##### 



Exhibit 99.1
 Table 1
 Valeant Pharmaceuticals International
Consolidated Condensed Statement of Income
For the Three and Twelve Months Ended December 31, 2007 and 2006
 Three Months Ended
    
    
    
    
    
    
    Twelve Months EndedDecember 31,
    
    
    
    
    
    
    December 31,(In thousands, except per share data)
    
    2007
    
    
    2006
    
    
    % Change
    
    
    2007
    
    
    2006
    
    
    % Change(Restated)
    
    
    
    
    
    
    
    
    
    
    (Restated)Product sales
    
    $
    223,274
    
    
    $
    227,661
    
    
    
    -2
    %
    
    $
    785,770
    
    
    $
    781,562
    
    
    
    1
    %Alliance revenue (including ribavirin royalties) (a)
    
    
    16,949
    
    
    
    20,548
    
    
    
    -18
    %
    
    
    86,452
    
    
    
    81,242
    
    
    
    6
    %Total revenues
    
    
    240,223
    
    
    
    248,209
    
    
    
    -3
    %
    
    
    872,222
    
    
    
    862,804
    
    
    
    1
    %Cost of goods sold
    
    
    70,715
    
    
    
    64,337
    
    
    
    10
    %
    
    
    233,094
    
    
    
    238,141
    
    
    
    -2
    %Selling expenses
    
    
    68,842
    
    
    
    61,503
    
    
    
    12
    %
    
    
    259,324
    
    
    
    244,757
    
    
    
    6
    %General and administrative expenses
    
    
    27,704
    
    
    
    30,577
    
    
    
    -9
    %
    
    
    111,721
    
    
    
    114,583
    
    
    
    -2
    %Research and development costs
    
    
    29,413
    
    
    
    31,443
    
    
    
    -6
    %
    
    
    98,025
    
    
    
    105,442
    
    
    
    -7
    %Gain on litigation settlement (b)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (51,550
    )
    
    
    -100
    %Restructuring charges
    
    
    9,601
    
    
    
    41,494
    
    
    
    -77
    %
    
    
    23,176
    
    
    
    138,181
    
    
    
    -83
    %Amortization expense
    
    
    17,290
    
    
    
    16,765
    
    
    
    3
    %
    
    
    71,567
    
    
    
    65,276
    
    
    
    10
    %223,565
    
    
    
    246,119
    
    
    
    -9
    %
    
    
    796,907
    
    
    
    854,830
    
    
    
    -7
    %Income from operations
    
    
    16,658
    
    
    
    2,090
    
    
    
    
    
    
    
    75,315
    
    
    
    7,974Interest expense, net
    
    
    (5,768
    )
    
    
    (7,439
    )
    
    
    
    
    
    
    (25,086
    )
    
    
    (31,116
    )Other income (expense), net including translation and exchange
    
    
    (1,496
    )
    
    
    (88
    )
    
    
    
    
    
    
    1,060
    
    
    
    1,152Income (loss) from continuing operations before income taxes
and minority interest
    
    
    9,394
    
    
    
    (5,437
    )
    
    
    
    
    
    
    51,289
    
    
    
    (21,990
    )Provision for income taxes
    
    
    16,466
    
    
    
    10,548
    
    
    
    
    
    
    
    25,233
    
    
    
    34,824Minority interest
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    2
    
    
    
    3Income (loss) from continuing operations
    
    
    (7,072
    )
    
    
    (15,986
    )
    
    
    
    
    
    
    26,054
    
    
    
    (56,817
    )Loss from discontinued operations, net
    
    
    (13,261
    )
    
    
    (6,848
    )
    
    
    
    
    
    
    (32,240
    )
    
    
    (751
    )Net loss
    
    $
    (20,333
    )
    
    $
    (22,834
    )
    
    
    
    
    
    $
    (6,186
    )
    
    $
    (57,568
    )Basic earnings per common shareIncome (loss) from continuing operations
    
    $
    (0.08
    )
    
    $
    (0.17
    )
    
    
    
    
    
    $
    0.28
    
    
    $
    (0.61
    )Discontinued operations, net
    
    
    (0.14
    )
    
    
    (0.07
    )
    
    
    
    
    
    
    (0.35
    )
    
    
    (0.01
    )Net loss
    
    $
    (0.22
    )
    
    $
    (0.24
    )
    
    
    
    
    
    $
    (0.07
    )
    
    $
    (0.62
    )Shares used in per share computation
    
    
    90,459
    
    
    
    94,429
    
    
    
    
    
    
    
    93,029
    
    
    
    93,387Diluted earnings per common shareIncome (loss) from continuing operations
    
    $
    (0.08
    )
    
    $
    (0.17
    )
    
    
    
    
    
    $
    0.28
    
    
    $
    (0.61
    )Discontinued operations, net
    
    
    (0.14
    )
    
    
    (0.07
    )
    
    
    
    
    
    
    (0.35
    )
    
    
    (0.01
    )Net loss
    
    $
    (0.22
    )
    
    $
    (0.24
    )
    
    
    
    
    
    $
    (0.07
    )
    
    $
    (0.62
    )Shares used in per share computation
    
    
    90,459
    
    
    
    94,429
    
    
    
    
    
    
    
    93,976
    
    
    
    93,387
 
 (a)
    
    Alliance revenue for the three months ended December 31, 2007 relates to ribavirin royalty
of $16.9 million. Alliance revenue for the twelve months ended December 31, 2007 includes
ribavirin royalties of $67.3 million and a $19.2 million milestone payment received from
Schering-Plough related to the out-licensing of pradefovir.(b)
    
    Gain on litigation settlement in the twelve months ended December 31, 2006 relates to the
settlement of disclosed litigation with Milan Panic, $17.6 million and the Republic of Serbia,
$34.0 million.




---



##### 



Table 2
 Valeant Pharmaceuticals International
GAAP Reconciliation of Basic and Diluted Earnings Per Share
For the Three and Twelve Months Ended December 31, 2007 and 2006
 Three Months Ended
    
    
    Twelve Months EndedDecember 31,
    
    
    December 31,(In thousands, except per share data)
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006(Restated)
    
    
    
    
    
    
    (Restated)Income (loss) from continuing operations
    
    $
    (7,072
    )
    
    $
    (15,986
    )
    
    $
    26,054
    
    
    $
    (56,817
    )Non-GAAP adjustments:Gain on litigation settlement (a)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (51,550
    )Professional fees related to Special Committee option investigation (b)
    
    
    
    
    
    
    2,382
    
    
    
    630
    
    
    
    2,382Restructuring charges (c)
    
    
    9,601
    
    
    
    41,494
    
    
    
    23,176
    
    
    
    138,181Product impairment (d)
    
    
    
    
    
    
    392
    
    
    
    310
    
    
    
    1,075Tax (e)
    
    
    10,577
    
    
    
    (1,101
    )
    
    
    1,857
    
    
    
    14,395Adjusted income from continuing operations before the above charges
    
    $
    13,106
    
    
    $
    27,181
    
    
    $
    52,027
    
    
    $
    47,666Adjusted basic EPS from continuing operations
    
    $
    0.14
    
    
    $
    0.29
    
    
    $
    0.56
    
    
    $
    0.51Adjusted diluted EPS from continuing operations
    
    $
    0.14
    
    
    $
    0.28
    
    
    $
    0.55
    
    
    $
    0.50Shares used in adjusted basic per share calculation
    
    
    90,459
    
    
    
    94,429
    
    
    
    93,029
    
    
    
    93,387Shares used in adjusted diluted per share calculation
    
    
    90,978
    
    
    
    95,879
    
    
    
    93,976
    
    
    
    95,114
 
 (a)
    
    Gain on litigation settlement in the twelve months ended December 31, 2006 relates to the
settlement of disclosed litigation with Milan Panic, $17.6 million and the Republic of Serbia,
$34.0 million.(b)
    
    Non-recurring professional fees relating to the investigation by the Special Committee into
stock option practices and the related restatement of financial statements.(c)
    
    Charges in the three months ended December 31, 2007 relate to the restructuring announced on
February 28, 2008. Charges in all periods up to June 30, 2007 relate to the restructuring announced
in April 2006.(d)
    
    Product impairment on two products sold in Spain.(e)
    
    Tax effect for non-GAAP adjustments, including tax benefits from U.S. net operating losses not
recognized for GAAP purposes, and reversal of the tax benefit of resolving the 1997  2001 IRS
examination.




---



##### 



Table 3
 Valeant Pharmaceuticals International
Reconciliation of Consolidated Income From Operations to Non-GAAP Adjusted
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA)
For the Three and Twelve Months Ended December 31, 2007 and 2006
 Three Months Ended
    
    
    Twelve Months EndedDecember 31,
    
    
    December 31,2007
    
    
    2006
    
    
    2007
    
    
    2006(Restated)
    
    
    
    
    
    
    (Restated)Consolidated income from operations (GAAP)
    
    $
    16,658
    
    
    $
    2,090
    
    
    $
    75,315
    
    
    $
    7,974Depreciation and amortization
    
    
    21,798
    
    
    
    20,996
    
    
    
    88,278
    
    
    
    86,667EBITDA (non-GAAP) (a)
    
    
    38,456
    
    
    
    23,086
    
    
    
    163,593
    
    
    
    94,641Other non-GAAP adjustments (b)
    
    
    9,601
    
    
    
    43,876
    
    
    
    23,806
    
    
    
    89,013Adjusted EBITDA (non-GAAP) (a)
    
    $
    48,057
    
    
    $
    66,962
    
    
    $
    187,399
    
    
    $
    183,654
 
 (a)
    
    We believe that EBITDA and Adjusted EBITDA are meaningful non-GAAP financial measures as
earnings-derived indicators of the cash flow generation ability of the company. We calculate
EBITDA by adding depreciation and amortization back to consolidated income from operations.
Adjusted EBITDA excludes the additional costs set forth in note (b) below. EBITDA and Adjusted
EBITDA, as defined and presented by us, may not be comparable to similar measures reported by other
companies.(b)
    
    See table 2 for explanation of non-GAAP adjustments.




---



##### 



Table 4
 Valeant Pharmaceuticals International
Supplemental Sales Information
For the Three and Twelve Months Ended December 31, 2007 and 2006
 Three Months Ended
    
    
    %
    
    
    Twelve Months Ended
    
    
    %December 31,
    
    
    Increase/
    
    
    December 31,
    
    
    Increase/2007
    
    
    2006
    
    
    (Decrease)
    
    
    2007
    
    
    2006
    
    
    (Decrease)(Restated)
    
    
    
    
    
    
    
    
    
    
    (Restated)NeurologyMestinon®(P)
    
    $
    14,641
    
    
    $
    14,046
    
    
    
    4
    %
    
    $
    53,012
    
    
    $
    47,625
    
    
    
    11
    %Diastat® AcuDial(P)
    
    
    12,130
    
    
    
    12,145
    
    
    
    0
    %
    
    
    51,264
    
    
    
    50,678
    
    
    
    1
    %Cesamet®(P)
    
    
    10,125
    
    
    
    5,153
    
    
    
    96
    %
    
    
    30,173
    
    
    
    18,985
    
    
    
    59
    %Librax®
    
    
    4,747
    
    
    
    3,909
    
    
    
    21
    %
    
    
    17,170
    
    
    
    14,835
    
    
    
    16
    %Migranal®(P)
    
    
    4,139
    
    
    
    4,643
    
    
    
    (11
    %)
    
    
    13,534
    
    
    
    11,592
    
    
    
    17
    %Dalmane®/Dalmadorm®(P)
    
    
    3,289
    
    
    
    3,415
    
    
    
    (4
    %)
    
    
    11,432
    
    
    
    10,957
    
    
    
    4
    %Tasmar®(P)
    
    
    3,195
    
    
    
    2,047
    
    
    
    56
    %
    
    
    10,262
    
    
    
    6,534
    
    
    
    57
    %Melleril(P)
    
    
    2,887
    
    
    
    2,115
    
    
    
    37
    %
    
    
    8,206
    
    
    
    6,431
    
    
    
    28
    %Zelapar® (P)
    
    
    2,346
    
    
    
    157
    
    
    
    1394
    %
    
    
    5,747
    
    
    
    3,981
    
    
    
    44
    %Other Neurology
    
    
    19,436
    
    
    
    16,734
    
    
    
    16
    %
    
    
    66,677
    
    
    
    63,033
    
    
    
    6
    %DermatologyEfudix/Efudex®(P)
    
    
    24,712
    
    
    
    32,287
    
    
    
    (23
    %)
    
    
    71,714
    
    
    
    78,336
    
    
    
    (8
    %)Kinerase®(P)
    
    
    7,890
    
    
    
    6,427
    
    
    
    23
    %
    
    
    30,126
    
    
    
    28,929
    
    
    
    4
    %Dermatix(P)
    
    
    3,659
    
    
    
    2,779
    
    
    
    32
    %
    
    
    14,043
    
    
    
    10,139
    
    
    
    39
    %Oxsoralen-Ultra®(P)
    
    
    3,408
    
    
    
    2,814
    
    
    
    21
    %
    
    
    12,377
    
    
    
    10,527
    
    
    
    18
    %Other Dermatology
    
    
    12,509
    
    
    
    11,542
    
    
    
    8
    %
    
    
    39,059
    
    
    
    42,023
    
    
    
    (7
    %)Infectious DiseaseVirazole®(P)
    
    
    3,335
    
    
    
    4,854
    
    
    
    (31
    %)
    
    
    14,350
    
    
    
    16,552
    
    
    
    (13
    %)Other Infectious Disease
    
    
    4,486
    
    
    
    6,084
    
    
    
    (26
    %)
    
    
    19,813
    
    
    
    20,144
    
    
    
    (2
    %)Other Therapeutic ClassesBedoyecta(P)
    
    
    11,342
    
    
    
    13,190
    
    
    
    (14
    %)
    
    
    42,384
    
    
    
    49,935
    
    
    
    (15
    %)Solcoseryl(P) (a)
    
    
    4,961
    
    
    
    6,034
    
    
    
    (18
    %)
    
    
    23,749
    
    
    
    18,916
    
    
    
    26
    %Bisocard(P)
    
    
    6,426
    
    
    
    4,405
    
    
    
    46
    %
    
    
    22,559
    
    
    
    15,927
    
    
    
    42
    %MVI (multi-vitamin infusion)(P)
    
    
    3,347
    
    
    
    4,016
    
    
    
    (17
    %)
    
    
    11,708
    
    
    
    13,350
    
    
    
    (12
    %)Nyal(P)
    
    
    1,966
    
    
    
    1,525
    
    
    
    29
    %
    
    
    11,060
    
    
    
    10,216
    
    
    
    8
    %Espaven(P)
    
    
    2,524
    
    
    
    3,568
    
    
    
    (29
    %)
    
    
    8,458
    
    
    
    11,147
    
    
    
    (24
    %)Protamin(P)
    
    
    1,973
    
    
    
    1,663
    
    
    
    19
    %
    
    
    6,924
    
    
    
    6,384
    
    
    
    8
    %Other Pharmaceutical Products (a)
    
    
    53,801
    
    
    
    62,109
    
    
    
    (13
    %)
    
    
    189,969
    
    
    
    214,386
    
    
    
    (11
    %)Total product sales
    
    $
    223,274
    
    
    $
    227,661
    
    
    
    (2
    %)
    
    $
    785,770
    
    
    $
    781,562
    
    
    
    1
    %Total promoted product sales(P)
    
    $
    128,295
    
    
    $
    127,283
    
    
    
    1
    %
    
    $
    453,082
    
    
    $
    427,141
    
    
    
    6
    %
 
 (P)
    
    Promoted products represent promoted products with annual sales greater than $5 million.(a)
    
    Product sales for the three and twelve months ended December 31, 2007 include $0 and $4.1
million respectively, for products (Reptilase, Solcoseryl in Japan and opthalmic business in
Netherlands) which have been divested in 2007, compared to $5.3 million and $15.4 million for the
same periods in 2006.




---



##### 



Table 5
 Valeant Pharmaceuticals International
Consolidated Condensed Statement of Revenue and Operating Income  Regional
For the Three and Twelve Months Ended December 31, 2007 and 2006
 Three Months Ended
    
    
    
    
    
    
    Twelve Months EndedDecember 31,
    
    
    
    
    
    
    December 31,Revenues
    
    2007
    
    
    2006
    
    
    % Change
    
    
    2007
    
    
    2006
    
    
    % Change(Restated)
    
    
    
    
    
    
    
    
    
    
    (Restated)North America
    
    $
    80,166
    
    
    $
    79,156
    
    
    
    1
    %
    
    $
    276,671
    
    
    $
    264,393
    
    
    
    5
    %International
    
    
    55,917
    
    
    
    70,181
    
    
    
    -20
    %
    
    
    201,310
    
    
    
    239,597
    
    
    
    -16
    %EMEA
    
    
    87,191
    
    
    
    78,324
    
    
    
    11
    %
    
    
    307,789
    
    
    
    277,572
    
    
    
    11
    %Total specialty pharmaceuticals
    
    
    223,274
    
    
    
    227,661
    
    
    
    -2
    %
    
    
    785,770
    
    
    
    781,562
    
    
    
    1
    %Alliance revenue (including ribavirin royalties) (a)
    
    
    16,949
    
    
    
    20,548
    
    
    
    -18
    %
    
    
    86,452
    
    
    
    81,242
    
    
    
    6
    %Consolidated revenues
    
    $
    240,223
    
    
    $
    248,209
    
    
    
    -3
    %
    
    $
    872,222
    
    
    $
    862,804
    
    
    
    1
    %Cost of goods sold
    
    $
    70,715
    
    
    $
    64,337
    
    
    
    10
    %
    
    $
    233,094
    
    
    $
    238,141
    
    
    
    -2
    %Gross profit margin on pharmaceutical sales
    
    
    68
    %
    
    
    72
    %
    
    
    
    
    
    
    70
    %
    
    
    70
    %Three Months Ended
    
    
    
    
    
    
    Twelve Months EndedDecember 31,
    
    
    
    
    
    
    December 31,Income from Operations
    
    2007
    
    
    2006
    
    
    % Change
    
    
    2007
    
    
    2006
    
    
    % Change(Restated)
    
    
    
    
    
    
    
    
    
    
    (Restated)North America
    
    $
    35,921
    
    
    $
    39,046
    
    
    
    -8
    %
    
    $
    100,855
    
    
    $
    90,359
    
    
    
    12
    %International
    
    
    12,849
    
    
    
    21,777
    
    
    
    -41
    %
    
    
    34,189
    
    
    
    71,697
    
    
    
    -52
    %EMEA
    
    
    9,450
    
    
    
    17,916
    
    
    
    -47
    %
    
    
    55,700
    
    
    
    45,822
    
    
    
    22
    %58,220
    
    
    
    78,739
    
    
    
    -26
    %
    
    
    190,744
    
    
    
    207,878
    
    
    
    -8
    %Corporate expenses
    
    $
    (19,195
    )
    
    $
    (20,333
    )
    
    
    -6
    %
    
    $
    (75,525
    )
    
    $
    (75,382
    )
    
    
    0
    %Total specialty pharmaceuticals
    
    
    39,025
    
    
    
    58,406
    
    
    
    -33
    %
    
    
    115,219
    
    
    
    132,496
    
    
    
    -13
    %Restructuring charges
    
    
    (9,601
    )
    
    
    (41,494
    )
    
    
    -77
    %
    
    
    (23,176
    )
    
    
    (138,181
    )
    
    
    -83
    %Gain on litigation settlement
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51,550
    
    
    
    -100
    %Research and development costs
    
    
    (12,766
    )
    
    
    (14,822
    )
    
    
    -14
    %
    
    
    (16,728
    )
    
    
    (37,891
    )
    
    
    -56
    %Total consolidated income from operations
    
    $
    16,658
    
    
    $
    2,090
    
    
    
    
    
    
    $
    75,315
    
    
    $
    7,974
 Three Months Ended
    
    
    
    
    
    
    Twelve Months EndedDecember 31,
    
    
    
    
    
    
    December 31,Gross Profit
    
    2007
    
    
    %
    
    
    2006
    
    
    %
    
    
    2007
    
    
    %
    
    
    2006
    
    
    %(Restated)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (Restated)North America
    
    $
    67,177
    
    
    
    84
    %
    
    $
    66,958
    
    
    
    85
    %
    
    $
    232,654
    
    
    
    84
    %
    
    $
    220,834
    
    
    
    84
    %International
    
    
    37,199
    
    
    
    67
    %
    
    
    47,059
    
    
    
    67
    %
    
    
    133,656
    
    
    
    66
    %
    
    
    161,970
    
    
    
    68
    %EMEA
    
    
    48,183
    
    
    
    55
    %
    
    
    49,307
    
    
    
    63
    %
    
    
    186,366
    
    
    
    61
    %
    
    
    160,617
    
    
    
    58
    %Total specialty pharmaceuticals
    
    $
    152,559
    
    
    
    68
    %
    
    $
    163,324
    
    
    
    72
    %
    
    $
    552,676
    
    
    
    70
    %
    
    $
    543,421
    
    
    
    70
    %
 
 (a)
    
    Alliance revenue for the three months ended December 31, 2007 relates to ribavirin royalty
of $16.9 million. Alliance revenue for the twelve months ended December 31, 2007 includes
ribavirin royalties of $67.3 million and a $19.2 million milestone payment received from
Schering-Plough related to the out-licensing of pradefovir.




---



##### 



Table 6
 Valeant Pharmaceuticals International
Consolidated Balance Sheet and Other Data
 December 31,
    
    
    December 31,Balance Sheet Data
    
    2007
    
    
    2006(Restated)Cash and cash equivalents
    
    $
    309,365
    
    
    $
    325,376Marketable securities
    
    
    52,122
    
    
    
    10,370Total cash and marketable securities
    
    $
    361,487
    
    
    $
    335,746Accounts receivable, net
    
    $
    191,796
    
    
    $
    227,151Inventory, net
    
    
    115,177
    
    
    
    130,747Long-term debt
    
    
    782,552
    
    
    
    778,196
 Twelve Months EndedDecember 31,Other Data
    
    2007
    
    
    2006(Restated)Cash flow provided by (used in) continuing operationsOperating activities
    
    $
    121,870
    
    
    $
    127,053Investing activities
    
    
    (34,207
    )
    
    
    (34,101
    )Financing activities
    
    
    (127,598
    )
    
    
    (6,998
    )Effect of exchange rate changes on cash and cash equivalents
    
    
    23,924
    
    
    
    15,128Net increase (decrease) in cash and cash equivalents
    
    
    (16,011
    )
    
    
    101,082Net increase (decrease) in marketable securities
    
    
    41,752
    
    
    
    (403
    )Net increase in cash and marketable securities
    
    $
    25,741
    
    
    $
    100,679
 Three Months Ended
    
    
    Twelve Months EndedDecember 31,
    
    
    December 31,Stock-Based Compensation
    
    2007
    
    
    2006
    
    
    2007
    
    
    2006(Restated)
    
    
    
    
    
    
    (Restated)Cost of goods sold
    
    $
    92
    
    
    $
    230
    
    
    $
    596
    
    
    $
    1,256Selling expenses
    
    
    437
    
    
    
    1,055
    
    
    
    3,097
    
    
    
    3,390General and administrative expenses
    
    
    1,776
    
    
    
    2,945
    
    
    
    8,708
    
    
    
    13,697Research and development costs
    
    
    186
    
    
    
    389
    
    
    
    819
    
    
    
    2,505Total
    
    $
    2,491
    
    
    $
    4,619
    
    
    $
    13,220
    
    
    $
    20,848




---



##### 



Table 7
 Valeant Pharmaceuticals International
Supplemental Non-GAAP Information on Currency Effect
 Three Months Ended
    
    
    Twelve Months EndedDecember 31,
    
    
    December 31,2007
    
    
    2006
    
    
    2007
    
    
    2006(Restated)
    
    
    
    
    
    
    (Restated)ConsolidatedProduct sales
    
    $
    223,274
    
    
    $
    227,661
    
    
    $
    785,770
    
    
    $
    781,562Currency effect
    
    
    (13,459
    )
    
    
    
    
    
    
    (34,033
    )Product sales, excluding currency impact
    
    $
    209,815
    
    
    
    
    
    
    $
    751,737Operating income
    
    $
    16,658
    
    
    $
    2,090
    
    
    $
    75,315
    
    
    $
    7,974Currency effect
    
    
    (2,284
    )
    
    
    
    
    
    
    (4,696
    )Operating income, excluding currency impact
    
    $
    14,374
    
    
    
    
    
    
    $
    70,619Geographic Product SalesNorth America pharmaceuticals
    
    $
    80,166
    
    
    $
    79,156
    
    
    $
    276,671
    
    
    $
    264,393Currency effect
    
    
    (2,059
    )
    
    
    
    
    
    
    (3,068
    )North America pharmaceuticals, excluding currency impact
    
    $
    78,107
    
    
    
    
    
    
    $
    273,603International pharmaceuticals
    
    $
    55,917
    
    
    $
    70,181
    
    
    $
    201,310
    
    
    $
    239,597Currency effect
    
    
    (2,118
    )
    
    
    
    
    
    
    (5,222
    )International pharmaceuticals, excluding currency impact
    
    $
    53,799
    
    
    
    
    
    
    $
    196,088EMEA pharmaceuticals
    
    $
    87,191
    
    
    $
    78,324
    
    
    $
    307,789
    
    
    $
    277,572Currency effect
    
    
    (9,282
    )
    
    
    
    
    
    
    (25,743
    )EMEA pharmaceuticals, excluding currency impact
    
    $
    77,909
    
    
    
    
    
    
    $
    282,046




---



##### 



Table 8
 Valeant Pharmaceuticals International
Discontinued Operations with Infergen
Summarized Financial Information
For the Three and Twelve Months Ended December 31, 2007 and 2006
 Three Months Ended
    
    
    Twelve Months EndedDecember 31,
    
    
    December 31,2007
    
    
    2006
    
    
    2007
    
    
    2006Infergen:Product sales
    
    $
    5,126
    
    
    $
    8,568
    
    
    $
    32,085
    
    
    $
    42,716Costs and expenses:Cost of goods sold (a)
    
    
    10,374
    
    
    
    7,978
    
    
    
    24,897
    
    
    
    18,838Selling expenses
    
    
    5,983
    
    
    
    5,203
    
    
    
    25,602
    
    
    
    20,077General and administrative expenses
    
    
    326
    
    
    
    74
    
    
    
    1,693
    
    
    
    1,315Research and development costs
    
    
    1,197
    
    
    
    905
    
    
    
    6,476
    
    
    
    4,176Amortization expense
    
    
    
    
    
    
    1,650
    
    
    
    4,950
    
    
    
    6,600Total costs and expenses
    
    
    17,880
    
    
    
    15,810
    
    
    
    63,618
    
    
    
    51,006Loss from discontinued operations, Infergen
    
    
    (12,754
    )
    
    
    (7,242
    )
    
    
    (31,533
    )
    
    
    (8,290
    )Other discontinued operations:Other income (loss)
    
    
    
    
    
    
    (649
    )
    
    
    
    
    
    
    5,089Consolidated discontinued operations:Loss from discontinued operations
    
    
    (12,754
    )
    
    
    (7,891
    )
    
    
    (31,533
    )
    
    
    (3,201
    )Benefit for income taxes
    
    
    229
    
    
    
    (36
    )
    
    
    (2
    )
    
    
    (45
    )Discontinued operations, net
    
    
    (12,983
    )
    
    
    (7,855
    )
    
    
    (31,531
    )
    
    
    (3,156
    )Disposal of discontinued operation, net
    
    
    (278
    )
    
    
    1,007
    
    
    
    (709
    )
    
    
    2,405Loss from discontinued operations, net
    
    $
    (13,261
    )
    
    $
    (6,848
    )
    
    $
    (32,240
    )
    
    $
    (751
    )
 
 (a)
    
    The twelve months ended December 31, 2007 include a technology transfer payment of $5.3
million.




---



##### 



Supplementary Table
 Valeant Pharmaceuticals International
Comparison of Results with Results Disclosed on February 28, 2008
For the Three and Twelve Months Ended 2006 and 2007
 Three Months Ended
    
    
    
    
    
    
    
    
    
    
    
    Twelve Months EndedDecember 31,
    
    
    
    December 31,(In thousands, except per share data)
    
    2007
    
    
    2006
    
    
    
    2007
    
    
    2006(Restated)
    
    
    
    
    
    
    
    
    
    
    
    (Restated)GAAP
    
    
    Non-GAAP
    
    
    GAAP
    
    
    Non-GAAP
    
    
    
    GAAP
    
    
    Non-GAAP
    
    
    GAAP
    
    
    Non-GAAPAdjusted Income (loss) from continuing
operations as previously disclosed on
February 28, 2008
    
    $
    (6,886
    )
    
    $
    13,625
    
    
    $
    (14,935
    )
    
    $
    27,466
    
    
    
    $
    25,092
    
    
    $
    51,331
    
    
    $
    (55,814
    )
    
    $
    47,976Adjustments to income (loss) from
continuing operations:Returns reserve and credit memos in
Latin America (1)
    
    
    1,392
    
    
    
    1,392
    
    
    
    (780
    )
    
    
    (780
    )
    
    
    
    272
    
    
    
    272
    
    
    
    (1,554
    )
    
    
    (1,554
    )Reversal of revenue in Italy (2)
    
    
    1,840
    
    
    
    1,840
    
    
    
    50
    
    
    
    50
    
    
    
    
    290
    
    
    
    290
    
    
    
    (290
    )
    
    
    (290
    )Cost of goods bookkeeping in the UK and
France (3)
    
    
    (4,912
    )
    
    
    (4,912
    )
    
    
    
    
    
    
    
    
    
    
    
    (202
    )
    
    
    (202
    )
    
    
    
    
    
    
    European pension accounting (4)
    
    
    (3
    )
    
    
    (3
    )
    
    
    323
    
    
    
    323
    
    
    
    
    (282
    )
    
    
    (282
    )
    
    
    1,401
    
    
    
    1,401Others (5)
    
    
    930
    
    
    
    930
    
    
    
    
    
    
    
    
    
    
    
    
    930
    
    
    
    930
    
    
    
    
    
    
    
    Tax effect on above (6)
    
    
    (334
    )
    
    
    (667
    )
    
    
    120
    
    
    
    886
    
    
    
    
    (947
    )
    
    
    (1,213
    )
    
    
    204
    
    
    
    897Other deferred tax items (7)
    
    
    901
    
    
    
    901
    
    
    
    (764
    )
    
    
    (764
    )
    
    
    
    901
    
    
    
    901
    
    
    
    (764
    )
    
    
    (764
    )Adjusted income (loss) from continuing
operations
    
    $
    (7,072
    )
    
    $
    13,106
    
    
    $
    (15,986
    )
    
    $
    27,181
    
    
    
    $
    26,054
    
    
    $
    52,027
    
    
    $
    (56,817
    )
    
    $
    47,666Adjusted diluted EPS from continuing
operations as previously disclosed on
February 28, 2008
    
    $
    (0.08
    )
    
    $
    0.15
    
    
    $
    (0.16
    )
    
    $
    0.29
    
    
    
    $
    0.27
    
    
    $
    0.55
    
    
    $
    (0.60
    )
    
    $
    0.50Adjusted diluted EPS from continuing
operations
    
    $
    (0.08
    )
    
    $
    0.14
    
    
    $
    (0.17
    )
    
    $
    0.28
    
    
    
    $
    0.28
    
    
    $
    0.55
    
    
    $
    (0.61
    )
    
    $
    0.50Shares used in adjusted diluted per
share calculation
    
    
    90,459
    
    
    
    90,978
    
    
    
    94,429
    
    
    
    95,879
    
    
    
    
    93,976
    
    
    
    93,976
    
    
    
    93,387
    
    
    
    95,114
 
 (1)
    
    Increase in reserves for anticipated product returns based on historical trends and for
certain credit memos in Latin America.(2)
    
    Decrease in revenues associated with sales to certain customers in Italy where preexisting
rights of return became known in the fourth quarter of 2007.(3)
    
    Decrease in costs of goods sold related to bookkeeping errors in recording inventory costing
and manufacturing variances in the UK and France.(4)
    
    Changes in pension expense in the UK, Netherlands, Switzerland and Germany resulting from
incorrect application of Statement of Financial Accounting Standards No. 87, Employers Accounting
for Pensions and Statement of Financial Accounting Standards No. 158, Employers Accounting for Defined Benefit
Pension and Other Postretirement Plans.(5)
    
    Amendment of certain accounting reserves to reflect new information available after the balance
sheet date.(6)
    
    Changes in income tax expense resulting from the income tax effects of the pre-tax adjustments
described in (1)-(5) above.(7)
    
    Increase in income tax expense due to correction of deferred income taxes in certain foreign
locations.