Valeant Pharmaceutical International, Inc. 2016 J.P. Morgan Healthcare Conference Howard Schiller Interim CEO Dr. Ari Kellen EVP, Company Group Chairman Robert Rosiello January 13, 2016 EVP, Chief Financial Officer
Forward-looking Statements Forward-Looking Statements Certain statements made in this presentation may constitute forward-looking statements, including, but not limited to, statements regarding the expected future performance of Valeant Pharmaceuticals International, Inc. (the “Company”) , including 2016 forecast revenues and guidance with respect to revenue, adjusted EPS, adjusted cash flow from operations and adjusted EBITDA, potential exclusivity risk to certain of the Company’s products, anticipated product approvals and product launches of the Company’s pipeline products, the Company’s abil ity to reduce leverage, the anticipated launch date of the Valeant Access Program with Walgreens and the expected impact of such program, and the Company’s short -term priorities and ability to achieve such priorities. Forward-looking statements may be identified by the use of the words “anticipates,” “expects,” “intends,” “plans,” “could,” “should,” “would,” “may,” “will,” “believes,” “estimates,” “seeks,” “p ote ntial,” or “continue” and variations or similar expressions. These statements are based upon the current expectations and beliefs of management, and depend on assumptions, data or methods that may be incorrect or imprecise 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, except as required by law. Non-GAAP Information To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses the following non-GAAP financial measures: Adjusted EPS and Adjusted Cash Flow from Operations. Reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measure can be found in documents posted on the “Investors” section of the Valeant.com website. In addition, Adjusted EBITDA is a non-GAAP financial measure that will be provided in our earnings materials going forward. The Company does not provide guidance with respect to GAAP financial measures other than revenues or provide reconciliations to GAAP of its forward-looking non-GAAP financial measures due to the inherent difficulty in quantifying certain amounts that would be required to be included in the GAAP measure of earnings per share due to their unknown effect, timing and potential significance. Examples of these items include impairments of assets, gains and losses from the extinguishment of debt, legal settlements, purchases of in-process research and development assets, and gains and losses from asset sales. By disclosing the non-GAAP financial measures referenced above, management intends to provide investors with a meaningful, consistent comparison of the Company’s baseline operating results and trends for the periods presented by excluding items that are consi dered by the Company not to be reflective of the Company’s ongoing results. Management uses all of the above named non -GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. 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. Note 1: The guidance in this presentation is only effective as of the date originally given, namely December 16, 2015, and will not be updated or affirmed unless and until the Company publicly announces updated or affirmed guidance. 1
Howard Schiller Interim CEO January 13, 2016
Valeant today Collection of great healthcare franchises and brands around the world Deep bench of talented people Exciting pipeline of new products Relentless focus on providing easy and affordable access for physicians and patients Remain committed to our strategy with a relentless focus on execution 3
A collection of great brands in a breadth of therapeutic areas Valeant 2016 forecast revenues Total: $12.5 – 12.7 B Ex-U.S. Developed Markets (including Ophthalmology, U.S. Gastrointestinal Dermatology, and GI sales) (GI) ~10% ~20% U.S. Revenue: Emerging Markets ~70% ~20% (including Ophthalmology, U.S. Dermatology Dermatology, and GI sales) ~15% (Includes Solta and Obagi) ~10% ~20% U.S. Ophthalmology ~5% and Eye Care (B+L) U.S. Oncology, Dentistry, Women’s Health, Neuro and Other U.S. Consumer 4
Strong Growth Platforms % 2016 Est. revenue U.S. Gastrointestinal U.S. Ophthalmology U.S. Dermatology (1) U.S. Consumer and Eye Care (B+L) ~5% ~15% ~10% ~20% U.S. Oncology, Dentistry, Emerging markets (2) Ex-U.S. developed markets (2) Women’s Health, Neuro/Other ~20% ~10% ~20% (1) Including Solta and Obagi (2) Including Ophthalmology, Dermatology, and GI sales 5
Potential Exclusivity Risk 2015 2016 2017 2018 2019 2020 Xenazine Ziana Lotemax Gel Acanya Zyclara Luzu Targretin Zirgan Macugen Solodyn Tiazac (CAD) Atralin Visudyne Deflux Istalol Products Tasmar Glumetza Solesta Elidel Zegerid Isuprel Moviprep Virazole Nitropress Annual 2015 ~$300 million ~$750 million ~$350 million ~$450 million ~$50 million ~$50 million Sales Limited risk relative to expected 2016 revenues of $12.5-$12.7B 6
How you can measure our progress in 2016 ▪ Retained all key management talent and added new key hires ▪ Dermatology returned to growth ▪ Maximized Xifaxan – created our first $1B+ brand ▪ Got approval and successfully launched – Brodalumab – Latanoprostene Bunod – Relistor Oral ▪ Delivered $100-150M in addyi sales in 2016 ▪ Brought leverage to ~4.0x by end of 2016 7
Dr. Ari Kellen EVP, Company Group Chairman
Key facts on our R&D approach ▪ 6 NDAs approved in last 3 years ▪ 200+ active US programs 8% Rx R&D spend as a % of ▪ Dermatology Phase II and branded Rx sales Phase III success rates 3-5x better than industry averages ▪ Highest 5 year output 1 on R&D spend in the industry 1 Number of NMEs/BLAs approved 2009-'14 for each $1 billion spent; peer set is 15 companies with the highest number of NME/BLA approvals 9
Valeant R&D at a glance 1,000 6 200 + active + NDAs approved in last three US programs years R&D and quality employees 13 43 100 + 510K and PMA R&D approvals in facilities last three years MD, PHD, PharmD, JD and DMD degrees 10
How our R&D pipeline was built In-licensed / Internal Inherited purchased In Dermatology, we We have acquired We continue to invest have built capabilities new platforms and in TAs with attractive from discovery to capabilities in assets commercialization attractive TAs We are building similar Post-acquisition, we Our selection and capabilities in have supplemented portfolio de-risking Ophthalmology and GI the pipeline where give us an advantage required and de-risked where possible Brodalumab 11
Early and late assets across TAs Early 1 Late 2 Significant active US programs as of Dec. 2015 8 7 Dermatology 15 4 22 Consumer 26 Opthalmology 1 6 7 Surgical 12 20 32 6 3 Contact lenses 9 GI 4 2 6 5 12 Others 3 17 40 72 112 early late total 1 Prior to Phase III for Pharma, 2018+ expected launch for others 2 Includes Phase III and FDA submitted products 3 Includes aesthetics, women’s health, and generics 12
US branded and generic drugs pipeline Dermatology Ophthalmology Generics Women’s health GI In-house development Early stage Late stage (Pre Ph. III) (Ph. III - submission) Relistor Oral: Opioid SAL-020: HAE IDP-120: Acne IDP-118: Psoriasis induced constipation IDP-125: Actinic SAL-021: RA IDP-121: Acne SAL- 024: Crohn’s keratosis IDP-124: Atopic SAL-022: Diabetes IDP-131: Psoriasis Brinzolamide Gx: OAG dermatitis BLG020: Disclosing SAL-023: Cirrhosis IDP-126: Acne IDP-122: Psoriasis agent IDP-127: Anti-fungal IDP-123: Acne BLG021: Anti-infective BLO-020: Inflammation IDP-128: Actinic VAL-BRO-03: Psoriatic BLG022: Anesthetic SPT-201: HSDD keratosis arthritis IDP-129: Acne Brodalumab: Psoriasis BLG023: Anti-infective BLO-021: Cystoid IDP-130: Acne EGP-437: Anterior uveitis Macular edema Latanoprostene Bunod: BLO-022: Post-operative OAG inflammation 13
Recommend
More recommend
