`
`Guidance
`7/31/14
`
`$2.1 – 2.3 billion
`
`
`$2.35 - $2.45
`
`
`N/A
`
`
`N/A
`
`Guidance
`10/21/14
`
`$2.1 – 2.3 billion
`
`
`$2.45 - $2.55
`
`
`~$600 million
`
`
`~$53 million
`~$0.06
`
`Guidance
`1/8/15
`
`~$2.2 billion
`
`
`$2.55+
`
`
`~$600 million
`
`
`~$50 million
`~$0.10
`
`
`
` Absorbed additional negative Fx impact since 10/21/14 of ~$50 million to revenue and ~$0.10
`to Cash EPS
`Excludes gain from Allergan transaction
` Net proceeds ~$300 million (gain less deal related out-of-pocket expenses)
` Restructuring charges
` <$50 million
` Net leverage ratio reduced to ~3.5 times adjusted pro forma EBITDA by year end
` Strength of balance sheet provides opportunities to make acquisitions and opportunistically
`buyback shares and/or pay down debt
`
`See Note 1 regarding guidance
`
`
`5
`
`Page 6 of 21
`
`

`

`Agenda
`
` 2014 Review – J. Michael Pearson
`
` 2015 Financial Guidance – Howard Schiller
`
` New 2015 Strategic Initiatives – J. Michael Pearson
`
`
`6
`
`Page 7 of 21
`
`

`

`Financial Guidance for 2015
`
`2015
`
`
`2014 (1)
`
`Outlook
`10/21/14 (2)
`
`Guidance
`1/8/15 (2)
`
`
`% over 2014
`
`
`~$8.1 billion
`
`
`~$9.1 billion
`
`
`$9.2 - $9.3 billion
`
`
`~14-15%
`
`
`~$8.32+
`
`
`~$10.00
`
`
`$10.10 - $10.40
`
`
`~21-25%
`
`
`~$2.5+ billion
`
`
`~$3.1 billion
`
`
`>$3.1 billion
`(at least 90% cash
`conversion)
`
`
`~25+%
`
`
`Revenue
`
`
`
`Cash EPS
`
`
`Adjusted Cash
`Flow from
`Operations
`
`1) Three quarters of actuals plus fourth quarter guidance
`2) 2015 outlook assumed benefit of debt paydown (approximately $0.10 per share) while 2015 guidance does not factor in any benefit from
`the use of free cash flow
`
`See Note 1 regarding guidance
`
`7
`
`Page 8 of 21
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`

`

`2015 Guidance Assumptions
` Exchange rates are based on current spot rates
` Planned impact from generics expected to be <$200m in revenues
` Targretin (July); Xenazine (August)
` No future acquisitions included in guidance
` All signed or closed business development transactions factored into guidance
` Gross Margins expected to be ~75%
` SG&A spend (as a percentage of revenue) ~23-24%
` Reflects the additional investments to support launch brands
` R&D spend ~$250 million
`Interest expense ~$800 million
` Assumes no debt reduction beyond mandatory payments
` Cash EPS expected to be 45% / 55% 1H vs. 2H – similar to 2014 progression
` Sequential quarters expected to be higher than the previous quarter
` Cash tax rate expected to be ~5%
` Cash Flow Items
` Cap Ex - ~$200- $250 million
`
`
`
` Depreciation - ~$160 million
`
` Stock Based Comp - ~$100 million
` Restructuring charges expectations of <$25 million for Q1 and <$50 million for
`full year 2015
`
`8
`
`Page 9 of 21
`
`

`

`FX Exposure
`
`2015 Impact vs.
`10/15/14 spot rates:
` Revenue: ~$300M
`•
`Cash EPS: ~$0.47
`•
`
`9
`
`Currency
`Russian Ruble
`Euro
`Polish Zloty
`Japanese Yen
`Mexican Peso
`Australian Dollar
`Canadian Dollar
`Brazilian Real
`Serbian Dinar
`South African Rand
`Singapore Dollar
`British Pound
`Swedish Krona
`Chinese Yuan
`Swiss Franc
`Indian Rupee
`South Korean Won
`
`10/15 Spot 12/31 Spot % Change
`
` 40.692
`
` 60.736
`
`-49%
`
` 0.779
`
` 0.827
`
` 3.288
`
` 3.544
`
`-6%
`
`-8%
`
` 105.920 119.780
`
`-13%
`
` 13.532
`
` 14.752
`
` 1.133
`
` 1.223
`
` 1.126
`
` 1.162
`
` 2.458
`
` 2.658
`
` 92.991
`
` 100.330
`
` 11.075
`
` 11.571
`
` 1.272
`
` 1.326
`
` 0.624
`
` 0.642
`
` 7.156
`
` 7.807
`
` 6.126
`
` 6.206
`
` 0.940
`
` 0.994
`
` 61.421
`
` 63.044
`
` 1,062.930
`
` 1,090.980
`
`-9%
`
`-8%
`
`-3%
`
`-8%
`
`-8%
`
`-4%
`
`-4%
`
`-3%
`
`-9%
`
`-1%
`
`-6%
`
`-3%
`
`-3%
`
`Page 10 of 21
`
`

`

`Limited Patent Risk
`
`2015
`
`2016
`
`2017
`
`2018
`
`2019
`
`Products
`
`1) Xenazine
`Targretin
`2)
`
`Ziana
`1)
`Zirgan
`2)
`3) Visudyne
`
`1)
`
`Lotemax
`Gel
`2) Macugen
`
`1)
`
`Zyclara
`
`1) Acanya
`2) Solodyn
`Istalol
`3)
`
`
`Annual
`2014
`Sales
`% 2015
`Revenue
`
`Projected
`Generic
`Impact (1)
`
`% of 2015
`Revenue
`
`
`~$335 million
`
`
`~$90 million
`
`
`~$115 million
`
`
`~$300 million
`
`
`~$30 million
`
`
`~4%
`
`
`~1%
`
`
`~1%
`
`
`~4%
`
`
`<1%
`
`
`<$200 million
`
`
`<$200 million
`
`
`<$150 million
`
`
`<$200 million
`
`
`<$30 million
`
`
`~2%
`
`
`~2%
`
`
`~2%
`
`
`~2%
`
`
`<1%
`
`1)
`
`Impact to revenue in the year in which the product(s) go generic based on 2014 sales and date of loss of exclusivity
`
`10
`
`Page 11 of 21
`
`

`

`Planned Quarterly Disclosures
`
` Organic Growth
` Valeant (both same store and pro forma for total company)
`
` Bausch + Lomb
` Top 20 Global Brands with Price/Volume drivers
` Revenue breakdown by major Business Unit
` Developed Markets
`
` U.S.
`
` Dermatology; Consumer; Ophthalmology Rx; Contact Lens;
`Surgical; Neuro / Other / Generics; Dental; Aesthetics
` Other Developed(1)
`
` Emerging Markets
`
` EMENA; Asia; Latin America
`
`
`1)
`
`Includes Japan, Australia, Canada and Western Europe
`
`11
`
`Page 12 of 21
`
`

`

`Agenda
`
` 2014 Review – J. Michael Pearson
`
` 2015 Financial Guidance – Howard Schiller
`
` New 2015 Strategic Initiatives – J. Michael Pearson
`
`
`12
`
`Page 13 of 21
`
`

`

`New 2015 Strategic Initiatives
`
`1. Deliver strong (10% - 12%) organic growth and a cash conversion
`rate of >90%
`2. Continue to over-deliver on the Bausch + Lomb acquisition through
`our decentralized operating model
`3. Achieve $500+ million revenues, in aggregate, for key launch
`programs – Jublia, Ultra (Toric and Multi Focal), Luzu, Retin-A Micro
`0.08%, Onexton
`4. Continue to progress key development programs and prepare for
`launches e.g. Vesneo, Ultra, IDP-118
`5. Deliver industry leading returns to shareholders through strong
`organic growth and financially disciplined business development
`6. Develop / build the best management team in the industry
`
`
`13
`
`Page 14 of 21
`
`

`

`Strong Base Business Performance in 2015
`
` Continue to deliver strong organic growth
` Expect same store sales growth of 10% - 12%, including impact of
`generics
`
` Expect nearly all business units to deliver 10%+ organic growth
`
` Expect Bausch + Lomb to deliver organic growth of 10%+
`
` Expect exceptional growth from dermatology, contact lens, and Asia
` Advancement of key launch products/franchises with
`significant revenue opportunity
` Jublia: ~$300-$400 million
`
` Retin-A Micro Franchise: ~$150 million
`
` Ultra: ~$50-$75 million
`
` Luzu + Onexton: ~$50-$75 million
`
`
`
`
`
`14
`
`Page 15 of 21
`
`

`

`Additional New Product Launches in 2015
` U.S. Consumer
` Ocuvite Eye Health Gummies
`
` CeraVe Hydrating Cleansing Bar
`
` CeraVe Renewing Serum & Night Cream
`
` CeraVe Baby Cream & Sunscreen SPF 45
`
` AcneFree Drying Lotion
`
` Ambi CC+ Cream
` U.S. Surgical
` VICTUS Hardware and Software Enhancements
`
` Stellaris and Stellaris PC Software Upgrades
`
` Surgical Navigation System
`
` New injectors systems for our IOLs (enVista and Akreos)
` Branded Generics
` 250+ new launches planned in Emerging Markets
`
`15
`
`Page 16 of 21
`
`

`

`Valeant Late Stage R&D Portfolio
`
`Product
`
`EnVista Toric
`
`Brimonidine
`
`Vesneo
`
`Description
`
`Expected launch year
`
`Category
`
`Eye Health
`
`Eye Health
`
`Toric IOL
`
`OTC
`
`2016
`
`2016
`
`2016
`
`2016
`
`2016
`
`2016
`
`Eye Health
`
`Glaucoma
`
`Lotemax Gel Next Gen
`
`Eye Health
`
`Post-operative pain and
`inflammation
`
`Ultra Plus Powers
`
`Eye Health
`
`Contact lens
`
`BioTrue Toric
`
`Eye Health
`
`Contact lens
`
`IDP-118
`
`IDP-120
`
`Emerade
`
`Derm
`
`Derm
`
`Allergy
`
`Arestin LCM
`
`Oral Health
`
`Moderate to severe plaque
`psoriasis
`
`2017/2018
`
`Novel acne combination
`
`2019
`
`Anaphylaxis
`
`2016/2017
`
`Antibiotic treatment for
`periodontal (gum) disease
`
`2016
`
`16
`
`Page 17 of 21
`
`

`

`Key R&D milestones for 2015
`
`Product
`
`EnVista Toric
`
`Brimonidine (OTC)
`
`Vesneo (glaucoma)
`
`Lotemax Gel Next Gen
`
`Ultra Multi Focal
`
`Ultra Toric
`
`BioTrue Toric
`
`IDP-118 (moderate to severe plaque
`psoriasis)
`
`IDP – 120 (novel acne combination )
`
`Category
`
`Eye Health
`
`Eye Health
`
`Eye Health
`
`Eye Health
`
`Eye Health
`
`Eye Health
`
`Eye Health
`
`Derm
`
`Derm
`
`Action
`
`File PMA 1H 2015
`
`File NDA 1H 2015
`
`File NDA 1H 2015
`
`File NDA 2H 2015
`
`File PMA 1H 2015
`
`File PMA 2H 2015
`
`File PMA 2H 2015
`
`Initiate Phase III 1H 2015
`
`Initiate Phase II 2H 2015
`
`Arestin LCM
`
`Oral Health
`
`File NDA 2H 2015
`
`17
`
`Page 18 of 21
`
`

`

`Use Balance Sheet to Maximize
`Shareholder Value
` Leverage at ~3.5 times adjusted pro forma EBITDA creates
`substantial Balance Sheet capacity
` Business Development will continue to be the priority
` Developed Markets: Focus on building out existing platforms, adding new
`platforms in fast growing markets, or acquiring tail products with extremely high
`IRR’s and/or fast payback periods
`
` Emerging Markets: Focus on Branded Generics and OTC’s and look to build out
`platforms in Asia, Middle East and Latin America
` Expect steady flow of small/medium sized deals
` Timing of large transactions difficult to predict
` Business Development criteria remain the same
` Target 20% IRR’s at local statutory tax rates
`
` Require 6 years or less payback period
` Opportunistically repurchase shares and/or debt
`
`18
`
`Page 19 of 21
`
`

`

`2015 - Validation of Valeant’s Business Model
`
` Robust organic growth profile
` Double-digit organic growth expected in 2014, 2015 and 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, Brimonidine, Ultra
`
` Product acquisitions/licenses – e.g. Emerade, Croma
` Strong cash flows and balance sheet
` Operating cash flows of over $3 billion expected in 2015
`
` 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
`
`
`
`19
`
`Page 20 of 21
`
`

`

`2015 Financial
`Guidance
`Conference Call
`
`January 8, 2015
`
`Page 21 of 21
`
`