The New Valeant: Delivering on Our Commitments

J.P. Morgan Healthcare Conference

January 10, 2017

Forward-Looking Statements
Certain statements made in this presentation may constitute forward-looking statements, including, but not limited to,
statements regarding expected future performance of Valeant Pharmaceuticals International, Inc. (Valeant or the Company),
including statements reiterating guidance, the anticipated growth of and plans for the Companys operating and reportable
segments, the anticipated timing of the closing of certain of the Companys recent divestitures and the anticipated use of
proceeds from such divestitures, the anticipated receipt of clinical data for certain of our pipeline products and the expected
timing of such data, the anticipated steps and phases for certain of our R&D projects and the expected timing of such steps and
phases, the anticipated submission, approval and launch dates for certain of our pipeline products and R&D programs, the
expected timing of the loss of exclusivity of certain of our products and the estimated impact of such loss of exclusivity,
anticipated debt reduction and repayment (including our ability to pay down debt and the availability of cash flow and asset sales
proceeds for such purpose), and the Companys mission and the plans, goals and strategies related thereto. Forward-looking
statements may generally be identified by the use of the words anticipates, expects, intends, plans, should, could,
would, may, will, believes, estimates, potential, target, 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 and
quarterly reports and detailed from time to time in Valeants other filings with the Securities and Exchange Commission and the
Canadian Securities Administrators, which factors are incorporated herein by reference. Readers are cautioned not to place
undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date
hereof. Valeant 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
certain non-GAAP financial measures including EBITDA.
Management uses non-GAAP measures as key metrics in the evaluation of Company performance and the consolidated financial results. The
Company believes these non-GAAP measures are useful to investors in their assessment of our operating performance and the valuation of
our Company. In addition, these non-GAAP measures address questions the Company routinely receives from analysts and investors and, in
order to assure that all investors have access to similar data, the Company has determined that it is appropriate to make this data available
to all investors. However, non-GAAP financial measures are not prepared in accordance with GAAP, as they exclude certain items as
described herein. 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.

We Have Stabilized - Reiterating 2016 Guidance

OUR MISSION

To Improve Peoples Lives With Our Healthcare Products

STABILIZE
2016

Paid down debt

Attracted new talent

TURNAROUND
2017-2018

Focus on specialty driven markets

w/above average growth rates
Invest in pipeline/quality/product
launches

Lead in our
categories

Derm Recovery

Strengthen balance sheet

Launch new
products

Salix Growth

Reallocate spending on high ROI

programs

Balance organic and

inorganic growth

New Product Approvals

Launched new segments

Improve gross profit

4

TRANSFORM
2018+

Address legacy Issues

Significant Progress in 2016 / Delivering on Commitments

Streamlined Portfolio Divested (or agreed to divest) 3 Skincare Brands, Dendreon, Delta
(Brazil), Vietnam/Indonesia, Brodalumab EU Rights, Ruconest, OEM Business, Other

Built New Leadership Team

Launched New Prior Authorization Program for Dermatology/Dermatology Rx Recovery
Continued Consistent Growth in Consumer Business
Partnered with Wilsons Disease Association
Initiated Xifaxan New Formulation Activities/PCP Strategy
Stabilized Salesforce
Launched Relistor Oral Tablets
Won 18-0 Vote from Brodalumab FDA Advisory Committee
Licensed Novel Bowel Cleansing Product Candidate

Introduced PreserVision AREDS 2 Formula + Multivitamin

Launched Bausch + Lomb ULTRA for Presbyopia contact lenses
Reduced Permanent Debt Paid down ~$1.84B in full year 2016; $294M in Q4 (exceeded
$1.7B commitment for 2016)
5

Delivering on Commitments: Divestitures

Upon completion of the transactions announced today, we will have generated
asset sale proceeds of ~$2.35B (upfront) and future milestones of ~$0.35B, or
total potential proceeds of $2.7B
We have simplified our operating model by divesting or agreeing to divest:

CeraVe, AcneFree & AMBI

Dendreon
Synergetics OEM
Ruconest
Brodalumab EU Rights

Delta (Brazil)
Euvipharm (Vietnam)
Armoxindo (Indonesia)
Paragon
Cosmederme (Canada)

Delivering on Commitments: Divestitures

Announced sale of CeraVe, AcneFree and

AMBI skincare brands to LOreal for $1.3B in
cash

Reshaping consumer product portfolio in

response to compelling in-bound interest from
global beauty company

PURCHASE PRICE

Substantial return on investment

+20x annualized earnings contribution to VRX

TIMING

Expected to close in Q1 2017

USE OF PROCEEDS

Pay down term loan debt

DIVESTITURE

STRATEGIC RATIONALE

Delivering on Commitments: Divestitures

Announced sale of Dendreon to Sanpower

Group for $819.9M in cash

Exiting non-core oncology business in U.S.

Diversified Products segment

PURCHASE PRICE

Premium to purchase price in February 2015

~7x multiple of EBITDA

TIMING

Expected to close in Q2 2017

USE OF PROCEEDS

Pay down term loan debt

DIVESTITURE

STRATEGIC RATIONALE

Delivering on Commitments: New Leadership Team

New Leadership Hires
Paul Herendeen

Christina Ackermann

Bill Humphries

Executive Vice President, Finance

Chief Financial Officer

Executive Vice President

General Counsel

Executive Vice President,

Dermatology

Scott Hirsch

Louis Yu

Sam Eldessouky

Senior Vice President, Business

Strategy

Chief Quality Officer

Senior Vice President

Corporate Controller

Expanded Roles
Tom Appio

Tracy Valorie

Executive Vice
President/President, Intl

Chuck Hess
GM, Surgical

Dennis Asharin

Mark McKenna

Senior Vice President

Bausch + Lomb

Senior Vice President,

Manufacturing and Supply
Chain

Senior Vice President,

GI

Joe Gordon

Barb Purcell

Kelly Webber

Senior Vice President

Bausch + Lomb

Senior Vice President/General

Manager, Neurology,
Generics and Obagi

Senior Vice President,

Human Resources

+ Primary Care Sales Force Expansion

9

Delivering on Commitments: Stabilized Valeant Sales Force

Quarterly Sales Force Retention

94.0%
93.6%

91.1%

89.2%

1Q 2016

2Q 2016

3Q 2016

4Q 2016

Delivering on Commitments: Strengthened Balance Sheet

Commitment

Result

Repay $1.7B permanent debt in 2016

Achieved $1.84B

Complete all 2017 scheduled amortization

payments by year-end

Achieved

Evaluate/complete asset sales within 6 months

Achieved/Continuing

We continue to expect free cash flow and non-core asset sales to reduce
debt by more than $5B within 18 months from Aug. 9th 2016

11

Delivering on Commitments: Grew GI/Salix Business

Promoted brands in the portfolio grew +10% YoY with 4% growth from H1 to H2 2016
Successfully stabilized sales force in H2 compared to H1 with 45% reduction in voluntary turnover
Initiated primary care salesforce expansion in Q4
Xifaxan continues to drive performance of Salix business with projected +17% Y/Y growth and 4% growth in
H2 v. H1

GI Promoted Brands TRx Growth

2014

2015

2016
1,331,032

+10%
1,207,401

+16%

1,041,332

Annual TRx

Creating the New Valeant

OUR MISSION

To Improve Peoples Lives With Our Healthcare Products

STABILIZE
2016

Paid down debt

Attracted new talent

TURNAROUND
2017-2018

Focus on specialty driven markets

w/above average growth rates

New Product Approvals

Invest in pipeline/quality/product
launches

Derm Recovery

Strengthen balance sheet

Salix Growth

Reallocate spending on high ROI

programs

Launched new segments

Improve gross profit

13

Address legacy Issues

TRANSFORM
2018+

Lead in our
categories
Launch new
products
Balance organic and
inorganic growth

Invest in R&D/Quality/New Product Launches

R&D PROGRAM HIGHLIGHTS

43

R&D Facilities

1,000+

# R&D/Quality
Employees

38%

Y/Y Increase in
R&D Spending

Launch Timeframe

% of R&D
Programs

2017-2019

~80%

2020-beyond

~20%

Other,
23

Derm,
20
GI, 16

~135
50+
14

Total Company
active R&D projects
Expected new product
launches
in 2017

B+L,
76

R&D Catalysts in 2017

LATE PHASE

SUBMISSIONS

LAUNCHES

15

*Provisionally
approved name

SAN-300 (Rheumatoid Arthritis) Phase II data read out H1

enVista Trifocal (Intraocular Lens) Initiate IDE study in H1
New Material (Ophthalmic Viscosurgical Device); Initiate IDE in H1
Loteprednol Gel 0.38% (Ocular Inflammation) Complete Phase III enrollment
IDP-120 (Acne) Initiate Phase III in H2
IDP-123 (Psoriasis) Initiate Phase III in H2
New Xifaxan Formulation (New Indication) Initiate Phase III in H2
IDP-126 (Acne Combination) Initiate Phase I in H2
Teneo (Excimer laser); Initiate IDE study in H2

Bausch + Lomb ULTRA Extended Wear Indication H1

Luminesse (Eye Brightener) H1
IDP-118 (Psoriasis) H2
IDP-121 (Acne Lotion) H2
IDP-122 (Psoriasis) H2

Stellaris Elite H1
Next Generation Thermage H1
Vitesse H1
Brodalumab for Psoriasis H2
Latanoprostene Bunod (Vyzulta*) for reduction of IOP in ocular hypertension or
glaucoma H2
Bausch + Lomb ULTRA and Biotrue ONEday toric lenses

Brodalumab: PDUFA Date - February 16, 2017

Biologic for treatment of severe psoriasis
Total Psoriasis Market: ~$10B
2Q17 Anticipated Launch1

Mechanism of Action: works closer to receptor

(blocker) than other biologics
Suicidal Ideation Labeling

PASI 100 (NRI): Brodalumab 210 Q2W

Superior to Ustekinumab

IL-17 Receptor
Blocker

16

Subject to US FDA regulatory approval

IDP-118: First Half of 2017 Filing Opportunity

Potential Indication: moderate to severe plaque psoriasis in adults
Unique Topical Combination - 1st corticosteroid-retinoid combination for psoriasis
Studied in over 1900 subjects in a comprehensive clinical program comprising 11 studies

This combination with its dual mechanism of action will potentially allow for expanded use of these well-known active
ingredients - use for longer than all approved potent and super potent steroids and with considerably reduced irritation
due to our novel formulation.

Two Positive Phase 3 Trials, Long Term Safety Trial near completion
Patient Population: Adults with moderate to severe plaque psoriasis
Treatment duration: 8 weeks ; primary endpoint of Investigator Global Assessment (IGA) of Clear (0) to
Almost Clear (1)

Phase 3

17

% Treatment Success (IGA of 0/1)

IDP-118

Vehicle

P-value

Study 301

35.76

6.98

P < 0.001

Study 302

45.33

12.51

P < 0.001

Latanoprostene Bunod (Vyzulta*): A Novel Monotherapy IOP Lowering Agent

~3M Americans affected by glaucoma

17M Prostaglandin Rxs written annually
~70% latanoprost molecule
Total Glaucoma Market ~$3B
Prostaglandin Market valued at $1.6B

Latanoprostene bunod (LBN) ophthalmic solution 0.024%

(LBN) is a nitric oxide-donating prostaglandin analog being
evaluated for the reduction of intraocular pressure (IOP)
LBN is thought to lower IOP by increasing outflow through
both the trabecular meshwork and uveoscleral pathways

CLINICAL RESULTS
In a Phase 2b dose ranging study, LBN demonstrated greater
IOP reduction compared with Xalatan (latanoprost
ophthalmic solution 0.005%), with the differences reaching
more than 1 mm Hg (p<0.01) for LBN.1
In addition, 68.7% of subjects treated with LBN ,
compared to 47.5% of subjects treated with Xalatan
(latanoprost ophthalmic solution 0.005%) achieved a
mean diurnal IOP 18 mm Hg at the primary efficacy
timepoint (p<0.05)1

In two Phase III studies, LBN provided a mean IOP reduction

of 7.5-9.1 mm Hg over three months of treatment
(statistically superior to timolol between 2 and 12 weeks)2,3

LBN was safe and well tolerated with no significant adverse

events. Rates for hyperemia were comparable to
latanoprost2,3
References: 1. Weinreb RN, Ong T, Scassellati Sforzolini B, et al. A randomised, controlled comparison of latanoprostene bunod and
latanoprost 0.005% in the treatment of ocular hypertension and open angle glaucoma: the VOYAGER study. Br J Ophthalmol. 2015;99:738745. 2. Weinreb RN, Scassellati Sforzolini B, Vittitow J, Liebmann J. Latanoprostene bunod 0.024% versus Timolol maleate 0.5% in subjects
with open-angle glaucoma or ocular hypertension: the APOLLO study. Ophthalmology. 2016;123(5):965-973. 3. Medeiros FA, Martin KR, Peace
J, et al. Comparison of latanoprostene bunod 0.024% and Timolol Maleate 0.5% in Open-Angle Glaucoma or Ocular Hypertension: the LUNAR
study. Am J Ophthalmol . 2016;168:250-259.

Symphony National IDV monthly data MAT Nov 2016

*Provisionally approved name

2017 Vision Care Product Launches

Completing the Full Family of Contact Lenses

Soft contact lens toric for astigmatism market valued over $700M
Category growth of 5% with significant growth in daily disposable segment
Bausch + Lomb US share of segment is in low single digits presenting large opportunity for
growth

BIOTRUE ONEDAY FOR ASTIGMATISM

19

BAUSCH + LOMB ULTRA FOR ASTIGMATISM

B+L / International: Continue to Lead Growth in China 2017

EFFECTIVE CHANNEL
MANAGEMENT TO
MAXIMIZE GROWTH

LOCAL PORTFOLIO TO
CAPTURE DIVERSE NEEDS

20

Protect base
Drive global innovation
Maximize Bescon

Channel segmentation
Leverage ecommerce
Flagship store online

DEDICATED & STABLE

TEAM PROMISES & DELIVERS

30- year anniversary to

generate excitement

B+L / International: Gain Momentum in Japan in 2017

LAUNCH W/ EXCELLENCE TO
RE-ENGAGE KOL & ECP

Aqualox
Biotrue for Astigmatism
Biotrue MF (2nd year)

RE-ENTER COSMETIC LENS

SEGMENT WITH BESCON

Tailor made for Japanese

young consumers

STRENGTHEN CUSTOMER
RELATIONSHIPS

21

Gain distribution of Biotrue

platform at Hoya (#1 volume
chain)
Engage ecommerce
customers with Soflens daily
& Starry
Active management of
distributors
Re-allocate sales force based
on business trends

Valeant Consumer Healthcare 2016 Performance

Top Us Consumer Healthcare Companies1

7.1%

Biotrue is #1 multi-purpose solution brand with

highest loyalty metrics
PreserVision AREDS 2 Formula 120ct is #1 selling
vitamin item in the U.S.
Soothe is the fastest growing OTC Dry Eye brand

6.7%
5.0%

4.0%

3.8%
2.0%

1.7%
0.8%

-0.5%

-1.1%
-1.8%

VALEANT PHARMA INTL

$
MM

$796

GLAXOSMITHKLINE

$2,604

22

PHARMAVITE LLC

$833

SANOFI AVENTIS US LLC

$1,410

-1.9%

-2.4%

-2.6%

JOHNSON & JOHNSON

ABBOTT LABS INC

CHURCH & DWIGHT CO INC

PFIZER INC

PRESTIGE BRANDS
HOLDINGS INC

KAO CORP OF JAPAN

PROCTER & GAMBLE

RECKITT BENCKISER INC

ALCON

BAYER AG

$6,224

$1,189

$1,288

$2,100

$805

$624

$14,887

$1,633

$3,313

$632

YTD 12-25-16. Based on IRI Definition of Manufacturers in Healthcare with >$500MM in Annual Sales. Excludes private Label.

Source: IRI Market Advantage Total US MULO - Valeant Includes Costco

Branded Rx: GI (Relistor)

Since the launch of

Relistor tablet, the
franchise has seen
a 26% growth in
writers.

Relistor tablet has

averaged 11% week
over week NRx
growth since
launch in
September.

Relistor has 84%

commercial access
entering 2017

New sales force

expansion
announced to focus
on potential PCP
prescribers of
Xifaxan for IBS-D
and Relistor for OIC

23

New Development Opportunities???

U.S. Diversified Products

Despite potential pending losses of exclusivity in the coming years:

Potential
LOE Risk
Products

Est. Impact on 2017

2016

2017

Ziana
Zirgan
Visudyne
Glumetza
Zegerid
Virazole
Nitropress
Edecrin
Ammonul

Lotemax Gel
Macugen
Deflux
Solesta
Isuprel
Mephyton
Syprine

~$800M

There are several promotable product opportunities in this portfolio, including:

Diastat, Librax, Migranal and Wellbutrin.

24

Summary: Fiction v. Fact

Fiction

Fact

VRX doesnt do R&D

VRX has ~135 active R&D programs and is poised to

launch 50+ new products in 2017

VRX just buys companies and raises prices

VRX has committed to single digit price increases in

US Branded Rx

Difficult to recruit and retain people at Valeant

VRX has hired 250+ salespeople in the US over the

last 6 months and recruited and installed a new
leadership team

VRX cant generate enough cash to meet its

obligations

VRX has paid down $1.84 B of permanent debt and

made all scheduled 2017 amortization payments

Valeant has to sell assets at distressed prices

VRX has agreed to sell Dendreon for 7x and 3

skincare brands for +20x earnings contribution

Valeant relies on US prescription market pricing

alone for its earnings

~87% of all B+L/International EBITDA is

independent of US prescription pricing model

25

We Have Stabilized Beginning Turnaround

OUR MISSION

To Improve Peoples Lives With Our Healthcare Products

STABILIZE
2016

Paid down debt

Attracted new talent

TURNAROUND
2017-2018

Focus on specialty driven markets

w/above average growth rates
Invest in pipeline/quality/product
launches

Lead in our
categories

Derm Recovery

Strengthen balance sheet

Launch new
products

Salix Growth

Reallocate spending on high ROI

programs

Balance organic and

inorganic growth

New Product Approvals

Launched new segments

Improve gross profit

26

TRANSFORM
2018+

Address legacy Issues