THOMSON REUTERS STREETEVENTS
`EDITED TRANSCRIPT
`VRX.TO - Q1 2015 Valeant Pharmaceuticals International Inc Earnings
`Call
`
`EVENT DATE/TIME: APRIL 29, 2015 / 12:00PM GMT
`
`OVERVIEW:
`Co. reported 1Q15 revenues of $2.2b and cash EPS of $2.36. Expects 2015 revenues
`to be $10.4-10.6b and cash EPS to be $10.90-11.20. Co. also expects 2Q15 revenues
`to be $2.45-2.55b and cash EPS to be $2.40-2.50.
`
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`Page 1 of 23
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`ACRUX DDS PTY LTD. et al.
`
`EXHIBIT 1658
`
`IPR Petition for
`
`U.S. Patent No. 7,214,506
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`APRIL 29, 2015 / 12:00PM, VRX.TO - Q1 2015 Valeant Pharmaceuticals International Inc Earnings Call
`
`C O R P O R A T E P A R T I C I P A N T S
`Laurie Little Valeant Pharmaceuticals International Inc - Head of IR
`
`J. Michael Pearson Valeant Pharmaceuticals International Inc - Chairman & CEO
`
`Howard Schiller Valeant Pharmaceuticals International Inc - CFO
`
`Ari Kellen Valeant Pharmaceuticals International Inc - Comapny Group Chairman
`
`C O N F E R E N C E C A L L P A R T I C I P A N T S
`Chris Schott JPMorgan - Analyst
`
`Corey Davis Canaccord Genuity - Analyst
`
`Annabel Samimy Stifel Nicolaus - Analyst
`
`Louise Chen Guggenheim Securities LLC - Analyst
`
`Gary Nachman Goldman Sachs - Analyst
`
`Marc Goodman UBS - Analyst
`
`Alex Affray BMO Capital Markets - Analyst
`
`Douglas Tsao Barclays Capital - Analyst
`
`David Amsellem Piper Jaffray & Co. - Analyst
`
`Andrew Finkelstein Susquehanna Financial Group - Analyst
`
`David Risinger Morgan Stanley - Analyst
`
`Greg Fraser BofA Merrill Lynch - Analyst
`
`Douglas Miehm RBC Capital Markets - Analyst
`
`Umer Raffat Evercore ISI - Analyst
`
`P R E S E N T A T I O N
`Operator
`
`Good morning. My name is Stephanie and I will be your conference operator today. At this time I'd like to welcome everyone to the Valeant
`Pharmaceuticals first-quarter earnings conference call.
`
`(Operator Instructions)
`
`Thank you. Ms. Laurie little, Head of Investor Relations, you may begin your conference.
`
`Laurie Little - Valeant Pharmaceuticals International Inc - Head of IR
`
`Thanks, Stephanie.
`
`Good morning, everyone, and welcome to Valeant's investor first-quarter 2015, conference call. Today we will be discussing our financial results
`and presenting on the call are J. Michael Pearson, Chairman and Chief Executive Officer; and Howard Schiller, Chief Financial Officer. Dr. Ari Kellen,
`Company group Chairman, will also be available for questions after our prepared remarks. In addition to a live webcast, a copy of today's slide
`presentation can be found on our website under the Investor Relations Section.
`
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`APRIL 29, 2015 / 12:00PM, VRX.TO - Q1 2015 Valeant Pharmaceuticals International Inc Earnings Call
`
`Before we begin, our presentation today contains forward looking information. We would ask that you take a moment to read the forward-looking
`statement legend at the beginning of our presentation, as it contains important information.
`
`In addition, this presentation contains non-GAAP financial measures. For more information about non-GAAP financial measures, please refer to
`slide number 1. Non-GAAP reconciliations can be found in the press release issued earlier today and posted on our website.
`
`Finally, the financial guidance in this presentation is effective only as of today. It is our policy to update our firm guidance only through broadly
`disseminated public disclosure.
`
`And with that, I'll turn the call to Mike.
`
`J. Michael Pearson - Valeant Pharmaceuticals International Inc - Chairman & CEO
`
`Thank you, Laurie. Good morning, everyone, and thank you for joining us. Today we announced very strong financial results from the first quarter
`of 2015.
`
`We plan to discuss four topics on today's call. First, we'll review our strong first-quarter financial results. Second, provide you with the highlights
`of our first-quarter business performance. Next, we'll update you on the progress with the integrations of both Dendreon and Salix. And finally,
`we'll discuss our financial performance and update our 2015 guidance.
`
`This morning we reported Valeant's first-quarter results for 2015, which were driven by strong sales growth and profitability across all our regions,
`once again demonstrating the strength of our diversified and decentralized business model. Before we begin discussing the details of our
`performance, I wanted to provide the highlights of this quarter.
`
`The results announced today exceeded the Q1 guidance that we provided on our last call, despite losing $140 million in top-line revenue and $0.12
`in cash EPS to FX headwinds. We had very strong same-store organic growth of greater than 15%, driven by the strong performance from most of
`our business units around the world.
`
`The Dendreon and Salix integrations are largely complete. With Salix, we will exceed $530 million in synergies and exceed the $500 million run
`rate by the end of Q2. With Dendreon, we expect to achieve greater than $130 million in synergies and to achieve 90% of this run rate by the end
`of the year.
`
`Based on our strong base business of performance, and the contributions from sales from Dendreon, we are raising our 2015 cash EPS guidance
`to $10.90 to $11.20. Finally, we are reconfirming that we expect 20%-plus cash EPS accretion from the Salix acquisition in 2016. And we remain
`confident in our ability to comfortably seed $7.5 billion in EBITDA in 2016.
`
`Looking at our quarter, our total revenue was $2.2 billion, an increase of 16% over the prior year, largely driven by the exceptionally strong growth
`in many of our US businesses, which more than offset the negative headwinds from FX in our ex-US markets. Adjusting for FX in the divestiture of
`our aesthetics business to Galderma last year, revenue grew 27% in Q1 2014.
`
`Cash EPS was $2.36, an increase of 34% over prior year. This includes the negative impacts of the $140 million in revenue and $0.12. Adjusted for
`FX and the aesthetic divestment, cash EPS grew 50% Q1 2015 over Q1 2014.
`
`Additionally, the acquisition-related financing that was completed prior to the quarter end had an impact on our Q1 result. We included the negative
`$0.01 impact from the share issuance while we excluded the $0.02 impact from the debt financing that settled prior to quarter end.
`
`Turning to organic growth, our overall same-store total Company organic growth was 15% for the quarter. While almost all of our businesses
`delivered strong organic growth, I would like to highlight contact lenses, dermatology, Obagi, ophthalmology Rx, Asia, the Middle East and North
`
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`APRIL 29, 2015 / 12:00PM, VRX.TO - Q1 2015 Valeant Pharmaceuticals International Inc Earnings Call
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`Africa, Poland and Mexico as having particularly strong quarters. This performance puts us at the high-end of our previous guidance of 10% to
`15%, and we expect to deliver any growth for the rest of the year of greater than 10%.
`
`Most of the Bausch and Lomb businesses continued their consistently strong growth pattern, delivering 6% organic growth in Q1. If we exclude
`Japan, B&L grew 8% for the quarter. You may remember that Japan enacted a sales tax increase effective April 1, 2014. This lead to a significant
`increase in forward buying of all consumer products in Japan, including our B&L products in Q1 of last year.
`
`In the subsequent quarter, our sales in Japan dropped approximately $8 million. Thus, we expect double-digit organic growth next quarter in B&L
`Japan. If normalized over both quarters, Japan is growing in the high single-digits.
`
`The other area of slow organic growth is in our US surgical division, which has had a second consecutive slow quarter. As you have seen in other
`earnings reports, the cataract market view us has been flat from Q4 2014 to Q1 of 2015. We do expect this to start strengthening the rest of the
`year.
`
`Our growth was slowed by changing our business model for our VICTUS femtosecond laser to a lease versus sale model from 2014 to 2015, and a
`continued erosion of our Excimer laser. This reduction was offset by the growth in Trulign and enVista IOLs.
`
`Overall, our surgical business is doing well and gaining share in the most attractive segments. We have become trials on our next generation Lasik
`platform, TENEO, in the US which will replace the Excimer. Outside the US, our TENEO platform is gaining share. Despite these pressures on B&L
`this quarter, we are confident that B&L will achieve approximately 10% organic growth for the full-year 2015.
`
`As promised, we are continuing to show revenue for our top 20 products. As a percentage, our top 20 products represent 41% of total revenue in
`the first quarter, with the largest product representing approximately 3% of revenue and the top 10 products contributing approximately 27% of
`revenue.
`
`The top 20 products, excluding three newly acquired products, grew 36% over the first quarter of 2014. The three newly added products from
`recently completed acquisitions include two from our Marathon acquisition, Isuprel and Nitropress, and Provenge from the Dendreon transaction.
`This quarter the majority of the growth of our top 20 products was driven by volume increases for most of our top products.
`
`Our US dermatology business had an outstanding quarter. Dermatology revenue grew 38% year on year and script growth grew 37% year on year.
`Jublia scripts grew 87% in Q1 versus Q4 of last year. Our Jublia revenue growth was more modest, due, as expected, to post-launch stocking levels
`at wholesalers and retailers being reduced.
`
`On April 20 we launched a new television campaign featuring John McEnroe, which is already having a positive impact on the product. Next week
`we will be launching a Jublia 8-milliliter SKU as opposed to our current 4-milliliter SKU, with a $0 co-pay. At the end of Q2 we will be eliminating
`our $0 co-pay on the 4ml SKU. We expect this will further accelerate the growth of the brand.
`
`We also launched Onexton this quarter, our new combination acne treatment, and we are seeing an almost identical ramp of scripts as we did with
`Jublia. We've also begun a DTC campaign with our first commercial airing April 6, targeted towards the adult female audience. Our peak sales
`estimate for Onexton is now between $100 million and $200 million.
`
`Luzu continues to grow with weekly scripts growing 90% over the course of Q1. Our Retin-A franchise grew greater than 50% Q1 2014 to Q1 2015.
`
`And finally, Obagi and Solta combined to grow over 20%. As you can see, given their modest size, we are now including Obagi and Solta in our US
`dermatology business unit.
`
`Turning to our eye health business. Our eye health business is performing extremely well and delivered 19% growth over the prior year. Our contact
`lens business continues to see strong growth from our BioTrue ONEday lens.
`
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`APRIL 29, 2015 / 12:00PM, VRX.TO - Q1 2015 Valeant Pharmaceuticals International Inc Earnings Call
`
`BioTrue ONEday delivered its biggest revenue quarter since launch, growing 97% over the prior year. We expect this growth to continue, as we
`recently received clearance for our BioTrue Toric lens and plan on launching this product later this year.
`
`Our ophthalmology Rx business continues to see strong double-digit growth fueled by multiple brands. B&L's Ultra contact lens continues to be
`well received by healthcare professionals and is selling to production capacity on our pilot line. Our first commercial manufacturing line is expected
`to be validated and producing contact lenses in May, which will begin to help fill demand not only in the US, but allows us to launch outside the
`United States in select markets by the end of the year.
`
`In addition, we have now received clearance for both the Multi Focal and Toric Ultra lens, which we expect to launch in Q4 2015 and Q1 2016,
`respectively. In Q1 Ultra sales were only $7 million, due to only producing pilot products on our pilot line.
`
`As I mentioned previously, the number of cataract surgeries remained flat overall, which affected our surgical business. As I mentioned, the growth
`in Trulign IOLs offset the decline in sales of our Excimer lasers. Our R&D team was successful in obtaining FDA clearance for both new software and
`hardware for our VICTUS machine, which should fuel growth for the rest of the year.
`
`Turning to our other US businesses, revenue growth for our neuro and other and generics portfolio was driven by products, including Xenazine,
`Ammonul and Virazol. Our consumer business revenue continued to outpace the market with strong revenue growth from CeraVe, Preservision,
`Occuvite and Soothe XP.
`
`We launched seven new CeraVe products in the quarter, as well as our new Occuvite vitamin gummies, which will continue to provide growth in
`2015. Our lens care solutions delivered 21% growth over the prior year, driven by our BioTrue Multipurpose Solution. Finally, our dental business
`accelerated its historically strong growth due to the exceptionally strong volume growth of Arestin.
`
`Now turning to the rest of the world, our emerging markets business in Central and Eastern Europe and the Middle East delivered solid organic
`growth of 6%. We realized strong organic growth in Poland of 29%, as well as the Middle East which delivered organic growth of 26%.
`
`Russia delivered negative organic growth this quarter due to the strong demand in the fourth quarter of 2014, as the market anticipated retail
`prices that were set for increases at the beginning of 2015. We expect Russia to return to positive organic growth in the second quarter.
`
`Organic growth for our emerging markets business in Asia was overall 10% versus the prior year. We continued to see strong growth in a number
`of key countries, such as Thailand at 30%, China at 17%, South Korea at 15% and Malaysia at 13%, just to mention a few. In Latin America we
`delivered 7% organic growth with Mexico performing very well, growing 11% for the quarter, which offset continued weakness in Brazil.
`
`For the rest of the world developed markets, the underlying business remained strong with both Canada and Australia businesses performing well,
`with 10% and 3% growth, respectively. Their growth was offset by the decline of 9% in Japan due to the anticipation of the sales tax increase in
`April of last year, which I discussed earlier.
`
`On our last call we announced the close of our acquisition of Dendreon and I am pleased to report that we are off to a strong start. Dendreon's
`revenue is on plan and the business was profitable in Q1. We have identified more than $130 million in synergies and we expect to achieve a 90%
`run rate of these synergies by the end of 2015, with gross margins expected to be in the mid-60%s range by year-end. Our commercial team has
`now focused their efforts on the urology market in addition to oncology, which we believe will begin to drive growth.
`
`Now let me turn to our Salix acquisition. We completed our acquisition of Salix on April 1, and we are largely complete with the integration. A new
`leadership team has been appointed that includes Bill Bertrand, Salix's former COO as General Manager; John Temporato as Head of Sales; and
`Tom Hadley, former Marketing Director for both Jublia and Luzu, as head of Marketing.
`
`As with Dendreon, we have identified all synergies and expect to exceed our original synergy target of $500 million. We notified all office space
`employees on Day 1 as to their respective status with this Company, and we expect to be at the $500 million run rate in terms of synergies by the
`end of June. The remaining synergies will be achieved by the end of the year.
`
`5
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`APRIL 29, 2015 / 12:00PM, VRX.TO - Q1 2015 Valeant Pharmaceuticals International Inc Earnings Call
`
`In terms of the key Salix TRx trends, we showed you the script trends for the major products in the sales portfolio last call, and this page shows the
`positive trends have continued. So the business remains in excellent shape.
`
`On the commercial side of the business, we will maintain three specialty GI sales teams. We have made some minor adjustments to these teams
`to maximize efficiency.
`
`We are doubling the hospital sales force and adding a number of Valeant products, for example Virazol and Ammonul to the bag. We also doubling
`the size of the federal sales team and adding products such as Jublia, Luzu and Arestin to their promotional list.
`
`Next, we have established a new sales force to provide greater attention to the pain community, promoting Relistor and other Valeant brands such
`as Migranal and Bupap. We expect significant revenue synergies to Valeant products which have historically not been actively promoted to either
`hospital, government entities, such as the DoD or pain specialists.
`
`We have also decided to take a more focused targeting of the primary care market. We plan to cover the primary care market through our specialty
`sales force, coupled with extensive direct-to-consumer campaign once the IBS-D indication for Xifaxan is improved.
`
`We've also made significant progress towards the potential approval of the IBS-D indication for Xifaxan. With a PDUFA date of May 28, we are
`already in labeling discussions with the FDA, as well as conversations regarding the post-marketing commitments that may be required. We are
`encouraged about a potential approval in May.
`
`In terms of our R&D and our pipeline. We previously provided this chart at significant R&D milestones in 2015 and thought we should update
`everyone on our progress so far. As you can see, we have received marketing clearance for all our contact lenses and have filed the NDA for
`Brimonidine, or Luminesse, as it will be called in the market; initiated a Phase III trial for IBP-118 for psoriasis; and remain on track for many of the
`other activities. The enVista Toric and the Lotemax Gel next generation filings have now shifted into 2016.
`
`Before I turn over the call to Howard, I'd like to address another piece of news that we announced today. Namely that Howard has announced his
`decision to step down as Valeant's CFO upon the appointment of his successor.
`
`I know how disappointing this is for all of you, our owners, and also to me. Howard has been a great colleague, partner and friend, and obviously
`has been a great CFO. We have been through a lot together and I think our respect for each other has only grown over time.
`
`I'll let Howard talk about the reasons behind his decision. But on behalf of the entire Valeant team, I want to take this opportunity to thank him for
`his many contributions he's made over the past three and a half years. Howard's unwavering commitment to Valeant, his sound judgment, his
`keen intellect and his tireless work ethic has helped us position the Company for continued success. During his tenure, our market cap has increased
`from under $15 billion over $70 billion and the total shareholder return over that period has been over 300%.
`
`Howard has been an integral part of the management team and we will miss him. I am delighted he is excited about continuing to serve on our
`Board, where we can all continue to benefit from his many strong attributes.
`
`We will conduct a search for his replacement in a thoughtful way and I will involve Howard in the selection process. Howard has built an extremely
`strong finance team and the Company is in a tremendous position to continue on its next phase of shareholder value creation.
`
`With that, I will now turn the call over to Howard.
`
`Howard Schiller - Valeant Pharmaceuticals International Inc - CFO
`
`Thanks, Mike.
`
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`APRIL 29, 2015 / 12:00PM, VRX.TO - Q1 2015 Valeant Pharmaceuticals International Inc Earnings Call
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`The decision to step down as CFO of Valeant was a very difficult one, which I came to after quite a bit of soul searching. At this point in my life I
`would like to pursue other business interests, likely in a private company setting. I will remain as CFO until Mike and the Board find a successor,
`and of course I will work closely with Mike and the new CFO to ensure a seamless transition.
`
`Since Day 1, my journey at Valeant has been nothing short of incredible. I've completely bought into our unique strategy and culture, the transparency
`and fact-based approach to running our business, and our relentless focus on building a great Company and on creating shareholder value.
`
`While I will be resigning as an executive at Valeant, I'm thrilled and honored that the Board has asked me to remain as a director and to stand for
`reelection in May. Valeant's business has never been stronger and its prospects have never been brighter. I'm excited to remain in the Valeant
`family and to have the opportunity to continue to contribute to its future success.
`
`I want to thank my 18,000-plus colleagues at Valeant and our Board of Directors, for making this experience so special. In particular, I want to thank
`Mike for his partnership, mentorship and most importantly, friendship.
`
`Mike sets the tone at Valeant. He is the most talented person I've ever had the privilege to work with. He works tirelessly for the shareholders at
`Valeant and he is a great guy.
`
`Now let's get back to our first-quarter results and guidance for 2015. We're very excited to report exceptional Q1 results across all of our key
`businesses. Our revenue was $2.2 billion, with our US and many of our emerging market businesses contributing strong double-digit same-store
`organic growth.
`
`As mentioned earlier, the stronger US dollar cost us $140 million in revenue compared to Q1 of last year. In the face of these significant FX headwinds
`we generated strong revenue and cash EPS growth of 16% and 34%, respectively. Adjusting for FX, and the divested aesthetics injectables business,
`revenue and cash EPS increased by 27% and 50%, respectively.
`
`Our cost of goods sold for the quarter was 25%, a slight uptick from the fourth quarter, due to rounding caused by the lower gross margins of
`Provenge and the impact of FX, primarily in Europe. We are expecting an improvement in gross margins for the remainder of the year due to
`continued strong growth of the legacy Valeant businesses in the US and the sale of Salix products, which will have gross margins in the low 80%
`range. By the end of the year we expect to approach our goal of achieving 80% gross margins.
`
`Our SG&A as a percentage of revenue was in line with our budget. It was higher than historical levels due to the significant investment in DTC
`marketing campaigns associated with our dermatology launch brands. We will continue to invest in these products, so long as the growth in sales
`supports the spend. SG&A as a percentage of revenue will trend down throughout the year as we realize synergies from Salix and Dendreon.
`
`The combination of a strengthening dollar and the outperformance of our US businesses has increased the percentage of our revenue generated
`in the US from 53% in Q1 of 2014 to 64% in Q1 of 2015. Given the fact that almost 100% of Salix's revenue is generated in the US, the percentage
`of revenue attributed to the US will jump further, to greater than 70% in 2016. Of course, future business development or significant FX swings
`could influence these percentages.
`
`In Q1 we incurred restructuring and integration expenses of $65 million. As expected, less than $25 million resulted from pre-2015 transactions,
`and the majority of these expenses related to the restructuring of the B&L plant in Waterford, Ireland. We continue to expect restructuring expenses
`related to pre-2015 transactions to be less than $10 million in Q2.
`
`Restructuring and integration charges relating to 2015 deals were approximately $41 million, with $35 million of the charges relating to Dendreon.
`Restructuring and integration charges for Salix are expected to be approximately $300 million in total, with a significant accounting charge to
`occur in Q2.
`
`The cash severance portion will be paid out over one to three years, depending upon the employee. With Dendreon, we expect additional
`restructuring charges of $20 million for total charges of $55 million to achieve the synergies, or approximately 40% of anticipated total synergies.
`
`7
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`APRIL 29, 2015 / 12:00PM, VRX.TO - Q1 2015 Valeant Pharmaceuticals International Inc Earnings Call
`
`In Q1, adjusted cash flow from operations was a strong $708 million, or 88% of cash net income. For purposes of calculating adjusted cash flow
`from operations, we excluded the buildup of accounts receivable of $131 million associated with the acquired Marathon products, given that we
`did not acquire any accounts receivable in that transaction.
`
`Also under the terms of the renegotiated managed care contract, rebate payments will now be prepaid at the end of each quarter. As a result, we
`made two quarterly rebate payments to this PBM in Q1 of 2015.
`
`Going forward, the timing of these payments will be consistent so we do not expect any future fluctuations in our cash flow relating to the timing
`of these payments. If we had adjusted for operating cash flow for the second of these payments, adjusted operating cash flow would have been
`$757 million, or 94% conversion.
`
`Post Salix, we will add $31.2 billion in total debt with an average weighted interest rate of 5.1%. The debt at the mix of approximately 40% bank
`debt, 60% bonds and our revolver is currently undrawn.
`
`The bonds for the Salix deal were included on the March 31 balance sheet, even though the transaction did not close until April 1. Proceeds from
`the bonds were included in restricted cash, and the fees and expenses related to the debt financing were in accrued liabilities. Our debt to pro
`forma adjusted EBITDA ratio was approximately 5.7 times at the close of the Salix transaction, and we have committed to reducing that ratio to
`below 4 times by the end of 2016.
`
`2015 is off to a strong start and we expect this strength to continue for the remainder of this year. As a result, we are increasing our 2015 guidance.
`
`We are increasing our guidance for revenue to $10.4 billion to $10.6 billion from $9.2 billion to $9.3 billion. And we are increasing guidance for
`cash EPS to $10.90 to $11.20 per share from $10.10 to $10.40 per share. This guidance includes the impact of gains on both Dendreon and Salix.
`
`For 2015, we expect our strong organic growth to continue and expect same-store organic growth to be greater than 10% in Q2 through Q4. And
`we continue to expect B&L organic growth to be around 10% for the year.
`
`As mentioned earlier, we are well on our way to achieving the synergies on the Salix and Dendreon acquisitions. For Salix, we will realize greater
`synergies than originally estimated and we will achieve these synergies faster than originally estimated.
`
`We were thrilled with the strong TRx growth in Q1 of Salix's major products, especially given the uncertainty that always accompanies a sales
`process. At closing, Salix had approximately four to five months of inventory at the wholesalers. And we now plan to reduce wholesaler inventory
`levels to 1.5 months or less by the end of the year, rather than the two months or less originally estimated the time the deal was announced.
`
`As a result, Salix revenue is expected to be a approximately $1 billion for Q2 through Q4. This estimate does not assume approval of the IBS-D
`indication for Xifaxan. After we receive this approval, we will update guidance to reflect this exciting opportunity.
`
`Our 2015 guidance also does not include use of our balance sheet. You should expect us to use our free cash flow to reduce debt and for small
`tuck-in acquisitions.
`
`Also, while we will continue to generate adjusted cash flow to target adjusted cash flow from operation of 90% or more of cash net earnings, the
`inventory work-down program for the Salix products will have a negative impact on operating cash flow. Therefore we will update guidance and
`operating cash flow once the inventory work-down plan is well underway.
`
`Given the recent acquisitions of Salix and Dendreon and the need to reduce Salix inventory levels, we thought it would be helpful to make an
`exception to our general rule of not providing quarterly guidance and provide Q2 guidance. In Q2 we expect revenue of $2.45 billion to $2.55
`billion, approximately 22% growth over the revenue in 2014 Q2, and cash EPS of $2.40 to $2.50 per share, approximately a 28% growth over cash
`EPS in 2014 Q2. This represents strong growth in revenue and cash EPS, even in the face of expected negative FX impact of approximately $178
`million in revenue and $0.20 in cash EPS, and despite the hit from needing to reduce wholesaler inventory levels for the Salix products.
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`APRIL 29, 2015 / 12:00PM, VRX.TO - Q1 2015 Valeant Pharmaceuticals International Inc Earnings Call
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`Lastly, we want to reconfirm our expectation of 20%-plus cash EPS accretion and EBITDA in excess of $7.5 billion in 2016. This 2016 outlook reflects
`the continued strong organic growth of our businesses, the continued outperformance of the US businesses, including continued success of our
`many launch brands, significant profit contribution of Dendreon post the restructuring of the business, and the continued impressive growth of
`the Salix franchise, including future sales of Xifaxan or IBS-D.
`
`The organic growth rates embedded in this outlook for the legacy Valeant businesses are generally consistent with the detailed 2016 outlook we
`provided last summer and fall. This outlook does not include any future acquisitions.
`
`In closing, we are very pleased with the strong performance of the Valeant operations in Q1, and excited about our prospects for the remainder of
`the year and for 2016. We look for