Exhibit 99.1
 Unaudited Pro Forma Condensed Consolidated Financial Statements of Valeant Pharmaceuticals
International




---



##### 



Valeant Pharmaceuticals International
Unaudited Pro Forma Condensed Consolidated Balance Sheet
As of June 30, 2008
 WEEMEA
    
    
    Pro FormaAs Reported
    
    
    Business
    
    
    Adjustments
    
    
    Pro Forma(a)ASSETSCurrent Assets:Cash and cash equivalents
    
    $
    466,300
    
    
    $
    127,263
    
    
    $
    428,432
    (b)
    
    $
    767,469Marketable securities
    
    
    83,684
    
    
    
    1,011
    
    
    
    
    
    
    
    82,673Accounts receivable, net
    
    
    169,143
    
    
    
    44,276
    
    
    
    
    
    
    
    124,867Inventories, net
    
    
    119,185
    
    
    
    35,783
    
    
    
    
    
    
    
    83,402Prepaid expenses and other current assets
    
    
    19,594
    
    
    
    2,699
    
    
    
    
    
    
    
    16,895Current deferred tax assets, net
    
    
    12,655
    
    
    
    946
    
    
    
    
    
    
    
    11,709Income taxes
    
    
    13,753
    
    
    
    808
    
    
    
    
    
    
    
    12,945Total current assets
    
    
    884,314
    
    
    
    212,786
    
    
    
    428,432
    
    
    
    1,099,960Property, plant and equipment, net
    
    
    123,518
    
    
    
    7,805
    
    
    
    
    
    
    
    115,713Deferred tax assets, net
    
    
    91,845
    
    
    
    5,211
    
    
    
    
    
    
    
    86,634Goodwill
    
    
    73,138
    
    
    
    
    
    
    
    
    
    
    
    73,138Intangible assets, net
    
    
    376,484
    
    
    
    141,092
    
    
    
    
    
    
    
    235,392Other assets
    
    
    42,223
    
    
    
    2,603
    
    
    
    
    
    
    
    39,620Total non-current assets
    
    
    707,208
    
    
    
    156,711
    
    
    
    
    
    
    
    550,497$
    1,591,522
    
    
    $
    369,497
    
    
    $
    428,432
    
    
    $
    1,650,457LIABILITIES AND STOCKHOLDERS EQUITYCurrent Liabilities:Trade payables
    
    $
    54,178
    
    
    $
    14,378
    
    
    $
    
    
    
    $
    39,800Accrued liabilities
    
    
    151,626
    
    
    
    31,012
    
    
    
    12,903
    (c)
    
    
    133,517Other current liabilities
    
    
    10,645
    
    
    
    
    
    
    
    49,310
    (d)
    
    
    59,955Current deferred tax liabilities, net
    
    
    50,766
    
    
    
    
    
    
    
    
    
    
    
    50,766Current liabilities for uncertain tax positions
    
    
    8,965
    
    
    
    
    
    
    
    
    
    
    
    8,965Total current liabilities
    
    
    276,180
    
    
    
    45,390
    
    
    
    62,213
    
    
    
    293,003Long-term debt, less current portion
    
    
    780,963
    
    
    
    
    
    
    
    
    
    
    
    780,963Deferred tax liabilities, net
    
    
    10,472
    
    
    
    
    
    
    
    
    
    
    
    10,472Liabilities for uncertain tax positions
    
    
    60,319
    
    
    
    
    
    
    
    
    
    
    
    60,319Other liabilities
    
    
    26,545
    
    
    
    1,289
    
    
    
    
    
    
    
    25,256Total non-current liabilities
    
    
    878,299
    
    
    
    1,289
    
    
    
    
    
    
    
    877,010Total liabilities
    
    
    1,154,479
    
    
    
    46,679
    
    
    
    62,213
    
    
    
    1,170,013Commitments and contingenciesStockholders Equity:Common stock
    
    
    895
    
    
    
    
    
    
    
    
    
    
    
    895Additional capital
    
    
    1,208,840
    
    
    
    
    
    
    
    
    
    
    
    1,208,840Accumulated deficit
    
    
    (924,713
    )
    
    
    
    
    
    
    86,372
    (e)
    
    
    (838,341
    )Accumulated other comprehensive income
    
    
    152,021
    
    
    
    42,971
    
    
    
    
    
    
    
    109,050Total stockholders equity
    
    
    437,043
    
    
    
    42,971
    
    
    
    86,372
    
    
    
    480,444$
    1,591,522
    
    
    $
    89,650
    
    
    $
    148,585
    
    
    $
    1,650,457
  2




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##### 



Valeant Pharmaceuticals International
Unaudited Pro Forma Condensed Consolidated Statements of Operations
For the Years Ended December 31, 2007, 2006 and 2005
 Year Ended December 31, 2007
    
    
    Year Ended December 31, 2006
    
    
    Year Ended December 31, 2005WEEMEA
    
    
    
    
    
    
    
    
    
    
    WEEMEA
    
    
    
    
    
    
    
    
    
    
    WEEMEAAs Reported
    
    
    Business
    
    
    Pro Forma
    
    
    As Reported
    
    
    Business
    
    
    Pro Forma
    
    
    As Reported
    
    
    Business
    
    
    Pro Forma(f)
    
    
    
    
    
    
    
    
    
    
    (f)
    
    
    
    
    
    
    
    
    
    
    (f)Revenues:Product sales
    
    $
    785,770
    
    
    $
    175,690
    
    
    $
    610,080
    
    
    $
    781,562
    
    
    $
    171,511
    
    
    $
    610,051
    
    
    $
    731,869
    
    
    $
    179,386
    
    
    $
    552,483Alliance revenue (including ribavirin royalties)
    
    
    86,452
    
    
    
    
    
    
    
    86,452
    
    
    
    81,242
    
    
    
    
    
    
    
    81,242
    
    
    
    91,646
    
    
    
    
    
    
    
    91,646Total revenues
    
    
    872,222
    
    
    
    175,690
    
    
    
    696,532
    
    
    
    862,804
    
    
    
    171,511
    
    
    
    691,293
    
    
    
    823,515
    
    
    
    179,386
    
    
    
    644,129Costs and expenses:Cost of goods sold (excluding amortization)
    
    
    233,094
    
    
    
    71,153
    
    
    
    161,941
    
    
    
    238,141
    
    
    
    76,376
    
    
    
    161,765
    
    
    
    222,358
    
    
    
    74,427
    
    
    
    147,931Selling expenses
    
    
    259,324
    
    
    
    65,514
    
    
    
    193,810
    
    
    
    244,757
    
    
    
    62,102
    
    
    
    182,655
    
    
    
    232,316
    
    
    
    70,247
    
    
    
    162,069General and administrative expenses
    
    
    111,721
    
    
    
    11,980
    
    
    
    99,741
    
    
    
    114,583
    
    
    
    12,047
    
    
    
    102,536
    
    
    
    108,508
    
    
    
    14,455
    
    
    
    94,053Research and development costs
    
    
    98,025
    
    
    
    35
    
    
    
    97,990
    
    
    
    105,442
    
    
    
    (43
    )
    
    
    105,485
    
    
    
    114,100
    
    
    
    330
    
    
    
    113,770Acquired in-process research and development
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    126,399
    
    
    
    
    
    
    
    126,399Gain on litigation settlements
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (51,550
    )
    
    
    
    
    
    
    (51,550
    )
    
    
    
    
    
    
    
    
    
    
    Restructuring, asset impairments and dispositions
    
    
    23,176
    
    
    
    (4,499
    )
    
    
    27,675
    
    
    
    138,181
    
    
    
    49,565
    
    
    
    88,616
    
    
    
    1,253
    
    
    
    
    
    
    
    1,253Amortization expense
    
    
    71,567
    
    
    
    15,581
    
    
    
    55,986
    
    
    
    65,276
    
    
    
    13,980
    
    
    
    51,296
    
    
    
    68,832
    
    
    
    19,497
    
    
    
    49,335Total costs and expenses
    
    
    796,907
    
    
    
    159,764
    
    
    
    637,143
    
    
    
    854,830
    
    
    
    214,027
    
    
    
    640,803
    
    
    
    873,766
    
    
    
    178,956
    
    
    
    694,810Income (loss) from operations
    
    
    75,315
    
    
    
    15,926
    
    
    
    59,389
    
    
    
    7,974
    
    
    
    (42,516
    )
    
    
    50,490
    
    
    
    (50,251
    )
    
    
    430
    
    
    
    (50,681
    )Other income (loss), net including translation and exchange
    
    
    1,060
    
    
    
    (599
    )
    
    
    1,659
    
    
    
    1,152
    
    
    
    386
    
    
    
    766
    
    
    
    (6,358
    )
    
    
    (4,365
    )
    
    
    (1,993
    )Interest income
    
    
    17,792
    
    
    
    209
    
    
    
    17,583
    
    
    
    12,610
    
    
    
    244
    
    
    
    12,366
    
    
    
    13,169
    
    
    
    205
    
    
    
    12,964Interest expense
    
    
    (42,878
    )
    
    
    44
    
    
    
    (42,922
    )
    
    
    (43,726
    )
    
    
    (257
    )
    
    
    (43,469
    )
    
    
    (40,326
    )
    
    
    (280
    )
    
    
    (40,046
    )Income (loss) from continuing operations before income
taxes and minority interest
    
    
    51,289
    
    
    
    15,580
    
    
    
    35,709
    
    
    
    (21,990
    )
    
    
    (42,143
    )
    
    
    20,153
    
    
    
    (83,766
    )
    
    
    (4,010
    )
    
    
    (79,756
    )Provision for income taxes
    
    
    25,233
    
    
    
    11,149
    
    
    
    14,084
    
    
    
    34,824
    
    
    
    (2,196
    )
    
    
    37,020
    
    
    
    55,073
    
    
    
    (11,824
    )
    
    
    66,897Minority interest, net
    
    
    2
    
    
    
    
    
    
    
    2
    
    
    
    3
    
    
    
    
    
    
    
    3
    
    
    
    287
    
    
    
    
    
    
    
    287Income (loss) from continuing operations
    
    $
    26,054
    
    
    $
    4,431
    
    
    $
    21,623
    
    
    $
    (56,817
    )
    
    $
    (39,947
    )
    
    $
    (16,870
    )
    
    $
    (139,126
    )
    
    $
    7,814
    
    
    $
    (146,940
    )Income (loss) per share from continuing operations:Basic
    
    $
    0.28
    
    
    
    
    
    
    $
    0.23
    
    
    $
    (0.61
    )
    
    
    
    
    
    $
    (0.18
    )
    
    $
    (1.52
    )
    
    
    
    
    
    $
    (1.60
    )Diluted
    
    $
    0.28
    
    
    
    
    
    
    $
    0.23
    
    
    $
    (0.61
    )
    
    
    
    
    
    $
    (0.18
    )
    
    $
    (1.52
    )
    
    
    
    
    
    $
    (1.60
    )Shares used in per share computations:Basic
    
    
    93,029
    
    
    
    
    
    
    
    93,029
    
    
    
    93,387
    
    
    
    
    
    
    
    93,387
    
    
    
    91,797
    
    
    
    
    
    
    
    91,797Diluted
    
    
    93,976
    
    
    
    
    
    
    
    93,976
    
    
    
    93,387
    
    
    
    
    
    
    
    93,387
    
    
    
    91,797
    
    
    
    
    
    
    
    91,797
  3




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##### 



Valeant Pharmaceuticals International
Unaudited Pro Forma Condensed Consolidated Statements of Operations
For the Six Months Ended June 30, 2008 and 2007
 Six Months Ended June 30, 2008
    
    
    Six Months Ended June 30, 2007WEEMEA
    
    
    
    
    
    
    
    
    
    
    WEEMEAAs Reported
    
    
    Business
    
    
    Pro Forma
    
    
    As Reported
    
    
    Business
    
    
    Pro Forma(f)
    
    
    
    
    
    
    
    
    
    
    (f)Revenues:Product sales
    
    $
    373,871
    
    
    $
    91,151
    
    
    $
    282,720
    
    
    $
    369,520
    
    
    $
    85,397
    
    
    $
    284,123Alliance revenue (including ribavirin
royalties)
    
    
    27,578
    
    
    
    
    
    
    
    27,578
    
    
    
    55,425
    
    
    
    
    
    
    
    55,425Total revenues
    
    
    401,449
    
    
    
    91,151
    
    
    
    310,298
    
    
    
    424,945
    
    
    
    85,397
    
    
    
    339,548Costs and expenses:Cost of goods sold (excluding amortization)
    
    
    124,369
    
    
    
    39,604
    
    
    
    84,765
    
    
    
    104,515
    
    
    
    32,143
    
    
    
    72,372Selling expenses
    
    
    123,396
    
    
    
    34,154
    
    
    
    89,242
    
    
    
    126,085
    
    
    
    29,524
    
    
    
    96,561General and administrative expenses
    
    
    67,588
    
    
    
    16,018
    
    
    
    51,570
    
    
    
    54,858
    
    
    
    3,609
    
    
    
    51,249Research and development costs
    
    
    52,084
    
    
    
    257
    
    
    
    51,827
    
    
    
    43,727
    
    
    
    41
    
    
    
    43,686Restructuring, asset impairments and
dispositions
    
    
    4,919
    
    
    
    4,474
    
    
    
    445
    
    
    
    13,575
    
    
    
    (4,499
    )
    
    
    18,074Amortization expense
    
    
    36,178
    
    
    
    10,051
    
    
    
    26,127
    
    
    
    36,147
    
    
    
    7,624
    
    
    
    28,523Total costs and expenses
    
    
    408,534
    
    
    
    104,558
    
    
    
    303,976
    
    
    
    378,907
    
    
    
    68,442
    
    
    
    310,465Income (loss) from operations
    
    
    (7,085
    )
    
    
    (13,407
    )
    
    
    6,322
    
    
    
    46,038
    
    
    
    16,955
    
    
    
    29,083Other income (loss), net including
translation and exchange
    
    
    (3,389
    )
    
    
    (1,560
    )
    
    
    (1,829
    )
    
    
    2,818
    
    
    
    (572
    )
    
    
    3,390Interest income
    
    
    10,305
    
    
    
    345
    
    
    
    9,960
    
    
    
    9,280
    
    
    
    77
    
    
    
    9,203Interest expense
    
    
    (19,353
    )
    
    
    (23
    )
    
    
    (19,330
    )
    
    
    (21,834
    )
    
    
    (8
    )
    
    
    (21,826
    )Income (loss) from continuing operations
before income
taxes and minority interest
    
    
    (19,522
    )
    
    
    (14,645
    )
    
    
    (4,877
    )
    
    
    36,302
    
    
    
    16,452
    
    
    
    19,850Provision (benefit) for income taxes
    
    
    54,501
    
    
    
    15,950
    
    
    
    38,551
    
    
    
    899
    
    
    
    1,513
    
    
    
    (614
    )Minority interest, net
    
    
    4
    
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    Income (loss) from continuing
operations
    
    $
    (74,027
    )
    
    $
    (30,595
    )
    
    $
    (43,432
    )
    
    $
    35,403
    
    
    $
    14,939
    
    
    $
    20,464Income (loss) per share from continuing
operations:Basic
    
    $
    (0.83
    )
    
    
    
    
    
    $
    (0.48
    )
    
    $
    0.37
    
    
    
    
    
    
    $
    0.22Diluted
    
    $
    (0.83
    )
    
    
    
    
    
    $
    (0.48
    )
    
    $
    0.37
    
    
    
    
    
    
    $
    0.21Shares used in per share computations:Basic
    
    
    89,696
    
    
    
    
    
    
    
    89,696
    
    
    
    94,911
    
    
    
    
    
    
    
    94,911Diluted
    
    
    89,696
    
    
    
    
    
    
    
    89,696
    
    
    
    96,090
    
    
    
    
    
    
    
    96,090
  4




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##### 



Valeant Pharmaceuticals International
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements
 
 (a)
    
    Reflects the removal of the assets, liabilities and equity of the WEEMEA Business as of
June 30, 2008.(b)
    
    Reflects the receipt of cash proceeds of $428,432 from the sale of the WEEMEA Business,
before application of any post-closing adjustments that are not yet estimable.(c)
    
    Reflects the estimated transaction-related fees payable incurred in connection with the
sale of the WEEMEA Business.(d)
    
    Reflects estimated taxes payable associated with the gain on sale of the WEEMEA
Business.(e)
    
    Reflects the estimated gain on the sale of the WEEMEA Business, net of
transaction-related fees and taxes, as follows:
 Cash proceeds
    
    $
    428,432Less:Net assets of the WEEMEA Business
    
    
    279,847Estimated transaction-related fees
    
    
    12,903Estimated taxes on gain
    
    
    49,310Estimated gain on sale, after transaction-related
fees and net of tax
    
    $
    86,372
 (f)
    
    Reflects the removal of the results of operations of the WEEMEA Business for the years
ended December 31, 2007, 2006 and 2005, and for the six months ended June 30, 2008 and
2007.
 5