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 earliest event reported):

January 8, 2015 (January 8, 2015)

Valeant Pharmaceuticals International, Inc.

(Exact name of registrant as specified in its charter)

British Columbia, Canada	001-14956	98-0448205
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification Number)

2150 St. Elzéar Blvd. West, Laval, Quebec, Canada	H7L 4A8
(Address of principal executive offices)	(Zip Code)

(514) 744-6792

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

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 (see General Instruction A.2. below):

¨ 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 8, 2015, at 8:00 a.m. EST (5:00 a.m. PST) to announce 2015 financial guidance. 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 8, 2015.

SIGNATURE

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 8, 2015		By:	/s/ Howard B. Schiller
			Howard B. Schiller
			Executive Vice President, Chief Financial Officer

EXHIBIT INDEX

Exhibit Number	Description
99.1	Presentation of Valeant Pharmaceuticals International, Inc. dated January 8, 2015.

EX-99.1

2015 Financial

Guidance

Conference Call

January 8, 2015

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

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.

2

Agenda

2014 Review –

J. Michael Pearson

2015 Financial Guidance –

Howard Schiller

New 2015 Strategic Initiatives –

J. Michael Pearson

3

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

4

Jublia Growth Accelerates from DTC

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

DTC TV

5

Q4 Guidance

See Note 1 regarding guidance

Guidance

7/31/14

Guidance

10/21/14

Guidance

1/8/15

Revenue

$2.1 –

2.3 billion

$2.1 –

2.3 billion

~$2.2 billion

Cash EPS

$2.35 -

$2.45

$2.45 -

$2.55

$2.55+

Adjusted Cash Flow from

Operations

N/A

~$600 million

~$600 million

Fx Impact:

Revenue

Cash EPS

N/A

~$53 million

~$0.06

~$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

6

Agenda

2014 Review –

J. Michael Pearson

2015 Financial Guidance –

Howard Schiller

New 2015 Strategic Initiatives –

J. Michael Pearson

7

Financial Guidance for 2015

See Note 1 regarding guidance

2015

2014

(1)

Outlook

10/21/14

(2)

Guidance

1/8/15

(2)

% over 2014

Revenue

~$8.1 billion

~$9.1 billion

$9.2 -

$9.3 billion

~14-15%

Cash EPS

~$8.32+

~$10.00

$10.10 -

$10.40

~21-25%

Adjusted Cash

Flow from

Operations

~$2.5+ billion

~$3.1 billion

>$3.1 billion

(at least 90% cash

conversion)

~25+%

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

8

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

9

FX Exposure

2015 Impact vs.

10/15/14 spot rates:

•

Cash EPS: ~$0.47

•

Revenue: ~$300M

Currency

10/15 Spot

12/31 Spot

% Change

Russian Ruble

40.692

60.736

-49%

Euro

0.779

0.827

-6%

Polish Zloty

3.288

3.544

-8%

Japanese Yen

105.920

119.780

-13%

Mexican Peso

13.532

14.752

-9%

Australian Dollar

1.133

1.223

-8%

Canadian Dollar

1.126

1.162

-3%

Brazilian Real

2.458

2.658

-8%

Serbian Dinar

92.991

100.330

-8%

South African Rand

11.075

11.571

-4%

Singapore Dollar

1.272

1.326

-4%

British Pound

0.624

0.642

-3%

Swedish Krona

7.156

7.807

-9%

Chinese Yuan

6.126

6.206

-1%

Swiss Franc

0.940

0.994

-6%

Indian Rupee

61.421

63.044

-3%

South Korean Won

1,062.930

1,090.980

-3%

10

Limited Patent Risk

2015

2016

2017

2018

2019

Products

1)

Xenazine

2)

Targretin

1)

Ziana

2)

Zirgan

3)

Visudyne

1)

Lotemax

Gel

2)

Macugen

1)

Acanya

2)

Solodyn

3)

Istalol

1)

Zyclara

Annual

2014

Sales

~$335 million

~$90 million

~$115 million

~$300 million

~$30 million

% 2015

Revenue

~4%

~1%

~1%

~4%

<1%

Projected

Generic

Impact

(1)

<$200 million

<$200 million

<$150 million

<$200 million

<$30 million

% of 2015

Revenue

~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

11

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

12

Agenda

2014 Review –

J. Michael Pearson

2015 Financial Guidance –

Howard Schiller

New 2015 Strategic Initiatives –

J. Michael Pearson

13

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

14

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

15

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

16

Valeant Late Stage R&D Portfolio

Product

Category

Description

Expected launch year

EnVista Toric

Eye Health

Toric IOL

2016

Brimonidine

Eye Health

OTC

2016

Vesneo

Eye Health

Glaucoma

2016

Lotemax Gel Next Gen

Eye Health

Post-operative pain and

inflammation

2016

Ultra Plus Powers

Eye Health

Contact lens

2016

BioTrue Toric

Eye Health

Contact lens

2016

IDP-118

Derm

Moderate to severe plaque

psoriasis

2017/2018

IDP-120

Derm

Novel acne combination

2019

Emerade

Allergy

Anaphylaxis

2016/2017

Arestin LCM

Oral Health

Antibiotic treatment for

periodontal (gum) disease

2016

17

Key R&D milestones for 2015

Product

Category

Action

EnVista Toric

Eye Health

File PMA 1H  2015

Brimonidine  (OTC)

Eye Health

File NDA 1H 2015

Vesneo (glaucoma)

Eye Health

File NDA 1H 2015

Lotemax Gel Next Gen

Eye Health

File NDA 2H 2015

Ultra Multi Focal

Eye Health

File PMA 1H 2015

Ultra Toric

Eye Health

File PMA 2H 2015

BioTrue Toric

Eye Health

File PMA 2H 2015

IDP-118 (moderate to severe plaque

psoriasis)

Derm

Initiate Phase III 1H 2015

IDP –

120 (novel acne combination )

Derm

Initiate Phase II 2H 2015

Arestin LCM

Oral Health

File NDA 2H 2015

18

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

19

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

2015 Financial

Guidance

Conference Call

January 8, 2015