8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of the earliest event reported): January 6, 2012 (January 6, 2012)

Valeant Pharmaceuticals International, Inc.

(Exact name of registrant as specified in its charter)

Canada	001-14956	98-0448205
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S Employer Identification No.)

7150 Mississauga Road,

Mississauga, Ontario,

Canada L5N 8M5

(Address of principal executive offices) (Zip Code)

(Registrant’s telephone number, including area code): (905) 286-3000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

Valeant Pharmaceuticals International, Inc. expects to host a conference call and live Internet webcast along with a slide presentation on January 6, 2012, at 10:00 a.m. EST to announce 2012 financial guidance, together with certain guidance for the quarter and year ended December 31, 2011. A copy of the presentation is attached as Exhibit 99.1 to this report and is incorporated herein by this reference.

The information in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Item 2.02 and Exhibit 99.1 shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number	Description
99.1	Presentation of Valeant Pharmaceuticals International, Inc. dated January 6, 2012.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	VALEANT PHARMACEUTICALS INTERNATIONAL, INC.
Date: January 6, 2012	By:	/s/ Howard B. Schiller
		Howard B. Schiller
		Executive Vice President, Chief Financial Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release of Valeant Pharmaceuticals International, Inc. dated January 6, 2012.

EX-99.1

2012 Financial

Guidance

Conference Call

January 6, 2012

Exhibit 99.1

1

Forward-looking Statements

Forward-looking Statements

Certain statements made in this presentation may constitute forward-looking statements, including, but not limited to, statements

regarding

preliminary

results

and

guidance

with

respect

to

expected

revenues,

non-GAAP

cash

earnings

per

share,

adjusted

cash

flows

from operations,

product sales growth and

organic product

sales

growth,

integration-related activities and benefits,

synergies, launches

and

approvals

of

products,

the

impact

of

foreign

exchange

rates,

and

the

2012

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.

Note 1:  The guidance in this presentation is only effective as of the date given,

January 6, 2012, and will not be updated or affirmed unless and until the Company

publicly announces updated or affirmed guidance.

2

Agenda

2011 Update

2012 Review

Other Updates

3

2011 Achievements

Acquisitions

Completed

11

acquisitions

–

PharmaSwiss,

Sanitas,

Ortho,

Dermik,

iNova,

Zovirax/Xerese,

Elidel

~$2.9b in total purchase price

Averaged  2.4x sales

Established new growth platforms in South East Asia, South Africa and Russia

Achieved

realized

synergies

of

$320

million

from

Biovail

merger

R&D Productivity and Product Launches

Potiga approved in U.S.

Trobalt approved and launched in Europe

IDP-108 –

2 positive Phase III trials

4 products approved

13 products launched in Canada, including Onsolis, Sublinox, Biacna, Aczone

100+ new OTC and Branded Generics products approved/launched in ex-US markets

Balance Sheet Management

Lowered average interest rate from ~7% to ~5.7%

Repurchased

16

million

common

shares

at

average

cost

of

~$40

per

share

under

previous

$1.8 billion securities repurchase program

Repurchased 1.5 million common shares at average cost of ~$42 per share under current

$1.5 billion program

Repurchased $100 million face value high yield debt at below par

Repurchased $205 million face value convertible preferred notes

Raised $4.65 billion in high yield debt and credit facilities

4

2011 Update

Fourth Quarter 2011 Guidance

Revenue expected to be >$650 million

>8% organic growth

Cash

EPS

expected

to

be

between

$0.83

-

$0.87

Adjusted cash flows from operations expected to be >$230

million*

Currency headwinds higher than expected

~$40 million revenue impact

~$0.05 Cash EPS impact

Full Year 2011 pro forma** growth rates

~27% product sales growth over 2010

~8% organic product sales growth over 2010

~27% revenue growth over 2010

~39% adjusted cash flow from operations growth over 2010

* Excluding changes in working capital and cash restructuring charges as not yet available

** Pro forma for 2010 Biovail/Valeant merger

See Note 1 regarding guidance

5

Agenda

2011 Update

2012 Review

Other Updates

6

2012 Guidance*

Total

revenues

expected

to

be

between

$3.1

-

$3.4

billion at constant currency rates

~30-40% increase over 2011

Currency fluctuations could have significant impact and not

included in range

Cash

EPS

expected

to

be

between

$3.95

–

$4.20

~40-45% increase over 2011

Adjusted Cash Flow from Operations >$1.2 billion

Up over $300 million or ~33% increase over 2011

Negative impact of ~$200 million due to divestitures and certain

generic entrants will be offset by organic growth and synergies

See Note 1 regarding guidance

* Excludes potential acquisitions

7

Organic Growth Guidance

We will continue to measure and report each quarter

Strong organic growth remains a primary objective for each operating unit

However, our primary focus is on total cash returns to shareholders

All acquisitions subject to rigorous internal rate of return analysis

We complete different types of acquisitions

Most acquisitions focused on building long-term sustainable growth at very

attractive returns

e.g. Sanitas, iNova, PharmaSwiss

Some acquisitions offer even more attractive short-term returns, but are dilutive

to overall corporate organic growth in the longer term

e.g. Dermik

We will not provide specific annual organic growth

guidance for 2012

8

New Segment Reporting

U.S. Dermatology

U.S. Neurology and Other

Canada/Australia

Emerging Markets

Latin America

Central/Eastern Europe

South East Asia/South Africa

9

U.S. Dermatology

Revenue

2012 expectations = $900 -

$950 million

60 -

75% increase over 2011

Key Growth Products

Zovirax/Xerese; Acanya; CeraVe; Atralin; Carac; Renova; Retin-A Micro

New product development

IDP –

108 –

onychomycosis

-

completed 2 successful Phase 3 trials

IDP –

107 –

oral acne

IDP –

118 –

psoriasis

Multiple life cycle management programs for current products ongoing

Integration of Ortho and Dermik

All management decisions made and communicated

Key 2012 agenda

Successful integration of Dermik

and Ortho to create the new “Valeant

Dermatology”

and “Valeant Aesthetics”

businesses

10

U.S Neurology

Revenue

2012

expectations

=

$675

-

$750

million

5-15% decrease over 2011

U.S. Neuro & Other <20% of total company revenue

Wellbutrin XL is < 4% of total company revenue

Key Products

Wellbutrin XL; Xenazine; Legacy Valeant tail products

New product launches

Trobalt/Potiga

Key 2012 agenda

Maximize Trobalt and Potiga

Manage segment to maximize cash flows

11

Canada

Revenue

2012

expectations

=

$350

-

$375

million

40-50% increase over 2011

Products under Meda JVs –

we do not book the revenue, only

our share of the profit (50%)

e.g. Sublinox; Onsolis

Key Products

Cesamet; Wellbutrin XL; Tiazac XC; Sublinox; COLD-FX

Key product launches in 2012

Opana, Lodalis

Key 2012 agenda

Continue to license in new products

Successfully build next generation of products through new

launches

12

Australia/New Zealand

Revenue

2012

expectations

=

$200

-

$250

million

> 150% increase over 2011

OTC Business

Cough/Cold –

Difflam, Andolex, DuroTuss (iNova)

Skincare –

Dermaveen Dr. Lewinns (Legacy Valeant)

Suncare –

Hamilton’s, Invisible Zinc, Reef (Legacy Valeant)

Key Rx Products

Metermine; Duromine

New product launches in 2012

Line extensions of skincare and cough/cold brands

1-2 new Rx brands

Key 2012 agenda

Successfully integrate iNova/Valeant

13

Emerging Markets

Revenue

2012 expectations = >$1.0 billion

40 -

50% over 2011

Key Markets

Central/Eastern Europe

Latin America

South East Asia/South Africa

14

Central/Eastern Europe

Revenue

2012 expectations = >$625 million

30-40% increase over 2011

Currency may continue to be a headwind

22 countries

Poland, Serbia, Hungary, Czech, Russia/Ukraine = ~80% of

revenue

Russia/Ukraine seen as new growth platforms

Export opportunities

Kazhakstan

and other former CIS countries

Key 2012 agenda

~250 product launches expected in 2012

Achieve cost synergies

15

Latin America

Revenue

2012 expectations = >$275 million

10-15% over 2011

2 major countries

Mexico

Brazil

Full Product Coverage

OTC

Branded Generics

Similares

Key 2012 agenda

Target area for future acquisitions

16

South East Asia/South Africa

Revenue

2012 expectations = ~$100 million

Own operations supplemented by distribution

agreements

Own

operations

–

Malaysia;

Philippines;

Thailand;

Hong

Kong;

South Africa

Distribution –

Vietnam; Indonesia; Singapore

Branded, Branded Generics and OTC business

Key 2012 Agenda

Establish own operations in other South East Asian markets

Cross launch products from other Valeant geographies

Aggressively pursue business development opportunities

17

Agenda

2011 Update

2012 Review

Other Updates

Trobalt/Potiga

Update

Cost Synergy Program for 2012

Currency Analysis

Current Debt Structure

ISTA Update

New 2012 Strategic Objectives

18

Trobalt/Potiga Update

EU status

Launch roll out began in May 2011

Currently launched in ~12 countries

NICE recommendation secured

Still

early

-

less

than

6

months

of

data

in

most

countries

U.S. status

Approved June 2011

DEA scheduling completed December 2011

Launch meeting planned for late March 2012

$45 million milestone anticipated in Q2 2012

Extended Release Formulation

A

lead

candidate

identified

for

progressing

clinical

evaluation

19

Cost Synergy Program in 2012

Expected cost synergies:

Total synergy run rates to be achieved by mid-year

Total Synergies

~$200 M

Canada (Afexa)

$15 M

Australia (iNova)

$25 M

U.S. Dermatology (Ortho & Dermik)

$85 M

Europe (PharmaSwiss

& Sanitas)

$75 M

20

Currency Analysis

~($0.05)

~($40M)

Impact on Q411

actuals

when

compared to

forecasted rates

~($0.08)

Cash EPS:

~($75M)

Revenues:

Impact on 2012 budget

when compared to 2011

average rates

21

Current Debt Structure

Current debt = $6.7

billion

Average interest

rate = ~5.7%

Term Loan A =

$2.225 billion

Required annual

amortization in

2012 = 10%

Quarterly interest

expense = ~$100

million

Outstanding Principal

6.75% Senior Notes due 2017

$500,000,000

7.00% Senior Notes due 2020

$690,000,000

6.875% Senior Notes due 2018

$944,580,000

6.75% Senior Notes due 2021

$650,000,000

6.50% Senior Notes due 2016

$915,500,000

7.25% Senior Notes due 2022

$550,000,000

Term Loan (A and DD)

$2,225,000,000

Revolver

$220,000,000

Convertible Notes

$18,708,000

22

ISTA Update

Opportunity to add a new growth platform

Merge Valeant’s small ophthalmology operations (<$50m) into

ISTA platform

Number of discussions with ISTA -

no agreement on

process or price

Proposed $6.50 per share

68% premium over 60-day volume weighted trading average of

$3.87

We are interested, but unwilling to spend too much

time

Deadline of January 31, 2012

ISTA announced they are pursuing “strategic

options”

We hope to have opportunity to negotiate a transaction

23

New 2012 Strategic Initiatives

1)

Increase non-US revenues to approximately 50% of the

company

2)

Exceed $75M synergy run-rate in Europe by end of

2012

3)

Build / acquire at least once additional growth platform

4)

Exceed $1.5B in emerging market sales

5)

Continue to aggressively manage the Balance Sheet to

create shareholder value

6)

Become

a

top

15

global

pharma

company

(as

measured by Market Cap) by end of 2013

2012 Financial

Guidance

Conference Call

January 6, 2012