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| Large      accelerated filer | Accelerated      filer | Non-accelerated      filer [X] | Smaller      reporting company |
|------------------------------|------------------------|--------------------------------|--------------------------------|

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|        TABLE      OF CONTENTS |
|------------------------------------|
|                               |   |          |
| Part I                             |   | 5 |
|                               |   | 5 |
| Item 1.                            | Business | 5 |
| Item 1a.                           | Risk Factors | 23 |
| Item 1b.                           | Unresolved Staff Comments | 44 |
| Item 2.                            | Properties | 44 |
| Item 3.                            | Legal Proceedings | 44 |
| Item 4.                            | Submission Of Matters To A Vote Of Security      Holders | 45 |
|                               |   |   |
| Part II                            |   | 46 |
|                               |   |   |
| Item 5.                            | Market For Registrant’s Common Equity, Related      Stockholder Matters And Issuer Purchases Of Equity      Securities | 46 |
| Item 6.                            | Selected Financial Data | 47 |
| Item 7.                            | Management’s Discussion And Analysis Of Financial      Condition And Results Of Operations | 50 |
| Item 7a.                           | Quantitative And Qualitative Disclosures About      Market Risk | 76 |
| Item 8.                            | Financial Statements And Supplementary      Data | 77 |
| Item 9.                            | Changes In And Disagreements With Accountants On      Accounting And Financial Disclosure | 125 |
| Item 9a(T).                        | Controls And Procedures | 125 |
| Item 9b.                           | Other Information | 125 |
|                               |   |   |
| Part III                           |   | 126 |
|                               |   |   |
| Item 10.                           |  Directors, Executive Officers And Corporate      Governance | 126 |
| Item 11.                           |  ExecutiveCompensation | 129 |
| Item 12.                           | Security Ownership Of Certain Beneficial Owners      And Management And Related Stockholder Matters | 147 |
| Item 13.                           | Certain Relationships And Related      Transactions,  And Director Independence | 149 |
| Item 14.                           | Principal Accounting Fees And      Services | 150 |
|                               |   |   |
| Part IV                            |   | 151 |
|                               |   |   |
| Item 15.                           | Exhibits And Financial Statement      Schedules | 151 |
|                               | Signatures | 152 |

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|   | · | our ability to market,      commercialize and achieve market acceptance for any of the products that      we are developing, commercializing or may develop or commercialize in the      future, including the growth, establishment or acquisition of specialty      sales, marketing and distribution capabilities to commercialize      products; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the expected timing, costs,      progress or success of any of our preclinical and clinical development      programs, regulatory approvals, or commercialization      efforts; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | delays in obtaining, or a      failure to obtain and maintain, regulatory approval for our product      candidates, including, but not limited to, our pancreatic enzyme products      in the United States; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our ability to continue to      successfully manufacture and commercialize our existing      products; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | the potential advantages of      our products or product candidates over other existing or potential      products; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

|   | · | our ability to enter into any      new co-development or licensing agreements or to maintain any existing      co-development or licensing agreements with respect to our product      candidates or products; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our ability to effectively      maintain existing licensing relationships and establish new licensing      relationships; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|

|   | · | the expense, time and      uncertainty involved in the development of our product candidates, some or      all of which may never reach the regulatory approval      stage; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our reliance on collaboration      partners and licensees, to obtain and maintain regulatory approval for      certain of our products and product candidates and to manufacture and      commercialize such products; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our ability to compete in the      pharmaceutical industry; |
|--------|--------|-------------------------------------------------------------|

|   | · | our ability to obtain      reimbursement for the products we  commercialize; |
|--------|--------|------------------------------------------------------------------------------|

|   | · | our ability to protect our      intellectual property and know-how and operate our business without      infringing the intellectual property rights or regulatory exclusivity of      others; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a loss of rights to develop      and commercialize our products under our license and sublicense      agreements; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | a loss of any of our key      scientists or managementpersonnel; |
|--------|--------|------------------------------------------------------------------|

|   | · | our estimates of market sizes      and anticipated uses of our product  candidates; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | our estimates of future      performance; and |
|--------|--------|-----------------------------------------------|

|   | · | our estimates regarding      anticipated future revenue, expenses, operating losses, capital      requirements and our needs for additional  financing. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | each      share of Axcan Pharma common stock outstanding was deemed transferred to      Axcan Intermediate Holdings Inc. and holders of such common stock received      $23.35 per share of Axcan Pharma common stock, or the offer price, in      compensation from us, without interest and less any required withholding      taxes; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | all      granted and outstanding options to purchase common stock of Axcan Pharma      under Axcan Pharma’s stock plans, other than those options held by Axcan      Holdings Inc. or its affiliates, were deemed vested and transferred to      Axcan Pharma and cancelled in exchange for an amount in cash equal to the      excess, if any, of the offer price over the applicable exercise price for      the option for each share of common stock subject to such option, less any      required withholding taxes; and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | all      vested and unvested deferred stock units, or DSUs, and restricted stock      units, or RSUs, issued under Axcan Pharma’s stock option plans, were      deemed vested and then cancelled and terminated. Each holder of a DSU or      RSUs received the offer price, less any required withholding taxes, for      each DSU and RSUs formerly held. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | The      Refinancing |
|--------|----------------------|

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|            |   | For      the fiscal yearsended      September 30, |   |
|-----------------|--------|---------------------------------------------------|--------|
|            |   | 2009                                              |   |   | 2008 |   |   | 2007 |   |
| Customer      A |   |                                              | 37.4   | % |   |   | 39.0 | % |   |   | 41.2 | % |
| Customer      B |   |                                              | 30.4   | % |   |   | 26.6 | % |   |   | 25.0 | % |
| Customer      C |   |                                              | 11.7   | % |   |   | 10.3 | % |   |   | 11.1 | % |
| Total           |   |                                              | 79.5   | % |   |   | 75.9 | % |   |   | 77.3 | % |

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|   | · | the      timing of regulatory approvals and product launches by us or competitors,      and any generic or over-the-countercompetitors; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | perceptions      by physicians and other members of the health-care community regarding the      safety and efficacy of theproducts; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | · | price      increases, and the price of our products relative to other drugs or      competing treatments; |
|--------|--------|-----------------------------------------------------------------------------------------------------------|

|   | · | patient      and physician demand; |
|--------|--------|------------------------------------|

|   | · | adverse      side effects or unfavorable publicity regarding our products or other      drugs in our class; |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | the      results of product development efforts for new  indications; |
|--------|--------|-----------------------------------------------------------------------|

|   | · | the      scope and timing of additional marketing approvals and favorable      reimbursement programs for expandeduses; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | availability      of sufficient commercial quantities of the products;  and |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | our      success in getting other companies to distribute our products outside our      target markets. |
|--------|--------|---------------------------------------------------------------------------------------------------------|

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|   | · | The      manufacture of products might be difficult to scale up when required and      result in delays, inefficiencies and poor or low yields of quality      products. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Some      of our contracts contain purchase commitments that require us to make      minimum purchases that might exceed needs or limit the ability to      negotiate with other manufacturers, which might increase      costs. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      cost of manufacturing certain products might make them prohibitively      expensive. |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | · | Delays      in scale-up to commercial quantities and any change in manufacturers could      delay clinical studies, regulatory submissions and commercialization of      our products. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | If      we need to change manufacturers, the FDA and comparable foreign regulators      would require new testing and compliance inspections and the new      manufacturers would have to be educated in the processes necessary for the      production of our products. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Our      products and product candidates might compete with other products and      product candidates for access to manufacturing  facilities. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | There      are a limited number of manufacturers that operate under cGMP regulations      and that are both capable of manufacturing for us and willing to do so. If      the third parties that we engage to manufacture and/or test a product for      commercial sale or for our clinical trials should cease to continue to do      so for any reason, we likely would experience delays in obtaining      sufficient quantities of our products for us to meet commercial demand or      in advancing our clinical trials while we identify and qualify replacement      suppliers. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | If,      for any reason, we are not able to obtain adequate supplies of our product      candidates or the drug substances used to manufacture them, it will be      more difficult for us to develop our product candidates and compete      effectively. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | the      ability of these companies to successfully develop, manufacture and obtain      necessary governmental approvals for the products that serve as the basis      for our investments in, or relationship with, such    companies; |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      ability of competitors of these companies to develop similar or more      effective products, making the drugs developed by these companies      difficult or impossible to market; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | we      would be subject to FDA regulatory action to remove these products from      the market, |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | certain      wholesalers and other clients may refuse to purchase or distribute these      products, and |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | governmental      and other third-party payors may no longer agree to reimburse or pay for      the cost of these drugs. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

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|   | • | The      federal health-care anti-kickback statute prohibits, among other things,      persons from knowingly and willfully soliciting, offering, receiving or      providing remuneration, directly or indirectly, in cash or in kind, to      induce or reward either the referral of an individual for, or the      purchase, order or recommendation of, any good or service, for which      payment may be made under federal health-care programs such as Medicare      and Medicaid. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | The      federal False Claims Act imposes criminal and civil penalties, against      individuals or entities for knowingly presenting, or causing to be      presented, to the federal government, claims for payment that are false or      fraudulent or making a false statement to avoid, decrease, or conceal an      obligation to pay money to the federal  government. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | The      federal false statements statute prohibits knowingly and willfully      falsifying, concealing or covering up a material fact or making any      materially false statement in connection with the delivery of or payment      for health-care benefits, items orservices. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | Analogous state laws and regulations, such as state anti-kickback      and false claims laws, may apply to sales or marketing arrangements and      claims involving health-care items or services reimbursed by      non-governmental third-party payors, including private insurers, and some      state laws require pharmaceutical companies to comply with the      pharmaceutical industry’s voluntary compliance guidelines and the relevant      compliance guidance promulgated by the federal  government. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | There are similar laws in countries outside the  U.S. |
|--------|---------|-------------------------------------------------------|

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|   | · | changes      in general economic, social and political  conditions; |
|--------|--------|---------------------------------------------------------------------|

|   | · | adverse      tax consequences; |
|--------|--------|--------------------------------|

|   | · | the      difficulty of enforcing agreements and collecting receivables through      certain legal systems; |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | inadequate      protection of intellectualproperty; |
|--------|--------|-----------------------------------------------------|

|   | · | required      compliance with a variety of laws and regulations of jurisdictions outside      of the U.S., including labor and taxlaws; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | customers      outside of the U.S. may have longer payment  cycles; |
|--------|--------|---------------------------------------------------------------------|

|   | · | changes      in laws and regulations of jurisdictions outside of the U.S.;      and |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | terrorist      acts and natural disasters. |
|--------|--------|--------------------------------------------|

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|   | · | any      impact on us of current conditions and uncertainties in the      economy; |
|--------|--------|------------------------------------------------------------------------------------|

|   | · | patient      and physician demand for ourproducts; |
|--------|--------|----------------------------------------------------|

|   | · | the      status of competitive products, including current and potential      generics; |
|--------|--------|-----------------------------------------------------------------------------------------|

|   | · | the      results, costs and timing of our research and development activities,      regulatory approvals and productlaunches; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      ability to reduce our costs in the event product demand is less than      expected, or regulatory approvals are delayed or more expensive than      expected; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      number of products and/or companies we acquire or    in-license; |
|--------|--------|---------------------------------------------------------------------------|

|   | · | the      actual amounts of returns we receive compared to our current estimates;      and |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | our      ability to maintain our current creditfacility. |
|--------|--------|----------------------------------------------------------|

| ($ in millions      of dollars)     |   |   |   |
|-----------------------------------------------|--------|--------|--------|
| Debt:                                         |   |   |   |
| Senior      secured term loan facility(1)     |   | $      | 154.8  |   |
| Senior      secured revolving credit facility |   |   | 0      |   |
| Secured      Notes(2)                         |   |   | 225.8  |   |
| Senior      Notes(3)                          |   |   | 232.7  |   |
|                                          |   |   |   |   |
| Total                                         |   | $      | 613.3  |   |

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|   | • | make      it more difficult for us to satisfy our obligations with respect to our      indebtedness, including the notes, and any failure to comply with the      obligations under any of our debt instruments, including restrictive      covenants, could result in an event of default under the indentures      governing the notes and the agreements governing such other      indebtedness; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | require      us to dedicate a substantial portion of our cash flow from operations to      payments on our indebtedness, thereby reducing funds available for working      capital, capital expenditures, acquisitions, selling and marketing      efforts, research and development and other  purposes; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | increase      our vulnerability to adverse economic and industry conditions, which could      place us at a competitive disadvantage compared to our competitors that      have relatively less indebtedness; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | limit our flexibility in planning for, or reacting to, changes in      our business and the industries in which weoperate; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------|

|   | • | limit      our ability to borrow additional funds, or to dispose of assets to raise      funds, if needed, for working capital, capital expenditures, acquisitions,      research and development and other corporate purposes;  and |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | prevent      us from raising the funds necessary to buy back all notes tendered to us      upon the occurrence of certain changes of control, which would constitute      a default under the indentures governing the  notes. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | we      had $380.6 million of senior secured debt, including borrowings under      our senior secured credit facilities, and the secured    notes; |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | we      had $232.7 million of senior unsecured indebtedness under the senior      notes; |
|--------|---------|------------------------------------------------------------------------------------------|

|   | • | we      had approximately $115.0 million available for borrowing under our senior      secured revolving credit facilities, which, if borrowed, would be senior      secured indebtedness; and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | subject      to our compliance with certain covenants under the terms of our senior      secured credit facility, we have the option to increase the senior secured      term loan facility by up to $75 million without satisfying any additional      financial tests under the indentures governing the notes, which, if      borrowed, would be senior securedindebtedness. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | $380.6      million of senior secured debt, including borrowings under our senior      secured credit facilities, and the secured  notes; |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | an      additional $115.0 million of borrowing capacity under our senior secured      revolving credit facility, which, if borrowed, would be senior secured      indebtedness; and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | subject      to our compliance with certain covenants under the terms of our senior      secured credit facilities, the option to increase our senior secured term      loan facility by up to $75 million, which, if borrowed, would be senior      secured indebtedness. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | the      holders of such indebtedness could elect to declare all the funds borrowed      thereunder to be due and payable, together with accrued and unpaid      interest; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the      lenders under our senior secured credit facilities could elect to      terminate their commitments thereunder, cease making further loans and      institute foreclosure proceedings against our assets;  and |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | we      could be forced into bankruptcy orliquidation. |
|--------|---------|--------------------------------------------------------|

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|   | • | We      or any of the guarantors, as applicable, were insolvent or rendered      insolvent by reason of the issuance of the notes or the incurrence of the      guarantees or subsequently become insolvent for other    reasons. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | The      issuance of the notes or the incurrence of the guarantees left us or any      of the guarantors, as applicable, with an unreasonably small amount of      capital to carry on the business. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | We      or any of the guarantors intended to, or believed that we or such      guarantor would, incur debts beyond our or such guarantor’s ability to pay      such debts as they mature. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | We      or any of the guarantors was a defendant in an action for money damages,      or had a judgment for money damages docketed against us or such guarantor      if, in either case, after final judgment, the judgment is      unsatisfied. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | The      security documents generally provide for an automatic release of all liens      on any asset that is disposed of in compliance with the provisions of the      senior secured credit facilities. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Any      lien can be released if approved by the requisite number of lenders under      our senior secured credit facilities. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------|

|   | • | The      collateral agent and the issuer may amend the provisions of the security      documents with the consent of the requisite number of lenders under our      senior secured credit facilities and without consent of the holders of      secured notes. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | The      lenders under our senior secured credit facilities will have the sole      ability to control remedies (including upon sale or liquidation of the      collateral after acceleration of the secured notes or debt under the      senior secured credit facilities) with respect to the      collateral. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | So      long as we have the senior secured credit facilities or another senior      secured credit facility, the secured notes will automatically cease to be      secured by those liens if those liens no longer secure our senior secured      credit facilities for otherreasons. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM      5. | MARKET      FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER      PURCHASES OF EQUITY SECURITIES |
|--------------|------------------------------------------------------------------------------------------------------------------------------|

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|                                            |   | Successor                                         |                                               |   | Predecessor |                                             |
|-------------------------------------------------|--------|---------------------------------------------------|----------------------------------------------------|--------|-------------|--------------------------------------------------|
|                                            |   |                                              |                                               |   |        |                                             |   |
|                                            |   |                                              |                                               |   |        |  Fiscal      Years Ended September 30, |   |
|                                            |   | Fiscal      YearEndedSeptember 30,      2009 | February 26,2008throughSeptember 30,2008 |   |        | October 1,2007throughFebruary 25,2008  |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                            |   | ($      in thousands)                             |                                               |   |        |                                             |   | ($      in thousands) |   |   |   |   |
| Statement      of Operations Data:              |   |                                              |                                               |   |        |                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      product sales                          |   | $                                                 | 409,826                                            |   |        | $                                                | 223,179 |   |   | $ | 158,579 |   |   | $ | 348,947 |   |   | $ | 292,317 |   |   | $ | 251,343 |   |
| Other      Revenue                              |   |                                              | 7,113                                              |   |        |                                             | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total      Revenue                              |   | $                                                 | 416,939                                            |   |        | $                                                | 223,179 |   |   | $ | 158,579 |   |   | $ | 348,947 |   |   | $ | 292,317 |   |   | $ | 251,343 |   |
| Cost      of goods sold(1)                      |   |                                              | 103,023                                            |   |        |                                             | 77,227 |   |   |   | 38,739 |   |   |   | 83,683 |   |   |   | 72,772 |   |   |   | 71,534 |   |
| Selling      and administrative expenses(1)(2)  |   |                                              | 122,942                                            |   |        |                                             | 88,246 |   |   |   | 76,198 |   |   |   | 101,273 |   |   |   | 93,338 |   |   |   | 85,997 |   |
| Management      Fees                            |   |                                              | 5,351                                              |   |        |                                             | 99 |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Research      and development expenses(1)(3)    |   |                                              | 36,037                                             |   |        |                                             | 17,768 |   |   |   | 10,256 |   |   |   | 28,655 |   |   |   | 39,789 |   |   |   | 31,855 |   |
| Depreciation      and amortization              |   |                                              | 60,305                                             |   |        |                                             | 35,579 |   |   |   | 9,595 |   |   |   | 22,494 |   |   |   | 22,823 |   |   |   | 21,532 |   |
| Acquired      in-process research               |   |                                              | —                                            |   |        |                                             | 272,400 |   |   |   | — |   |   |   | 10,000 |   |   |   | — |   |   |   | — |   |
| Partial      write-down of intangible assets    |   |                                              | 55,665                                             |   |        |                                             | — |   |   |   | — |   |   |   | — |   |   |   | 5,800 |   |   |   | — |   |
|                                            |   |                                              |                                               |   |        |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Income (loss)                    |   |                                              | 33,616                                             |   |        |                                             | (268,140 | ) |   |   | 23,791 |   |   |   | 102,842 |   |   |   | 57,795 |   |   |   | 40,425 |   |
| Financial      expenses                         |   |                                              | 69,809                                             |   |        |                                             | 41,513 |   |   |   | 262 |   |   |   | 4,825 |   |   |   | 6,988 |   |   |   | 7,140 |   |
| Other      interest income                      |   |                                              | (389                                               | )      |        |                                             | (808 | ) |   |   | (5,440 | ) |   |   | (11,367 | ) |   |   | (5,468 | ) |   |   | (1,340 | ) |
| Other      income                               |   |                                              | (3,500                                             | )      |        |                                             | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Loss      (gain) on foreign currency            |   |                                              | (328                                               | )      |        |                                             | (1,841 | ) |   |   | (198 | ) |   |   | 2,352 |   |   |   | (1,110 | ) |   |   | (213 | ) |
|                                            |   |                                              |                                               |   |        |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) before income taxes          |   |                                              | (31,976                                            | )      |        |                                             | (307,004 | ) |   |   | 29,167 |   |   |   | 107,032 |   |   |   | 57,385 |   |   |   | 34,838 |   |
| Income      taxes                               |   |                                              | (24,082                                            | )      |        |                                             | (17,740 | ) |   |   | 12,042 |   |   |   | 35,567 |   |   |   | 18,266 |   |   |   | 8,413 |   |
|                                            |   |                                              |                                               |   |        |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income (loss)                          |   | $                                                 | (7,894                                             | )      |        | $                                                | (289,264 | ) |   | $ | 17,125 |   |   | $ | 71,465 |   |   | $ | 39,119 |   |   | $ | 26,425 |   |
|                                            |   |                                              |                                               |   |        |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      Sheet Data (at period end):        |   |                                              |                                               |   |        |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents                  |   | $                                                 | 126,435                                            |   |        | $                                                | 56,105 |   |   | $ | 348,791 |   |   | $ | 179,672 |   |   | $ | 55,830 |   |   | $ | 79,969 |   |
| Short-term      investments, available for sale |   |                                              | —                                            |   |        |                                             | — |   |   |   | — |   |   |   | 129,958 |   |   |   | 117,151 |   |   |   | 17,619 |   |
| Total      current assets                       |   |                                              | 250,682                                            |   |        |                                             | 176,980 |   |   |   | 471,170 |   |   |   | 402,127 |   |   |   | 262,378 |   |   |   | 190,357 |   |
| Total      assets                               |   |                                              | 914,602                                            |   |        |                                             | 944,812 |   |   |   | 902,384 |   |   |   | 832,611 |   |   |   | 695,817 |   |   |   | 641,407 |   |
| Total      short-term borrowings                |   |                                              | 30,708                                             |   |        |                                             | 10,938 |   |   |   | 373 |   |   |   | 527 |   |   |   | 681 |   |   |   | 1,497 |   |
| Total      debt                                 |   |                                              | 613,294                                            |   |        |                                             | 622,184 |   |   |   | 441 |   |   |   | 649 |   |   |   | 126,246 |   |   |   | 127,829 |   |
| Total      current liabilities                  |   |                                              | 121,022                                            |   |        |                                             | 99,300 |   |   |   | 166,456 |   |   |   | 104,737 |   |   |   | 64,617 |   |   |   | 58,336 |   |
| Total      liabilities                          |   |                                              | 750,838                                            |   |        |                                             | 779,142 |   |   |   | 206,903 |   |   |   | 142,414 |   |   |   | 228,393 |   |   |   | 223,803 |   |
| Total      shareholders’ equity(4)        |   |                                              | 163,764                                            |   |        |                                             | 165,670 |   |   |   | 695,401 |   |   |   | 690,197 |   |   |   | 467,424 |   |   |   | 417,604 |   |
|                                            |   |                                              |                                               |   |        |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Statement      of Cash Flows Data:              |   |                                              |                                               |   |        |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      cash from (used in):                   |   |                                              |                                               |   |        |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      activities                       |   | $                                                 | 92,382                                             |   |        | $                                                | (47,512 | ) |   | $ | 73,245 |   |   | $ | 136,102 |   |   | $ | 84,334 |   |   | $ | 67,745 |   |
| Investing      activities                       |   |                                              | (10,600                                            | )      |        |                                             | (961,556 | ) |   |   | 126,630 |   |   |   | (19,415 | ) |   |   | (108,139 | ) |   |   | (8,078 | ) |
| Financing      activities                       |   |                                              | (11,594                                            | )      |        |                                             | 1,066,053 |   |   |   | (31,243 | ) |   |   | 6,553 |   |   |   | (616 | ) |   |   | (1,375 | ) |
|                                            |   |                                              |                                               |   |        |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Financial Data:                      |   |                                              |                                               |   |        |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| EBITDA(5)                                       |   |                                              | 97,749                                             |   |        |                                             | (230,720 | ) |   |   | 33,584 |   |   |   | 122,984 |   |   |   | 81,728 |   |   |   | 62,170 |   |
|                                            |   |                                              |                                               |   |        |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjusted      EBITDA(5)                         |   |                                              | 172,828                                            |   |        |                                             | 84,539 |   |   |   | 70,119 |   |   |   | 141,407 |   |   |   | 92,582 |   |   |   | 62,170 |   |

----

|   |   (3) | ended      September 30, 2008 and  for the fiscal year ended September 30,      2009 include approximately $800,000, $26,500,000, $11,800,000 and      $2,900,000 of expenses related to the February 2008 Transactions,      respectively. Amount      shown for the fiscal year ended September 30, 2006 includes an up-front      licensing fee equal to $1,500,000 paid in connection with a co-development      agreement with AGI Therapeutics Ltd. Such amount is counted as acquired      in-process research for purposes of calculating Adjusted      EBITDA. |
|--------|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | A      portion of our common stock was issued to our parent company, Axcan MidCo      Inc., in the February 2008 Transactions in exchange for a note receivable      amounting to $133,154,405. Pursuant to U.S. GAAP, we report the principal      amount as a separate balance offset against shareholders’ equity.      Furthermore, we do not recognize interest income related to this note      receivable due from Axcan MidCo Inc. in our income    statement. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | EBITDA      and Adjusted EBITDA are both non-U.S. GAAP financial measures and are      presented in this report because our management considers them important      supplemental measures of our performance and believes that they are      frequently used by interested parties in the evaluation of companies in      the industry. EBITDA, as we use it, is net income before financial      expenses, interest income, income taxes and depreciation and amortization.      We believe that the presentation of EBITDA enhances an investor’s      understanding of our financial performance. We believe that EBITDA is a      useful financial metric to assess our operating performance from period to      period by excluding certain items that we believe are not representative      of our core business. The term EBITDA is not defined under U.S. GAAP, and      EBITDA is not a measure of net income, operating income or any other      performance measure derived in accordance with U.S. GAAP, and is subject      to important limitations. Adjusted EBITDA, as we use it, is EBITDA      adjusted to exclude certain non-cash charges, unusual or non-recurring      items and other adjustments set forth below. Adjusted EBITDA is calculated      in the same  manner as “EBITDA” and “Consolidated EBITDA” as      those terms are defined under the indentures governing our notes and      credit facility further described in the section “Liquidity and Capital      Resources—Long-term Debt and New Senior Secured Credit Facility”. We      believe that the inclusion of supplementary adjustments applied to EBITDA      in presenting Adjusted EBITDA are appropriate to provide additional      information to investors about certain material non-cash items and unusual      or non-recurring items that we do not expect to continue in the future and      to provide additional information with respect to our ability to meet our      future debt service and to comply with various covenants in such      indentures and credit facility. Adjusted EBITDA is not a measure of net      income, operating income or any other performance measure derived in      accordance with U.S. GAAP, and is subject to important limitations. EBITDA      and Adjusted EBITDA have limitations as an analytical tool, and they      should not be considered in isolation, or as substitutes for analysis of      our results as reported under U.S. GAAP. Some of these limitations      are: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | EBITDA      and Adjusted EBITDA do not reflect all cash expenditures, future      requirements for capital expenditures, or contractual      commitments; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | EBITDA      and Adjusted EBITDA do not reflect changes in, or cash requirements for,      working capital needs; |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | EBITDA      and Adjusted EBITDA do not reflect the significant interest expense, or      the cash requirements necessary to service interest or principal payments,      on our debt; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Although      depreciation and amortization are non-cash charges, the assets being      depreciated and amortized will often have to be replaced in the future,      and EBITDA and Adjusted EBITDA do not reflect any cash requirements for      such replacements; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Adjusted      EBITDA reflects additional adjustments as provided in the indentures      governing our secured and unsecured notes and new senior secured credit      facilities; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other      companies in our industry may calculate EBITDA and Adjusted EBITDA      differently than we do, limiting its usefulness as a comparative      measure. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |   | Successor                                         |                                               |   | Predecessor |
|--------|--------|---------------------------------------------------|----------------------------------------------------|--------|-------------|
|   |   |                                              |                                               |   |        |   |
|   |   |                                              |                                               |   |        |  Fiscal      Years Ended September 30, |
|   |   | Fiscal      YearEndedSeptember 30,      2009 | February 26,2008throughSeptember 30,2008 |   |        | October 1,2007throughFebruary 25,2008 |   |   | 2007 |   |   | 2006 |   | 2005 |
|   |   | ($      in thousands)                             |                                               |   |        |   |   | ($      in thousands) |   |   |

| Net      income to EBITDA:                             |   |   |    |   |   |   |     |   |   |   |    |   |   |   |    |   |   |   |
|--------------------------------------------------------|--------|--------|---------|--------|--------|--------|----------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|
| Net      income (loss)                                 |   | $      | (7,894  | )      |   | $      | (289,264 | )      |   | $      | 17,125  |   |   | $      | 71,465  |   |   | $      | 39,119 |   |   | $ | 26,425 |   |
| Financial      expenses                                |   |   | 69,809  |   |   |   | 41,513   |   |   |   | 262     |   |   |   | 4,825   |   |   |   | 6,988 |   |   |   | 7,140 |   |
| Interest      income                                   |   |   | (389    | )      |   |   | (808     | )      |   |   | (5,440  | )      |   |   | (11,367 | )      |   |   | (5,468 | ) |   |   | (1,340 | ) |
| Income      taxes                                      |   |   | (24,082 | )      |   |   | (17,740  | )      |   |   | 12,042  |   |   |   | 35,567  |   |   |   | 18,266 |   |   |   | 8,413 |   |
| Depreciation      and amortization                     |   |   | 60,305  |   |   |   | 35,579   |   |   |   | 9,595   |   |   |   | 22,494  |   |   |   | 22,823 |   |   |   | 21,532 |   |
|                                                   |   |   |    |   |   |   |     |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| EBITDA                                                 |   | $      | 97,749  |   |   | $      | (230,720 | )      |   | $      | 33,584  |   |   | $      | 122,984 |   |   | $      | 81,728 |   |   | $ | 62,170 |   |
|                                                   |   |   |    |   |   |   |     |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| EBITDA      to Adjusted EBITDA:                        |   |   |    |   |   |   |     |   |   |   |    |   |   |   |    |   |   |   |   |   |   |   |   |   |
| EBITDA                                                 |   | $      | 97,749  |   |   | $      | (230,720 | )      |   | $      | 33,584  |   |   | $      | 122,984 |   |   | $      | 81,728 |   |   | $ | 62,170 |   |
| Transaction,      integration and refinancing costs(a) |   |   | 7,674   |   |   |   | 12,603   |   |   |   | 26,489  |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Management      Fees(b)                                |   |   | 5,351   |   |   |   | 99       |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Stock-based      compensation expense(c)               |   |   | 6,172   |   |   |   | 7,443    |   |   |   | 10,046  |   |   |   | 4,548   |   |   |   | 3,554 |   |   |   | — |   |
| Acquired      in-process research(d)                   |   |   | — |   |   |   | 272,400  |   |   |   | — |   |   |   | 10,000  |   |   |   | 1,500 |   |   |   | — |   |
| Inventories      stepped-up value expensed(e)          |   |   | — |   |   |   | 22,714   |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Loss      of disposal and write-down of assets(f)      |   |   | — |   |   |   | —  |   |   |   | — |   |   |   | 3,875   |   |   |   | — |   |   |   | — |   |
| Unrealized      loss on foreign exchange               |   |   | 217     |   |   |   | —  |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Partial      write-down of intangible assets(g)        |   |   | 55,665  |   |   |   | —  |   |   |   | — |   |   |   | — |   |   |   | 5,800 |   |   |   | — |   |
| Adjusted      EBITDA                                   |   | $      | 172,828 |   |   | $      | 84,539   |   |   | $      | 70,119  |   |   | $      | 141,407 |   |   | $      | 92,582 |   |   | $ | 62,170 |   |

|   | a) | Represents      investment banking and other professional fees associated with the      February 2008 Transactions, as well as integration and refinancing costs.      It also includes costs related to non recurring transactions and payments      to third parties in respect of research and development milestones and      other progress payments as defined within our credit      agreement. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Represents      management fees and other charges associated with the Management Services      Agreement with TPG further described in the “Item 13 – Certain      Relationships and Related Transactions, and Director Independence” section      below. As of September 30, 2009 the amount of those charges incurred since      the date of the February 2008 Transactions was allocated among the      subsidiaries of Axcan Holdings Inc., our indirect parent company, on the      basis of revenue. Management fees charged prior to September 2008 were      previously unallocated by the Company’s parent, Axcan Holdings      Inc. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Represents      stock-based employee compensation expense under the provisions of FASB      guidance. |
|--------|----|-------------------------------------------------------------------------------------------------------|

|   | d) | Represents      the acquired in-process research, arising from the February 2008      Transactions, expensed in the period of  acquisition. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | Represents      inventories stepped-up value, arising from the February 2008 Transactions,      expensed as acquired inventory issold. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | f) | Represents      loss on disposal and write-down onassets. |
|--------|----|-----------------------------------------------------------|

|   | g) | As      explained in note 10 of the Consolidated Financial    Statements. |
|--------|----|---------------------------------------------------------------------------|

----

----

|   | · | each      share of Axcan Pharma common stock outstanding was deemed transferred to      Axcan Intermediate Holdings Inc. and holders of such common stock received      $23.35 per share of Axcan Pharma common stock, or the offer price, in      compensation from us, without interest and less any required withholding      taxes; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | all      granted and outstanding options to purchase common stock of Axcan Pharma      under Axcan Pharma’s stock plans, other than those options held by Axcan      Holdings Inc. or its affiliates, were deemed vested and transferred to      Axcan Pharma and cancelled in exchange for an amount in cash equal to the      excess, if any, of the offer price over the applicable exercise price for      the option for each share of common stock subject to such option, less any      required withholding taxes; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | all      vested and unvested deferred stock units, or DSUs, and restricted stock      units, or RSUs, issued under Axcan Pharma’s stock option plans, were      deemed vested and then cancelled and terminated. Each holder of a DSU or      RSU received the offer price, less any required withholding taxes, for      each DSU and RSU formerly held. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                   | $       |
|----------------------------------------|---------|
|                                   |    |
| Cash                                   | 348.8   |
| Inventories                            | 54.1    |
| Other      current assets              | 91.9    |
| Property,      plant and equipment     | 36.9    |
| Intangible      assets                 | 581.7   |
| Acquired      in-process research      | 272.4   |
| Goodwill                               | 169.6   |
| Deferred      debt issue expenses      | 0.9     |
| Deferred      income taxes assets      | 7.2     |
| Current      liabilities               | (174.5) |
| Long-term      debt                    | (0.1)   |
| Deferred      income taxes liabilities | (81.6)  |
| Total                                  | 1,307.3 |

----

| (in      millions of U.S. dollars) |   | For      the fiscalyear      endedSeptember      30,2009 |   |   | For      the fiscalyear      endedSeptember      30,2008 |   |
|------------------------------------|--------|----------------------------------------------------------|--------|--------|----------------------------------------------------------|--------|
|                               |   | Successor                                                |   |   | Successor                                                |   |
|                               |   | $                                                        |   |   | $                                                        |   |
| Total      assets                  |   |                                                     | 914.6  |   |                                                     |   | 944.8 |   |
| Long-term      debt (a)            |   |                                                     | 613.3  |   |                                                     |   | 622.2 |   |
| Shareholders’      equity    |   |                                                     | 163.8  |   |                                                     |   | 165.7 |   |

| (a) | Including      the current portion |
|-----|------------------------------------|

| (in      millions of U.S. dollars) |   | For      the fiscal year endedSeptember      30,2009 |   |   | For      the fiscalyear      endedSeptember      30,2008 |   |   | For      theseven-monthperiod      endedSeptember      30,2008 |   |   | For      thefive-monthperiod      endedFebruary      25,2008 |   |   | For      the fiscalyear      endedSeptember      30,2007 |   |
|------------------------------------|--------|------------------------------------------------------|--------|--------|----------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|--------|--------------------------------------------------------------|--------|--------|----------------------------------------------------------|--------|
|                               |   | Successor                                            |   |   | CombinedPredecessor/Successor                            |   |   | Successor                                                      |   |   | Predecessor                                                  |   |   | Predecessor                                              |   |
|                               |   | $                                                    |   |   | $                                                        |   |   | $                                                              |   |   | $                                                            |   |   | $                                                        |   |
| Total      revenue                 |   |                                                 | 416.9  |   |                                                     |   | 381.8  |                                                           |   |   | 223.2                                                        |   |   |                                                     | 158.6  |   |   |   | 348.9 |   |
| EBITDA      (1)                    |   |                                                 | 97.7   |   |                                                     |   | (197.1 | )                                                              |   |   | (230.7                                                       | )      |   |                                                     | 33.6   |   |   |   | 122.9 |   |
| Adjusted      EBITDA (1)           |   |                                                 | 172.8  |   |                                                     |   | 154.6  |                                                           |   |   | 84.5                                                         |   |   |                                                     | 70.1   |   |   |   | 141.4 |   |
| Net      income (loss)             |   |                                                 | (7.9   | )      |                                                     |   | (272.2 | )                                                              |   |   | (289.3                                                       | )      |   |                                                     | 17.1   |   |   |   | 71.5 |   |

| (1) | A      reconciliation of net income to EBITDA (a non-U.S. GAAP measure) and from      EBITDA to Adjusted EBITDA (a non-U.S. GAAP measure) for      the  years ended September 30, 2009, 2008 and 2007 are as      follows: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (in      millions of U.S. dollars)                                                                  |   | For      the fiscalyear      endedSeptember      30,2009 |   |   | For      the fiscalyear      endedSeptember      30,2008 |   |   | For      theseven-monthperiod      endedSeptember      30,2008 |   |   | For      thefive-monthperiod      endedFebruary      25,2008 |   |   | For      the fiscalyear      endedSeptember      30,2007 |   |
|-----------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------|--------|--------|----------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|--------|--------------------------------------------------------------|--------|--------|----------------------------------------------------------|--------|
|                                                                                                |   | Successor                                                |   |   | CombinedPredecessor/Successor                            |   |   | Successor                                                      |   |   | Predecessor                                                  |   |   | Predecessor                                              |   |
|                                                                                                |   | $                                                        |   |   | $                                                        |   |   | $                                                              |   |   | $                                                            |   |   | $                                                        |   |
| Net      income (loss)                                                                              |   |                                                     | (7.9   | )      |                                                     |   | (272.2 | )                                                              |   |   | (289.3                                                       | )      |   |                                                     | 17.1   |   |   |   | 71.5 |   |
| Financial      expenses                                                                             |   |                                                     | 69.8   |   |                                                     |   | 41.8   |                                                           |   |   | 41.5                                                         |   |   |                                                     | 0.3    |   |   |   | 4.8 |   |
| Interest      income                                                                                |   |                                                     | (0.4   | )      |                                                     |   | (6.2   | )                                                              |   |   | (0.8                                                         | )      |   |                                                     | (5.4   | ) |   |   | (11.4 | ) |
| Income      taxes expense (benefit)                                                                 |   |                                                     | (24.1  | )      |                                                     |   | (5.7   | )                                                              |   |   | (17.7                                                        | )      |   |                                                     | 12.0   |   |   |   | 35.5 |   |
| Depreciation      and amortization                                                                  |   |                                                     | 60.3   |   |                                                     |   | 45.2   |                                                           |   |   | 35.6                                                         |   |   |                                                     | 9.6    |   |   |   | 22.5 |   |
| EBITDA      h)                                                                                      |   |                                                     | 97.7   |   |                                                     |   | (197.1 | )                                                              |   |   | (230.7                                                       | )      |   |                                                     | 33.6   |   |   |   | 122.9 |   |
| Transaction,      integration, refinancing costs and nonrecurring payments to third parties      a) |   |                                                     | 7.8    |   |                                                     |   | 39.1   |                                                           |   |   | 12.6                                                         |   |   |                                                     | 26.5   |   |   |   | - |   |
| Management      fees b)                                                                             |   |                                                     | 5.4    |   |                                                     |   | 0.1    |                                                           |   |   | 0.1                                                          |   |   |                                                     | -      |   |   |   | - |   |
| Stock-based      compensation expense c)                                                            |   |                                                     | 6.2    |   |                                                     |   | 17.4   |                                                           |   |   | 7.4                                                          |   |   |                                                     | 10.0   |   |   |   | 4.6 |   |
| Partial      write-down of intangible assets d)                                                     |   |                                                     | 55.7   |   |                                                     |   | -      |                                                           |   |   | -                                                            |   |   |                                                     | -      |   |   |   | - |   |
| Acquired      in-process research e)                                                                |   |                                                     | -      |   |                                                     |   | 272.4  |                                                           |   |   | 272.4                                                        |   |   |                                                     | -      |   |   |   | 10.0 |   |
| Inventory      stepped-up value expenses f)                                                         |   |                                                     | -      |   |                                                     |   | 22.7   |                                                           |   |   | 22.7                                                         |   |   |                                                     | -      |   |   |   | - |   |
| Loss      on disposal and write-down of assets g)                                                   |   |                                                     | -      |   |                                                     |   | -      |                                                           |   |   | -                                                            |   |   |                                                     | -      |   |   |   | 3.9 |   |
| Adjusted      EBITDA h)                                                                             |   |                                                     | 172.8  |   |                                                     |   | 154.6  |                                                           |   |   | 84.5                                                         |   |   |                                                     | 70.1   |   |   |   | 141.4 |   |

----

| a) | Represents      investment banking and other professional fees associated with the      February 2008 Transactions, as well as integration and refinancing costs.      It also includes costs related to non recurring transactions and payments      to third parties in respect of research and development milestones and      other progress payments as defined within our credit      agreement. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | Represents      management fees and other charges associated with the Management Services      Agreement with TPG further described in the “Related party transactions      section” below. As of September 30, 2009 the amount of those charges      incurred since the date of the February 2008 Transactions was allocated      among the subsidiaries of Axcan Holdings Inc., our indirect parent      company, on the basis of revenue. Management fees charged prior to      September 2008 were previously unallocated by the Company’s parent, Axcan      Holdings Inc. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c) | Represents      stock-based employee compensation expense under the provisions of FASB      guidance. |
|----|-------------------------------------------------------------------------------------------------------|

| d) | As      explained in note 10 of the Consolidated Financial    Statements. |
|----|---------------------------------------------------------------------------|

| e) | Represents      the acquired in-process research, arising from the February 2008      Transactions, expensed in the period of  acquisition. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------|

| f) | Represents      inventories stepped-up value, arising from the February 2008 Transactions,      expensed as acquired inventory issold. |
|----|----------------------------------------------------------------------------------------------------------------------------------------|

| g) | Represents      loss on disposal and write-down onassets. |
|----|-----------------------------------------------------------|

| h) | EBITDA      and Adjusted EBITDA are both non-U.S. GAAP financial measures and are      presented in this report because our management considers them important      supplemental measures of our performance and believes that they are      frequently used by interested parties in the evaluation of companies in      the industry. EBITDA, as we use it, is net income before financial      expenses, interest income, income taxes and depreciation and amortization.      We believe that the presentation of EBITDA enhances an investor’s      understanding of our financial performance. We believe that EBITDA is a      useful financial metric to assess our operating performance from period to      period by excluding certain items that we believe are not representative      of our core business. The term EBITDA is not defined under U.S. GAAP, and      EBITDA is not a measure of net income, operating income or any other      performance measure derived in accordance with U.S. GAAP, and is subject      to important limitations. Adjusted EBITDA, as we use it, is EBITDA      adjusted to exclude certain non-cash charges, unusual or non-recurring      items and other adjustments set forth below. Adjusted EBITDA is calculated      in the same manner as “EBITDA” and “Consolidated EBITDA” as those terms      are defined under the indentures governing our notes and credit facility      further described in the section “Liquidity and Capital      Resources—Long-term Debt and New Senior Secured Credit Facility”. We      believe that the inclusion of supplementary adjustments applied to EBITDA      in presenting Adjusted EBITDA are appropriate to provide additional      information to investors about certain material non-cash items and unusual      or non-recurring items that we do not expect to continue in the future and      to provide additional information with respect to our ability to meet our      future debt service and to comply with various covenants in such      indentures and credit facility. Adjusted EBITDA is not a measure of net      income, operating income or any other performance measure derived in      accordance with U.S. GAAP, and is subject to important limitations. EBITDA      and Adjusted EBITDA have limitations as an analytical tool, and they      should not be considered in isolation, or as substitutes for analysis of      our results as reported under U.S. GAAP. Some of these limitations      are: |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | EBITDA      and Adjusted EBITDA do not reflect all cash expenditures, future      requirements for capital expenditures, or contractual      commitments; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | EBITDA      and Adjusted EBITDA do not reflect changes in, or cash requirements for,      working capital needs; |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | EBITDA      and Adjusted EBITDA do not reflect the significant interest expense, or      the cash requirements necessary to service interest or principal payments,      on our debt; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Although      depreciation and amortization are non-cash charges, the assets being      depreciated and amortized will often have to be replaced in the future,      and EBITDA and Adjusted EBITDA do not reflect any cash requirements for      such replacements; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Adjusted      EBITDA reflects additional adjustments as provided in the indentures      governing our secured and unsecured notes and new senior secured credit      facilities; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other      companies in our industry may calculate EBITDA and Adjusted EBITDA      differently than we do, limiting its usefulness as a comparative      measure. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (in      millions of U.S. dollars)           |   | For      the fiscalyearendedSeptember      30,2009 |   |   | For      the fiscalyear      endedSeptember      30,2008 |   |   | For      theseven-monthperiod      endedSeptember      30,2008 |   |   | For      thefive-monthperiod      endedFebruary      25,2008 |   |   | Change |   |
|----------------------------------------------|--------|----------------------------------------------------|--------|--------|----------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|--------|--------------------------------------------------------------|--------|--------|--------|--------|
|                                         |   | Successor                                          |   |   | CombinedPredecessor/Successor                            |   |   |  Successor                                                |   |   |  Predecessor                                            |   |   |   |   |   |   |   |
|                                         |   | $                                                  |   |   | $                                                        |   |   | $                                                              |   |   | $                                                            |   |   | $      |   |   | % |   |
| Net      product sales                       |   |                                               | 409.8  |   |                                                     |   | 381.8  |                                                           |   |   | 223.2                                                        |   |   |   | 158.6  |   |   |   | 28.0 |   |   |   | 7.3 |   |
| Other      revenue                           |   |                                               | 7.1    |   |                                                     |   | -      |                                                           |   |   | -                                                            |   |   |   | -      |   |   |   | 7.1 |   |   |   | - |   |
| Total      revenue                           |   |                                               | 416.9  |   |                                                     |   | 381.8  |                                                           |   |   | 223.2                                                        |   |   |   | 158.6  |   |   |   | 35.1 |   |   |   | 9.2 |   |
| Cost      of goods sold (a)                  |   |                                               | 103.0  |   |                                                     |   | 115.9  |                                                           |   |   | 77.2                                                         |   |   |   | 38.7   |   |   |   | (12.9 | ) |   |   | (11.1 | ) |
| Selling      and administration expenses(a)  |   |                                               | 122.9  |   |                                                     |   | 164.4  |                                                           |   |   | 88.2                                                         |   |   |   | 76.2   |   |   |   | (41.5 | ) |   |   | (25.2 | ) |
| Management  fees                   |   |                                               | 5.4    |   |                                                     |   | 0.1    |                                                           |   |   | 0.1                                                          |   |   |   | -      |   |   |   | 5.3 |   |   |   | 5,300.0 |   |
| Research      and development expenses(a)    |   |                                               | 36.0   |   |                                                     |   | 28.1   |                                                           |   |   | 17.8                                                         |   |   |   | 10.3   |   |   |   | 7.9 |   |   |   | 28.1 |   |
| Acquired      in-process research            |   |                                               | -      |   |                                                     |   | 272.4  |                                                           |   |   | 272.4                                                        |   |   |   | -      |   |   |   | (272.4 | ) |   |   | (100.0 | ) |
| Depreciation      and amortization           |   |                                               | 60.3   |   |                                                     |   | 45.2   |                                                           |   |   | 35.6                                                         |   |   |   | 9.6    |   |   |   | 15.1 |   |   |   | 33.4 |   |
| Partial      write-down of intangible assets |   |                                               | 55.7   |   |                                                     |   | -      |                                                           |   |   | -                                                            |   |   |   | -      |   |   |   | 55.7 |   |   |   | - |   |
|                                         |   |                                               | 383.3  |   |                                                     |   | 626.1  |                                                           |   |   | 491.3                                                        |   |   |   | 134.8  |   |   |   | (242.8 | ) |   |   | (38.8 | ) |
| Operating      income (loss)                 |   |                                               | 33.6   |   |                                                     |   | (244.3 | )                                                              |   |   | (268.1                                                       | )      |   |   | 23.8   |   |   |   | 277.9 |   |   |   | 113.8 |   |
| Financial      expenses                      |   |                                               | 69.8   |   |                                                     |   | 41.8   |                                                           |   |   | 41.5                                                         |   |   |   | 0.3    |   |   |   | 28.0 |   |   |   | 67.0 |   |
| Interest      income                         |   |                                               | (0.4   | )      |                                                     |   | (6.2   | )                                                              |   |   | (0.8                                                         | )      |   |   | (5.4   | ) |   |   | 5.8 |   |   |   | (93.5 | ) |
| Other      income                            |   |                                               | (3.5   | )      |                                                     |   | -      |                                                           |   |   | -                                                            |   |   |   | -      |   |   |   | (3.5 | ) |   |   | - |   |
| Loss      (gain) on foreign currency         |   |                                               | (0.3   | )      |                                                     |   | (2.0   | )                                                              |   |   | (1.8                                                         | )      |   |   | (0.2   | ) |   |   | 1.7 |   |   |   | (85.0 | ) |
|                                         |   |                                               | 65.6   |   |                                                     |   | 33.6   |                                                           |   |   | 38.9                                                         |   |   |   | (5.3   | ) |   |   | 32.0 |   |   |   | 95.2 |   |
| Income      (loss) before income taxes       |   |                                               | (32.0  | )      |                                                     |   | (277.9 | )                                                              |   |   | (307.0                                                       | )      |   |   | 29.1   |   |   |   | 245.9 |   |   |   | (88.5 | ) |
| Income      taxes expenses (benefits)        |   |                                               | (24.1  | )      |                                                     |   | (5.7   | )                                                              |   |   | (17.7                                                        | )      |   |   | 12.0   |   |   |   | (18.4 | ) |   |   | (322.8 | ) |
| Net      income (loss)                       |   |                                               | (7.9   | )      |                                                     |   | (272.2 | )                                                              |   |   | (289.3                                                       | )      |   |   | 17.1   |   |   |   | 264.3 |   |   |   | 97.1 |   |

| (a) | Exclusive      of depreciation and amortization |
|-----|-------------------------------------------------|

----

| (in      millions of U.S. dollars)                |   | For      the fiscalyear      endedSeptember      30,2009 |   |   | For      the fiscalyear      endedSeptember      30,2008 |   |   | Change |   |
|---------------------------------------------------|--------|----------------------------------------------------------|--------|--------|----------------------------------------------------------|--------|--------|--------|--------|
|                                              |   | Successor                                                |   |   | CombinedPredecessor/Successor                            |   |   |   |   |   |   |   |
|                                              |   | $                                                        |   |   | $                                                        |   |   | $      |   |   | % |   |
| Gross      product sales                          |   |                                                     | 503.1  |   |                                                     |   | 447.1  |   |   |   | 56.0 |   |   |   | 12.5 |   |
| Gross-to-net      product sales adjustments       |   |                                                     |   |   |                                                     |   |   |   |   |   |   |   |   |   |   |   |
| Product      returns                              |   |                                                     | 10.7   |   |                                                     |   | 9.2    |   |   |   | 1.5 |   |   |   | 16.3 |   |
| Chargebacks                                       |   |                                                     | 33.7   |   |                                                     |   | 20.6   |   |   |   | 13.1 |   |   |   | 63.6 |   |
| Contract      rebates                             |   |                                                     | 36.5   |   |                                                     |   | 25.3   |   |   |   | 11.2 |   |   |   | 44.3 |   |
| DSA      fees                                     |   |                                                     | 3.6    |   |                                                     |   | 2.1    |   |   |   | 1.5 |   |   |   | 71.4 |   |
| Discounts      and other allowances               |   |                                                     | 8.8    |   |                                                     |   | 8.1    |   |   |   | 0.7 |   |   |   | 8.6 |   |
| Total      gross-to-net product sales adjustments |   |                                                     | 93.3   |   |                                                     |   | 65.3   |   |   |   | 28.0 |   |   |   | 42.9 |   |
| Total      net product sales                      |   |                                                     | 409.8  |   |                                                     |   | 381.8  |   |   |   | 28.0 |   |   |   | 7.3 |   |

|   | · | our      estimate of future demand for URSO based on the actual erosion of product      demand for several comparable products that were previously genericized,      and the actual demand for URSO experienced during 2009 subsequent to the      generic approvals; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      estimate of chargeback and rebate activity based on actual chargeback and      rebate activity during fiscal year 2009 subsequent to the generic      approvals; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | other      relevant factors. |
|--------|--------|------------------------------|

| · | Sales      of pancreatic enzyme products (ULTRASE, PANZYTRAT and VIOKASE) amounted to      $112.8 million, an increase of 24.1% over fiscal year 2008. Sales during      the year were favorably affected by an increase in both price and      prescription volumes. Most unbranded pancreatic enzyme products for which      a new drug application (NDA) had not been submitted by April 2009 have      been withdrawn from the market, leaving room for ULTRASE and VIOKASE to      capture a portion of their market share in the U.S.  market. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Sales      of ursodiol products (URSO/URSO 250, URSO FORTE/URSO DS and DELURSAN)      decreased 19.9% from fiscal year 2008 to $73.9 million. This decrease      resulted from the entry of generic versions of URSO 250 and URSO FORTE on      the U.S. market, approved by the Office of Generic Drugs on May 13,      2009.  This decrease was partially offset by price increases      announced on our URSO 250 and URSO FORTE branded products, and by sales      generated from the launch of our authorized generic version of these      ursodiol products. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| · | Sales of mesalamine products (CANASA and SALOFALK) amounted to      $103.7 million, a 11.3% increase from the prior year. The increase was      attributed to price increases announced during the fiscal  year. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Sales      of sucralfate products (CARAFATE and SULCRATE) amounted to $68.5 million,      an increase of 30.5% over the prior year. The increase mainly resulted      from price increases announced during the fiscal year and from an increase      in prescription volumes. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Sales      of other products amounted to $50.9 million, a 3.6% decrease over the      prior year. This decrease mainly results from foreign exchange effect on      foreign denominated sales. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (in      millions of US dollars)                              |   | For      theyear      endedSeptember      30,2009 |   |   | For      theyear      endedSeptember      30,2008 |   |
|---------------------------------------------------------------|--------|---------------------------------------------------|--------|--------|---------------------------------------------------|--------|
|                                                          |   | Successor                                         |   |   | CombinedPredecessor/Successor                     |   |
|                                                          |   | %                                                 |   |   | $                                                 |   |   | % |   |   | $ |   |
| Combined      statutory rate applied to pre-tax income (loss) |   |                                              | 35.00  |   |                                              |   | (11.2 | ) |   |   | 35.33 |   |   |   | (98.2 | ) |
| Increase      (decrease) in taxes resulting from:             |   |                                              |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |
| Change      in promulgated rates                              |   |                                              | (0.91  | )      |                                              |   | 0.3 |   |   |   | (0.01 | ) |   |   | 0.0 |   |
| Difference      with foreign tax rates                        |   |                                              | 8.10   |   |                                              |   | (2.6 | ) |   |   | (0.64 | ) |   |   | 1.8 |   |
| Tax      benefit arising from a financing structure           |   |                                              | 44.46  |   |                                              |   | (14.2 | ) |   |   | 3.24 |   |   |   | (9.0 | ) |
| Non-deductible      items                                     |   |                                              | (9.72  | )      |                                              |   | 3.1 |   |   |   | (36.82 | ) |   |   | 102.3 |   |
| Non-taxable      items                                        |   |                                              | -      |   |                                              |   |   |   |   |   | 0.01 |   |   |   | 0.0 |   |
| Investment      tax credits                                   |   |                                              | 4.24   |   |                                              |   | (1.3 | ) |   |   | 0.60 |   |   |   | (1.6 | ) |
| State      taxes                                              |   |                                              | (0.34  | )      |                                              |   | 0.1 |   |   |   | 1.43 |   |   |   | (4.0 | ) |
| Valuation      allowance                                      |   |                                              | (2.30  | )      |                                              |   | 0.7 |   |   |   | - |   |   |   | 0.0 |   |
| Other                                                         |   |                                              | (3.22  | )      |                                              |   | 1.0 |   |   |   | (1.09 | ) |   |   | 3.0 |   |
|                                                          |   |                                              | 75.31  |   |                                              |   | (24.1 | ) |   |   | (2.05 | ) |   |   | (5.7 | ) |

|                               |   | As      at September 30, |   |   |   |   |
|------------------------------------|--------|--------------------------|--------|--------|--------|--------|
| (in      millions of U.S. dollars) |   | 2009                     |   |   | 2008   |   |   | Change |   |
|                               |   | $                        |   |   | $      |   |   | $ |   |   | % |   |
| Cash      and cash equivalents     |   |                     | 126.4  |   |   |   | 56.1 |   |   |   | 70.3 |   |   |   | 125.3 |   |
| Current      assets                |   |                     | 250.7  |   |   |   | 177.0 |   |   |   | 73.7 |   |   |   | 41.6 |   |
| Total      assets                  |   |                     | 914.6  |   |   |   | 944.8 |   |   |   | (30.2 | ) |   |   | (3.2 | ) |
| Current      liabilities           |   |                     | 121.0  |   |   |   | 99.3 |   |   |   | 21.7 |   |   |   | 21.9 |   |
| Long-term      debt                |   |                     | 582.6  |   |   |   | 611.2 |   |   |   | (28.6 | ) |   |   | (4.7 | ) |
| Total      liabilities             |   |                     | 750.8  |   |   |   | 779.1 |   |   |   | (28.3 | ) |   |   | (3.6 | ) |
| Shareholders’      equity    |   |                     | 163.8  |   |   |   | 165.7 |   |   |   | (1.9 | ) |   |   | (1.1 | ) |
| Working      capital               |   |                     | 129.7  |   |   |   | 77.7 |   |   |   | 52.0 |   |   |   | 66.9 |   |

----

| (in      millions of U.S. dollars)           |   | For      thefiscal      yearendedSeptember      30,2008 |   |   | For      theseven-monthperiod      endedSeptember      30,2008 |   |   | For      thefive-monthperiod      endedFebruary      25,2008 |   |   | For      thefiscal      yearendedSeptember      30,2007 |   |   | Change |   |
|----------------------------------------------|--------|---------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|--------|--------------------------------------------------------------|--------|--------|---------------------------------------------------------|--------|--------|--------|--------|
|                                         |   | Non      U.S. GAAPCombinedPredecessor/Successor         |   |   | Successor                                                      |   |   | Predecessor                                                  |   |   | Predecessor                                             |   |   |   |   |   |   |   |
|                                         |   | $                                                       |   |   | $                                                              |   |   | $                                                            |   |   | $                                                       |   |   | $      |   |   | % |   |
| Net      product sales                       |   |                                                    | 381.8  |   |                                                           |   | 223.2  |                                                         |   |   | 158.6                                                   |   |   |   | 348.9  |   |   |   | 32.9 |   |   |   | 9.4 |   |
| Cost      of goods sold (a)                  |   |                                                    | 115.9  |   |                                                           |   | 77.2   |                                                         |   |   | 38.7                                                    |   |   |   | 83.7   |   |   |   | 32.2 |   |   |   | 38.5 |   |
| Selling      and administration expenses (a) |   |                                                    | 164.5  |   |                                                           |   | 88.3   |                                                         |   |   | 76.2                                                    |   |   |   | 101.3  |   |   |   | 63.2 |   |   |   | 62.4 |   |
| Research      and development expenses(a)    |   |                                                    | 28.1   |   |                                                           |   | 17.8   |                                                         |   |   | 10.3                                                    |   |   |   | 28.6   |   |   |   | (0.5 | ) |   |   | (1.7 | ) |
| Acquired      in-process research            |   |                                                    | 272.4  |   |                                                           |   | 272.4  |                                                         |   |   | -                                                       |   |   |   | 10.0   |   |   |   | 262.4 |   |   |   | 2,624.0 |   |
| Depreciation      and amortization           |   |                                                    | 45.2   |   |                                                           |   | 35.6   |                                                         |   |   | 9.6                                                     |   |   |   | 22.5   |   |   |   | 22.7 |   |   |   | 100.9 |   |
|                                         |   |                                                    | 626.1  |   |                                                           |   | 491.3  |                                                         |   |   | 134.8                                                   |   |   |   | 246.1  |   |   |   | 380.0 |   |   |   | 154.4 |   |
| Operating      income (loss)                 |   |                                                    | (244.3 | )      |                                                           |   | (268.1 | )                                                            |   |   | 23.8                                                    |   |   |   | 102.8  |   |   |   | (347.1 | ) |   |   | (337.6 | ) |
| Financial      expenses                      |   |                                                    | 41.8   |   |                                                           |   | 41.5   |                                                         |   |   | 0.3                                                     |   |   |   | 4.8    |   |   |   | 37.0 |   |   |   | 770.8 |   |
| Interest      income                         |   |                                                    | (6.2   | )      |                                                           |   | (0.8   | )                                                            |   |   | (5.4                                                    | )      |   |   | (11.4  | ) |   |   | 5.2 |   |   |   | 45.6 |   |
| Loss      (gain) on foreign currency         |   |                                                    | (2.0   | )      |                                                           |   | (1.8   | )                                                            |   |   | (0.2                                                    | )      |   |   | 2.4    |   |   |   | (4.4 | ) |   |   | (183.3 | ) |
|                                         |   |                                                    | 33.6   |   |                                                           |   | 38.9   |                                                         |   |   | (5.3                                                    | )      |   |   | (4.2   | ) |   |   | 37.8 |   |   |   | 900.0 |   |
| Income      (loss) before income taxes       |   |                                                    | (277.9 | )      |                                                           |   | (307.0 | )                                                            |   |   | 29.1                                                    |   |   |   | 107.0  |   |   |   | (384.9 | ) |   |   | (359.7 | ) |
| Income      taxes expense (benefit)          |   |                                                    | (5.7   | )      |                                                           |   | (17.7  | )                                                            |   |   | 12.0                                                    |   |   |   | 35.5   |   |   |   | (41.2 | ) |   |   | (116.1 | ) |
| Net      income (loss)                       |   |                                                    | (272.2 | )      |                                                           |   | (289.3 | )                                                            |   |   | 17.1                                                    |   |   |   | 71.5   |   |   |   | (343.7 | ) |   |   | (480.7 | ) |

| (a) | Exclusive      of depreciation and amortization |
|-----|-------------------------------------------------|

----

|                                              |   | For      the fiscal years endedSeptember      30, |   |   |   |   |
|---------------------------------------------------|--------|---------------------------------------------------|--------|--------|--------|--------|
| (in      millions of U.S. dollars)                |   |  2008                                        |   |   | 2007   |   |   | Change |   |
|                                              |   | $                                                 |   |   | $      |   |   | $ |   |   |   | % |   |
| Gross      product sales                          |   |                                              | 447.1  |   |   |   | 409.7 |   |   |   | 37.4 |   |   |   | 9.1 |   |
| Gross-to-net      product sales adjustments       |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Product      returns                              |   |                                              | 9.2    |   |   |   | 13.1 |   |   |   | (3.9 | ) |   |   | (29.8 | ) |
| Chargebacks                                       |   |                                              | 20.6   |   |   |   | 14.2 |   |   |   | 6.4 |   |   |   | 45.1 |   |
| Contract      rebates                             |   |                                              | 25.3   |   |   |   | 22.7 |   |   |   | 2.6 |   |   |   | 11.5 |   |
| DSA      fees                                     |   |                                              | 2.1    |   |   |   | 3.6 |   |   |   | (1.5 | ) |   |   | (41.7 | ) |
| Discounts      and other allowances               |   |                                              | 8.1    |   |   |   | 7.2 |   |   |   | 0.9 |   |   |   | 12.5 |   |
| Total      gross-to-net product sales adjustments |   |                                              | 65.3   |   |   |   | 60.8 |   |   |   | 4.5 |   |   |   | 7.4 |   |
| Total      net product sales                      |   |                                              | 381.8  |   |   |   | 348.9 |   |   |   | 32.9 |   |   |   | 9.4 |   |

| · | Sales      of pancreatic enzyme products (ULTRASE, PANZYTRAT and VIOKASE) amounted to      $90.9 million, an increase of 22.8% over fiscal  2007. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Sales      of ursodiol products (URSO/URSO 250, URSO FORTE/URSO DS and DELURSAN)      decreased 1.5% from fiscal 2007 to $92.3 million. This decrease occurred      in spite of a $4.6 million increase in the EU which was offset by a      decrease in Canada, due to the launch of a generic version of      ursodiol. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Sales      of mesalamine products (CANASA and SALOFALK) amounted to $93.3 million, a      10.4% increase from the prior year. |
|--------|-------------------------------------------------------------------------------------------------------------------------------|

| · | Sales      of sucralfate products (CARAFATE and SULCRATE) amounted to $52.5 million,      an increase of 0.6% over the prioryear. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------|

| · | Sales      of other products amounted to $52.8 million, an 18.7% increase over the      prior year. This increase mainly results from the launch of PYLERA in May      2007 and from various price increases during fiscal  2008. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| (in      millions of U.S. dollars)                     |   | September      30,2008 |   |   | September      30,2007 |   |   | Change |   |
|--------------------------------------------------------|--------|------------------------|--------|--------|------------------------|--------|--------|--------|--------|
|                                                   |   | $                      |   |   | $                      |   |   | $      |   |   | % |   |
| Cash,      cash equivalents and short-term investments |   |                   | 56.1   |   |                   |   | 309.6  |   |   |   | (253.5 | ) |   |   | (81.9 | ) |
| Current      assets                                    |   |                   | 177.0  |   |                   |   | 402.1  |   |   |   | (225.1 | ) |   |   | (56.0 | ) |
| Total      assets                                      |   |                   | 944.8  |   |                   |   | 832.6  |   |   |   | 112.2 |   |   |   | 13.5 |   |
| Current      liabilities                               |   |                   | 99.3   |   |                   |   | 104.7  |   |   |   | (5.4 | ) |   |   | (5.2 | ) |
| Long-term      debt                                    |   |                   | 611.2  |   |                   |   | 0.1    |   |   |   | 611.1 |   |   |   | - |   |
| Total      liabilities                                 |   |                   | 779.1  |   |                   |   | 142.4  |   |   |   | 636.7 |   |   |   | 447.1 |   |
| Shareholders’      equity                        |   |                   | 165.7  |   |                   |   | 690.2  |   |   |   | (524.5 | ) |   |   | (76.0 | ) |
| Working      capital                                   |   |                   | 77.7   |   |                   |   | 297.4  |   |   |   | (219.7 | ) |   |   | (73.9 | ) |

----

|                                         |   | For      the quarters ended |   |
|----------------------------------------------|--------|-----------------------------|--------|
| (in      millions of U.S. dollars)           |   | September      30,2009      |   |   | June      30,2009 |   |   | March      31,2009 |   |   | December      31,2008 |   |
|                                         |   | $                           |   |   | $ |   |   | $ |   |   | $ |   |
| Net      product sales                       |   |                        | 84.2   |   |   |   | 100.9 |   |   |   | 120.6 |   |   |   | 104.1 |   |
| Other      revenue                           |   |                        | 1.9    |   |   |   | 5.2 |   |   |   | - |   |   |   | - |   |
| Total      revenue                           |   |                        | 86.1   |   |   |   | 106.1 |   |   |   | 120.6 |   |   |   | 104.1 |   |
| Cost      of goods sold (a)                  |   |                        | 26.0   |   |   |   | 22.1 |   |   |   | 29.4 |   |   |   | 25.5 |   |
| Selling      and administration expenses (a) |   |                        | 30.5   |   |   |   | 28.6 |   |   |   | 31.8 |   |   |   | 32.0 |   |
| Management      fees                         |   |                        | 0.5    |   |   |   | 4.7 |   |   |   | - |   |   |   | 0.2 |   |
| Research      and development expenses (a)   |   |                        | 9.2    |   |   |   | 10.7 |   |   |   | 9.1 |   |   |   | 7.0 |   |
| Depreciation      and amortization           |   |                        | 16.5   |   |   |   | 14.8 |   |   |   | 14.5 |   |   |   | 14.5 |   |
| Partial      write-down of intangible assets |   |                        | -      |   |   |   | 55.7 |   |   |   | - |   |   |   | - |   |
|                                         |   |                        | 82.7   |   |   |   | 136.6 |   |   |   | 84.8 |   |   |   | 79.2 |   |
| Operating      income (loss)                 |   |                        | 3.4    |   |   |   | (30.5 | ) |   |   | 35.8 |   |   |   | 24.9 |   |
| Financial      expenses                      |   |                        | 16.8   |   |   |   | 16.7 |   |   |   | 17.0 |   |   |   | 19.3 |   |
| Interest      income                         |   |                        | (0.1   | ) |   |   | - |   |   |   | (0.1 | ) |   |   | (0.2 | ) |
| Other      income                            |   |                        | -      |   |   |   | (3.5 | ) |   |   | - |   |   |   | - |   |
| Loss      (gain) on foreign currency         |   |                        | 0.8    |   |   |   | (0.8 | ) |   |   | (0.4 | ) |   |   | 0.1 |   |
|                                         |   |                        | 17.5   |   |   |   | 12.4 |   |   |   | 16.5 |   |   |   | 19.2 |   |
| Income      (loss) before income taxes       |   |                        | (14.1  | ) |   |   | (42.9 | ) |   |   | 19.3 |   |   |   | 5.7 |   |
| Income      taxes expense (benefit)          |   |                        | (5.4   | ) |   |   | (21.5 | ) |   |   | 2.2 |   |   |   | 0.6 |   |
| Net      income (loss)                       |   |                        | (8.7   | ) |   |   | (21.4 | ) |   |   | 17.1 |   |   |   | 5.1 |   |
| EBITDA      (b)                              |   |                        | 19.1   |   |   |   | (11.4 | ) |   |   | 50.7 |   |   |   | 39.3 |   |
| Adjusted      EBITDA (b)                     |   |                        | 21.2   |   |   |   | 55.6 |   |   |   | 54.1 |   |   |   | 41.9 |   |

----

|                                         |   | For      the quarters ended |   |
|----------------------------------------------|--------|-----------------------------|--------|
| (in      millions of U.S. dollars)           |   | September      30,2008      |   |   | June      30,2008 |   |   | March      31,2008 |   |   | December      31,2007 |   |
|                                         |   | Successor                   |   |   | Successor |   |   | Non-U.S.GAAP      CombinedPredecessor/Successor |   |   | Predecessor |   |
|                                         |   | $                           |   |   | $ |   |   | $ |   |   | $ |   |
| Net      product sales                       |   |                        | 96.5   |   |   |   | 96.5 |   |   |   | 95.9 |   |   |   | 92.9 |   |
| Other      revenue                           |   |                        | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total      revenue                           |   |                        | 96.5   |   |   |   | 96.5 |   |   |   | 95.9 |   |   |   | 92.9 |   |
| Cost      of goods sold (a)                  |   |                        | 23.9   |   |   |   | 38.1 |   |   |   | 31.5 |   |   |   | 22.4 |   |
| Selling      and administration expenses (a) |   |                        | 34.5   |   |   |   | 38.0 |   |   |   | 59.3 |   |   |   | 32.6 |   |
| Management      fees                         |   |                        | 0.1    |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Research      and development expenses (a)   |   |                        | 9.0    |   |   |   | 6.3 |   |   |   | 7.3 |   |   |   | 5.5 |   |
| Acquired      in-process research            |   |                        | -      |   |   |   | - |   |   |   | 272.4 |   |   |   | - |   |
| Depreciation      and amortization           |   |                        | 14.0   |   |   |   | 16.5 |   |   |   | 8.8 |   |   |   | 5.9 |   |
|                                         |   |                        | 81.5   |   |   |   | 98.9 |   |   |   | 379.3 |   |   |   | 66.4 |   |
| Operating      income (loss)                 |   |                        | 15.0   |   |   |   | (2.4 | ) |   |   | (283.4 | ) |   |   | 26.5 |   |
| Financial      expenses                      |   |                        | 17.4   |   |   |   | 16.9 |   |   |   | 7.3 |   |   |   | 0.2 |   |
| Interest      income                         |   |                        | (0.4   | ) |   |   | (0.3 | ) |   |   | (1.9 | ) |   |   | (3.6 | ) |
| Gain      on foreign currency                |   |                        | (1.3   | ) |   |   | (0.1 | ) |   |   | (0.6 | ) |   |   | - |   |
|                                         |   |                        | 15.7   |   |   |   | 16.5 |   |   |   | 4.8 |   |   |   | (3.4 | ) |
| Income      (loss) before income taxes       |   |                        | (0.7   | ) |   |   | (18.9 | ) |   |   | (288.2 | ) |   |   | 29.9 |   |
| Income      taxes expense (benefit)          |   |                        | (3.9   | ) |   |   | (10.3 | ) |   |   | 0.9 |   |   |   | 7.6 |   |
| Net      income (loss)                       |   |                        | 3.2    |   |   |   | (8.6 | ) |   |   | (289.1 | ) |   |   | 22.3 |   |
| EBITDA      (b)                              |   |                        | 30.4   |   |   |   | 14.1 |   |   |   | (274.0 | ) |   |   | 32.4 |   |
| Adjusted      EBITDA (b)                     |   |                        | 35.3   |   |   |   | 38.3 |   |   |   | 44.8 |   |   |   | 36.2 |   |

| (a) | Exclusive      of depreciation and amortization |
|-----|-------------------------------------------------|

| (b) | A      reconciliation of net income to EBITDA (a-non U.S. GAAP measure) and from      EBITDA to Adjusted EBITDA (a-non U.S. GAAP measure) for each of the      quarters ended in 2009 and 2008 is asfollows: |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                    |   | For      the quarters ended |   |
|---------------------------------------------------------|--------|-----------------------------|--------|
| (in      millions of U.S. dollars)                      |   | September      30,2009      |   |   | June      30,2009 |   |   | March      31,2009 |   |   | December      31,2008 |   |
|                                                    |   | $                           |   |   | $ |   |   | $ |   |   | $ |   |
| Net      income (loss)                                  |   |                        | (8.7   | ) |   |   | (21.4 | ) |   |   | 17.1 |   |   |   | 5.1 |   |
| Financial      expenses                                 |   |                        | 16.8   |   |   |   | 16.7 |   |   |   | 17.0 |   |   |   | 19.3 |   |
| Interest      income                                    |   |                        | (0.1   | ) |   |   | - |   |   |   | (0.1 | ) |   |   | (0.2 | ) |
| Income      taxes expense (benefit)                     |   |                        | (5.4   | ) |   |   | (21.5 | ) |   |   | 2.2 |   |   |   | 0.6 |   |
| Depreciation      and amortization                      |   |                        | 16.5   |   |   |   | 14.8 |   |   |   | 14.5 |   |   |   | 14.5 |   |
| EBITDA      (g)                                         |   |                        | 19.1   |   |   |   | (11.4 | ) |   |   | 50.7 |   |   |   | 39.3 |   |
| Transaction,      integration and refinancing costs (a) |   |                        | 0.9    |   |   |   | 5.0 |   |   |   | 0.8 |   |   |   | 1.1 |   |
| Management      fees (b)                                |   |                        | 0.5    |   |   |   | 4.7 |   |   |   | - |   |   |   | 0.2 |   |
| Stock-based      compensation expense (c)               |   |                        | 0.7    |   |   |   | 1.6 |   |   |   | 2.6 |   |   |   | 1.3 |   |
| Partial      write-down of intangible assets (d)        |   |                        | -      |   |   |   | 55.7 |   |   |   | - |   |   |   | - |   |
| Adjusted      EBITDA (g)                                |   |                        | 21.2   |   |   |   | 55.6 |   |   |   | 54.1 |   |   |   | 41.9 |   |

----

|                                                    |   | For      the quarters ended |   |
|---------------------------------------------------------|--------|-----------------------------|--------|
| (in      millions of U.S. dollars)                      |   | September      30,2008      |   |   | June      30,2008 |   |   | March      31,2008 |   |   | December      31,2007 |   |
|                                                    |   | Successor                   |   |   | Successor |   |   | Non-U.S.GAAP      CombinedPredecessor/Successor |   |   | Predecessor |   |
|                                                    |   | $                           |   |   | $ |   |   | $ |   |   | $ |   |
| Net      income (loss)                                  |   |                        | 3.2    |   |   |   | (8.6 | ) |   |   | (289.1 | ) |   |   | 22.3 |   |
| Financial      expenses                                 |   |                        | 17.4   |   |   |   | 16.9 |   |   |   | 7.3 |   |   |   | 0.2 |   |
| Interest      income                                    |   |                        | (0.4   | ) |   |   | (0.3 | ) |   |   | (1.9 | ) |   |   | (3.6 | ) |
| Income      taxes expense (benefit)                     |   |                        | (3.8   | ) |   |   | (10.4 | ) |   |   | 0.9 |   |   |   | 7.6 |   |
| Depreciation      and amortization                      |   |                        | 14.0   |   |   |   | 16.5 |   |   |   | 8.8 |   |   |   | 5.9 |   |
| EBITDA      (g)                                         |   |                        | 30.4   |   |   |   | 14.1 |   |   |   | (274.0 | ) |   |   | 32.4 |   |
| Transaction,      integration and refinancing costs (a) |   |                        | 3.1    |   |   |   | 3.5 |   |   |   | 29.8 |   |   |   | 2.8 |   |
| Stock-based      compensation expense (c)               |   |                        | 1.8    |   |   |   | 5.6 |   |   |   | 9.0 |   |   |   | 1.0 |   |
| Acquired      in-process research (e)                   |   |                        | -      |   |   |   | - |   |   |   | 272.4 |   |   |   | - |   |
| Inventories      stepped-up value expensed (f)          |   |                        | -      |   |   |   | 15.1 |   |   |   | 7.6 |   |   |   | - |   |
| Adjusted      EBITDA (g)                                |   |                        | 35.3   |   |   |   | 38.3 |   |   |   | 44.8 |   |   |   | 36.2 |   |

| a) | Represents      investment banking and other professional fees associated with the      February 2008 Transactions, as well as integration and refinancing costs.      It also includes costs related to non recurring transactions and payments      to third parties in respect of research and development milestones and      other progress payments as defined within our credit      agreement. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b) | Represents      management fees and other charges associated with the Management Services      Agreement with TPG further described in the “Related party transactions      section” below. As of September 30, 2009 the amount of those charges      incurred since the date of the February 2008 Transactions was allocated      among the subsidiaries of Axcan Holdings Inc., our indirect parent      company, on the basis of revenue. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c) | Represents      stock-based employee compensation expense under the provisions of FASB      guidance. |
|----|-------------------------------------------------------------------------------------------------------|

| d) | As      explained in note 10 of the Consolidated Financial    Statements. |
|----|---------------------------------------------------------------------------|

| e) | Represents      the acquired in-process research, arising from the February 2008      Transactions, expensed in the period of  acquisition. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------|

| f) | Represents      inventories stepped-up value, arising from the February 2008 Transactions,      expensed as acquired inventory issold. |
|----|----------------------------------------------------------------------------------------------------------------------------------------|

| g) | EBITDA      and Adjusted EBITDA are both non-U.S. GAAP financial measures and are      presented in this report because our management considers them important      supplemental measures of our performance and believes that they are      frequently used by interested parties in the evaluation of companies in      the industry. EBITDA, as we use it, is net income before financial      expenses, interest income, income taxes and depreciation and amortization.      We believe that the presentation of EBITDA enhances an investor’s      understanding of our financial performance. We believe that EBITDA is a      useful financial metric to assess our operating performance from period to      period by excluding certain items that we believe are not representative      of our core business. The term EBITDA is not defined under U.S. GAAP, and      EBITDA is not a measure of net income, operating income or any other      performance measure derived in accordance with U.S. GAAP, and is subject      to important limitations. Adjusted EBITDA, as we use it, is EBITDA      adjusted to exclude certain non-cash charges, unusual or non-recurring      items and other adjustments set forth below. Adjusted EBITDA is calculated      in the same manner as “EBITDA” and “Consolidated EBITDA” as those terms      are defined under the indentures governing the notes and credit facility      further described in the section “—Liquidity and Capital      Resources—Long-term Debt and New Senior Secured Credit Facilities”. We      believe that the inclusion of supplementary adjustments applied to EBITDA      in presenting Adjusted EBITDA are appropriate to provide additional      information to investors about certain material non-cash items and unusual      or non-recurring items that we do not expect to continue in the future and      to provide additional information with respect to our ability to meet our      future debt service and to comply with various covenants in such      indentures and credit facility. Adjusted EBITDA is not a measure of net      income, operating income or any other performance measure derived in      accordance with U.S. GAAP, and is subject to important limitations. EBITDA      and Adjusted EBITDA have limitations as an analytical tool, and they      should not be considered in isolation, or as substitutes for analysis of      our results as reported under U.S. GAAP. Some of these limitations      are: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | EBITDA      and Adjusted EBITDA do not reflect all cash expenditures, future      requirements for capital expenditures, or contractual      commitments; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | EBITDA      and Adjusted EBITDA do not reflect changes in, or cash requirements for,      working capital needs; |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | EBITDA      and Adjusted EBITDA do not reflect the significant interest expense, or      the cash requirements necessary to service interest or principal payments,      on our debt; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Although      depreciation and amortization are non-cash charges, the assets being      depreciated and amortized will often have to be replaced in the future,      and EBITDA and Adjusted EBITDA do not reflect any cash requirements for      such replacements; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Adjusted      EBITDA reflects additional adjustments as provided in the indentures      governing our notes and new senior secured credit facilities;      and |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other      companies in our industry may calculate EBITDA and Adjusted EBITDA      differently than we do, limiting its usefulness as a comparative      measure. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                               | For      the years ending September 30, |   |
|------------------------------------|----------------------------------------------|--------|
| (in      millions of U.S. dollars) | 2010                                         |   |   | 2011 |   |   | 2012 |   |   | 2013 |   |   | 2014      and thereafter |   |
|                               | $                                            |   |   | $ |   |   | $ |   |   | $ |   |   | $ |   |
| Long-term      debt                |                                         | 30.7   |   |   |   | 15.3 |   |   |   | 19.7 |   |   |   | 61.3 |   |   |   | 495.7 |   |
| Operating      leases              |                                         | 2.6    |   |   |   | 1.7 |   |   |   | 1.2 |   |   |   | 1.1 |   |   |   | 0.6 |   |
| Other      commitments             |                                         | 5.6    |   |   |   | 2.4 |   |   |   | 0.1 |   |   |   | - |   |   |   | - |   |
| Interest      on long-term debt    |                                         | 57.8   |   |   |   | 56.6 |   |   |   | 55.9 |   |   |   | 54.7 |   |   |   | 102.7 |   |
|                               |                                         | 96.7   |   |   |   | 76.0 |   |   |   | 76.9 |   |   |   | 117.1 |   |   |   | 599.0 |   |

----

| Year                     | %       |
|--------------------------|---------|
| 2011                     | 106.938 |
| 2012                     | 104.625 |
| 2013                     | 102.313 |
| 2014      and thereafter | 100.000 |

| Year                     | %       |
|--------------------------|---------|
| 2012                     | 106.375 |
| 2013                     | 103.188 |
| 2014      and thereafter | 100.000 |

----

----

| (in      millions of U.S. dollars)                |   | For      the fiscal years ended September 30, |   |
|---------------------------------------------------|--------|-----------------------------------------------|--------|
|                                              |   | 2009                                          |   |   | 2008 |   |   | 2007 |   |
|                                              |   | Successor                                     |   |   | CombinedPredecessor/Successor |   |   | Predecessor |   |
|                                              |   | $                                             |   |   | $ |   |   | $ |   |
| Cash      provided by operating activities        |   |                                          | 92.4   |   |   |   | 25.7 |   |   |   | 136.1 |   |
| Cash      used by investing activities            |   |                                          | (10.6  | ) |   |   | (834.9 | ) |   |   | (19.4 | ) |
| Cash      provided (used) by financing activities |   |                                          | (11.6  | ) |   |   | 1,034.8 |   |   |   | 6.6 |   |

----

| (in      millions of U.S. dollars)    |   | Productreturns |   |   | Contractrebates |   |   | Charge-backs |   |   | DSAfees |   |   | Discountsand      other |   |   | Total  |   |
|---------------------------------------|--------|----------------|--------|--------|-----------------|--------|--------|--------------|--------|--------|---------|--------|--------|-------------------------|--------|--------|--------|--------|
|                                  |   | $              |   |   | $               |   |   | $            |   |   | $       |   |   | $                       |   |   | $      |   |
| Balance      as at September 30, 2008 |   |           | 15.8   |   |            |   | 8.8    |         |   |   | 6.6     |   |   |                    | 1.6    |   |   |   | 0.6 |   |   |   | 33.4 |   |
| Provisions                            |   |           | 10.7   |   |            |   | 36.5   |         |   |   | 33.7    |   |   |                    | 3.6    |   |   |   | 8.8 |   |   |   | 93.3 |   |
| Settlements                           |   |           | (9.3   | )      |            |   | (35.5  | )            |   |   | (31.3   | )      |   |                    | (4.2   | )      |   |   | (8.7 | ) |   |   | (89.0 | ) |
| Balance      as at September 30, 2009 |   |           | 17.2   |   |            |   | 9.8    |         |   |   | 9.0     |   |   |                    | 1.0    |   |   |   | 0.7 |   |   |   | 37.7 |   |

|   | · | past      product returns activity; |
|--------|--------|-------------------------------------|

|   | · | the      duration of time taken for products to be  returned; |
|--------|--------|---------------------------------------------------------------|

|   | · | the      estimated level of inventory in the distribution  channels; |
|--------|--------|----------------------------------------------------------------------|

|   | · | product      recalls and discontinuances; |
|--------|--------|-------------------------------------------|

|   | · | the      shelf life of products; |
|--------|--------|----------------------------------|

|   | · | the      launch of new drugs or new formulations;and |
|--------|--------|------------------------------------------------------|

|   | · | the      loss of patent protection or newcompetition. |
|--------|--------|-------------------------------------------------------|

----

|                                         |   | Intangibleassets |   |   | Goodwill |   |
|----------------------------------------------|--------|------------------|--------|--------|----------|--------|
|                                         |   | $                |   |   | $        |   |
| Balance      as at September 30, 2008        |   |             | 528.4  |   |     |   | 165.0 |   |
| Depreciation      and amortization           |   |             | (53.9  | )      |     |   | - |   |
| Partial      write-down of intangible assets |   |             | (55.7  | )      |     |   | - |   |
| Foreign      exchange translation adjustment |   |             | 2.5    |   |     |   | 0.8 |   |
| Balance      as at September 30, 2009        |   |             | 421.3  |   |     |   | 165.8 |   |

----

----

----

----

----

| Reports of Independent Registered Public      Accounting Firm                                                                                                                                                                                                                                                                                       | 78 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----|
| Consolidated Balance Sheets as of September 30,      2009 and 2008 (Successor)                                                                                                                                                                                                                                                                      | 80 |
| Consolidated Operations for the twelve-month      period ended September 30, 2009 and for the period from February 26, 2008      to September 30, 2008 (Successor), the period from October 1, 2007 to      February 25, 2008 and the twelve-month period ended September 30, 2007      (Predecessor)                                               | 81 |
| Consolidated Shareholders’ Equity And      Comprehensive Income for the twelve-month period ended September 30, 2009      and for the period from February 26, 2008 to September 30, 2008      (Successor), the period from October 1, 2007 to February 25, 2008 and the      twelve-month period ended September 30, 2007      (Predecessor) | 82 |
| Consolidated Cash Flows for the twelve-month      period ended September 30, 2009 and for the period from February 26, 2008      to September 30, 2008 (Successor), the period from October 1, 2007 to      February 25, 2008 and the twelve-month period ended September 30, 2007      (Predecessor)                                               | 83 |
| Notes To Consolidated Financial      Statements                                                                                                                                                                                                                                                                                                     | 84 |

----

----

----

----

|                                                                                                                                        |   | SuccessorSeptember      30,2009 |     |   | SuccessorSeptember      30,2008 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|----------|--------|---------------------------------|--------|
| Assets                                                                                                                                      |   | $                               |     |   | $                               |   |
| Current      assets                                                                                                                         |   |                            |     |   |                            |   |
| Cash      and cash equivalents                                                                                                              |   |                            | 126,435  |   |                            |   | 56,105 |   |
| Accounts      receivable, net (Note 5)                                                                                                      |   |                            | 57,124   |   |                            |   | 42,513 |   |
| Accounts      receivable from the parent company (Note 20)                                                                                  |   |                            | 306      |   |                            |   | 987 |   |
| Income      taxes receivable                                                                                                                |   |                            | 3,391    |   |                            |   | 17,743 |   |
| Inventories,      net (Note 6)                                                                                                              |   |                            | 44,706   |   |                            |   | 37,671 |   |
| Prepaid      expenses and deposits                                                                                                          |   |                            | 2,868    |   |                            |   | 3,347 |   |
| Deferred      income taxes (Note 7)                                                                                                         |   |                            | 15,852   |   |                            |   | 18,614 |   |
| Total      current assets                                                                                                                   |   |                            | 250,682  |   |                            |   | 176,980 |   |
| Property,      plant and equipment, net (Note 8)                                                                                            |   |                            | 39,344   |   |                            |   | 34,675 |   |
| Intangible      assets, net (Note 9)                                                                                                        |   |                            | 421,290  |   |                            |   | 528,376 |   |
| Goodwill                                                                                                                                    |   |                            | 165,823  |   |                            |   | 165,014 |   |
| Other      long-term assets                                                                                                                 |   |                            | -        |   |                            |   | 449 |   |
| Deferred      debt issue expenses, net of accumulated amortization of$9,168($4,201      as at September 30, 2008)                           |   |                            | 25,411   |   |                            |   | 30,378 |   |
| Deferred      income taxes (Note 7)                                                                                                         |   |                            | 12,052   |   |                            |   | 8,940 |   |
| Total      assets                                                                                                                           |   |                            | 914,602  |   |                            |   | 944,812 |   |
| Liabilities                                                                                                                                 |   |                            |     |   |                            |   |   |   |
| Current      liabilities                                                                                                                    |   |                            |     |   |                            |   |   |   |
| Accounts      payable and accrued liabilities (Note 11)                                                                                     |   |                            | 87,684   |   |                            |   | 78,667 |   |
| Income      taxes payable                                                                                                                   |   |                            | 2,493    |   |                            |   | 7,653 |   |
| Installments      on long-term debt (Note 12)                                                                                               |   |                            | 30,708   |   |                            |   | 10,938 |   |
| Deferred      income taxes (Note 7)                                                                                                         |   |                            | 137      |   |                            |   | 2,042 |   |
| Total      current liabilities                                                                                                              |   |                            | 121,022  |   |                            |   | 99,300 |   |
| Long-term      debt (Note 12)                                                                                                               |   |                            | 582,586  |   |                            |   | 611,246 |   |
| Other      long-term liabilities                                                                                                            |   |                            | 9,448    |   |                            |   | 1,242 |   |
| Deferred      income taxes (Note 7)                                                                                                         |   |                            | 37,782   |   |                            |   | 67,354 |   |
| Total      liabilities                                                                                                                      |   |                            | 750,838  |   |                            |   | 779,142 |   |
| Commitments      and contingencies (Note 21)                                                                                                |   |                            |     |   |                            |   |   |   |
| Shareholders’      Equity                                                                                                             |   |                            |     |   |                            |   |   |   |
| Capital      Stock (Note 13)                                                                                                                |   |                            |     |   |                            |   |   |   |
| Common      shares, par value $0.001; 100 shares authorized: 100 issued and      outstanding as at September 30, 2009 and September 30,2008 |   |                            | 1        |   |                            |   | 1 |   |
| Deficit                                                                                                                                     |   |                            | (297,658 | )      |                            |   | (289,264 | ) |
| 9.05%      Note receivable from the parent company (Note 20)                                                                                |   |                            | (133,154 | )      |                            |   | (133,154 | ) |
| Additional      paid-in capital                                                                                                             |   |                            | 619,053  |   |                            |   | 617,255 |   |
| Accumulated      other comprehensive loss                                                                                                   |   |                            | (24,478  | )      |                            |   | (29,168 | ) |
| Total      shareholders’ equity                                                                                                       |   |                            | 163,764  |   |                            |   | 165,670 |   |
| Total      liabilities and shareholders’ equity                                                                                       |   |                            | 914,602  |   |                            |   | 944,812 |   |

----

|                                                       |   | Successor                                                       |    |   | Predecessor                                                    |
|------------------------------------------------------------|--------|-----------------------------------------------------------------|---------|--------|----------------------------------------------------------------|
|                                                       |   | For      thetwelve-monthperiod      endedSeptember      30,2009 |    |   | For      theseven-monthperiod      endedSeptember      30,2008 |   |   | For      thefive-monthperiod      endedFebruary      25,2008 |   |   | For      thetwelve-monthperiod      endedSeptember      30,2007 |   |   |
|                                                       |   | $                                                               |    |   | $                                                              |   |   | $ |   |   | $ |   |
| Net      product sales                                     |   |                                                            | 409,826 |   |                                                           |   | 223,179 |   |   |   | 158,579 |   |   |   | 348,947 |   |
| Other      revenue                                         |   |                                                            | 7,113   |   |                                                           |   | - |   |   |   | - |   |   |   | - |   |
| Total      revenue                                         |   |                                                            | 416,939 |   |                                                           |   | 223,179 |   |   |   | 158,579 |   |   |   | 348,947 |   |
| Cost      of goods sold (a)      (Note 4)                  |   |                                                            | 103,023 |   |                                                           |   | 77,227 |   |   |   | 38,739 |   |   |   | 83,683 |   |
| Selling      and administrative expenses (a)(Note      14) |   |                                                            | 122,942 |   |                                                           |   | 88,246 |   |   |   | 76,198 |   |   |   | 101,273 |   |
| Management      fees (Note 20)                             |   |                                                            | 5,351   |   |                                                           |   | 99 |   |   |   | - |   |   |   | - |   |
| Research      and development expenses (a)                 |   |                                                            | 36,037  |   |                                                           |   | 17,768 |   |   |   | 10,256 |   |   |   | 28,655 |   |
| Acquired      in-process research (Note 4)                 |   |                                                            | -       |   |                                                           |   | 272,400 |   |   |   | - |   |   |   | 10,000 |   |
| Depreciation      and amortization                         |   |                                                            | 60,305  |   |                                                           |   | 35,579 |   |   |   | 9,595 |   |   |   | 22,494 |   |
| Partial      write-down of intangible assets (Note 10)     |   |                                                            | 55,665  |   |                                                           |   | - |   |   |   | - |   |   |   | - |   |
| Total      operating expenses                              |   |                                                            | 383,323 |   |                                                           |   | 491,319 |   |   |   | 134,788 |   |   |   | 246,105 |   |
| Operating      income (loss)                               |   |                                                            | 33,616  |   |                                                           |   | (268,140 | ) |   |   | 23,791 |   |   |   | 102,842 |   |
| Financial      expenses (Note 14)                          |   |                                                            | 69,809  |   |                                                           |   | 41,513 |   |   |   | 262 |   |   |   | 4,825 |   |
| Interest      income                                       |   |                                                            | (389    | )      |                                                           |   | (808 | ) |   |   | (5,440 | ) |   |   | (11,367 | ) |
| Other      income (Note 21)                                |   |                                                            | (3,500  | )      |                                                           |   | - |   |   |   | - |   |   |   | - |   |
| Loss      (gain) on foreign currencies                     |   |                                                            | (328    | )      |                                                           |   | (1,841 | ) |   |   | (198 | ) |   |   | 2,352 |   |
| Total      other expenses (income)                         |   |                                                            | 65,592  |   |                                                           |   | 38,864 |   |   |   | (5,376 | ) |   |   | (4,190 | ) |
| Income      (loss) before income taxes                     |   |                                                            | (31,976 | )      |                                                           |   | (307,004 | ) |   |   | 29,167 |   |   |   | 107,032 |   |
| Income      taxes expense (benefit) (Note 7)               |   |                                                            | (24,082 | )      |                                                           |   | (17,740 | ) |   |   | 12,042 |   |   |   | 35,567 |   |
| Net      income (loss)                                     |   |                                                            | (7,894  | )      |                                                           |   | (289,264 | ) |   |   | 17,125 |   |   |   | 71,465 |   |

----

|                                                                                          |   | Successor                                                       |     |   | Predecessor                                                    |   |
|-----------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|----------|--------|----------------------------------------------------------------|--------|
|                                                                                          |   | For      thetwelve-monthperiod      endedSeptember      30,2009 |     |   | For      theseven-monthperiod      endedSeptember      30,2008 |   |   | For      thefive-monthperiod      endedFebruary      25,2008 |   |   | For      thetwelve-monthperiod      endedSeptember      30,2007 |   |
| Common      shares (number)                                                                   |   |                                                            |     |   |                                                           |   |   |   |   |   |   |   |
| Balance,      beginning of period                                                             |   |                                                            | 100      |   |                                                           |   | - |   |   |   | 55,359,652 |   |   |   | 45,800,581 |   |
| Shares      issued for cash                                                                   |   |                                                            | -        |   |                                                           |   | 100 |   |   |   | - |   |   |   | - |   |
| Shares      issued on conversion of subordinated notes                                        |   |                                                            | -        |   |                                                           |   | - |   |   |   | - |   |   |   | 8,924,080 |   |
| Shares      issued pursuant to stock incentive plans for cash                                 |   |                                                            | -        |   |                                                           |   | - |   |   |   | 17,299 |   |   |   | 634,991 |   |
| Balance,      end of period                                                                   |   |                                                            | 100      |   |                                                           |   | 100 |   |   |   | 55,376,951 |   |   |   | 55,359,652 |   |
|                                                                                          |   |                                                            | $        |   |                                                           |   | $  |   |   |   | $  |   |   |   | $  |   |
| Common      shares                                                                            |   |                                                            |     |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      beginning of period                                                             |   |                                                            | 1        |   |                                                           |   | - |   |   |   | 395,888 |   |   |   | 262,786 |   |
| Shares      issued for cash                                                                   |   |                                                            | -        |   |                                                           |   | 1 |   |   |   | - |   |   |   | - |   |
| Shares      issued on conversion of subordinated notes                                        |   |                                                            | -        |   |                                                           |   | - |   |   |   | - |   |   |   | 125,000 |   |
| Stock-based      compensation on exercised options                                            |   |                                                            | -        |   |                                                           |   | - |   |   |   | 41 |   |   |   | 845 |   |
| Shares      issued pursuant to stock incentive plans for cash                                 |   |                                                            | -        |   |                                                           |   | - |   |   |   | 224 |   |   |   | 7,257 |   |
| Balance,      end of period                                                                   |   |                                                            | 1        |   |                                                           |   | 1 |   |   |   | 396,153 |   |   |   | 395,888 |   |
| Retained      earnings (deficit)                                                              |   |                                                            |     |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      beginning of period                                                             |   |                                                            | (289,264 | )      |                                                           |   | - |   |   |   | 249,371 |   |   |   | 177,906 |   |
| Stock-based      compensation cancellation                                                    |   |                                                            | -        |   |                                                           |   | - |   |   |   | (8,821 | ) |   |   | - |   |
| Dividends      paid                                                                           |   |                                                            | (500     | )      |                                                           |   | - |   |   |   | - |   |   |   | - |   |
| Net      income (loss)                                                                        |   |                                                            | (7,894   | )      |                                                           |   | (289,264 | ) |   |   | 17,125 |   |   |   | 71,465 |   |
| Balance,      end of period                                                                   |   |                                                            | (297,658 | )      |                                                           |   | (289,264 | ) |   |   | 257,675 |   |   |   | 249,371 |   |
| Additional      paid-in capital                                                               |   |                                                            |     |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      beginning of period                                                             |   |                                                            | 617,255  |   |                                                           |   | - |   |   |   | 9,089 |   |   |   | 4,967 |   |
| Shares      issued for cash                                                                   |   |                                                            | -        |   |                                                           |   | 608,154 |   |   |   | - |   |   |   | - |   |
| Stock-based      compensation expense                                                         |   |                                                            | 6,172    |   |                                                           |   | 7,443 |   |   |   | 7,474 |   |   |   | 4,548 |   |
| Stock-based      compensation on exercised options                                            |   |                                                            | -        |   |                                                           |   | - |   |   |   | (41 | ) |   |   | (845 | ) |
| Stock-based      compensation settlement                                                      |   |                                                            | (157     | )      |                                                           |   | - |   |   |   | (16,395 | ) |   |   | - |   |
| Income      tax deductions on stock options exercise                                          |   |                                                            | -        |   |                                                           |   | - |   |   |   | (127 | ) |   |   | 419 |   |
| Provision      on interest receivable from the parent company                                 |   |                                                            | (12,050  | )      |                                                           |   | (3,028 | ) |   |   | - |   |   |   | - |   |
| Interest      income from the parent company, net of taxes of ($4,217 and      $2,524)        |   |                                                            | 7,833    |   |                                                           |   | 4,686 |   |   |   | - |   |   |   | - |   |
| Balance,      end of period                                                                   |   |                                                            | 619,053  |   |                                                           |   | 617,255 |   |   |   | - |   |   |   | 9,089 |   |
| 9.05%      Note receivable from the parent company                                            |   |                                                            |     |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      beginning of period                                                             |   |                                                            | (133,154 | )      |                                                           |   | - |   |   |   | - |   |   |   | - |   |
| Issue      of notes                                                                           |   |                                                            | -        |   |                                                           |   | (133,154 | ) |   |   | - |   |   |   | - |   |
| Balance,      end of period                                                                   |   |                                                            | (133,154 | )      |                                                           |   | (133,154 | ) |   |   | - |   |   |   | - |   |
| Accumulated      other comprehensive income (loss)                                            |   |                                                            |     |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      beginning of period                                                             |   |                                                            | (29,168  | )      |                                                           |   | - |   |   |   | 35,849 |   |   |   | 21,765 |   |
| Hedging      contracts fair value adjustments, net of taxes of [$155 and ($159) in      2008] |   |                                                            | (288     | )      |                                                           |   | 295 |   |   |   | - |   |   |   | - |   |
| Foreign      currencies translation adjustments                                               |   |                                                            | 4,978    |   |                                                           |   | (29,463 | ) |   |   | 5,724 |   |   |   | 14,084 |   |
| Balance,      end of period                                                                   |   |                                                            | (24,478  | )      |                                                           |   | (29,168 | ) |   |   | 41,573 |   |   |   | 35,849 |   |
| Total      shareholders’ equity                                                         |   |                                                            | 163,764  |   |                                                           |   | 165,670 |   |   |   | 695,401 |   |   |   | 690,197 |   |
| Comprehensive      income (loss)                                                              |   |                                                            |     |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Other      comprehensive income (loss)                                                        |   |                                                            | 4,690    |   |                                                           |   | (29,168 | ) |   |   | 5,724 |   |   |   | 14,084 |   |
| Net      income (loss)                                                                        |   |                                                            | (7,894   | )      |                                                           |   | (289,264 | ) |   |   | 17,125 |   |   |   | 71,465 |   |
| Total      comprehensive income (loss)                                                        |   |                                                            | (3,204   | )      |                                                           |   | (318,432 | ) |   |   | 22,849 |   |   |   | 85,549 |   |
| Accumulated      other comprehensive income (loss)                                            |   |                                                            |     |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Amounts      related to foreign currencies translation adjustments                            |   |                                                            | (24,485  | )      |                                                           |   | (29,463 | ) |   |   | 41,573 |   |   |   | 35,849 |   |
| Amounts      related to hedging contracts fair value adjustments                              |   |                                                            | 7        |   |                                                           |   | 295 |   |   |   | - |   |   |   | - |   |
| Accumulated      other comprehensive income (loss)                                            |   |                                                            | (24,478  | )      |                                                           |   | (29,168 | ) |   |   | 41,573 |   |   |   | 35,849 |   |

----

|                                                                                  |   | Successor                                                       |    |   | Predecessor                                                    |   |
|---------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|---------|--------|----------------------------------------------------------------|--------|
|                                                                                  |   | For      thetwelve-monthperiod      endedSeptember      30,2009 |    |   | For      theseven-monthperiod      endedSeptember      30,2008 |   |   | For      thefive-monthperiod      endedFebruary      25,2008 |   |   | For      thetwelve-monthperiod      endedSeptember      30,2007 |   |
|                                                                                  |   | $                                                               |    |   | $                                                              |   |   | $ |   |   | $ |   |
| Cash      flows from operating activities                                             |   |                                                            |    |   |                                                           |   |   |   |   |   |   |   |
| Net      income (loss)                                                                |   |                                                            | (7,894  | )      |                                                           |   | (289,264 | ) |   |   | 17,125 |   |   |   | 71,465 |   |
| Adjustments      to reconcile net income to cash flows from operating      activities |   |                                                            |    |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Non-cash      financial expenses                                                      |   |                                                            | 7,028   |   |                                                           |   | 5,352 |   |   |   | - |   |   |   | 1,475 |   |
| Inventories      stepped-up value expensed                                            |   |                                                            | -       |   |                                                           |   | 22,714 |   |   |   | - |   |   |   | - |   |
| Depreciation      and amortization                                                    |   |                                                            | 60,305  |   |                                                           |   | 35,579 |   |   |   | 9,595 |   |   |   | 22,494 |   |
| Acquired      in-process research                                                     |   |                                                            | -       |   |                                                           |   | 272,400 |   |   |   | - |   |   |   | - |   |
| Stock-based      compensation expenses                                                |   |                                                            | 6,172   |   |                                                           |   | 7,443 |   |   |   | 7,474 |   |   |   | 4,548 |   |
| Partial      write-down of intangible assets                                          |   |                                                            | 55,665  |   |                                                           |   | - |   |   |   | - |   |   |   | - |   |
| Non      cash loss on disposal and write-down of assets                               |   |                                                            | 196     |   |                                                           |   | - |   |   |   | - |   |   |   | 3,875 |   |
| Foreign      currencies fluctuations                                                  |   |                                                            | 2,110   |   |                                                           |   | (3,302 | ) |   |   | (67 | ) |   |   | 1,763 |   |
| Change      in fair value of derivatives                                              |   |                                                            | 734     |   |                                                           |   | 5 |   |   |   | - |   |   |   | - |   |
| Deferred      income taxes                                                            |   |                                                            | (35,573 | )      |                                                           |   | (25,367 | ) |   |   | 432 |   |   |   | (11,696 | ) |
| Changes      in working capital items (Note 15)                                       |   |                                                            | 3639    |   |                                                           |   | (73,072 | ) |   |   | 38,686 |   |   |   | 42,178 |   |
| Net      cash provided by (used in) operating activities                              |   |                                                            | 92,382  |   |                                                           |   | (47,512 | ) |   |   | 73,245 |   |   |   | 136,102 |   |
| Cash      flows from investing activities                                             |   |                                                            |    |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Acquisition      of short-term investments                                            |   |                                                            | -       |   |                                                           |   | - |   |   |   | - |   |   |   | (148,929 | ) |
| Disposal      of short-term investments                                               |   |                                                            | -       |   |                                                           |   | - |   |   |   | 129,958 |   |   |   | 136,122 |   |
| Acquisition      of property, plant and equipment                                     |   |                                                            | (10,590 | )      |                                                           |   | (3,061 | ) |   |   | (3,314 | ) |   |   | (6,789 | ) |
| Disposal      of property, plant and equipment                                        |   |                                                            | -       |   |                                                           |   | - |   |   |   | - |   |   |   | 219 |   |
| Acquisition      of intangible assets                                                 |   |                                                            | (10     | )      |                                                           |   | (32 | ) |   |   | (14 | ) |   |   | (38 | ) |
| Net      cash used for the Acquisition (Note 4)                                       |   |                                                            | -       |   |                                                           |   | (958,463 | ) |   |   | - |   |   |   | - |   |
| Net      cash provided by (used in) investing activities                              |   |                                                            | (10,600 | )      |                                                           |   | (961,556 | ) |   |   | 126,630 |   |   |   | (19,415 | ) |
| Cash      flows from financing activities                                             |   |                                                            |    |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Issuance      of long-term debt                                                       |   |                                                            | -       |   |                                                           |   | 634,120 |   |   |   | - |   |   |   | - |   |
| Repayment      of long-term debt                                                      |   |                                                            | (10,937 | )      |                                                           |   | (10,890 | ) |   |   | (221 | ) |   |   | (704 | ) |
| Advances      from the parent company                                                 |   |                                                            | -       |   |                                                           |   | 4,182 |   |   |   | - |   |   |   | - |   |
| Deferred      debt issue expenses                                                     |   |                                                            | -       |   |                                                           |   | (36,360 | ) |   |   | (889 | ) |   |   | - |   |
| Stock-based      compensation plan settlement                                         |   |                                                            | (157    | )      |                                                           |   | - |   |   |   | (30,357 | ) |   |   | - |   |
| Issue      of shares                                                                  |   |                                                            | -       |   |                                                           |   | 475,001 |   |   |   | 224 |   |   |   | 7,257 |   |
| Dividends      paid                                                                   |   |                                                            | (500    | )      |                                                           |   | - |   |   |   | - |   |   |   | - |   |
| Net      cash provided by (used in) financing activities                              |   |                                                            | (11,594 | )      |                                                           |   | 1,066,053 |   |   |   | (31,243 | ) |   |   | 6,553 |   |
| Foreign      exchange gain (loss) on cash held in foreign currencies                  |   |                                                            | 142     |   |                                                           |   | (880 | ) |   |   | 487 |   |   |   | 602 |   |
| Net      increase in cash and cash equivalents                                        |   |                                                            | 70,330  |   |                                                           |   | 56,105 |   |   |   | 169,119 |   |   |   | 123,842 |   |
| Cash      and cash equivalents, beginning of period                                   |   |                                                            | 56,105  |   |                                                           |   | - |   |   |   | 179,672 |   |   |   | 55,830 |   |
| Cash      and cash equivalents, end of period                                         |   |                                                            | 126,435 |   |                                                           |   | 56,105 |   |   |   | 348,791 |   |   |   | 179,672 |   |

----

| 1. | Governing      Statutes, Description of Business and Basis of  Presentation |
|----|-----------------------------------------------------------------------------|

| 2. | Significant      Accounting Policies |
|----|--------------------------------------|

----

| 2. | Significant      Accounting Policies (continued) |
|----|--------------------------------------------------|

----

| 2. | Significant      Accounting Policies (continued) |
|----|--------------------------------------------------|

|                                                         |                |
|--------------------------------------------------------------|---------------------|
| Buildings                                                    | 10      to 25 years |
| Furniture      and equipment                                 | 5      to 10 years  |
| Computer      equipment                                      | 2      to 5 years   |
| Automotive      equipment                                    | 4      to 5 years   |
| Leasehold      and building improvements                     | 5      to 10 years  |
| Trademarks,      trademark licenses and manufacturing rights | 5      to 20 years  |

----

| 2. | Significant      Accounting Policies (continued) |
|----|--------------------------------------------------|

----

| 3. | Recently      Issued Accounting Standards |
|----|-------------------------------------------|

----

| 3. | Recently      Issued Accounting Standards(continued) |
|----|------------------------------------------------------|

----

| 3. | Recently      Issued Accounting Standards(continued) |
|----|------------------------------------------------------|

----

| 4. | Acquisition |
|----|-------------|

|                                   | $         |
|----------------------------------------|-----------|
|                                   |      |
| Cash                                   | 348,791   |
| Inventories      (a)                   | 54,055    |
| Other      current assets              | 91,951    |
| Property,      plant and equipment     | 36,912    |
| Intangible      assets                 | 581,653   |
| Acquired      in-process research (b)  | 272,400   |
| Goodwill                               | 169,625   |
| Deferred      debt issue expenses      | 889       |
| Deferred      income taxes assets      | 7,246     |
| Current      liabilities               | (174,554) |
| Long-term      debt                    | (68)      |
| Deferred      income taxes liabilities | (81,646)  |
| Total                                  | 1,307,254 |

| (a) | As      part of the purchase price allocation for the acquisition, the carrying      value of inventory acquired was stepped-up to fair value by $22,714,000 as      of February 25, 2008. The stepped-up value is recorded as a charge to cost      of goods sold as acquired inventory issold. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b) | Represents      the estimated fair value of acquired in-process R&D projects that had      not yet reached technological feasibility and had no alternative future      use. Accordingly, this amount was immediately expensed upon the      acquisition date. The value assigned to purchased in-process technology is      mainly attributable to the following projects: CANASA MAX 002, pancreatic      enzymes, PYLERA in the European Union, AGI 010 and  Cx401. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 4. | Acquisition      (continued) |
|----|------------------------------|

|                                       |   | For      thetwelve-monthperiod      endedSeptember      30,2008 |    |   | For      thetwelve-monthperiod      endedSeptember      30,2007 |   |
|--------------------------------------------|--------|-----------------------------------------------------------------|---------|--------|-----------------------------------------------------------------|--------|
|                                       |   | (unaudited)                                                     |    |   | (unaudited)                                                     |   |
|                                       |   | $                                                               |    |   | $                                                               |   |
| Revenue                                    |   |                                                            | 381,758 |   |                                                            |   | 348,947 |   |
| Income      (loss) before income taxes (a) |   |                                                            | 259     |   |                                                            |   | (22,408 | ) |
| Net      income (loss) (a)                 |   |                                                            | 3,964   |   |                                                            |   | (12,671 | ) |

| (a) | The      pro-forma financial information for the fiscal year ended September 30,      2008 has not been adjusted for the acquired in-process research of      $272,400,000 and inventory stepped-up value adjustments of $22,714,000,      which form part of the purchase price allocation, transaction and      integration costs of $37,569,000 because they are non-recurring in      nature. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | Accounts      receivable |
|----|--------------------------|

|                                                                                               |   | SuccessorSeptember      30,2009 |   |   | SuccessorSeptember      30,2008 |   |
|----------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|--------|---------------------------------|--------|
|                                                                                               |   | $                               |   |   | $                               |   |
| Trade      accounts, net of allowance for doubtful amounts of $117,000 ($122,000 in      2008) (a) |   |                            | 54,094 |   |                            |   | 41,475 |   |
| Taxes      receivable                                                                              |   |                            | 612    |   |                            |   | 745 |   |
| Other                                                                                              |   |                            | 2,418  |   |                            |   | 293 |   |
|                                                                                               |   |                            | 57,124 |   |                            |   | 42,513 |   |

| (a) | As      at September 30, 2009, the accounts receivable include amounts receivable      from three major customers which represent approximately 57% (53% in 2008)      of the Company’s total accounts receivable (Note  16) |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Inventories |
|----|-------------|

|                                                                                       |   | SuccessorSeptember      30,2009 |   |   | SuccessorSeptember      30,2008 |   |
|--------------------------------------------------------------------------------------------|--------|---------------------------------|--------|--------|---------------------------------|--------|
|                                                                                       |   | $                               |   |   | $                               |   |
| Raw      material and packaging material                                                   |   |                            | 8,416  |   |                            |   | 8,177 |   |
| Work      in progress                                                                      |   |                            | 886    |   |                            |   | 1,867 |   |
| Finished      goods, net of reserve for obsolescence of $4,159,000 ($477,000 in      2008) |   |                            | 35,404 |   |                            |   | 27,627 |   |
|                                                                                       |   |                            | 44,706 |   |                            |   | 37,671 |   |

----

| 7. | Income      Taxes |
|----|-------------------|

|                                                    |   | SuccessorSeptember      30,2009 |    |   | SuccessorSeptember      30,2008 |   |
|---------------------------------------------------------|--------|---------------------------------|---------|--------|---------------------------------|--------|
|                                                    |   |                            |    |   |                            |   |
| Assets                                                  |   | $                               |    |   | $                               |   |
| Inventories                                             |   |                            | 3,519   |   |                            |   | 9,971 |   |
| Accounts      payable and accrued liabilities           |   |                            | 12,464  |   |                            |   | 8,598 |   |
| Intangible      assets                                  |   |                            | -       |   |                            |   | 7,409 |   |
| Research      and development tax credits               |   |                            | 2,355   |   |                            |   | 739 |   |
| Deferred      debt issue expenses                       |   |                            | 1,812   |   |                            |   | 2,304 |   |
| Unused      tax losses                                  |   |                            | 20,983  |   |                            |   | 6,059 |   |
| Financing      expenses                                 |   |                            | 736     |   |                            |   | - |   |
| Stock-based      compensation                           |   |                            | 1,984   |   |                            |   | 1,043 |   |
| Other                                                   |   |                            | 485     |   |                            |   | 423 |   |
| Liabilities                                             |   |                            |    |   |                            |   |   |   |
| Accounts      receivable                                |   |                            | -       |   |                            |   | (445 | ) |
| Prepaid      expenses and deposits                      |   |                            | (786    | )      |                            |   | (886 | ) |
| Property,      plant and equipment                      |   |                            | (1,305  | )      |                            |   | (1,282 | ) |
| Intangible      assets                                  |   |                            | (45,312 | )      |                            |   | (71,327 | ) |
| Sub      Part F income                                  |   |                            | (3,660  | )      |                            |   | (3,660 | ) |
| Undistributed      earnings of foreign subsidiaries     |   |                            | (2,097  | )      |                            |   | - |   |
| Other                                                   |   |                            | (457    | )      |                            |   | (788 | ) |
|                                                    |   |                            | (9,279  | )      |                            |   | (41,842 | ) |
| Valuation      allowance relating to financing expenses |   |                            | (736    | )      |                            |   | - |   |
| Net      deferred income tax liabilities                |   |                            | (10,015 | )      |                            |   | (41,842 | ) |

|         |   | Operating      losses |   |   | Tax      credits |   |
|--------------|--------|-----------------------|--------|--------|------------------|--------|
|         |   | $                     |   |   | $                |   |
| 2028         |   |                  | 9,894  |   |             |   | 1,299 |   |
| 2029         |   |                  | 1,813  |   |             |   | 1,056 |   |
| Indefinitely |   |                  | 9,276  |   |             |   |   |   |

|                                                 |   | SuccessorSeptember      30,2009 |    |   | SuccessorSeptember      30,2008 |   |
|------------------------------------------------------|--------|---------------------------------|---------|--------|---------------------------------|--------|
|                                                 |   | $                               |    |   | $                               |   |
| Deferred      income tax assets – Current      |   |                            | 15,852  |   |                            |   | 18,614 |   |
| Deferred      income tax assets - Non-current        |   |                            | 12,052  |   |                            |   | 8,940 |   |
| Deferred      income tax liabilities – Current |   |                            | (137    | )      |                            |   | (2,042 | ) |
| Deferred      income tax liabilities - Non-Current   |   |                            | (37,782 | )      |                            |   | (67,354 | ) |
|                                                 |   |                            | (10,015 | )      |                            |   | (41,842 | ) |

----

| 7. | Income      Taxes (continued) |
|----|-------------------------------|

|                                                |   | Successor                                                       |    |   | Predecessor                                                    |   |
|-----------------------------------------------------|--------|-----------------------------------------------------------------|---------|--------|----------------------------------------------------------------|--------|
|                                                |   | For      thetwelve-monthperiod      endedSeptember      30,2009 |    |   | For      theseven-monthperiod      endedSeptember      30,2008 |   |   | For      thefive-monthperiod      endedFebruary      25,2008 |   |   | For      thetwelve-monthperiod      endedSeptember      30,2007 |   |
|                                                |   | $                                                               |    |   | $                                                              |   |   | $ |   |   | $ |   |
| Current                                             |   |                                                            | 11,491  |   |                                                           |   | 7,627 |   |   |   | 11,888 |   |   |   | 47,263 |   |
| Deferred                                            |   |                                                            |    |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Creation      and reversal of temporary differences |   |                                                            | (35,863 | )      |                                                           |   | (25,367 | ) |   |   | 154 |   |   |   | (11,696 | ) |
| Change      in promulgated rates                    |   |                                                            | 290     |   |                                                           |   | - |   |   |   | - |   |   |   | - |   |
|                                                |   |                                                            | (35,573 | )      |                                                           |   | (25,367 | ) |   |   | 154 |   |   |   | (11,696 | ) |
|                                                |   |                                                            | (24,082 | )      |                                                           |   | (17,740 | ) |   |   | 12,042 |   |   |   | 35,567 |   |
| Domestic                                            |   |                                                            |    |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Current                                             |   |                                                            | 7,430   |   |                                                           |   | 4,057 |   |   |   | (4,264 | ) |   |   | 16,073 |   |
| Deferred                                            |   |                                                            | (37,510 | )      |                                                           |   | (10,461 | ) |   |   | 1,977 |   |   |   | (8,394 | ) |
|                                                |   |                                                            | (30,080 | )      |                                                           |   | (6,404 | ) |   |   | (2,287 | ) |   |   | 7,679 |   |
| Foreign                                             |   |                                                            |    |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Current                                             |   |                                                            | 4,061   |   |                                                           |   | 3,570 |   |   |   | 16,152 |   |   |   | 31,190 |   |
| Deferred                                            |   |                                                            | 1,937   |   |                                                           |   | (14,906 | ) |   |   | (1,823 | ) |   |   | (3,302 | ) |
|                                                |   |                                                            | 5,998   |   |                                                           |   | (11,336 | ) |   |   | 14,329 |   |   |   | 27,888 |   |
|                                                |   |                                                            | (24,082 | )      |                                                           |   | (17,740 | ) |   |   | 12,042 |   |   |   | 35,567 |   |

|                                                          |   | Successor                                                       |   |   | Predecessor                                                    |   |
|---------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|
|                                                          |   | For      thetwelve-monthperiod      endedSeptember      30,2009 |   |   | For      theseven-monthperiod      endedSeptember      30,2008 |   |   | For      thefive-monthperiod      endedFebruary      25,2008 |   |   | For      thetwelve-monthperiod      endedSeptember      30,2007 |   |
|                                                          |   | %                                                               |   |   | $                                                              |   |   | % |   |   | $ |   |   | % |   |   | $ |   |   | % |   |   | $ |   |
| Combined      statutory rate applied to pre-tax income (loss) |   |                                                            | 35.00  |   |                                                           |   | (11,192 | ) |   |   | 35.00 |   |   |   | (107,451 | ) |   |   | 31.83 |   |   |   | 9,284 |   |   |   | 32.02 |   |   |   | 34,272 |   |
| Increase      (decrease) in taxes resulting from:             |   |                                                            |   |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change      in promulgated rates                              |   |                                                            | (0.91  | )      |                                                           |   | 290 |   |   |   | - |   |   |   | - |   |   |   | 0.15 |   |   |   | 42 |   |   |   | - |   |   |   | - |   |
| Difference      with foreign tax rates                        |   |                                                            | 8.10   |   |                                                           |   | (2,591 | ) |   |   | (1.12 | ) |   |   | 3,428 |   |   |   | (5.63 | ) |   |   | (1,643 | ) |   |   | (2.38 | ) |   |   | (2,548 | ) |
| Tax      benefit arising from a financing structure           |   |                                                            | 44.46  |   |                                                           |   | (14,218 | ) |   |   | 2.94 |   |   |   | (9,014 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Non-deductible      items                                     |   |                                                            | (9.72  | )      |                                                           |   | 3,108 |   |   |   | (31.81 | ) |   |   | 97,647 |   |   |   | 15.91 |   |   |   | 4,641 |   |   |   | 4.79 |   |   |   | 5,131 |   |
| Non-taxable      items                                        |   |                                                            | -      |   |                                                           |   | - |   |   |   | - |   |   |   | - |   |   |   | (0.06 | ) |   |   | (17 | ) |   |   | (0.14 | ) |   |   | (149 | ) |
| Investment      tax credits                                   |   |                                                            | 4.24   |   |                                                           |   | (1,355 | ) |   |   | 0.29 |   |   |   | (885 | ) |   |   | (2.72 | ) |   |   | (793 | ) |   |   | (2.01 | ) |   |   | (2,154 | ) |
| State      taxes                                              |   |                                                            | (0.34  | )      |                                                           |   | 110 |   |   |   | 1.29 |   |   |   | (3,974 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Valuation      allowance                                      |   |                                                            | (2.30  | )      |                                                           |   | 736 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Other                                                         |   |                                                            | (3.22  | )      |                                                           |   | 1,030 |   |   |   | (0.81 | ) |   |   | 2,509 |   |   |   | 1.81 |   |   |   | 528 |   |   |   | 0.95 |   |   |   | 1,015 |   |
|                                                          |   |                                                            | 75.31  |   |                                                           |   | (24,082 | ) |   |   | 5.78 |   |   |   | (17,740 | ) |   |   | 41.29 |   |   |   | 12,042 |   |   |   | 33.23 |   |   |   | 35,567 |   |

----

| 7. | Income      Taxes (continued) |
|----|-------------------------------|

|                                                              |   | Successor                                                       |   |   | Successor                                                      |   |   | Predecessor                                                  |   |
|-------------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|--------|--------------------------------------------------------------|--------|
|                                                              |   | For      thetwelve-monthperiod      endedSeptember      30,2009 |   |   | For      theseven-monthperiod      endedSeptember      30,2008 |   |   | For      thefive-monthperiod      endedFebruary      25,2008 |   |
|                                                              |   | $                                                               |   |   | $                                                              |   |   | $                                                            |   |
| Balance,      beginning of period                                 |   |                                                            | 10,446 |   |                                                           |   | 2,015  |                                                         |   |   | 1,245 |   |
| Additions      based on tax positions related to the current year |   |                                                            | 31     |   |                                                           |   | 249    |                                                         |   |   | 904 |   |
| Additions      for tax positions of prior years                   |   |                                                            | 279    |   |                                                           |   | 8,182  |                                                         |   |   | 15 |   |
| Reductions      for tax positions of prior years                  |   |                                                            | (347   | )      |                                                           |   | -      |                                                         |   |   | (149 | ) |
| Balance,      end of period                                       |   |                                                            | 10,409 |   |                                                           |   | 10,446 |                                                         |   |   | 2,015 |   |

----

| 8. | Property,      Plant and Equipment |
|----|------------------------------------|

|                                     |   | Successor |   |
|------------------------------------------|--------|-----------|--------|
|                                     |   |      |   |   |   |   |   | September      30, 2009 |   |
|                                     |   | Cost      |   |   | Accumulateddepreciation |   |   | Net |   |
|                                     |   | $         |   |   | $ |   |   | $ |   |
| Land                                     |   |      | 2,276  |   |   |   | - |   |   |   | 2,276 |   |
| Buildings                                |   |      | 22,739 |   |   |   | 2,931 |   |   |   | 19,808 |   |
| Furniture      and equipment             |   |      | 8,321  |   |   |   | 2,598 |   |   |   | 5,723 |   |
| Computer      equipment                  |   |      | 15,218 |   |   |   | 4,805 |   |   |   | 10,413 |   |
| Leasehold      and building improvements |   |      | 1,181  |   |   |   | 57 |   |   |   | 1,124 |   |
|                                     |   |      | 49,735 |   |   |   | 10,391 |   |   |   | 39,344 |   |

|                                     |   | Successor |   |
|------------------------------------------|--------|-----------|--------|
|                                     |   |      |   |   |   |   |   | September      30, 2008 |   |
|                                     |   | Cost      |   |   | Accumulateddepreciation |   |   | Net |   |
|                                     |   | $         |   |   | $ |   |   | $ |   |
| Land                                     |   |      | 2,257  |   |   |   | - |   |   |   | 2,257 |   |
| Buildings                                |   |      | 21,066 |   |   |   | 1,213 |   |   |   | 19,853 |   |
| Furniture      and equipment             |   |      | 5,471  |   |   |   | 936 |   |   |   | 4,535 |   |
| Automotive      equipment                |   |      | 9      |   |   |   | 9 |   |   |   | - |   |
| Computer      equipment                  |   |      | 9,739  |   |   |   | 1,716 |   |   |   | 8,023 |   |
| Leasehold      and building improvements |   |      | 9      |   |   |   | 2 |   |   |   | 7 |   |
|                                     |   |      | 38,551 |   |   |   | 3,876 |   |   |   | 34,675 |   |

| 9. | Intangible      Assets |
|----|------------------------|

|        Successor            |
|-----------------------------------------------------------|

|                                                                             |   |   |    |   |                    |   |   | September      30, 2009 |   |
|----------------------------------------------------------------------------------|--------|--------|---------|--------|-------------------------|--------|--------|-------------------------|--------|
|                                                                             |   | Cost   |    |   | Accumulatedamortization |   |   | Net                     |   |
|                                                                             |   | $      |    |   | $                       |   |   | $                       |   |
|                                                                             |   |   |    |   |                    |   |   |                    |   |
| Trademarks,      trademark licenses and manufacturing rights with finite    life |   |   | 491,411 |   |                    |   | 70,121 |                    |   |   | 421,290 |   |

|   | Successor       |
|--------|-----------------------------------------------|

|                                                                             |   |   |    |   |                    |   |   | September      30, 2008 |   |
|----------------------------------------------------------------------------------|--------|--------|---------|--------|-------------------------|--------|--------|-------------------------|--------|
|                                                                             |   | Cost   |    |   | Accumulatedamortization |   |   | Net                     |   |
|                                                                             |   |   | $       |   |                    |   | $      |                    |   |   | $ |   |
|                                                                             |   |   |    |   |                    |   |   |                    |   |   |   |   |
| Trademarks,      trademark licenses and manufacturing rights with finite    life |   |   | 559,146 |   |                    |   | 30,770 |                    |   |   | 528,376 |   |

----

|   |   | $      |
|--------|--------|--------|
| 2010   |   | 50,598 |
| 2011   |   | 46,539 |
| 2012   |   | 42,451 |
| 2013   |   | 34,311 |
| 2014   |   | 28,497 |

| 10. | Partial      Write-Down of Intangible Assets |
|-----|----------------------------------------------|

| 11. | Accounts      Payable and Accrued Liabilities |
|-----|-----------------------------------------------|

|                                                           |   | Successor              |   |   | Successor              |   |
|----------------------------------------------------------------|--------|------------------------|--------|--------|------------------------|--------|
|                                                           |   | September      30,2009 |   |   | September      30,2008 |   |
|                                                           |   | $                      |   |   | $                      |   |
|                                                           |   |                   |   |   |                   |   |
| Accounts      payable                                          |   |                   | 20,781 |   |                   |   | 13,112 |   |
| Accounts      payable to a shareholding company                |   |                   | 436    |   |                   |   | - |   |
| Contract      rebates, product returns and accrued chargebacks |   |                   | 38,189 |   |                   |   | 33,144 |   |
| Accrued      interest on long-term debt                        |   |                   | 4,377  |   |                   |   | 4,272 |   |
| Accrued      royalty fees                                      |   |                   | 6,516  |   |                   |   | 6,293 |   |
| Accrued      salaries                                          |   |                   | 5,502  |   |                   |   | 5,570 |   |
| Accrued      bonuses                                           |   |                   | 6,649  |   |                   |   | 7,950 |   |
| Accrued      research and development expenses                 |   |                   | 308    |   |                   |   | 1,567 |   |
| Other      accrued liabilities                                 |   |                   | 4,926  |   |                   |   | 6,759 |   |
|                                                           |   |                   | 87,684 |   |                   |   | 78,667 |   |

----

| 12. | Long-term      Debt |
|-----|---------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | Successor                    |    |   | Successor              |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|--------|------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | September      30, 2009 |    |   | September      30,2008 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $                            |    |   | $                      |   |
| Senior      notes secured by substantially all of the present and future assets of the      Company, bearing interest at 9.25% and maturing in March    2015                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                         | 225,764 |   |                   |   | 225,360 |   |
|  Term      loans of $159,688,000 at September 30, 2009, $109,688,000 bearing interest      at the one-month British Banker Association LIBOR (0.25% as at September      30, 2009) and $50,000,000 bearing interest at the three-month British      Banker Association LIBOR (0.28% as at September 30, 2009), $170,625,000 at      September 30, 2008 bearing interest at the three-month British Banker      Association LIBOR (3.76% as at September 30, 2008), plus the applicable      rate based on the consolidated total leverage ratio of the Company and      certain of its subsidiaries for the preceding twelve months, secured by      substantially all of the present and future assets of the Company, payable      in quarterly installments, maturing in February 2014, subject to interest      rate swap agreements as further disclosed in Note 18 |   |                         | 154,779 |   |                   |   | 164,400 |   |
|  Senior      unsecured notes, bearing interest at 12.75% and maturing in March      2016                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                         | 232,751 |   |                   |   | 232,424 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                         | 613,294 |   |                   |   | 622,184 |   |
| Installments      due within one year                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                         | 30,708  |   |                   |   | 10,938 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                         | 582,586 |   |                   |   | 611,246 |   |

|                     |   | SeniorSecured      Notes |    |
|--------------------------|--------|--------------------------|---------|
|                     |   | %                        |    |
| 2011                     |   |                     | 106.938 |   |
| 2012                     |   |                     | 104.625 |   |
| 2013                     |   |                     | 102.313 |   |
| 2014      and thereafter |   |                     | 100.000 |   |

----

| 12. | Long-term      Debt (continued) |
|-----|---------------------------------|

|                     |   | SeniorUnsecured      Notes |    |
|--------------------------|--------|----------------------------|---------|
|                     |   | %                          |    |
| 2012                     |   |                       | 106.375 |   |
| 2013                     |   |                       | 103.188 |   |
| 2014      and thereafter |   |                       | 100.000 |   |

----

| 12. | Long-term      Debt (continued) |
|-----|---------------------------------|

|                                        |   |   | $       |   |
|---------------------------------------------|--------|--------|---------|--------|
|                                        |   |   |    |   |
| 2010                                        |   |   | 30,708  |   |
| 2011                                        |   |   | 15,312  |   |
| 2012                                        |   |   | 19,688  |   |
| 2013                                        |   |   | 61,250  |   |
| 2014                                        |   |   | 32,729  |   |
| Thereafter                                  |   |   | 463,000 |   |
|                                        |   |   | 622,687 |   |
| Unamortized      original issuance discount |   |   | 9,393   |   |
|                                        |   |   | 613,294 |   |

| 13. | Capital      Stock |
|-----|--------------------|

----

| 13. | Capital      Stock (continued) |
|-----|--------------------------------|

|                                              |   | For      the five-month period ended      February 25, 2008 |       |   | For      the twelve-month periodended      September 30, 2007 |   |
|---------------------------------------------------|--------|------------------------------------------------------------------|------------|--------|---------------------------------------------------------------|--------|
|                                              |   | Number      ofoptions                                            |       |   | Weightedaverageexerciseprice                                  |   |   | Number      ofoptions |   |   | Weightedaverageexerciseprice |   |
|                                              |   |                                                             |       |   | $                                                             |   |   |   |   |   | $ |   |
| Balance,      beginning of period                 |   |                                                             | 2,684,835  |   |                                                          |   | 13.61 |   |   |   | 3,057,084 |   |   |   | 13.01 |   |
| Granted                                           |   |                                                             | -          |   |                                                          |   | - |   |   |   | 599,800 |   |   |   | 15.30 |   |
| Exercised                                         |   |                                                             | (17,299    | )      |                                                          |   | 12.72 |   |   |   | (634,991 | ) |   |   | 11.43 |   |
| Expired                                           |   |                                                             | (4,000     | )      |                                                          |   | 11.99 |   |   |   | (74,660 | ) |   |   | 17.06 |   |
| Forfeited                                         |   |                                                             | (47,710    | )      |                                                          |   | 14.62 |   |   |   | (262,398 | ) |   |   | 14.75 |   |
| Settled      upon consummation of the Acquisition |   |                                                             | (2,615,826 | )      |                                                          |   | 13.85 |   |   |   | - |   |   |   | - |   |
| Balance,      end of period                       |   |                                                             | -          |   |                                                          |   | - |   |   |   | 2,684,835 |   |   |   | 13.61 |   |
| Options      exercisable at the end of the period |   |                                                             | -          |   |                                                          |   | - |   |   |   | 1,445,871 |   |   |   | 12.45 |   |

|                              |   | Number      ofoptions |       |   | Weightedaveragegrant      datefair      value |   |
|-----------------------------------|--------|-----------------------|------------|--------|-----------------------------------------------|--------|
|                              |   |                  |       |   | $                                             |   |
| Balance,      beginning of period |   |                  | 1,238,064  |   |                                          |   | 6.26 |   |
| Granted                           |   |                  | -          |   |                                          |   | - |   |
| Vested      (1)                   |   |                  | (1,190,354 | )      |                                          |   | 6.25 |   |
| Forfeited                         |   |                  | (47,710    | )      |                                          |   | 6.44 |   |
| Balance,      end of period       |   |                  | -          |   |                                          |   | - |   |

| (1) | Upon      consummation of the Acquisition, all non-vested stock options became      vested; as a result, the Predecessor recorded $2,572,085 in share-based      compensation expense for the five-month period ended February 25, 2008,      $8,821,215 in reduction of retained earnings and $16,394,611 in reduction      of additional paid-in capital |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13. | Capital      Stock (continued) |
|-----|--------------------------------|

|                                  |   | For      thefive-monthperiod      endedFebruary      25,2008 |   |   | For      thetwelve-monthperiod      endedSeptember      30,2007 |   |
|---------------------------------------|--------|--------------------------------------------------------------|--------|--------|-----------------------------------------------------------------|--------|
|                                  |   |                                                         |   |   |                                                            |   |
| Expected      term of options (years) |   |                                                         | -      |   |                                                            |   | 4.5 |   |
| Expected      stock price volatility  |   |                                                         | -      |   |                                                            |   | 38 | % |
| Risk-free      interest rate          |   |                                                         | -      |   |                                                            |   | 4.36 | % |
| Expected      dividend                |   |                                                         | -      |   |                                                            |   | - |   |

----

| 13. | Capital      Stock (continued) |
|-----|--------------------------------|

|                                    |   | For      the twelve-month periodended      September 30, 2009 |      |   | For      the seven-month periodended      September 30, 2008 |   |
|-----------------------------------------|--------|---------------------------------------------------------------|-----------|--------|--------------------------------------------------------------|--------|
|                                    |   | Number      ofoptions                                         |      |   | Weightedaverageexerciseprice                                 |   |   | Number      ofoptions |   |   | Weightedaverageexerciseprice |   |
|                                    |   |                                                          |      |   | $                                                            |   |   |   |   |   | $ |   |
| Balance,      beginning of period       |   |                                                          | 3,648,000 |   |                                                         |   | 10.00 |   |   |   | - |   |   |   | - |   |
| Granted                                 |   |                                                          | 197,000   |   |                                                         |   | 12.40 |   |   |   | 3,723,000 |   |   |   | 10.00 |   |
| Exercised                               |   |                                                          | -         |   |                                                         |   | - |   |   |   | - |   |   |   | - |   |
| Expired                                 |   |                                                          | -         |   |                                                         |   | - |   |   |   | - |   |   |   | - |   |
| Forfeited                               |   |                                                          | (120,625  | )      |                                                         |   | 10.16 |   |   |   | (75,000 | ) |   |   | 10.00 |   |
| Balance,      end of period             |   |                                                          | 3,724,375 |   |                                                         |   | 10.34 |   |   |   | 3,648,000 |   |   |   | 10.00 |   |
| Options      exercisable at end of year |   |                                                          | 526,450   |   |                                                         |   | 10.31 |   |   |   | - |   |   |   | - |   |

|                 |   | Options      outstanding |   | Options      exercisable                |
|----------------------|--------|--------------------------|--------|-----------------------------------------|
| Exercise      price  |   | Numberof      options    |   | Weightedaverageremainingcontractuallife |   | Weightedaverageexerciseprice |   | Numberof      options |   | Weightedaverageremainingcontractuallife |   | Weightedaverageexerciseprice |
|                 |   |                     |   |                                    |   | $ |   |   |   |   |   | $ |
| $10.00      - $11.00 |   | 3,544,375                |   | 8.58                                    |   | 10.23 |   | 526,450 |   | 8.59 |   | 10.31 |
| $11.01      - $12.53 |   | 180,000                  |   | 9.64                                    |   | 12.53 |   | - |   | - |   | - |
|                 |   | 3,724,375                |   | 8.63                                    |   | 10.34 |   | 526,450 |   | 8.59 |   | 10.31 |

|                              |   | Number      ofoptions |      |   | Weightedaveragegrant      datefair      value |   |
|-----------------------------------|--------|-----------------------|-----------|--------|-----------------------------------------------|--------|
|                              |   |                  |      |   | $                                             |   |
| Balance,      beginning of period |   |                  | 3,648,000 |   |                                          |   | 3.43 |   |
| Granted                           |   |                  | 197,000   |   |                                          |   | 5.12 |   |
| Vested                            |   |                  | (526,450  | )      |                                          |   | 3.45 |   |
| Forfeited                         |   |                  | (120,625  | )      |                                          |   | 3.52 |   |
| Balance,      end of period       |   |                  | 3,197,925 |   |                                          |   | 3.52 |   |

----

| 13. | Capital      Stock (continued) |
|-----|--------------------------------|

|                                  |   | For      thetwelve-monthperiod      endedSeptember      30,2009 |   |   | For      theseven-monthperiod      endedSeptember      30,2008 |   |
|---------------------------------------|--------|-----------------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|
| Expected      term of options (years) |   |                                                            | 5.40   |   |                                                           |   | 4.15 |   |
| Expected      stock price volatility  |   |                                                            | 57.6   | %      |                                                           |   | 46.0 | % |
| Risk-free      interest rate          |   |                                                            | 2.38   | %      |                                                           |   | 2.80 | % |
| Expected      dividend                |   |                                                            | -      |   |                                                           |   | - |   |

----

----

| 13. | Capital      Stock (continued) |
|-----|--------------------------------|

| 14. | Financial      Information Included in the Consolidated  Operations |
|-----|---------------------------------------------------------------------|

| a) | Financial      expenses |
|----|-------------------------|

|                                                                                                                                                                           |   |                                                            |   |   |                                                           |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|
|                                                                                                                                                                           |   | Successor                                                  |   |   | Predecessor                                               |   |
|                                                                                                                                                                           |   | For      thetwelve-monthperiod      endedSeptember      30,2009 |   |   | For      theseven-monthperiod      endedSeptember      30,2008 |   |   | For      thefive-monthperiod      endedFebruary      25,2008 |   |   | For      thetwelve-monthperiod      endedSeptember      30,2007 |   |
|                                                                                                                                                                           |   | $                                                               |   |   | $                                                              |   |   | $ |   |   | $ |   |
| Interest      on long-term debt (including amortization of original issuance discount of      $2,061 and $1,150 for the seven-month period ended September 30,      2008) |   |                                                            | 61,821 |   |                                                           |   | 36,631 |   |   |   | 14 |   |   |   | 2,870 |   |
| Interest      and bank charges                                                                                                                                                 |   |                                                            | 444    |   |                                                           |   | 207 |   |   |   | 76 |   |   |   | 182 |   |
| Interest      rate swaps (Note 18)                                                                                                                                             |   |                                                            | 1,531  |   |                                                           |   | 5 |   |   |   | - |   |   |   | - |   |
| Financing      fees                                                                                                                                                            |   |                                                            | 1,046  |   |                                                           |   | 469 |   |   |   | 172 |   |   |   | 298 |   |
| Amortization      of deferred debt issue expenses                                                                                                                              |   |                                                            | 4,967  |   |                                                           |   | 4,201 |   |   |   | - |   |   |   | 1,475 |   |
|                                                                                                                                                                           |   |                                                            | 69,809 |   |                                                           |   | 41,513 |   |   |   | 262 |   |   |   | 4,825 |   |

----

| 14. | Financial      Information Included in the Consolidated Operations      (continued) |
|-----|-------------------------------------------------------------------------------------|

| b) | Other      information |
|----|------------------------|

|                                               |   | Successor                                                       |   |   | Predecessor                                                    |   |
|----------------------------------------------------|--------|-----------------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|
|                                               |   | For      thetwelve-monthperiod      endedSeptember      30,2009 |   |   | For      theseven-monthperiod      endedSeptember      30,2008 |   |   | For      thefive-monthperiod      endedFebruary      25,2008 |   |   | For      thetwelve-monthperiod      endedSeptember      30,2007 |   |
|                                               |   | $                                                               |   |   | $                                                              |   |   | $ |   |   | $ |   |
| Rental      expenses                               |   |                                                            | 2,881  |   |                                                           |   | 1,831 |   |   |   | 1,052 |   |   |   | 2,336 |   |
| Shipping      and handling expenses                |   |                                                            | 7,066  |   |                                                           |   | 3,748 |   |   |   | 2,263 |   |   |   | 5,911 |   |
| Advertizing      expenses                          |   |                                                            | 16,449 |   |                                                           |   | 8,803 |   |   |   | 4,628 |   |   |   | 13,557 |   |
| Depreciation      of property, plant and equipment |   |                                                            | 6,369  |   |                                                           |   | 3,824 |   |   |   | 2,526 |   |   |   | 5,356 |   |
| Amortization      of intangible assets             |   |                                                            | 53,936 |   |                                                           |   | 31,755 |   |   |   | 7,069 |   |   |   | 17,138 |   |
| Stock-based      compensation expense              |   |                                                            | 6,172  |   |                                                           |   | 7,443 |   |   |   | 10,046 |   |   |   | 4,548 |   |
| Transaction      and integration costs             |   |                                                            | 2,871  |   |                                                           |   | 11,780 |   |   |   | 26,489 |   |   |   | - |   |

----

| 15. | Financial      Information Included in the Consolidated Cash  Flows |
|-----|---------------------------------------------------------------------|

| a) | Change      in working capital items |
|----|--------------------------------------|

|                                             |   | Successor                                                       |    |   | Predecessor                                                    |   |
|--------------------------------------------------|--------|-----------------------------------------------------------------|---------|--------|----------------------------------------------------------------|--------|
|                                             |   | For      thetwelve-monthperiod      endedSeptember      30,2009 |    |   | For      theseven-monthperiod      endedSeptember      30,2008 |   |   | For      thefive-monthperiod      endedFebruary      25,2008 |   |   | For      thetwelve-monthperiod      endedSeptember      30,2007 |   |
|                                             |   | $                                                               |    |   | $                                                              |   |   | $ |   |   | $ |   |
| Accounts      receivable, net                    |   |                                                            | (14,268 | )      |                                                           |   | 6,343 |   |   |   | (12,340 | ) |   |   | (4,047 | ) |
| Accounts      receivable from the parent company |   |                                                            | 681     |   |                                                           |   | (987 | ) |   |   | - |   |   |   | - |   |
| Income      taxes receivable                     |   |                                                            | 13,936  |   |                                                           |   | 3,097 |   |   |   | (5,929 | ) |   |   | (492 | ) |
| Inventories                                      |   |                                                            | (7,721  | )      |                                                           |   | (6,818 | ) |   |   | (3,803 | ) |   |   | 11,658 |   |
| Prepaid      expenses and deposits               |   |                                                            | 428     |   |                                                           |   | (149 | ) |   |   | (49 | ) |   |   | 770 |   |
| Accounts      payable and accrued liabilities    |   |                                                            | 9,056   |   |                                                           |   | (71,205 | ) |   |   | 67,865 |   |   |   | 17,712 |   |
| Income      taxes payable                        |   |                                                            | 1,527   |   |                                                           |   | (3,353 | ) |   |   | (7,058 | ) |   |   | 16,577 |   |
|                                             |   |                                                            | 3,639   |   |                                                           |   | (73,072 | ) |   |   | 38,686 |   |   |   | 42,178 |   |

| b) | Cash      flows relating to interest and income taxes of operating      activities |
|----|------------------------------------------------------------------------------------|

|                       |   | Successor                                                       |   |   | Predecessor                                                    |   |
|----------------------------|--------|-----------------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|
|                       |   | For      thetwelve-monthperiod      endedSeptember      30,2009 |   |   | For      theseven-monthperiod      endedSeptember      30,2008 |   |   | For      thefive-monthperiod      endedFebruary      25,2008 |   |   | For      thetwelve-monthperiod      endedSeptember      30,2007 |   |
|                       |   | $                                                               |   |   | $                                                              |   |   | $ |   |   | $ |   |
| Interest      received     |   |                                                            | 424    |   |                                                           |   | 918 |   |   |   | 4,507 |   |   |   | 7,036 |   |
| Interest      paid         |   |                                                            | 60,496 |   |                                                           |   | 31,599 |   |   |   | 11 |   |   |   | 5,627 |   |
| Income      taxes received |   |                                                            | 16,761 |   |                                                           |   | - |   |   |   | - |   |   |   | - |   |
| Income      taxes paid     |   |                                                            | 13,883 |   |                                                           |   | 8,954 |   |   |   | 24,080 |   |   |   | 29,404 |   |

| 16. | Segmented      Information |
|-----|----------------------------|

|            |   | Successor                                                       |   |   | Predecessor                                                    |   |
|-----------------|--------|-----------------------------------------------------------------|--------|--------|----------------------------------------------------------------|--------|
|            |   | For      thetwelve-monthperiod      endedSeptember      30,2009 |   |   | For      theseven-monthperiod      endedSeptember      30,2008 |   |   | For      thefive-monthperiod      endedFebruary      25,2008 |   |   | For      thetwelve-monthperiod      endedSeptember      30,2007 |   |
|            |   | %                                                               |   |   | %                                                              |   |   | % |   |   | % |   |
| Customer      A |   |                                                            | 37.4   |   |                                                           |   | 24.3 |   |   |   | 32.4 |   |   |   | 41.2 |   |
| Customer      B |   |                                                            | 30.4   |   |                                                           |   | 43.7 |   |   |   | 29.8 |   |   |   | 25.0 |   |
| Customer      C |   |                                                            | 11.7   |   |                                                           |   | 9.1 |   |   |   | 12.0 |   |   |   | 11.1 |   |
|            |   |                                                            | 79.5   |   |                                                           |   | 77.1 |   |   |   | 74.2 |   |   |   | 77.3 |   |

----

| 16. | Segmented      Information (continued) |
|-----|----------------------------------------|

|                |   | Successor                                                       |    |   | Predecessor                                                    |   |
|---------------------|--------|-----------------------------------------------------------------|---------|--------|----------------------------------------------------------------|--------|
|                |   | For      thetwelve-monthperiod      endedSeptember      30,2009 |    |   | For      theseven-monthperiod      endedSeptember      30,2008 |   |   | For      thefive-monthperiod      endedFebruary      25,2008 |   |   | For      thetwelve-monthperiod      endedSeptember      30,2007 |   |
| Total      Revenue  |   | $                                                               |    |   | $                                                              |   |   | $ |   |   |   | $ |   |
| United      States  |   |                                                            |    |   |                                                           |   |   |   |   |   |   |   |   |
| Domestic      sales |   |                                                            | 314,783 |   |                                                           |   | 162,908 |   |   |   | 112,146 |   |   |   | 250,774 |   |
| Foreign      sales  |   |                                                            | 4,821   |   |                                                           |   | 3,076 |   |   |   | 2,221 |   |   |   | 3,958 |   |
| Canada              |   |                                                            |    |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Domestic      sales |   |                                                            | 30,755  |   |                                                           |   | 19,614 |   |   |   | 15,302 |   |   |   | 37,950 |   |
| Foreign      sales  |   |                                                            | 165     |   |                                                           |   | - |   |   |   | - |   |   |   | - |   |
| European      Union |   |                                                            |    |   |                                                           |   |   |   |   |   |   |   |   |   |   |   |
| Domestic      sales |   |                                                            | 58,634  |   |                                                           |   | 33,082 |   |   |   | 24,608 |   |   |   | 45,859 |   |
| Foreign      sales  |   |                                                            | 7,168   |   |                                                           |   | 4,258 |   |   |   | 4,093 |   |   |   | 10,011 |   |
| Other               |   |                                                            | 613     |   |                                                           |   | 241 |   |   |   | 209 |   |   |   | 395 |   |
|                |   |                                                            | 416,939 |   |                                                           |   | 223,179 |   |   |   | 158,579 |   |   |   | 348,947 |   |

|                                                  |   | Successor              |    |   | Successor              |   |
|-------------------------------------------------------|--------|------------------------|---------|--------|------------------------|--------|
|                                                  |   | September      30,2009 |    |   | September      30,2008 |   |
|                                                  |   | $                      |    |   | $                      |   |
| Property,      plant, equipment and intangible assets |   |                   |    |   |                   |   |
| Canada                                                |   |                   | 333,001 |   |                   |   | 352,974 |   |
| United      States                                    |   |                   | 44,448  |   |                   |   | 106,526 |   |
| European      Union                                   |   |                   | 83,185  |   |                   |   | 86,751 |   |
| Other                                                 |   |                   | -       |   |                   |   | 16,800 |   |
|                                                  |   |                   | 460,634 |   |                   |   | 563,051 |   |

|                |   | Successor              |    |   | Successor              |   |
|---------------------|--------|------------------------|---------|--------|------------------------|--------|
|                |   | September      30,2009 |    |   | September      30,2008 |   |
|                |   | $                      |    |   | $                      |   |
| Goodwill            |   |                   |    |   |                   |   |
| Canada              |   |                   | 61,887  |   |                   |   | 61,548 |   |
| United      States  |   |                   | 91,400  |   |                   |   | 91,400 |   |
| European      Union |   |                   | 12,536  |   |                   |   | 12,066 |   |
|                |   |                   | 165,823 |   |                   |   | 165,014 |   |

----

| 17. | Financial      Instruments |
|-----|----------------------------|

|                                             |   | Successor               |    |   | Successor               |   |
|--------------------------------------------------|--------|-------------------------|---------|--------|-------------------------|--------|
|                                             |   | September      30, 2009 |    |   | September      30, 2008 |   |
|                                             |   | Fairvalue               |    |   | Carryingamount          |   |   | Fairvalue |   |   | Carryingamount |   |
|                                             |   | $                       |    |   | $                       |   |   | $ |   |   | $ |   |
| Assets                                           |   |                    |    |   |                    |   |   |   |   |   |   |   |
| Cash      and cash equivalents                   |   |                    | 126,435 |   |                    |   | 126,435 |   |   |   | 56,105 |   |   |   | 56,105 |   |
| Accounts      receivable from the parent company |   |                    | 306     |   |                    |   | 306 |   |   |   | 987 |   |   |   | 987 |   |
| Accounts      receivable, net                    |   |                    | 56,511  |   |                    |   | 56,511 |   |   |   | 41,780 |   |   |   | 41,780 |   |
| Liabilities                                      |   |                    |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Accounts      payable and accrued liabilities    |   |                    | 87,684  |   |                    |   | 87,684 |   |   |   | 78,667 |   |   |   | 78,667 |   |
| Long-term      debt                              |   |                    | 649,689 |   |                    |   | 613,294 |   |   |   | 614,862 |   |   |   | 622,184 |   |

| a) | Financial      instruments valued at carryingamount |
|----|-----------------------------------------------------|

| b) | Long-term      debt |
|----|---------------------|

----

| 18. | Derivates      and Hedging Activities |
|-----|---------------------------------------|

|                                                     |   | Liability      DerivativesAs      of September 30, 2009 |
|----------------------------------------------------------|--------|---------------------------------------------------------|
|                                                     |   | Balance      sheet location                             |   | Fair      value |
| Derivatives      designated as hedging instruments       |   |                                                    |   | $ |
| Interest      rate swaps                                 |   | Other      long-term liabilities                        |   | 610 |
| Total      derivatives designated as hedging instruments |   |                                                    |   | 610 |

----

| 18. | Derivates      and Hedging Activities (continued) |
|-----|---------------------------------------------------|

|                                                                                                                           | Location      in the Financial      Statements |   | For      thetwelve-month      period endedSeptember      30,2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------|--------|------------------------------------------------------------------|--------|
| Interest      rate swaps in cash flow hedging relationships                                                                    |                                           |   | $                                                                |   |
| Loss      recognized in other comprehensive income on derivatives (effective      portion), net of tax of $330                 | OCI                                            |   |                                                             | (612   | ) |
| Gain      (loss) reclassified from accumulated comprehensive income into income      (effective portion)                       | Financial      expenses                        |   |                                                             | (499   | ) |
| Gain      (loss) recognized in income on derivatives (ineffective portion and amount      excluded from effectiveness testing) | Financial      expenses                        |   |                                                             | -      |   |
| Interest      rate swaps not designated as hedging instruments                                                                 |                                           |   |                                                             |   |   |
| Loss      recognized in income on derivatives                                                                                  | Financial      expenses                        |   |                                                             | (1,032 | ) |

| 19. | Fair      Value Measurements |
|-----|------------------------------|

|                                  |   |                                                                                        |   |   |                                                   |   |   |                                               |   |   | Successor                              |   |
|---------------------------------------|--------|---------------------------------------------------------------------------------------------|--------|--------|--------------------------------------------------------|--------|--------|----------------------------------------------------|--------|--------|----------------------------------------|--------|
|                                  |   | Quoted      prices inactive      markets for identical assets and liabilities(Level      1) |   |   | Significant      other observable inputs(Level      2) |   |   | Significant      unobservable inputs(Level      3) |   |   | Balance      atSeptember      30, 2009 |   |
|                                  |   | $                                                                                           |   |   | $                                                      |   |   | $                                                  |   |   | $                                      |   |
| Liabilities                           |   |                                                                                        |   |   |                                                   |   |   |                                               |   |   |                                   |   |
| Derivative      financial instruments |   |                                                                                        | -      |   |                                                   |   | 610    |                                               |   |   | -                                      |   |   |   | 610 |   |

----

| 20. | Related      Party Transactions |
|-----|---------------------------------|

| 21. | Commitments      and Contingencies |
|-----|------------------------------------|

| a) | Commitments |
|----|-------------|

|                               | For      the years ending September 30, |   |
|------------------------------------|----------------------------------------------|--------|
| (in      millions of U.S. dollars) | 2010                                         |   |   | 2011 |   |   | 2012 |   |   | 2013 |   |   | 2014      and thereafter |   |   | Total |   |
|                               | $                                            |   |   | $ |   |   | $ |   |   | $ |   |   | $ |   |   | $ |   |
| Operating      leases              |                                         | 2,571  |   |   |   | 1,662 |   |   |   | 1,209 |   |   |   | 1,094 |   |   |   | 611 |   |   |   | 7,147 |   |
| Other      commitments             |                                         | 5,580  |   |   |   | 2,461 |   |   |   | 59 |   |   |   | - |   |   |   | - |   |   |   | 8,100 |   |
|                               |                                         | 8,151  |   |   |   | 4,123 |   |   |   | 1,268 |   |   |   | 1,094 |   |   |   | 611 |   |   |   | 15,247 |   |

| b) | Licensing      agreements |
|----|---------------------------|

----

----

| 21. | Commitments      and Contingencies (continued) |
|-----|------------------------------------------------|

| c) | Royalties |
|----|-----------|

| d) | Contingencies |
|----|---------------|

| e) | Employee      benefit plan |
|----|----------------------------|

| f) | Litigation      settlement |
|----|----------------------------|

| 22. | Condensed      Consolidating Financial Information |
|-----|----------------------------------------------------|

----

----

| 22. | Condensed      Consolidating Financial Information(continued) |
|-----|---------------------------------------------------------------|

|                                                  |   | AxcanIntermediateHoldings      Inc. |     |   | Subsidiaryguarantors |   |      | Subsidiarynon-guarantors |   |   | Eliminations |   |   | Consolidated |       |
|-------------------------------------------------------|--------|-------------------------------------|----------|--------|----------------------|--------|-----------|--------------------------|--------|--------|--------------|--------|--------|--------------|------------|
|                                                  |   | $                                   |     |   | $                    |   |      | $                        |   |   | $            |   |   | $            |       |
| Assets                                                |   |                                |     |   |                 |   |      |                     |   |   |         |   |   |         |       |
| Current      assets                                   |   |                                |     |   |                 |   |      |                     |   |   |         |   |   |         |       |
| Cash      and cash equivalents                        |   |                                | 702      |   |                 |   | 41,859    |                     |   |   | 83,874       |   |   |         | -          |   |   |   | 126,435 |   |
| Accounts      receivable, net                         |   |                                | -        |   |                 |   | 41,151    |                     |   |   | 15,973       |   |   |         | -          |   |   |   | 57,124 |   |
| Accounts      receivable from the parent company      |   |                                | 42       |   |                 |   | 264       |                     |   |   | -            |   |   |         | -          |   |   |   | 306 |   |
| Short-term      portion of intercompany advances      |   |                                | 5,857    |   |                 |   | 5,803     |                     |   |   | 364          |   |   |         | (12,024    | ) |   |   | - |   |
| Income      taxes receivable                          |   |                                | -        |   |                 |   | 3,383     |                     |   |   | 8            |   |   |         | -          |   |   |   | 3,391 |   |
| Inventories                                           |   |                                | -        |   |                 |   | 39,162    |                     |   |   | 5,688        |   |   |         | (144       | ) |   |   | 44,706 |   |
| Prepaid      expenses and deposits                    |   |                                | -        |   |                 |   | 2,289     |                     |   |   | 579          |   |   |         | -          |   |   |   | 2,868 |   |
| Deferred      income taxes                            |   |                                | 588      |   |                 |   | 14,960    |                     |   |   | 304          |   |   |         | -          |   |   |   | 15,852 |   |
| Total      current assets                             |   |                                | 7,189    |   |                 |   | 148,871   |                     |   |   | 106,790      |   |   |         | (12,168    | ) |   |   | 250,682 |   |
| Property,      plant and equipment, net               |   |                                | -        |   |                 |   | 29,846    |                     |   |   | 9,498        |   |   |         | -          |   |   |   | 39,344 |   |
| Intangible      assets, net                           |   |                                | -        |   |                 |   | 347,604   |                     |   |   | 73,686       |   |   |         | -          |   |   |   | 421,290 |   |
| Investments      in subsidiaries                      |   |                                | (231,940 | )      |                 |   | 782,206   |                     |   |   | -            |   |   |         | (550,266   | ) |   |   | - |   |
| Intercompany      advances                            |   |                                | 898,272  |   |                 |   | 128,793   |                     |   |   | 669,195      |   |   |         | (1,696,260 | ) |   |   | - |   |
| Goodwill                                              |   |                                | -        |   |                 |   | 153,287   |                     |   |   | 12,536       |   |   |         | -          |   |   |   | 165,823 |   |
| Deferred      debt issue expenses, net                |   |                                | 23,371   |   |                 |   | 2,040     |                     |   |   | -            |   |   |         | -          |   |   |   | 25,411 |   |
| Deferred      income taxes                            |   |                                | 3,962    |   |                 |   | 4,653     |                     |   |   | 3,437        |   |   |         | -          |   |   |   | 12,052 |   |
| Total      assets                                     |   |                                | 700,854  |   |                 |   | 1,597,300 |                     |   |   | 875,142      |   |   |         | (2,258,694 | ) |   |   | 914,602 |   |
| Liabilities                                           |   |                                |     |   |                 |   |      |                     |   |   |         |   |   |         |       |   |   |   |   |   |
| Current      liabilities                              |   |                                |     |   |                 |   |      |                     |   |   |         |   |   |         |       |   |   |   |   |   |
| Accounts      payable and accrued liabilities         |   |                                | 5,091    |   |                 |   | 71,305    |                     |   |   | 11,432       |   |   |         | (144       | ) |   |   | 87,684 |   |
| Income      taxes payable                             |   |                                | 3,425    |   |                 |   | (940      | )                        |   |   | 8            |   |   |         | -          |   |   |   | 2,493 |   |
| Installments      on long-term debt                   |   |                                | 12,939   |   |                 |   | 17,769    |                     |   |   | -            |   |   |         | -          |   |   |   | 30,708 |   |
| Short-term      portion of intercompany advances      |   |                                | 4,795    |   |                 |   | 6,206     |                     |   |   | 1,023        |   |   |         | (12,024    | ) |   |   | - |   |
| Deferred      income taxes                            |   |                                | 588      |   |                 |   | 257       |                     |   |   | (708         | )      |   |         | -          |   |   |   | 137 |   |
| Total      current liabilities                        |   |                                | 26,838   |   |                 |   | 94,597    |                     |   |   | 11,755       |   |   |         | (12,168    | ) |   |   | 121,022 |   |
| Long-term      debt                                   |   |                                | 510,755  |   |                 |   | 71,831    |                     |   |   | -            |   |   |         | -          |   |   |   | 582,586 |   |
| Intercompany      advances                            |   |                                | 19,224   |   |                 |   | 1,593,115 |                     |   |   | 83,921       |   |   |         | (1,696,260 | ) |   |   | - |   |
| Other      long-term liabilities                      |   |                                | 262      |   |                 |   | 9,186     |                     |   |   | -            |   |   |         | -          |   |   |   | 9,448 |   |
| Deferred      income taxes                            |   |                                | (19,989  | )      |                 |   | 60,511    |                     |   |   | (2,740       | )      |   |         | -          |   |   |   | 37,782 |   |
| Total      liabilities                                |   |                                | 537,090  |   |                 |   | 1,829,240 |                     |   |   | 92,936       |   |   |         | (1,708,428 | ) |   |   | 750,838 |   |
| Shareholders’      Equity                       |   |                                |     |   |                 |   |      |                     |   |   |         |   |   |         |       |   |   |   |   |   |
| Capital      stock                                    |   |                                |     |   |                 |   |      |                     |   |   |         |   |   |         |       |   |   |   |   |   |
| Common      shares                                    |   |                                | 1        |   |                 |   | 21,034    |                     |   |   | 745,398      |   |   |         | (766,432   | ) |   |   | 1 |   |
| Retained      earnings (deficit)                      |   |                                | (297,658 | )      |                 |   | (242,700  | )                        |   |   | 37,332       |   |   |         | 205,368    |   |   |   | (297,658 | ) |
| Note      receivable from the parent company          |   |                                | (133,154 | )      |                 |   | -         |                     |   |   | -            |   |   |         | -          |   |   |   | (133,154 | ) |
| Additional      paid-in capital                       |   |                                | 619,053  |   |                 |   | 14,204    |                     |   |   | 611          |   |   |         | (14,815    | ) |   |   | 619,053 |   |
| Accumulated      other comprehensive loss             |   |                                | (24,478  | )      |                 |   | (24,478   | )                        |   |   | (1,135       | )      |   |         | 25,613     |   |   |   | (24,478 | ) |
| Total      shareholder’s equity                 |   |                                | 163,764  |   |                 |   | (231,940  | )                        |   |   | 782,206      |   |   |         | (550,266   | ) |   |   | 163,764 |   |
| Total      liabilities and shareholders’ equity |   |                                | 700,854  |   |                 |   | 1,597,300 |                     |   |   | 875,142      |   |   |         | (2,258,694 | ) |   |   | 914,602 |   |

----

| 22. | Condensed      Consolidating Financial Information(continued) |
|-----|---------------------------------------------------------------|

|                                                  |   | AxcanIntermediateHoldings      Inc. |     |   | Subsidiaryguarantors |   |      | Subsidiarynon-guarantors |   |   | Eliminations |   |   | Consolidated |       |
|-------------------------------------------------------|--------|-------------------------------------|----------|--------|----------------------|--------|-----------|--------------------------|--------|--------|--------------|--------|--------|--------------|------------|
|                                                  |   | $                                   |     |   | $                    |   |      | $                        |   |   | $            |   |   | $            |       |
| Assets                                                |   |                                |     |   |                 |   |      |                     |   |   |         |   |   |         |       |
| Current      assets                                   |   |                                |     |   |                 |   |      |                     |   |   |         |   |   |         |       |
| Cash      and cash equivalents                        |   |                                | 21       |   |                 |   | 26,181    |                     |   |   | 29,903       |   |   |         | -          |   |   |   | 56,105 |   |
| Accounts      receivable, net                         |   |                                | -        |   |                 |   | 29,613    |                     |   |   | 12,900       |   |   |         | -          |   |   |   | 42,513 |   |
| Accounts      receivable from the parent company      |   |                                | 5,803    |   |                 |   | 29,712    |                     |   |   | 30,305       |   |   |         | (64,833    | ) |   |   | 987 |   |
| Income      taxes receivable                          |   |                                | -        |   |                 |   | 15,841    |                     |   |   | 1,902        |   |   |         | -          |   |   |   | 17,743 |   |
| Inventories                                           |   |                                | -        |   |                 |   | 30,376    |                     |   |   | 7,433        |   |   |         | (138       | ) |   |   | 37,671 |   |
| Prepaid      expenses and deposits                    |   |                                | -        |   |                 |   | 2,679     |                     |   |   | 668          |   |   |         | -          |   |   |   | 3,347 |   |
| Deferred      income taxes                            |   |                                | -        |   |                 |   | 18,258    |                     |   |   | 336          |   |   |         | 20         |   |   |   | 18,614 |   |
| Total      current assets                             |   |                                | 5,824    |   |                 |   | 152,660   |                     |   |   | 83,447       |   |   |         | (64,951    | ) |   |   | 176,980 |   |
| Property,      plant and equipment, net               |   |                                | -        |   |                 |   | 25,097    |                     |   |   | 9,578        |   |   |         | -          |   |   |   | 34,675 |   |
| Intangible      assets, net                           |   |                                | -        |   |                 |   | 434,403   |                     |   |   | 93,973       |   |   |         | -          |   |   |   | 528,376 |   |
| Investments      in subsidiaries                      |   |                                | (247,787 | )      |                 |   | 863,676   |                     |   |   | -            |   |   |         | (615,889   | ) |   |   | - |   |
| Intercompany      advances                            |   |                                | 898,816  |   |                 |   | 32,878    |                     |   |   | 671,702      |   |   |         | (1,603,396 | ) |   |   | - |   |
| Goodwill                                              |   |                                | -        |   |                 |   | 152,948   |                     |   |   | 12,066       |   |   |         | -          |   |   |   | 165,014 |   |
| Other      long-term assets                           |   |                                | 192      |   |                 |   | 257       |                     |   |   | -            |   |   |         | -          |   |   |   | 449 |   |
| Deferred      debt issue expenses, net                |   |                                | 26,714   |   |                 |   | 3,664     |                     |   |   | -            |   |   |         | -          |   |   |   | 30,378 |   |
| Deferred      income taxes                            |   |                                | 21,716   |   |                 |   | (22,652   | )                        |   |   | 9,876        |   |   |         | -          |   |   |   | 8,940 |   |
| Total      assets                                     |   |                                | 705,475  |   |                 |   | 1,642,931 |                     |   |   | 880,642      |   |   |         | (2,284,236 | ) |   |   | 944,812 |   |
| Liabilities                                           |   |                                |     |   |                 |   |      |                     |   |   |         |   |   |         |       |   |   |   |   |   |
| Current      liabilities                              |   |                                |     |   |                 |   |      |                     |   |   |         |   |   |         |       |   |   |   |   |   |
| Accounts      payable and accrued liabilities         |   |                                | 7,188    |   |                 |   | 118,273   |                     |   |   | 18,828       |   |   |         | (65,622    | ) |   |   | 78,667 |   |
| Income      taxes payable                             |   |                                | 318      |   |                 |   | 6,345     |                     |   |   | 990          |   |   |         | -          |   |   |   | 7,653 |   |
| Installments      on long-term debt                   |   |                                | 4,609    |   |                 |   | 6,329     |                     |   |   | -            |   |   |         | -          |   |   |   | 10,938 |   |
| Deferred      income taxes                            |   |                                | -        |   |                 |   | 1,611     |                     |   |   | 431          |   |   |         | -          |   |   |   | 2,042 |   |
| Total      current liabilities                        |   |                                | 12,115   |   |                 |   | 132,558   |                     |   |   | 20,249       |   |   |         | (65,622    | ) |   |   | 99,300 |   |
| Long-term      debt                                   |   |                                | 522,384  |   |                 |   | 88,862    |                     |   |   | -            |   |   |         | -          |   |   |   | 611,246 |   |
| Intercompany      advances                            |   |                                | -        |   |                 |   | 1,590,988 |                     |   |   | 12,408       |   |   |         | (1,603,396 | ) |   |   | - |   |
| Other      long-term liabilities                      |   |                                | -        |   |                 |   | 1,242     |                     |   |   | -            |   |   |         | -          |   |   |   | 1,242 |   |
| Deferred      income taxes                            |   |                                | 5,306    |   |                 |   | 60,389    |                     |   |   | 1,659        |   |   |         | -          |   |   |   | 67,354 |   |
| Total      liabilities                                |   |                                | 539,805  |   |                 |   | 1,874,039 |                     |   |   | 34,316       |   |   |         | (1,669,018 | ) |   |   | 779,142 |   |
| Shareholders’      Equity                       |   |                                |     |   |                 |   |      |                     |   |   |         |   |   |         |       |   |   |   |   |   |
| Capital      stock                                    |   |                                |     |   |                 |   |      |                     |   |   |         |   |   |         |       |   |   |   |   |   |
| Common      shares                                    |   |                                | 1        |   |                 |   | 98,459    |                     |   |   | 875,682      |   |   |         | (974,141   | ) |   |   | 1 |   |
| Retained      earnings (deficit)                      |   |                                | (289,264 | )      |                 |   | (248,703  | )                        |   |   | 2,533        |   |   |         | 246,170    |   |   |   | (289,264 | ) |
| Note      receivable from the parent company          |   |                                | (133,154 | )      |                 |   | -         |                     |   |   | -            |   |   |         | -          |   |   |   | (133,154 | ) |
| Additional      paid-in capital                       |   |                                | 617,255  |   |                 |   | 1,975     |                     |   |   | 297          |   |   |         | (2,272     | ) |   |   | 617,255 |   |
| Accumulated      other comprehensive loss             |   |                                | (29,168  | )      |                 |   | (82,839   | )                        |   |   | (32,186      | )      |   |         | 115,025    |   |   |   | (29,168 | ) |
| Total      shareholder’s equity                 |   |                                | 165,670  |   |                 |   | (231,108  | )                        |   |   | 846,326      |   |   |         | (615,218   | ) |   |   | 165,670 |   |
| Total      liabilities and shareholders’ equity |   |                                | 705,475  |   |                 |   | 1,642,931 |                     |   |   | 880,642      |   |   |         | (2,284,236 | ) |   |   | 944,812 |   |

----

| 22. | Condensed      Consolidating Financial Information(continued) |
|-----|---------------------------------------------------------------|

|                                           |   | AxcanIntermediateHoldings      Inc. |    |   | Subsidiaryguarantors |   |    | Subsidiarynon-guarantors |   |   | Eliminations |   |   | Consolidated |     |
|------------------------------------------------|--------|-------------------------------------|---------|--------|----------------------|--------|---------|--------------------------|--------|--------|--------------|--------|--------|--------------|----------|
|                                           |   | $                                   |    |   | $                    |   |    | $                        |   |   | $            |   |   | $            |     |
| Net      product sales                         |   |                                | -       |   |                 |   | 350,623 |                     |   |   | 61,020       |   |   |         | (1,817   | ) |   |   | 409,826 |   |
| Other      revenue                             |   |                                | -       |   |                 |   | -       |                     |   |   | 7,113        |   |   |         | -        |   |   |   | 7,113 |   |
| Total      revenue                             |   |                                | -       |   |                 |   | 350,623 |                     |   |   | 68,133       |   |   |         | (1,817   | ) |   |   | 416,939 |   |
| Cost      of goods sold                        |   |                                | -       |   |                 |   | 79,620  |                     |   |   | 24,728       |   |   |         | (1,325   | ) |   |   | 103,023 |   |
| Selling      and administrative expenses       |   |                                | 7,893   |   |                 |   | 88,087  |                     |   |   | 27,134       |   |   |         | (172     | ) |   |   | 122,942 |   |
| Management      fees                           |   |                                | 5,351   |   |                 |   | -       |                     |   |   | -            |   |   |         | -        |   |   |   | 5,351 |   |
| Research      and development expenses         |   |                                | -       |   |                 |   | 34,161  |                     |   |   | 2,196        |   |   |         | (320     | ) |   |   | 36,037 |   |
| Depreciation      and amortization             |   |                                | -       |   |                 |   | 52,352  |                     |   |   | 7,953        |   |   |         | -        |   |   |   | 60,305 |   |
| Partial      write-down of intangible assets   |   |                                | -       |   |                 |   | 55,414  |                     |   |   | 251          |   |   |         | -        |   |   |   | 55,665 |   |
| Total      operating expenses                  |   |                                | 13,244  |   |                 |   | 309,634 |                     |   |   | 62,262       |   |   |         | (1,817   | ) |   |   | 383,323 |   |
| Operating      income (loss)                   |   |                                | (13,244 | )      |                 |   | 40,989  |                     |   |   | 5,871        |   |   |         | -        |   |   |   | 33,616 |   |
| Financial      expenses                        |   |                                | 62,034  |   |                 |   | 110,810 |                     |   |   | 5,750        |   |   |         | (108,785 | ) |   |   | 69,809 |   |
| Interest      income                           |   |                                | (45,755 | )      |                 |   | (5,911  | )                        |   |   | (57,508      | )      |   |         | 108,785  |   |   |   | (389 | ) |
| Other      income                              |   |                                | -       |   |                 |   | (3,500  | )                        |   |   | -            |   |   |         | -        |   |   |   | (3,500 | ) |
| Loss      (gain) on foreign currencies         |   |                                | (12,464 | )      |                 |   | (703    | )                        |   |   | 78           |   |   |         | 12,761   |   |   |   | (328 | ) |
| Total      other expense (income)              |   |                                | 3,815   |   |                 |   | 100,696 |                     |   |   | (51,680      | )      |   |         | 12,761   |   |   |   | 65,592 |   |
| Income      (loss) before income taxes         |   |                                | (17,059 | )      |                 |   | (59,707 | )                        |   |   | 57,551       |   |   |         | (12,761  | ) |   |   | (31,976 | ) |
| Income      taxes benefit                      |   |                                | (7,104  | )      |                 |   | (16,848 | )                        |   |   | (130         | )      |   |         | -        |   |   |   | (24,082 | ) |
| Equity      in earnings (loss) of subsidiaries |   |                                | 2,061   |   |                 |   | 44,920  |                     |   |   | -            |   |   |         | (46,981  | ) |   |   | - |   |
| Net      income (loss)                         |   |                                | (7,894  | )      |                 |   | 2,061   |                     |   |   | 57,681       |   |   |         | (59,742  | ) |   |   | (7,894 | ) |

|                                           |   | AxcanIntermediateHoldings      Inc. |     |   | Subsidiaryguarantors |   |     | Subsidiarynon-guarantors |   |   | Eliminations |   |   | Consolidated |    |
|------------------------------------------------|--------|-------------------------------------|----------|--------|----------------------|--------|----------|--------------------------|--------|--------|--------------|--------|--------|--------------|---------|
|                                           |   | $                                   |     |   | $                    |   |     | $                        |   |   | $            |   |   | $            |    |
| Net      product sales                         |   |                                | -        |   |                 |   | 185,600  |                     |   |   | 45,310       |   |   |         | (7,731  | ) |   |   | 223,179 |   |
| Other      revenue                             |   |                                | -        |   |                 |   | -        |                     |   |   | -            |   |   |         | -       |   |   |   | - |   |
| Total      revenue                             |   |                                | -        |   |                 |   | 185,600  |                     |   |   | 45,310       |   |   |         | (7,731  | ) |   |   | 223,179 |   |
| Cost      of goods sold                        |   |                                | -        |   |                 |   | 66,857   |                     |   |   | 18,359       |   |   |         | (7,989  | ) |   |   | 77,227 |   |
| Selling      and administrative expenses       |   |                                | 9,297    |   |                 |   | 59,353   |                     |   |   | 19,565       |   |   |         | 31      |   |   |   | 88,246 |   |
| Management      fees                           |   |                                | 99       |   |                 |   | -        |                     |   |   | -            |   |   |         | -       |   |   |   | 99 |   |
| Research      and development expenses         |   |                                | -        |   |                 |   | 15,520   |                     |   |   | 2,279        |   |   |         | (31     | ) |   |   | 17,768 |   |
| Depreciation      and amortization             |   |                                | -        |   |                 |   | 31,876   |                     |   |   | 3,703        |   |   |         | -       |   |   |   | 35,579 |   |
| Acquired      in-process research              |   |                                |     |   |                 |   | 272,400  |                     |   |   | -            |   |   |         | -       |   |   |   | 272,400 |   |
| Partial      write-down of intangible assets   |   |                                | -        |   |                 |   | -        |                     |   |   | -            |   |   |         | -       |   |   |   | - |   |
| Total      operating expenses                  |   |                                | 9,396    |   |                 |   | 446,006  |                     |   |   | 43,906       |   |   |         | (7,989  | ) |   |   | 491,319 |   |
| Operating      income (loss)                   |   |                                | (9,396   | )      |                 |   | (260,406 | )                        |   |   | 1,404        |   |   |         | 258     |   |   |   | (268,140 | ) |
| Financial      expenses                        |   |                                | 36,723   |   |                 |   | 41,521   |                     |   |   | 87           |   |   |         | (36,818 | ) |   |   | 41,513 |   |
| Interest      (income) expenses                |   |                                | (41,459  | )      |                 |   | 42,775   |                     |   |   | (38,942      | )      |   |         | 36,818  |   |   |   | (808 | ) |
| Other      income                              |   |                                | -        |   |                 |   | -        |                     |   |   | -            |   |   |         | -       |   |   |   | - |   |
| Loss      (gain) on foreign currencies         |   |                                | 52,151   |   |                 |   | (87,691  | )                        |   |   | 41,692       |   |   |         | (7,993  | ) |   |   | (1,841 | ) |
| Total      other expenses (income)             |   |                                | 47,415   |   |                 |   | (3,395   | )                        |   |   | 2,837        |   |   |         | (7,993  | ) |   |   | 38,864 |   |
| Loss      before income taxes                  |   |                                | (56,811  | )      |                 |   | (257,011 | )                        |   |   | (1,433       | )      |   |         | 8,251   |   |   |   | (307,004 | ) |
| Income      taxes benefit (expenses)           |   |                                | (16,250  | )      |                 |   | 2,473    |                     |   |   | (3,966       | )      |   |         | 3       |   |   |   | (17,740 | ) |
| Equity      in earnings (loss) of subsidiaries |   |                                | (248,703 | )      |                 |   | 10,781   |                     |   |   | -            |   |   |         | 237,922 |   |   |   | - |   |
| Net      income (loss)                         |   |                                | (289,264 | )      |                 |   | (248,703 | )                        |   |   | 2,533        |   |   |         | 246,170 |   |   |   | (289,264 | ) |

----

| 22. | Condensed      Consolidating Financial Information(continued) |
|-----|---------------------------------------------------------------|

|                                     |   | AxcanIntermediateHoldings      Inc. |   |   | Subsidiaryguarantors |   |    | Subsidiarynon-guarantors |   |   | Eliminations |   |   | Consolidated |    |
|------------------------------------------|--------|-------------------------------------|--------|--------|----------------------|--------|---------|--------------------------|--------|--------|--------------|--------|--------|--------------|---------|
|                                     |   | $                                   |   |   | $                    |   |    | $                        |   |   | $            |   |   | $            |    |
| Revenue                                  |   |                                | -      |   |                 |   | 129,669 |                     |   |   | 38,142       |   |   |         | (9,232  | ) |   |   | 158,579 |   |
| Cost      of goods sold                  |   |                                | -      |   |                 |   | 37,346  |                     |   |   | 10,869       |   |   |         | (9,476  | ) |   |   | 38,739 |   |
| Selling      and administrative expenses |   |                                | -      |   |                 |   | 65,595  |                     |   |   | 10,581       |   |   |         | 22      |   |   |   | 76,198 |   |
| Research      and development expenses   |   |                                | -      |   |                 |   | 7,826   |                     |   |   | 2,452        |   |   |         | (22     | ) |   |   | 10,256 |   |
| Depreciation      and amortization       |   |                                | -      |   |                 |   | 2,952   |                     |   |   | 6,643        |   |   |         | -       |   |   |   | 9,595 |   |
| Total      operating expenses            |   |                                | -      |   |                 |   | 113,719 |                     |   |   | 30,545       |   |   |         | (9,476  | ) |   |   | 134,788 |   |
| Operating      income                    |   |                                | -      |   |                 |   | 15,950  |                     |   |   | 7,597        |   |   |         | 244     |   |   |   | 23,791 |   |
| Financial      expenses                  |   |                                | -      |   |                 |   | 3,238   |                     |   |   | 41           |   |   |         | (3,017  | ) |   |   | 262 |   |
| Interest      income                     |   |                                | -      |   |                 |   | (5,096  | )                        |   |   | (3,361       | )      |   |         | 3,017   |   |   |   | (5,440 | ) |
| Loss      (gain) on foreign currencies   |   |                                | -      |   |                 |   | 8,267   |                     |   |   | 76           |   |   |         | (8,541  | ) |   |   | (198 | ) |
| Total      other expenses (income)       |   |                                | -      |   |                 |   | 6,409   |                     |   |   | (3,244       | )      |   |         | (8,541  | ) |   |   | (5,376 | ) |
| Income      before income taxes          |   |                                | -      |   |                 |   | 9,541   |                     |   |   | 10,841       |   |   |         | 8,785   |   |   |   | 29,167 |   |
| Income      taxes                        |   |                                | -      |   |                 |   | 11,682  |                     |   |   | 297          |   |   |         | 63      |   |   |   | 12,042 |   |
| Equity      in earnings of subsidiaries  |   |                                | -      |   |                 |   | 19,266  |                     |   |   | -            |   |   |         | (19,266 | ) |   |   | - |   |
| Net      income                          |   |                                | -      |   |                 |   | 17,125  |                     |   |   | 10,544       |   |   |         | (10,544 | ) |   |   | 17,125 |   |

|                                     |   | AxcanIntermediateHoldings      Inc. |   |   | Subsidiaryguarantors |   |    | Subsidiarynon-guarantors |   |   | Eliminations |   |   | Consolidated |    |
|------------------------------------------|--------|-------------------------------------|--------|--------|----------------------|--------|---------|--------------------------|--------|--------|--------------|--------|--------|--------------|---------|
|                                     |   | $                                   |   |   | $                    |   |    | $                        |   |   | $            |   |   | $            |    |
| Revenue                                  |   |                                | -      |   |                 |   | 292,683 |                     |   |   | 78,324       |   |   |         | (22,060 | ) |   |   | 348,947 |   |
| Cost      of goods sold                  |   |                                | -      |   |                 |   | 85,971  |                     |   |   | 19,755       |   |   |         | (22,043 | ) |   |   | 83,683 |   |
| Selling      and administrative expenses |   |                                | -      |   |                 |   | 77,607  |                     |   |   | 23,666       |   |   |         | -       |   |   |   | 101,273 |   |
| Research      and development expenses   |   |                                | -      |   |                 |   | 19,299  |                     |   |   | 9,356        |   |   |         | -       |   |   |   | 28,655 |   |
| Depreciation      and amortization       |   |                                | -      |   |                 |   | 6,724   |                     |   |   | 15,770       |   |   |         | -       |   |   |   | 22,494 |   |
| Acquired      in-process research        |   |                                |   |   |                 |   | 10,000  |                     |   |   | -            |   |   |         | -       |   |   |   | 10,000 |   |
| Total      operating expenses            |   |                                | -      |   |                 |   | 199,601 |                     |   |   | 68,547       |   |   |         | (22,043 | ) |   |   | 246,105 |   |
| Operating      income                    |   |                                | -      |   |                 |   | 93,082  |                     |   |   | 9,777        |   |   |         | (17     | ) |   |   | 102,842 |   |
| Financial      expenses                  |   |                                | -      |   |                 |   | 12,547  |                     |   |   | 124          |   |   |         | (7,846  | ) |   |   | 4,825 |   |
| Interest      income                     |   |                                | -      |   |                 |   | (10,820 | )                        |   |   | (8,393       | )      |   |         | 7,846   |   |   |   | (11,367 | ) |
| Loss      on foreign currencies          |   |                                | -      |   |                 |   | 2,204   |                     |   |   | 148          |   |   |         | -       |   |   |   | 2,352 |   |
| Total      other (income) expenses       |   |                                | -      |   |                 |   | 3,931   |                     |   |   | (8,121       | )      |   |         | -       |   |   |   | (4,190 | ) |
| Income      before income taxes          |   |                                | -      |   |                 |   | 89,151  |                     |   |   | 17,898       |   |   |         | (17     | ) |   |   | 107,032 |   |
| Income      taxes                        |   |                                | -      |   |                 |   | 34,964  |                     |   |   | 501          |   |   |         | 102     |   |   |   | 35,567 |   |
| Equity      in earnings of subsidiaries  |   |                                | -      |   |                 |   | 17,278  |                     |   |   | -            |   |   |         | (17,278 | ) |   |   | - |   |
| Net      income                          |   |                                | -      |   |                 |   | 71,465  |                     |   |   | 17,397       |   |   |         | (17,397 | ) |   |   | 71,465 |   |

----

| 22. | Condensed      Consolidating Financial Information(continued) |
|-----|---------------------------------------------------------------|

|                                                                 |   | AxcanIntermediateHoldings      Inc. |    |   | Subsidiaryguarantors |   |     | Subsidiarynon-guarantors |   |   | Eliminations |   |   | Consolidated |    |
|----------------------------------------------------------------------|--------|-------------------------------------|---------|--------|----------------------|--------|----------|--------------------------|--------|--------|--------------|--------|--------|--------------|---------|
|                                                                 |   | $                                   |    |   | $                    |   |     | $                        |   |   | $            |   |   | $            |    |
| Cash      flows from operating activities                            |   |                                |    |   |                 |   |     |                     |   |   |         |   |   |         |    |
| Cash      flows from operating activities                            |   |                                | (13,920 | )      |                 |   | 124,804  |                     |   |   | (18,602      | )      |   |         | -       |   |   |   | 92,382 |   |
| Cash      flows from investing activities                            |   |                                |    |   |                 |   |     |                     |   |   |         |   |   |         |    |   |   |   |   |   |
| Acquisition      of property, plant and equipment                    |   |                                | -       |   |                 |   | (8,861   | )                        |   |   | (1,729       | )      |   |         | -       |   |   |   | (10,590 | ) |
| Acquisition      of intangible assets                                |   |                                | -       |   |                 |   |     |                     |   |   | (10          | )      |   |         | -       |   |   |   | (10 | ) |
| Intercompany      advances                                           |   |                                | 540     |   |                 |   | (95,914  | )                        |   |   | 2,505        |   |   |         | 92,869  |   |   |   | - |   |
| Net      cash provided by (used in) investing activities             |   |                                | 540     |   |                 |   | (104,775 | )                        |   |   | 766          |   |   |         | 92,869  |   |   |   | (10,600 | ) |
| Cash      flows from financing activities                            |   |                                |    |   |                 |   |     |                     |   |   |         |   |   |         |    |   |   |   |   |   |
| Repayment      of long-term debt                                     |   |                                | (4,608  | )      |                 |   | (6,329   | )                        |   |   | -            |   |   |         | -       |   |   |   | (10,937 | ) |
| Stock-based      compensation cancellation                           |   |                                | (157    | )      |                 |   | -        |                     |   |   | -            |   |   |         | -       |   |   |   | (157 | ) |
| Intercompany      advances                                           |   |                                | 19,226  |   |                 |   | 2,129    |                     |   |   | 71,514       |   |   |         | (92,869 | ) |   |   | - |   |
| Dividends      paid                                                  |   |                                | (500    | )      |                 |   | -        |                     |   |   | -            |   |   |         | -       |   |   |   | (500 | ) |
| Net      cash provided by (used in) financing activities             |   |                                | 13,961  |   |                 |   | (4,200   | )                        |   |   | 71,514       |   |   |         | (92,869 | ) |   |   | (11,594 | ) |
| Foreign      exchange gain (loss) on cash held in foreign currencies |   |                                | -       |   |                 |   | (151     | )                        |   |   | 293          |   |   |         | -       |   |   |   | 142 |   |
| Net      increase in cash and cash equivalents                       |   |                                | 681     |   |                 |   | 15,678   |                     |   |   | 53,971       |   |   |         | -       |   |   |   | 70,330 |   |
| Cash      and cash equivalents, beginning of period                  |   |                                | 21      |   |                 |   | 26,181   |                     |   |   | 29,903       |   |   |         | -       |   |   |   | 56,105 |   |
| Cash      and cash equivalents, end of period                        |   |                                | 702     |   |                 |   | 41,859   |                     |   |   | 83,874       |   |   |         | -       |   |   |   | 126,435 |   |

----

| 22. | Condensed      Consolidating Financial Information(continued) |
|-----|---------------------------------------------------------------|

|                                                          |   | AxcanIntermediateHoldings      Inc. |     |   | Subsidiaryguarantors |   |       | Subsidiarynon-guarantors |   |   | Eliminations |   |   | Consolidated |       |
|---------------------------------------------------------------|--------|-------------------------------------|----------|--------|----------------------|--------|------------|--------------------------|--------|--------|--------------|--------|--------|--------------|------------|
|                                                          |   | $                                   |     |   | $                    |   |       | $                        |   |   | $            |   |   | $            |       |
| Cash      flows from operating activities                     |   |                                |     |   |                 |   |       |                     |   |   |         |   |   |         |       |
| Cash      flows from operating activities                     |   |                                | (53,068  | )      |                 |   | (21,846    | )                        |   |   | 27,402       |   |   |         | -          |   |   |   | (47,512 | ) |
| Cash      flows from investing activities                     |   |                                |     |   |                 |   |       |                     |   |   |         |   |   |         |       |   |   |   |   |   |
| Net      cash used for the acquisition                        |   |                                | -        |   |                 |   | (958,463   | )                        |   |   | -            |   |   |         | -          |   |   |   | (958,463 | ) |
| Acquisition      of property, plant and equipment             |   |                                | -        |   |                 |   | (2,029     | )                        |   |   | (1,032       | )      |   |         | -          |   |   |   | (3,061 | ) |
| Acquisition      of intangible assets                         |   |                                | -        |   |                 |   | -          |                     |   |   | (32          | )      |   |         | -          |   |   |   | (32 | ) |
| Intercompany      advances                                    |   |                                | (898,816 | )      |                 |   | (32,878    | )                        |   |   | (671,702     | )      |   |         | 1,603,396  |   |   |   | - |   |
| Investments      in subsidiaries                              |   |                                | (21,020  | )      |                 |   | (663,674   | )                        |   |   | -            |   |   |         | 684,694    |   |   |   | - |   |
| Net      cash provided by (used in) investing activities      |   |                                | (919,836 | )      |                 |   | (1,657,044 | )                        |   |   | (672,766     | )      |   |         | 2,288,090  |   |   |   | (961,556 | ) |
| Cash      flows from financing activities                     |   |                                |     |   |                 |   |       |                     |   |   |         |   |   |         |       |   |   |   |   |   |
| Issuance      of long-term debt                               |   |                                | 538,120  |   |                 |   | 96,000     |                     |   |   | -            |   |   |         | -          |   |   |   | 634,120 |   |
| Repayment      of long-term debt                              |   |                                | (10,457  | )      |                 |   | (164       | )                        |   |   | (269         | )      |   |         | -          |   |   |   | (10,890 | ) |
| Deferred      debt issue expenses                             |   |                                | (33,921  | )      |                 |   | (2,439     | )                        |   |   | -            |   |   |         | -          |   |   |   | (36,360 | ) |
| Intercompany      advances                                    |   |                                | -        |   |                 |   | 1,590,988  |                     |   |   | 12,408       |   |   |         | (1,603,396 | ) |   |   | - |   |
| Advances      from the parent company                         |   |                                | 4,182    |   |                 |   | -          |                     |   |   | -            |   |   |         | -          |   |   |   | 4,182 |   |
| Issue      of shares                                          |   |                                | 475,001  |   |                 |   | 21,020     |                     |   |   | 663,674      |   |   |         | (684,694   | ) |   |   | 475,001 |   |
| Net      cash provided by (used in) financing activities      |   |                                | 972,925  |   |                 |   | 1,705,405  |                     |   |   | 675,813      |   |   |         | (2,288,090 | ) |   |   | 1,066,053 |   |
| Foreign      exchange loss on cash held in foreign currencies |   |                                | -        |   |                 |   | (334       | )                        |   |   | (546         | )      |   |         | -          |   |   |   | (880 | ) |
| Net      increase in cash and cash equivalents                |   |                                | 21       |   |                 |   | 26,181     |                     |   |   | 29,903       |   |   |         | -          |   |   |   | 56,105 |   |
| Cash      and cash equivalents, end of period                 |   |                                | 21       |   |                 |   | 26,181     |                     |   |   | 29,903       |   |   |         | -          |   |   |   | 56,105 |   |

----

| 22. | Condensed      Consolidating Financial Information(continued) |
|-----|---------------------------------------------------------------|

|                                                          |   | AxcanIntermediateHoldings      Inc. |   |   | Subsidiaryguarantors |   |    | Subsidiarynon-guarantors |   |   | Eliminations |   |   | Consolidated |   |
|---------------------------------------------------------------|--------|-------------------------------------|--------|--------|----------------------|--------|---------|--------------------------|--------|--------|--------------|--------|--------|--------------|--------|
|                                                          |   | $                                   |   |   | $                    |   |    | $                        |   |   | $            |   |   | $            |   |
| Cash      flows from operating activities                     |   |                                |   |   |                 |   |    |                     |   |   |         |   |   |         |   |
| Cash      flows from operating activities                     |   |                                | -      |   |                 |   | 77,714  |                     |   |   | (4,469       | )      |   |         | -      |   |   |   | 73,245 |   |
| Cash      flows from investing activities                     |   |                                |   |   |                 |   |    |                     |   |   |         |   |   |         |   |   |   |   |   |   |
| Disposal      of short-term investments                       |   |                                | -      |   |                 |   | 129,958 |                     |   |   | -            |   |   |         | -      |   |   |   | 129,958 |   |
| Repayment      of intercompany advances                       |   |                                | -      |   |                 |   | 4,500   |                     |   |   | -            |   |   |         | (4,500 | ) |   |   | - |   |
| Acquisition      of property, plant and equipment             |   |                                | -      |   |                 |   | (3,063  | )                        |   |   | (251         | )      |   |         | -      |   |   |   | (3,314 | ) |
| Acquisition      of intangible assets                         |   |                                | -      |   |                 |   | -       |                     |   |   | (14          | )      |   |         | -      |   |   |   | (14 | ) |
| Net      cash provided by (used in) investing activities      |   |                                | -      |   |                 |   | 131,395 |                     |   |   | (265         | )      |   |         | (4,500 | ) |   |   | 126,630 |   |
| Cash      flows from financing activities                     |   |                                |   |   |                 |   |    |                     |   |   |         |   |   |         |   |   |   |   |   |   |
| Repayment      of long-term debt                              |   |                                | -      |   |                 |   | (101    | )                        |   |   | (120         | )      |   |         | -      |   |   |   | (221 | ) |
| Repayment      of intercompany advances                       |   |                                | -      |   |                 |   | -       |                     |   |   | (4,500       | )      |   |         | 4,500  |   |   |   | - |   |
| Deferred      debt issue expenses                             |   |                                | -      |   |                 |   | (889    | )                        |   |   | -            |   |   |         | -      |   |   |   | (889 | ) |
| Stock-based      compensation plans cancellation              |   |                                | -      |   |                 |   | (29,219 | )                        |   |   | (1,138       | )      |   |         | -      |   |   |   | (30,357 | ) |
| Issue      of shares                                          |   |                                | -      |   |                 |   | 224     |                     |   |   | -            |   |   |         | -      |   |   |   | 224 |   |
| Net      cash provided by (used in) financing activities      |   |                                | -      |   |                 |   | (29,985 | )                        |   |   | (5,758       | )      |   |         | 4,500  |   |   |   | (31,243 | ) |
| Foreign      exchange gain on cash held in foreign currencies |   |                                | -      |   |                 |   | 64      |                     |   |   | 423          |   |   |         | -      |   |   |   | 487 |   |
| Net      increase (decrease) in cash and cash equivalents     |   |                                | -      |   |                 |   | 179,188 |                     |   |   | (10,069      | )      |   |         | -      |   |   |   | 169,119 |   |
| Cash      and cash equivalents, beginning of period           |   |                                | -      |   |                 |   | 150,856 |                     |   |   | 28,816       |   |   |         | -      |   |   |   | 179,672 |   |
| Cash      and cash equivalents, end of period                 |   |                                | -      |   |                 |   | 330,044 |                     |   |   | 18,747       |   |   |         | -      |   |   |   | 348,791 |   |

----

| 22. | Condensed      Consolidating Financial Information(continued) |
|-----|---------------------------------------------------------------|

|                                                          |   | AxcanIntermediateHoldings      Inc. |   |   | Subsidiaryguarantors |   |     | Subsidiarynon-guarantors |   |   | Eliminations |   |   | Consolidated |    |
|---------------------------------------------------------------|--------|-------------------------------------|--------|--------|----------------------|--------|----------|--------------------------|--------|--------|--------------|--------|--------|--------------|---------|
|                                                          |   | $                                   |   |   | $                    |   |     | $                        |   |   | $            |   |   | $            |    |
| Cash      flows from operating activities                     |   |                                |   |   |                 |   |     |                     |   |   |         |   |   |         |    |
| Cash      flows from operating activities                     |   |                                | -      |   |                 |   | 115,415  |                     |   |   | 20,687       |   |   |         | -       |   |   |   | 136,102 |   |
| Cash      flows from investing activities                     |   |                                |   |   |                 |   |     |                     |   |   |         |   |   |         |    |   |   |   |   |   |
| Acquisition      of short-term investments                    |   |                                | -      |   |                 |   | (148,929 | )                        |   |   | -            |   |   |         | -       |   |   |   | (148,929 | ) |
| Disposal      of short-term investments                       |   |                                | -      |   |                 |   | 136,122  |                     |   |   | -            |   |   |         | -       |   |   |   | 136,122 |   |
| Repayment      of intercompany advances                       |   |                                | -      |   |                 |   | -        |                     |   |   | 4,500        |   |   |         | (4,500  | ) |   |   | - |   |
| Investments      on subsidiaries                              |   |                                | -      |   |                 |   | (16,100  | )                        |   |   | -            |   |   |         | 16,100  |   |   |   | - |   |
| Disposal      of investments in subsidiaries                  |   |                                |   |   |                 |   | 28,250   |                     |   |   | -            |   |   |         | (28,250 | ) |   |   | - |   |
| Acquisition      of property, plant and equipment             |   |                                | -      |   |                 |   | (6,279   | )                        |   |   | (510         | )      |   |         | -       |   |   |   | (6,789 | ) |
| Disposal      of property, plant and equipment                |   |                                | -      |   |                 |   | 219      |                     |   |   | -            |   |   |         | -       |   |   |   | 219 |   |
| Acquisition      of intangible assets                         |   |                                | -      |   |                 |   | -        |                     |   |   | (38          | )      |   |         | -       |   |   |   | (38 | ) |
| Net      cash provided by (used in) investing activities      |   |                                | -      |   |                 |   | (6,717   | )                        |   |   | 3,952        |   |   |         | (16,650 | ) |   |   | (19,415 | ) |
| Cash      flows from financing activities                     |   |                                | -      |   |                 |   |     |                     |   |   |         |   |   |         |    |   |   |   |   |   |
| Repayment      of long-term debt                              |   |                                | -      |   |                 |   | (209     | )                        |   |   | (495         | )      |   |         | -       |   |   |   | (704 | ) |
| Repayment      of intercompany advances                       |   |                                | -      |   |                 |   | (4,500   | )                        |   |   | -            |   |   |         | 4,500   |   |   |   | - |   |
| Issue      of shares                                          |   |                                | -      |   |                 |   | 7,257    |                     |   |   | 16,100       |   |   |         | (16,100 | ) |   |   | 7,257 |   |
| Redemption      of capital stock                              |   |                                | -      |   |                 |   | -        |                     |   |   | (28,250      | )      |   |         | 28,250  |   |   |   | - |   |
| Net      cash provided by (used in) financing activities      |   |                                | -      |   |                 |   | 2,548    |                     |   |   | (12,645      | )      |   |         | 16,650  |   |   |   | 6,553 |   |
| Foreign      exchange gain on cash held in foreign currencies |   |                                | -      |   |                 |   | 159      |                     |   |   | 443          |   |   |         | -       |   |   |   | 602 |   |
| Net      increase in cash and cash equivalents                |   |                                | -      |   |                 |   | 111,405  |                     |   |   | 12,437       |   |   |         | -       |   |   |   | 123,842 |   |
| Cash      and cash equivalents, beginning of period           |   |                                | -      |   |                 |   | 39,451   |                     |   |   | 16,379       |   |   |         | -       |   |   |   | 55,830 |   |
| Cash      and cash equivalents, end of period                 |   |                                | -      |   |                 |   | 150,856  |                     |   |   | 28,816       |   |   |         | -       |   |   |   | 179,672 |   |

----

| ITEM      9. | CHANGES      IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL      DISCLOSURE |
|--------------|------------------------------------------------------------------------------------------------|

----

| Name                           |   | Age    |   | Position                                                                                                                    |
|--------------------------------|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|
| Frank      Verwiel, M.D.       |   | 47     |   | President      and Chief Executive Officer; Director, Axcan Intermediate Holdings Inc.      and                             |
|                           |   |   |   |         Axcan Holdings Inc.                                                                                       |
| David      W. Mims             |   | 47     |   | Executive      Vice President and Chief Operating Officer; Director,Axcan      Intermediate Holdings Inc.                   |
| Steve      Gannon              |   | 48     |   | Senior      Vice President, Finance, Chief Financial Officer and Treasurer; Director,      Axcan Intermediate Holdings Inc. |
| Alexandre      LeBeaut, M.D.   |   | 52     |   | Senior      Vice President and Chief Scientific Officer, Axcan Intermediate Holdings      Inc.                              |
| Nicholas      Franco           |   | 47     |   | Senior      Vice President, International Commercial Operations                                                             |
| Theresa      Stevens, Esq.     |   | 48     |   | Senior      Vice President, Business Development                                                                            |
| Richard      Tarte, Esq.       |   | 46     |   | Vice      President, Corporate Development, General Counsel and      Secretary                                              |
| Martha      Donze              |   | 56     |   | Vice      President, Administration and Assistant Secretary; Director,      AxcanIntermediate      Holdings Inc.            |
| Fred      Cohen, M.D., D. Phil |   | 53     |   | Director,      Axcan Holdings Inc.                                                                                          |
| Geoff      Lieberthal          |   | 35     |   | Director,      Axcan Holdings Inc.                                                                                          |
| Heather      Preston, M.D.     |   | 43     |   | Director,      Axcan Holdings Inc.                                                                                          |
| Todd      Sisitsky             |   | 38     |   | Director,      Axcan Holdings Inc.                                                                                          |

----

----

----

----

|   | • | Performance-based:  Executive      compensation levels were intended to reflect both company and individual      results based on specific quantitative and qualitative objectives      established at the start of each fiscal year in keeping with AIH’s      short-term, mid-term and long-term strategic  objectives. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Aligned with shareholder interests: AIH      sought to align the interests of the named executive officers with      those      of its investors by evaluating executive performance on the basis of key      financial measurements which were believed to be closely correlated to      long-term shareholder value. Key elements of compensation that were meant      to align the interests of the named executive officers with shareholders      included: |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | AIH’s      Annual Incentive Compensation Plan, which offered performance-based cash      incentives and used EBITDA and net sales as measures of corporate      performance; and |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Axcan      Holdings Inc. Management Equity Incentive Plan, or the Management Equity      Incentive Plan, which provides for the grant of options to executives with      the intention of encouraging them to increase shareholder      value. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Market competitive: AIH’s compensation      for executives was designed to be competitive with compensation of      executives of comparable peer companies and to consider company and      business unit results relative to the results of peers. See “Compensation      Methodology-Benchmarking Practices”below. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Individual considerations: AIH’s compensation      levels were also designed to reflect individual factors such as scope of      responsibility, experience and performance against individual      objectives. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Executive      Officer                                      | Percentage of      Base Salary Adjustmentin Fiscal Year      2009  |
|------------------------------------------------------------------|----------------------------------------------------------------------------------------|
| Dr.      Frank Verwiel                                           | 0.00%                                                                                  |
| President      and Chief Executive Officer                       |
|  David      Mims                                            | 3.00%                                                                                  |
| Executive      Vice President and Chief Operating Officer        |
|  Steve      Gannon                                          | 3.00%                                                                                  |
| Senior      Vice President, Finance and Chief Financial Officer  |
|  Dr.      Alexandre LeBeaut                                 | 0.00%                                                                                  |
| Senior      Vice President and Chief Scientific Officer          |
|  Nicholas      Franco                                       | 2.50%                                                                                  |
| Senior      Vice President, International Commercial  Operations |

|   | • | Corporate performance, a measure of EBITDA      and corporate net sales;and |
|--------|---------|----------------------------------------------------------------------------------|

|   | • | Individual performance, determined by means      of an evaluation under AIH’s formal performance management program and      general discharge of duties. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Reduce      plan complexity and provide transparency in  calculations; |
|--------|---------|------------------------------------------------------------------------|

|   | • | Streamline      the incentive administrationprocesses; |
|--------|---------|--------------------------------------------------------|

|   | • | Apply      more leverage (differentiation) to reinforce pay for performance - higher      potential upside gain for top performers and  larger downside      risk for poor performance; and |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | Increase      individual accountability at alllevels. |
|--------|---------|-------------------------------------------------------|

| Name      and Principal Position                                                | Annual Incentive Target(as % of Base      Salary)  | Corporate PerformanceWeighting  |
|--------------------------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------|
| Dr. Frank      VerwielPresident      and Chief Executive Officer                | 60%                                                               | 100%                                      |
| David      MimsExecutive Vice President      andChief      Operating Officer         | 50%                                                               | 90%                                       |
| Steve      GannonSenior Vice President, Finance      andChief      Financial Officer | 50%                                                               | 85%                                       |
| Dr.      Alexandre LeBeautSenior      Vice President and Chief Scientific Officer    | 50%                                                               | 85%                                       |
| Nicholas      FrancoSenior      Vice President, International Commercial Operations  | 45%                                                               | 85%                                       |

| Corporate      Goal Attainment | Corporate      Performance Factor |                       | Individual      PerformanceEvaluation      Received | Individual      Performance Factor         |
|--------------------------------|-----------------------------------|----------------------------|-----------------------------------------------------|--------------------------------------------|
| 140%      of target or more    | 200%      of target               |                       | Excellent                                           | 126% to 150% of target |
| 100%      of target            | 100%      of target               |                       | Exceeds      Expectations                           | 106% to 125% of target |
|                           | Fully      Effective              | 95%      to 105% of target |
| Less      than 80% of target   | 0%      of target                 |                       | Needs      Improvement                              | 0%      to 84% of target                   |
|                           | Far      Below Expectations       | 0%      of target          |

----

----

----

| Name      and Principal Position                                    | FiscalYear | Salary($)   | Bonus($)(2) | Restricted Stock      Awards($)(3) | OptionAwards($)(4) | Non-EquityIncentive      PlanCompensation($)      (5) | All      otherCompensation($)(7) | TotalCompensation($) |
|---------------------------------------------------------------------|------------|-------------|-------------|-----------------------------------------|--------------------|-------------------------------------------------------|----------------------------------|----------------------|
|                                                                |       |        |        |                                    |               |                                                  |                             |                 |
| Dr. Frank      Verwiel                                         | 2009       | $645,000(1) | ---         | $835,734                                | $335,680           | 406,350                                               | $367,971                         | $2,590,735           |
| Presidentand      Chief Executive Officer                           | 2008       | 645,000     | 750,000     | 1,216,618                               | 154,505            | 580,500                                               | 6,150,326                        | 9,496,949            |
| David      Mims                                                     | 2009       | 399,049     | ---         | 375,726                                 | 215,045            | 205,392                                               | 29,847                           | $1,225,059           |
| Executive      Vice Presidentand      Chief Operating Officer       | 2008       | 387,426     | 75,000      | 565,730                                 | 98,980             | 262,123                                               | 4,084,610                        | 5,473,869            |
| Steve      Gannon                                                   | 2009       | 296,000(6)  | ---         | 332,990                                 | 175,708            | 182,210                                               | 26,487                           | $1,013,395           |
| Senior      Vice President, Financeand      Chief Financial Officer | 2008       | 336,364     | 60,000      | 502,466                                 | 80,874             | 182,276                                               | 766,140                          | 1,928,120            |
| Dr.      Alexandre LeBeaut                                          | 2009       | 382,000     | ---         | ---                                     | 120,635            | 205,215                                               | 32,120                           | $739,970             |
| Senior      Vice Presidentand      Chief Scientific Officer         | 2008       | 2,938       | ---         | ---                                     | 55,525             | ---                                                   | 127,000                          | 185,463              |
| Nicholas      Franco                                                | 2009       | 338,495(6)  | ---         | ---                                     | 120,635            | 182,036                                               | 63,705                           | $704,871             |
| Senior      Vice President, International Commercial Operations     | 2008       | 368,476     | 40,000      | ---                                     | 55,525             | 177,851                                               | 265,865                          | 907,717              |

|   | (1) | Dr.      Verwiel’s annual base salary is USD$645,000. Through June 20, 3009, he was      compensated in Canadian dollars. In fiscal year 2009, Dr. Verwiel was paid      $490,807 in Canadian dollars, $161,250 in U.S. dollars and a currency      exchange adjustment of $99,018.29 in Canadian  dollars. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Amounts      set forth in the Bonus column represent a special one-time incentive bonus      paid to our named executive officers that related to their performance in      fiscal year 2008. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Amounts      set forth in the Restricted Stock Awards column represent the aggregate      amount recognized for financial statement reporting purposes with respect      to the named executive officers for the fiscal years ended September 30,      2009 and 2008 calculated in accordance with the guidance issued by the      FASB on stock compensation, disregarding the estimate of forfeitures      related to service-based vesting conditions. For a discussion of the      assumptions used in stock compensation calculation for fiscal years 2009      and 2008, see Note 13 to our audited consolidated financial statements for      the fiscal year ended September 30, 2009 contained in this report. The      value set forth in this column for Mr. Gannon includes the amount      recognized for financial statement reporting purposes for fiscal year 2009      and 2008 due to our grant of penny options to Mr.  Gannon. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Amounts      set forth in the Option Awards column represent the aggregate amount      recognized for financial statement reporting purposes with respect to the      named executive officers for the fiscal years ended September 30, 2009 and      2008 calculated in accordance with the guidance issued by the FASB on      stock compensation, disregarding the estimate of forfeitures related to      service-based conditions. The fair value of the stock was calculated using      a Black-Scholes option-pricing model. For a discussion of the assumptions      used in the stock compensation calculation for fiscal years 2009 and 2008,      see Note 13 to AIH’s audited consolidated financial statements for the      fiscal year ended September 30, 2009 contained in this    report. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | The      values in this column represent, in U.S. dollars, incentive awards under      the Incentive Plan earned by the named executive officers in fiscal years      2009 and 2008, but paid in fiscal years 2010 and 2009. Since the incentive      award granted to Mr. Gannon was paid in Canadian dollars and the incentive      award granted to Mr. Franco was paid in Euros, the values for such awards      have been converted to U.S. dollars. For fiscal year 2009, an exchange      rate of 1.0574 Canadian dollars to one U.S. dollar and 0.6670 Euros to one      U.S. dollars was used for the conversion. For fiscal year 2008, an      exchange rate of 1.2372 Canadian dollars to one U.S. Dollar and 0.7877      Euros to one U.S. dollar was used for the  conversion. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | These      amounts represent, in U.S. dollars, salaries earned by Mr. Gannon and Mr.      Franco that were paid in local currency. The salary paid to Mr. Gannon was      paid in Canadian dollars and the salary paid to Mr. Franco was paid in      Euros, the values for such salaries have been converted to U.S.      dollars. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name      & Principal Position                                             | Fiscal      Year | Car      Allowanceand/or Company-Paid      Car ($)  | CompanyContributionsto      DefinedContributionPlans      ($)(a)  | InsurancePremiums($)(b)  | Payments      Related to February 2008 Transactions (c) | Other(d)   | Total      ($)  |
|-------------------------------------------------------------------------------------|------------------|---------------------------------------------------------------|------------------------------------------------------------------------|-------------------------------|---------------------------------------------------------|-----------------|----------------------|
| Dr. Frank      VerwielPresident      and Chief Executive Officer               | 20092008         | $16,08017,884                                                 | $41,92915,330                                                          | $13,96310,907                 | ---5,242,041                                            | $296,000864,164 | $367,9716,150,326    |
| David      MimsExecutive      Vice President and Chief Operating Officer            | 20092008         | 10,6259,775                                                   | 5,9869,554                                                             | 13,28615,239                  | ---4,050,042                                            | ------          | 29,8474,084,610      |
| Steve      GannonSenior      Vice President, Finance and Chief Financial Officer    | 20092008         | 8,66010,134                                                   | 15,70616,360                                                           | 2,1212,353                    | ---737,294                                              | ------          | 26,487766,140        |
| Dr.      Alexandre LeBeautSenior      Vice President and Chief Scientific Officer   | 20092008         | 10,200---                                                     | 8,310---                                                               | 13,610---                     | ------                                                  | ---127,000      | 32,120127,000        |
| Nicholas      FrancoSenior      Vice President, International Commercial Operations | 20092008         | 23,07133,251                                                  | ------                                                                 | 24,45926,060                  | ---151,440                                              | 16,17555,115    | 63,705265,865        |

|   | (a) | Company      contributions to defined contribution plans include contributions to      RRSP/DPSP matching funds and 401(k) during fiscal years 2009 and      2008. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | This      column includes payments for life and disability insurance, as well as      medical and dental benefits. In addition, $3,147 in fiscal year 2009 and      $4,655 in fiscal year 2008 in additional life insurance and long-term      disability premiums were paid on behalf of Dr. Verwiel. Payments of      $19,080 in fiscal year 2009 and $19,801 in fiscal year 2008 (due to a      clerical error, this value was changed from $160,146 in the Company’s      Annual Report on Form 10-K for fiscal year 2008) were made to maintain an      unemployment insurance policy for Mr. Franco since, in France, Mr.      Franco’s country of residency; corporate officers who become unemployed      are generally not eligible for unemployment  benefits. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | The      compensation paid to the named executive officers related to the February      2008 Transactions includes the compensation set forth    below. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name      & Principal Position                             | Compensationfor      AxcanPharmaOptions      andRSU Held(i)  | Change      ofControlPayments(ii)  | ESPP-RelatedCompensation(iii)  | EqualizationPayments(iv)  | Total  |
|---------------------------------------------------------------------|-------------------------------------------------------------------|-----------------------------------------|-------------------------------------|--------------------------------|-------------|
| Frank      Verwiel, M.D.                                            | $2,356,705                                                        | $2,674,351                              | $66,685                             | $144,300                       | $5,242,041  |
| President      and Chief Executive Officer                          |                                                              |                                    |                                |                           |        |
|                                                                |                                                              |                                    |                                |                           |        |
| David      Mims                                                     | 2,816,203                                                         | 1,233,839                               | —                             | —              | 4,050,042   |
| Executive      Vice President and Chief Operating Officer           |                                                              |                                    |                                |                           |        |
|                                                                |                                                              |                                    |                                |                           |        |
| Steve    Gannon                                                     | 659,702                                                           | —                       | 47,208                              | 30,384                         | 737,294     |
| Senior      Vice President, Finance and Chief Financial Officer     |                                                              |                                    |                                |                           |        |
|                                                                |                                                              |                                    |                                |                           |        |
| Dr.      Alexandre LeBeaut                                          | —                                                           | —                                 | —                             | —                        | —     |
| Senior Vice President and      Chief Scientific Officer             |                                                              |                                    |                                |                           |        |
|                                                                |                                                              |                                    |                                |                           |        |
| Nicholas      Franco                                                | 151,440                                                           | —                       | —                   | —              | 151,440     |
| Senior      Vice President,International      Commercial Operations |                                                              |                                    |                                |                           |        |

|   | (i) | Our      named executive officers received certain payments for all granted and      outstanding options to purchase common stock of  Axcan |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | Pharma      and/or all restricted stock units issued under any and all of Axcan      Pharma’s existing equity plans which each respective officer held at the      time of the consummation of the February 2008  Transactions. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii)    Dr.      Verwiel and Mr. Mims were entitled, under their respective employment      agreements, to a lump sum payment in the event that Axcan Pharma underwent      a Change of Control (as defined in the agreements). The February 2008      Transactions were deemed to be a change of control under these      agreements. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii)   As      part of the ESPP, upon the February 2008 Transactions, the unvested      portion of the shares of Axcan Pharma common stock purchased by either      Axcan Pharma’s contributions to the ESPP on behalf of Dr. Verwiel and Mr.      Gannon or each individual officer’s respective contribution to the ESPP      immediately vested and were transferred to us in exchange for the offer      price. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv)   An      equalization payment was made by Axcan Pharma in fiscal year 2008 in      connection with the February 2008 Transactions to certain non-U.S.      employees, including Dr. Verwiel and Mr. Gannon to compensate such      employees for the difference between non-U.S. option exercise prices and      lower U.S. option exercise prices. The equalization payment was calculated      by taking the difference between the non-U.S. employee option exercise      price (converted from Canadian dollars to U.S. dollars using the      applicable exchange rate on February 22, 2008, the last business day      before the February 2008 Transactions, of 1.0156 Canadian dollars to one      U.S. dollar) and the U.S. employee option exercise price at the time of      the February 2008 Transactions (such difference being $1.75 for Dr.      Verwiel and Mr. Gannon), and multiplying that amount by the number of      shares of Axcan Pharma which underlied such outstanding options held by      the employee. Before equalization payments were made to our named      executive officers, such payments were converted from U.S. dollars to      Canadian dollars using an exchange rate of 1.0020 Canadian dollars to one      U.S. dollar, the exchange rate at noon on February 25, 2008. Equalization      payments were only given for stock option grants under the 2006 Plan. All      grants issued under the 2002 Plan had an exercise price in U.S. currency      and, therefore, an equalization payment was not  needed. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | A      cash payment of $203,175 in fiscal year 2009 and $217,688 in fiscal      year 2008 were made to Dr. Verwiel by us pursuant to the terms of his      employment agreement as a “match payment”, or a payment equal to one-half      of the amount of Dr. Verwiel’s non-equity incentive award for fiscal years      2009 and 2008 (this payment in fiscal year 2008 was pro-rated over a      nine-month period). In fiscal year 2009, $21,945 paid for the preparation      of Dr. Verwiel’s annual tax returns and included additional tax planning      assistance pertaining to Dr. Verwiel’s move to the U.S. and departure tax      calculation; in fiscal year 2008, $11,022 was paid for the preparation of      Dr. Verwiel’s annual tax returns. In fiscal year 2009, Dr. Verwiel      received relocation expenses of $70,880. A cash payment of $635,454 was      made to Dr. Verwiel by Axcan Pharma in fiscal year 2008 in connection with      his Supplemental Employee Retirement Plan, or SERP. In      accordance with Dr. LeBeaut’s employment agreement, he received $50,000      for a signing bonus, a $35,000 tax assistance payment and a $42,000      special signing bonus in fiscal year  2008. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Mr.      Franco received $16,175 in fiscal year 2009 and $36,998 in fiscal year      2008 in housing expenses. In fiscal year 2008, Mr. Franco received $18,117      in relocation expenses. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                |               | Estimated      Future Payouts Under Non-Equity      Incentive Plan Awards      (1) |     |     |                                                      |                                                                |                                                                                  |
|-------------------------------------------------------------------------------------|--------------------|------------------------------------------------------------------------------------|----------|----------|-----------------------------------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------------------------------|
| Name      and Principal Position                                                    | Grant      Date    | Threshold                                                                          | Target   | Maximum  | Estimated      Future Payouts Under Equity Incentive Plan | All      Other Stock Awards: Number of Shares of Stock or Units (2) | All      Other Option Awards: Number of Securities      Underlying  Options | Exercise      or Base Price of Option Awards | Grant      Date Fair Value of Stock and Option Awards (3) |
| Dr.      Frank VerwielPresident      and Chief Executive Officer                    | --- 8/25/2009 | ---                                                                                | $387,000 | $774,000 |                                                      | 155,666                                                             |                                                                                  |   | $1,556,660 |
| David      MimsExecutive      Vice President and Chief Operating Officer            |               | ---                                                                                | 199,524  | 568,645  |                                                      |                                                                |                                                                                  |   |   |
| Steve      GannonSenior      Vice President, Finance and Chief Financial Officer    |               | ---                                                                                | 149,033  | 410,792  |                                                      |                                                                |                                                                                  |   |   |
| Dr.      Alexandre LeBeautSenior      Vice President and Chief Scientific Officer   |               | ---                                                                                | 191,000  | 530,025  |                                                      |                                                                |                                                                                  |   |   |
| Nicholas      FrancoSenior      Vice President, International Commercial Operations |               | ---                                                                                | 152,323  | 422,695  |                                                      |                                                                |                                                                                  |   |   |

|  (1) | This      column shows the potential non-equity incentive awards that are possible      under the 2009 Incentive Plan, at the threshold, target and maximum levels      of performance in fiscal year 2009. As discussed above in “Compensation      Discussion and Analysis— Performance-Based Cash Incentives”, no incentive      payments were to be paid under the Incentive Plan if both corporate fiscal      and individual performance goals were not met. The target payments are      based on achieving the 100% target level of performance for both corporate      financial measures and individual performance measures. The maximum      payments are based on the maximum incentive payments available to our      named executive officers under the Incentive Plan as discussed above in      “Compensation Discussion and Analysis”. The actual non-equity incentive      awards are reflected in the Summary Compensation  Table. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | On      August 25, 2009, Dr. Verwiel was awarded a one-time nonrecurring grant of      RSUs, in consideration of the officer’s continued employment with      us. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The      value in this column reflects the full grant-date fair value calculated      under the guidance issued by the FASB on stock compensation solely for      awards granted during the 2009 fiscal year. The fair value of the stock      option awards for financial reporting purposes likely will vary from the      actual amount ultimately realized by the named executive officer based on      a number of factors. These factors include our actual operating      performance, common share price fluctuations, differences from the      valuation assumptions used and the timing of exercise or applicable      vesting. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                | Option      Awards                                                         | StockAwards                                                                  |
|---------------------------------------------------------------------|--------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|
| Name      and Principal Position                          | Number      ofSecuritiesUnderlyingUnexercisedOptions      (#)Exercisable   | Number      ofSecuritiesUnderlyingUnexercisedOptions      (#)Unexercisable   | EquityIncentivePlanAwards:Number      ofSecuritiesUnderlyingUnexercisedUnearnedOptions   | OptionExercisePrice ($)   | OptionExpirationDate   | Number ofShares or Unitsof      Stock thatHave      NotVested      (#)(6)   | Market Value ofShares or Units ofStock      that HaveNot      Vested(7)   |
| Dr. Frank      Verwiel                                         | 64,000      (1)                                                                      | 256,000      (1)                                                                       | 160,000      (4) | $10.00 | 4/15/2018 | 77,833 | $895,857.83 |
| President      and ChiefExecutive      Officer                      | 32,000      (2)                                                                      | 128,000      (2)                                                                       | --- | $11.00      (5) | 4/15/2018 |   |   |
|                                                                |                                                                                 |                                                                                   |   |   |   |   |
|                                                                |                                                                                 |                                                                                   |   |   |   |   |   |
| David      Mims                                                     | 41,000      (1)                                                                      | 164,000      (1)                                                                       | 102,500      (4) | $10.00 | 4/15/2018 | 36,194 | $416,592.94 |
| Executive      Vice President and Chief Operating Officer           | 20,500      (2)                                                                      | 82,000      (2)                                                                        | --- | $11.00      (5) | 4/15/2018 |   |   |
|                                                                |                                                                                 |                                                                                   |   |   |   |   |
|                                                                |                                                                                 |                                                                                   |   |   |   |   |
|                                                                |                                                                                 |                                                                                   |   |   |   |   |
|                                                                |                                                                                 |                                                                                   |   |   |   |   |   |
| Steve      Gannon                                                   | 64,290      (3)                                                                      | 32,146      (3)                                                                        | --- | $0.01 | 4/15/2018 |   |   |
| Senior Vice President,      Financeand Chief      Financial Officer | 33,500      (1)                                                                      | 134,000      (1)                                                                       | 83,750      (4) | $10.00 | 4/15/2018 |   |   |
| 16,750      (2)                                                     | 67,000      (2)                                                                      | ---                                                                                    | $11.00      (5) | 4/15/2018 |   |   |
|                                                                |                                                                                 |                                                                                   |   |   |   |   |
|                                                                |                                                                                 |                                                                                   |   |   |   |   |
| Dr.      Alexandre P. LeBeaut                                       | 23,000      (1)                                                                      | 92,000      (1)                                                                        | 57,500      (4) | $10.00 | 9/29/2018 |   |   |
| Senior      Vice President and Chief Scientific Officer             | 11,500      (2)                                                                      | 46,000      (2)                                                                        | --- | $11.00      (5) | 9/29/2018 |   |   |
|                                                                |                                                                                 |                                                                                   |   |   |   |   |
|                                                                |                                                                                 |                                                                                   |   |   |   |   |
|                                                                |                                                                                 |                                                                                   |   |   |   |   |
|                                                                |                                                                                 |                                                                                   |   |   |   |   |
|                                                                |                                                                                 |                                                                                   |   |   |   |   |   |
| Nicholas      Franco                                                | 23,000      (1)                                                                      | 92,000      (1)                                                                        | 57,500      (4) | $10.00 | 4/15/2018 |   |   |
| Senior      Vice President, International Commercial Operations     | 11,500      (2)                                                                      | 46,000      (2)                                                                        | --- | $10.00      (5) | 4/15/2018 |   |   |
|                                                                |                                                                                 |                                                                                   |   |   |   |   |

----

| (1) | These      values reflect the number vested and unvested time-based options granted      to our named executive officers under the Management Equity Incentive      Plan. Time-based options vest ratably on each of the first through fifth      anniversaries of the date of grant, subject to the officer’s continued      employment with us through each anniversary. These options will fully vest      on April 15, 2013. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (2) | These      values reflect the number of vested and unvested premium options granted      to our named executive officers under the Management Equity Incentive      Plan. Premium options vest ratably on each of the first through fifth      anniversaries of the date of grant, subject to the officer’s continued      employment with us through each anniversary. These options will fully vest      on April 15, 2013. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | This      value represents the number of “penny options”, or options to purchase      common stock of Holdings for $0.01, granted to Mr. Gannon, who resides and      works in Canada, pursuant to his penny option grant agreement.      Approximately one-third of the penny options immediately vested upon grant      on April 15, 2008, one-third vested on August 25, 2009, and subject to his      continued employment with us, the remainder of the penny options are      scheduled to vest on August 25,2010. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | These      values represent the number of performance-based options granted to our      named executive officers under the Management Equity Incentive Plan. Under      the terms of the Management Equity Incentive Plan, the amount of      performance- based options that will vest is dependent upon the occurrence      of a Liquidity Event (as defined in the Management Equity Incentive Plan)      and the realization of certain profits by the Sponsor Funds and/or their      affiliates as a result of such event(s), calculated by comparing the value      of the cash or certain securities obtained in exchange for the equity of      Holdings held by the Sponsor Funds and/or their affiliates to the Sponsor      Funds’ initial investment in the February 2008 Transactions. Depending on      these factors, all, none, or |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   (5) | one-half      of the performance-based options held by our named executive officers may      vest upon the occurrence of the Liquidity Event (as defined in the      Management Equity Incentive Plan), subject to the officer’s continued      employment with us on the date of the liquidity event. For      the premium options granted under the Management Equity Incentive Plan to      Dr. Verwiel, Mr. Mims, Mr. Gannon and Dr. LeBeaut, the exercise price of      these options increases at a 10.00% compound rate on each anniversary of      the date of grant of such options until, with certain exceptions, the      earlier of: (a) the exercise of such option; (b) the fifth anniversary of      the grant date of such option; (c) a Liquidity Event (as defined in the      Management Equity Incentive Plan) or (d) the occurrence of a Change in      Control (as defined in the Management Equity Incentive Plan) of Axcan      Holdings Inc. For Mr. Franco, any premium options granted to him under the      Management Equity Incentive Plan will be subject to the terms of the      French sub-plan, under which the premium options will not be subject to an      increasing exercise price over time. Rather, any vested premium options      held by Mr. Franco will be exercisable in a percentage equal to (i) the      percentage of the premium options exercisable under the terms of the      Management Equity Incentive Plan multiplied by (ii) the difference between      the fair market value of one share of Holdings common stock on the      exercise date and the exercise price of the premium option to be exercised      if it had accreted in price under the terms of the Management Equity      Incentive Plan divided by (iii) the difference between the fair market      value of the share and the exercise price of  $10.00. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | These      values represent the restricted stock units held by Dr. Verwiel and Mr.      Mims that had not yet vested as of September 30, 2009. These RSUs are      scheduled to vest on August 25, 2010. Vested RSUs shall be settled, with      certain exceptions, on the earlier of: (1) four years from the date of      grant, or April 15, 2012; (2) the termination of the officer’s employment;      (3) a Liquidity Event (as defined in the Management Equity Incentive      Plan); and (4) a Change in Control (as defined in the Management Equity      Incentive Plan). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Since      there was no public market for shares of Holdings common stock at the end      of fiscal year 2009, we determined the “market value” of the unvested RSUs      by multiplying the number of such RSUs by $11.51, the value of one share      of Holdings common stock on September 30, 2009 as determined by the      Holdings Board. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                            | Stock    Awards                                               |
|-----------------------------------------------------------------|---------------------------------------------------------------|
| Name      & Principal Position                         | Number ofShares Acquiredon      Vesting(#)(1)  |   | Value Realizedon Vesting($)(2)  |
| Dr. Frank      Verwiel                                     | 77,833                                                        |   | $895,857.83 |
| President      and Chief Executive Officer                      |                                                          |   |   |
|                                                            |                                                          |   |   |
| David      Mims                                                 | 36,192(3)                                                     |   | $416,569.92 |
| Executive      Vice President and Chief Operating Officer       |                                                          |   |   |
|                                                            |                                                          |   |   |
| Steve      Gannon                                               | ---                                                           |   | --- |
| Senior      Vice President, Finance and Chief Financial Officer |                                                          |   |   |
|                                                            |                                                          |   |   |
| Dr.      Alexandre LeBeaut                                      | ---                                                           |   | --- |
| Senior      Vice President and Chief Scientific Officer         |                                                          |   |   |
|                                                            |                                                          |   |   |
| Nicholas      Franco                                            | ---                                                           |   | --- |
| Senior      Vice President, International Commercial Operations |                                                          |   |   |

|        (1) | The      values in this column reflect the number of RSUs granted to Dr. Verwiel on      August 25, 2009 where one-half vested immediately upon grant and for Mr.      Mims, the second vesting tranche of his RSUs grant awarded on April 15,      2008. These vested RSUs will not be settled in Holdings common stock until      the earlier of: (1) four years from the date of grant, or April 15, 2012;      (2) the termination of the officer’s employment; (3) a Liquidity Event (as      defined in the Management Equity Incentive Plan); and (4) a Change in      Control (as defined in the Management Equity Incentive    Plan). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        (2) | Represents      the number of RSUs vested multiplied by $11.51, the fair market value of      one share of Holdings common stock on the vesting date, as determined by      the Holdings Board. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | On      August 25, 2009, 33.33% of RSUs granted to Mr. Mims on April 15, 2008      vested.  As a result of this vesting, he became obligated to      submit to the Company an amount in cash (through a payroll deduction) to      satisfy certain employment taxes arisingunder |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | the      Federal Insurance Contributions Act (the “FICA Obligation”). The Company,      relying on Section 1.409A-3(j)(4)(vi) of the regulations under Section      409A of the Internal Revenue Code of 1986, as amended (the “Code”), gave      all employees the opportunity to elect to satisfy the FICA Obligation and      certain related taxes with a commensurate number of vested RSUs, based      upon the fair market value of these RSUs on the date of vesting, which was      equal to $11.51 (the “Fair Market Value”). Mr. Mims settled 748 RSUs to      satisfy the FICA Obligation and certain related  taxes. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | An      amount equal to Dr. Verwiel’s accrued but unused vacation and base salary      through the date of termination, or collectively, the accrued      benefits. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | An      amount equal to (a) two times his base salary in effect at the date of      termination, plus (b) two times the amount of his Target Annual Bonus,      which is 60% of Dr. Verwiel’s base salary. This amount will be paid in      equal, ratable installments in accordance with our regular payroll      policies over the course of 24months. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Medical      benefits which are substantially similar to the benefits provided to our      executive officers for 24 months after the date of termination. However,      if Dr. Verwiel becomes re-employed with another employer and is eligible      to receive comparable benefits, we shall cease to provide continued      medical benefits. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | An      amount equal to Mr. Mims’ accrued but unused vacation and base salary      through the date of termination, or collectively, the accrued      benefits. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | An      amount equal to (a) two times his base salary in effect at the date of      termination, plus (b) two times the amount of his Target Annual Bonus,      which is 50% of Mr. Mims’ base salary. This amount will be paid in equal,      ratable installments in accordance with our regular payroll policies over      the course of 24 months. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Medical      benefits which are substantially similar to the benefits provided to our      executive officers for 24 months after the date of termination. However,      if Mr. Mims becomes re-employed with another employer and is eligible to      receive comparable benefits, we shall cease to provide continued medical      benefits. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | An      amount equal to Mr. Gannon’s accrued but unused vacation and base salary      through the date of termination, or collectively, the accrued      benefits. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | An      amount equal to one-and-a-half times his base salary in effect at the date      of termination. This amount will be paid in equal, ratable installments in      accordance with our regular payroll policies over the course of 18      months. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Medical      benefits which are substantially similar to the benefits provided to our      executive officers for 18 months after the date of termination. However,      if Mr. Gannon becomes re-employed with another employer and is eligible to      receive comparable benefits, we shall cease to provide continued medical      benefits. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | An      amount equal to Dr. LeBeaut’s accrued but unused vacation and base salary      through the date of termination, or collectively, the accrued      benefits. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | An      amount equal to one-and-a-half times his base salary in effect at the date      of termination. This amount will be paid in equal, ratable installments in      accordance with our regular payroll policies over the course of 18      months. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Medical      benefits which are substantially similar to the benefits provided to our      executive officers for 18 months after the date of termination. However,      if Dr. LeBeaut becomes re-employed with another employer and is eligible      to receive comparable benefits, we shall cease to provide continued      medical benefits. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                          | Severance      ArrangementsAssuming      Termination of Service at the end of Fiscal year 2009  |
|-----------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|
| Name      & PrincipalPosition                                                        | Benefit      Type                                                                               |   | Termination      withCause      or withoutGood Reason($)  |   | Termination      withoutCause      or for GoodReason(1)($)  |   | Termination      due toDeath      or Disability($)  |   | Change      inControl(2)($)  |
| Dr. Frank      VerwielPresident      and Chief Executive Officer                         | Severance      Payment                                                                               |   | —   |   | $2,064,000 |   | —   |   | $2,064,000 |
| Bonus                                                                                         |                                                                                                 | —   |   | —   |   | —   |   | —   |
| Benefits                                                                                      |                                                                                                 | —   |   | 29,852 |   | —   |   | 29,852 |
| Value      of Equity Award Acceleration(3),(5)                                           |                                                                                                 | —   |   | 895,858 |   | —   |   | 895,858 |
|                                                                                          |                                                                                                 |   |   |   |   |   |   |   |
|                                                                                          | Total                                                                                                |   | —   |   | $2,989,710 |   | —   |   | $2,989,710 |
| David      MimsExecutive      Vice President and Chief Operating Officer                      | Severance      Payment                                                                               |   | —   |   | $1,197,146 |   | —   |   | $1,197,146 |
| Bonus                                                                                         |                                                                                                 | —   |   | —   |   | —   |   | —   |
| Benefits                                                                                      |                                                                                                 | —   |   | 25,376 |   | —   |   | 25,376 |
| Value      of Equity Award Acceleration(3),(5)                                           |                                                                                                 | —   |   | 416,592 |   | —   |   | 416,592 |
|                                                                                          |                                                                                                 |   |   |   |   |   |   |   |
|                                                                                          | Total                                                                                                |   | —   |   | $1,639,114 |   | —   |   | $1,639,114 |
| Steve      GannonSenior      Vice President, Finance and Chief Financial Officer              | Severance      Payment                                                                               |   | —   |   | $444,000 |   | —   |   | $444,000(6) |
| Bonus                                                                                         |                                                                                                 | —   |   | —   |   | —   |   | — (6)  |
| Benefits                                                                                      |                                                                                                 | —   |   | 2,243 |   | —   |   | 2,243(6) |
| Value      of Equity Award Acceleration(4),(5)                                           |                                                                                                 | —   |   | 369,679 |   | —   |   | 369,679 |
|                                                                                          |                                                                                                 |   |   |   |   |   |   |   |
|                                                                                          | Total                                                                                                |   | —   |   | $815,922 |   | —   |   | $815,922 |
| Dr.      Alexandre LeBeautSenior      Vice President and Chief Scientific Officer             | Severance      Payment                                                                               |   | —   |   | 573,000 |   | —   |   | 573,000(7) |
| Bonus                                                                                         |                                                                                                 | —   |   | — |   | —   |   | —(7) |
| Benefits                                                                                      |                                                                                                 | —   |   | 19,032 |   | —   |   | 19,032(7) |
| Value      of Equity Award Acceleration                                                  |                                                                                                 | —   |   |   |   | —   |   |   |
|                                                                                          |                                                                                                 |   |   |   |   |   |   |   |
|                                                                                          | Total                                                                                                |   | —   |   | $      592,032 |   | —   |   | $      592,032 |
|                                                                                          |                                                                                                 |   |   |   |   |   |   |   |   |
| Nicholas      FrancoSenior Vice President,      International Commercial Operations | Severance      Payment                                                                               |   | —   |   | —   |   | —   |   | 338,495(8) |
| Bonus                                                                                         |                                                                                                 | —   |   | 152,323   |   | —   |   | — 8) |
| Benefits                                                                                      |                                                                                                 | —   |   | —   |   | —   |   | —      (8) |
| Value      of Equity Award Acceleration                                                  |                                                                                                 | —   |   | —   |   | —   |   | —   |
|                                                                                          |                                                                                                 |   |   |   |   |   |   |   |
|                                                                                          | Total                                                                                                |   | —   |   | $152,323  |   | —   |   | $      338,495 |

| (1) | The      severance payments set forth in this column would have been paid to Dr.      Verwiel and Mr. Mims, respectively, in equal installments over a period of      24 months in accordance with our standard payroll procedures and any      benefits would be provided over a period of 24 months. For Mr. Gannon and      Dr. LeBeaut, the severance payments set forth in this column would have      been paid to him in equal installments over a period of 18 months in      accordance with our standard payroll procedures and any benefits would be      provided over a period of 18months. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  (2) | The      severance payments set forth in this column would have been paid      immediately upon termination to Dr. Verwiel, Mr. Mims, Mr. Gannon and Dr.      LeBeaut. For Mr. Franco, the severance payments set forth in this column      would have been paid in one lump sum no later than the March 15th      following the year of termination. The determination of the form in which      benefits would be paid to Mr. Franco would have been at our      discretion. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | This      amount represents the value of the RSUs held by Dr. Verwiel and Mr. Mims,      respectively, that would vest and settle upon Dr. Verwiel’s or Mr. Mims’      termination by us without cause, termination by the executive officer for      good reason or termination by us due to a change-in-control at the end of      fiscal year 2009. Upon such termination, Dr. Verwiel pursuant to his      employment agreement, 77,833 RSUs would have vested and settled into      shares of Holdings common stock upon such termination. For Mr. Mims,      pursuant to his employment agreement, 36,194 RSUs would have vested and      settled into shares of Holdings commonstock |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   (4) | upon      such termination. As of September 30, 2009, one share of Holdings common      stock had a value of $11.51 according to the Holdings      Board. This      amount represents the value of the penny options held by Mr. Gannon that      would vest upon Mr. Gannon’s termination by us without cause, termination      by the executive officer for good reason or termination by us due to a      change-in-control at the end of fiscal year 2009. Upon such termination,      32,146 penny options held by Mr. Gannon would have vested. Each penny      option held by Mr. Gannon had an exercise price of $0.01. As of September      30, 2009, one share of Holdings common stock had a value of $11.51      according to the Holdings Board. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Upon      any event of termination, the named executive officers were entitled to      receive the same treatment of their Holdings Options under the Management      Equity Incentive Plan as any other employee with the exception of the      performance-based Holdings Options held by Dr. Verwiel, Mr. Mims and Mr.      Gannon. In the event one of these named executive officers were terminated      without cause or for good reason, any performance-based options that had      not vested as of the date of termination would remain outstanding for a      12-month period following termination and if a liquidity event (as defined      under the Management Equity Incentive Plan) were to occur within such      period, all unvested performance-based shares would become vested and      exercisable in accordance with the Management Equity Incentive Plan.      Otherwise, upon any event of termination of a named executive officer, any      unvested Holdings Options would be forfeited unless such termination was      without Cause (as defined in the Management Equity Incentive Plan) or by      the participant for Good Reason (as defined in the Management Equity      Incentive Plan) and occurred during the two-year period following a Change      of Control (as defined in the Management Equity Incentive Plan), in which      case all unvested time-based and premium Holdings Options would      immediately vest and become exercisable as of the date of such      termination. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Upon      Mr. Gannon’s termination in connection with a change of control under the      Severance Plan, if applicable, he would have received a severance payment      of $364,389, bonus payment of $165,155, and benefits of $1,841. The bonus      payment is the average of his annual cash incentive award for fiscal year      2008 and fiscal year 2009. Since the Holdings Board would not have      approved the annual cash incentive award on September 30, 2009, we have      assumed that Mr. Gannon would receive his fiscal year 2009 on-target bonus      under the Incentive Plan, which would amount to $148,033. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Upon      Dr. LeBeaut’s termination in connection with a change of control under the      Severance Plan, if applicable, he would have received a severance payment      of $411,385, bonus payment of $191,000, and benefits of $13,664. The bonus      payment is the target incentive award amount for fiscal year 2009. Dr.      LeBeaut did not receive an incentive award in fiscal year 2008. Since the      Holdings Board would not have approved the annual cash incentive award on      September 30, 2009, we have assumed that Dr. LeBeaut would receive his      fiscal year 2009 on-target bonus under the Incentive Plan, which would      amount to $191,000. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8) | Upon      Mr. Franco’s termination in connection with a change of control under the      Severance Plan, if applicable, he would have received a severance payment      of $390,571, bonus payment of $169,498, and benefits of $6,205. The bonus      payment is the average of his annual cash incentive award for fiscal year      2008 and fiscal year 2009. Since the Holdings Board would not have      approved the annual cash incentive award on September 30, 2009, we have      assumed that Mr. Franco would receive his fiscal year 2009 on-target bonus      under the Incentive Plan, which would amount to  $152,322. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name      and Address of Beneficial Owner                             |   | Beneficial Ownershipof Common      Shares  |   | PercentageOwned  |
|----------------------------------------------------------------------------|--------|------------------------------------------------------|--------|-----------------------|
| TPG      Capital(1)                                                        |   | 69.91                                                |   | 69.91 %          |
| Banc      of America Capital Investors V, L.P.(2)                          |   | 8.35                                                 |   | 8.35  %     |
| Société      Générale de Financement du Québec(3) |   | 6.26                                                 |   | 6.26  %     |
| HSBC(4)                                                                    |   | 5.22                                                 |   | 5.22 %           |
| OMERS      Capital Partners Inc.(5)                                        |   | 5.22                                                 |   | 5.22  %     |
| Alberta      Investment Management Corp.(6)                                |   | 4.17                                                 |   | 4.17 %           |
| Dr. Frank      Verwiel                                                |   | *                                                    |   | *                     |
| David      Mims                                                            |   | *                                                    |   | *                     |
| Steve      Gannon                                                          |   | *                                                    |   | *                     |
| Nicholas      Franco                                                       |   | *                                                    |   | *                     |
| Richard      Tarte                                                         |   | *                                                    |   | *                     |
| Darcy      Toms                                                            |   | *                                                    |   | *                     |
| Martha      Donze                                                          |   | *                                                    |   | *                     |
| Dr. Fred      Cohen(7)                                                |   | 69.91                                                |   | 69.91 %          |
| Geoff      Lieberthal(7)                                                   |   | 69.91                                                |   | 69.91 %          |
| Dr.      Heather Preston(7)                                                |   | 69.91                                                |   | 69.91 %          |
| Todd      Sisitsky(7)                                                      |   | 69.91                                                |   | 69.91 %          |
| All      executive officers and directors as a group (12 people)           |   | 0.39                                                 |   | 0.39 %           |

|   | (1) | Axcan      Intermediate Holdings Inc. shares shown as beneficially owned by TPG      Capital reflect an aggregate of the following record ownership: (i)      30,854,198.80 shares of Holdings held by TPG Partners V, L.P., (ii)      80,715.00 shares of Holdings held by TPG FOF V-A, L.P., (iii) 65,086.20      shares of Holdings held by TPG FOF V-B, L.P. and (iv) 2,500,000.00 shares      of Holdings held by TPG Biotechnology Partners II, LP. The address of TPG      Capital is 301 Commerce Street, Suite 3300, Fort Worth, TX      76102. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        (2) | Axcan      Intermediate Holdings Inc. shares shown as beneficially owned by Banc of      America Capital Investors V, L.P. through its investment in TPG Axcan      Co-Invest II, LLC reflect the following record ownership: 4,000,000 shares      of Holdings held by Banc of America Capital Investors V, L.P. The address      of Banc of America Capital Investors V, L.P. is 100 North Tryon Street,      25th floor, Attention: Scott R. Poole, Charlotte, NC  28255. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        (3) | Axcan      Intermediate Holdings Inc. shares shown as beneficially owned by Société      Générale de Financement du Quebec throughits |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   (4) | investment      in TPG Axcan Co-Invest, LLC reflect the following record ownership:      3,000,000 shares of Holdings held by SGF Bio-Pharma Capital Inc. The      address of Société Générale de Financement du Québec is 600 de la      Guichetière West, Suite 1500, Montreal, Quebec, Canada, H3B      4L8. Axcan      Intermediate Holdings Inc. shares shown as beneficially owned by HSBC      through its investment in TPG Axcan Co-Invest, LLC reflect an aggregate of      the following record ownership:(i) 2,100,000 shares held by HSBC Equity      Partners USA, L.P. and (ii) 400,000 shares held by HSBC Private Equity      Partners II USA, LP. The address of HSBC is 452 Fifth Avenue, 14th floor,      Attention: Andrew Trigg, New York, NY10018. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Axcan      Intermediate Holdings Inc. shares shown as beneficially owned by OMERS      Capital Partners Inc. through its investment in TPG Axcan Co-Invest, LLC      reflect the following record ownership: 2,500,000 shares of Holdings held      by OCP API Holdings, Inc. The address of OMERS Capital Partners Inc. is      Royal Bank Plaza, South Tower, Suite 2010, 200 Bay Street, Toronto,      Ontario, Canada, M5J 2J2. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | Axcan      Intermediate Holdings Inc. shares shown as beneficially owned by Alberta      Investment Management Corp. through its investment in TPG Axcan Co-Invest,      LLC reflect an aggregate of the following record ownership: (i) 1,140,000      shares of Holdings held by GP08GV (General) Ltd. and (ii) 860,000 shares      of Holdings held by GP08PX (General) Ltd. The address of Alberta      Investment Management Corp. is 9515-107 Street, 340 Terrace Building,      Edmonton, Alberta, Canada, T5K 2C3. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7) | Includes      all shares held by TPG Partners V, L.P., TPG FOF V-A, L.P., TPG FOF V-B,      L.P., and TPG Biotechnology Partners II, LP. Each of Fred Cohen, Geoff      Lieberthal, Heather Preston and Todd Sisitsky may be deemed to be a      beneficial owner of these interests due to his or her status as an      employee of TPG Capital, and each such person disclaims beneficial      ownership of any such interests in which he or she does not have a      pecuniary interest. The address of each of Dr. Cohen, Mr. Lieberthal, Dr.      Preston and Mr. Sisitsky is c/o TPG Capital, 301 Commerce Street, Suite      3300, Fort Worth, TX 76102. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                    | Number      of securities to be issued upon exercise of outstanding options, warrants      and rights | Weighted-average      exercise price of outstandingoptions,      warrants and rights | Number      of securities remaining available for future issuanceunder      equity compensationplans      (excluding securitiesreflected      in first column) |
|-------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Plan      Category                                                      |                                                                                                  |                                                                                 |                                                                                                                                                           |
| Equity      compensation plans approved by security holders             | —                                                                                               | —                                                                              | —                                                                                                                                                        |
| Equity      compensation plans not approved      by security holders(1) | 4,999,595(2)                                                                                          | $10.34(3)                                                                            | 108,932                                                                                                                                                        |
| Total                                                                   | 4,999,595                                                                                             | $10.34                                                                               | 108,932                                                                                                                                                        |
|                                                                    |                                                                                                  |                                                                                 |                                                                                                                                                           |

| (1) | Since      our indirect parent Holdings is owned primarily by the Sponsor and the      majority of members of the Holdings Board are affiliated with the Sponsor,      the Holdings Board, and not the Holdings stockholders, have approved all      decisions related to equity-based compensation, including the approval of      the Management Equity Incentive Plan and individual compensation      arrangements with our executiveofficers. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | This      amount includes 3,724,375 shares of Holdings common stock issuable under      the Management Equity Incentive Plan, 802,226 shares of Holdings common      stock issuable upon the settlement of Restricted Stock Unit (RSUs) awards      granted to certain of our employees and 472,994 shares of Holdings common      stock issuable upon the exercise of penny options, or options to purchase      Holdings Common Stock for $0.01, granted to certain of our      employees. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The      weighted-average exercise price reflects the exercise price of all options      to purchase Holdings common stock issued under the Management Equity      Incentive Plan and does not reflect the exercise price of the RSUs awards      or penny option awards, which have exercise prices of $0 and $0.01,      respectively. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                        |   | Fiscal      Year ended September 30, 2009(Successor) |      |   | Initial      seven-month period ended September 30, 2008(Successor) |   |    | Five-month      period ended February 25, 2008(Predecessor) |   |
|-----------------------------|--------|------------------------------------------------------|-----------|--------|---------------------------------------------------------------------|--------|---------|-------------------------------------------------------------|--------|
| Audit      Fees (1)         |   | $                                                    | 908,858   |   |                                                                | $      | 81,565  |                                                        |   | $ | 44,169 |   |
| Audit-Related      Fees (2) |   |                                                 | 308,777   |   |                                                                |   | 60,666  |                                                        |   |   | 369,990 |   |
| Tax      Fees (3)           |   |                                                 | 244,003   |   |                                                                |   | 141,027 |                                                        |   |   | 71,844 |   |
| All      Other Fees (4)     |   |                                                 | 21,451    |   |                                                                |   | -       |                                                        |   |   | - |   |
| Total      Fees             |   |                                                 | 1,483,089 |   |                                                                | $      | 283,258 |                                                        |   | $ | 486,003 |   |

|   | (1) | Audit      Fees billed during the periods indicated represented fees for the      following services: audit of the Company’s (or the predecessor company’s)      annual financial statements, reviews of the Company’s (or the predecessor      company’s) quarterly financial statements, audit of the financial      statements of certain subsidiaries and other services normally provided in      connection with statutory and regulatory filings. An amount of $627,494 of      fees invoiced during the fiscal year ended September 30, 2009, pertained      to audit  fees related to the prior period financial statements      of the Successor and Predecessor. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Audit-Related      Fees billed during the periods indicated represented fees for the      following services: issue of consent and comfort letters and other      services provided in conjunction with financing transactions and      consultations on accounting matters. An amount of $276,936 of fees      invoiced during the fiscal year ended September 30, 2009, pertained to      audit-related fees for financing transactions involving the prior period      financial statements of the Successor and  Predecessor. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Tax      Fees billed during the periods indicated represented fees for the      following services: compliance, transfer-pricing studies and other tax      consultation. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Performance      of agreed-upon procedures with respect to a royalty sales      schedule. |
|--------|-----|-------------------------------------------------------------------------------------------|

----

----

|   | AXCAN      INTERMEDIATE HOLDINGS INC. |                                                                                        |
|--------|---------------------------------------|---------------------------------------------------------------------------------------------|
|   |                                  |                                                                                        |   |
| Date   | By:                                   | /s/                                                                                    |   |
|   |                                  | Name: Steve      Gannon                                                                |   |
|   |                                  | Title:      Senior      Vice President, Finance, Chief Financial Officer and      Treasurer |   |
|   |                                  |                                                                                        |   |

|                        |                                                                                                                                               |                         |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------|
| Signature              | Title                                                                                                                                         | Date                    |
|                   |                                                                                                                                               |                         |
| /s/Frank      Verwiel, M.D. | President,      Chief Executive Officerand      Director(Principal      Executive Officer)                                                         |  December      17, 2009 |
|                        |                                                                                                                                               |                         |
| /s/Steve      Gannon        | Senior      Vice President, Finance,Chief      Financial Officer, Treasurerand      Director (Principal Financialand      Accounting Officer) |  December      17, 2009 |
|                        |                                                                                                                                               |                         |
|                        |                                                                                                                                               |                         |
| /s/David      W. Mims       | Executive      Vice President, ChiefOperating      Officer and Director                                                                            |  December      17, 2009 |
|                        |                                                                                                                                               |                         |
| /s/Martha      Donze        | Vice      President, Administration,Assistant      Secretary and Director                                                                          |  December      17, 2009 |
|                        |                                                                                                                                               |                         |

----

| Exhibit No. |   | Exhibit                                                                                                                                                                                                                                                                                                                                                |
|------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                                                                                                                                                                                                                   |
| 3.1              |   | Certificate      of Incorporation of Axcan Intermediate Holdings Inc. (f/k/a Atom      Intermediate Holdings Inc.), as amended (Exhibit 3.1 to Axcan Intermediate      Holdings Inc. Form S-4 filed October 7, 2008).                                                                                                                                  |
| 3.2              |   | By-laws      of Axcan Intermediate Holdings Inc. (Exhibit 3.2 to Axcan Intermediate      Holdings Inc. Form S-4 filed October 7, 2008).                                                                                                                                                                                                                |
| 4.1              |   | Senior      Secured Notes Indenture, dated as of February 25, 2008, between Axcan      Intermediate Holdings Inc., the Guarantors listed therein and The Bank of      New York, as Trustee, relating to the 9.25% Senior Secured Notes due 2015      (Exhibit 4.1 to Axcan Intermediate Holdings Inc. Form S-4 filed October 7,      2008).            |
| 4.2              |   | Supplemental      Indenture, dated as of December 19, 2008, among Axcan EU LLC and The Bank      of New York Mellon, as trustee, supplementing the Senior Secured Notes      Indenture dated as of February 25, 2008 (Exhibit 4.1 to Axcan Intermediate      Holdings Inc. Form 10-Q filed February 13, 2009).                                         |
| 4.3              |   | Senior      Notes Indenture, dated as of May 6, 2008, between Axcan Intermediate      Holdings Inc., the Guarantors listed therein and The Bank of New York, as      Trustee, relating to the 12.75% Senior Notes due 2016 (Exhibit 4.2 to      Axcan Intermediate Holdings Inc. Form S-4 filed October 7,      2008).                                 |
| 4.4              |   | Supplemental      Indenture, dated as of December 19, 2008, among Axcan EU LLC and The Bank      of New York Mellon, as trustee, supplementing the Senior Notes Indenture      dated as of May 6, 2008 (Exhibit 4.2 to Axcan Intermediate Holdings Inc.      Form 10-Q filed February 13, 2009).                                                       |
| 4.5              |   | Form      of 9.25% Senior Secured Notes due 2015 (included in the Senior Secured      Notes Indenture filed as Exhibit 4.1 to Axcan Intermediate Holdings Inc.      Form S-4 filed October 7, 2008).                                                                                                                                                   |
| 4.6              |   | Form      of 12.75% Senior Notes due 2016 (included in the Senior Notes Indenture      filed as Exhibit 4.2 to Axcan Intermediate Holdings Inc. Form S-4 filed      October 7, 2008).                                                                                                                                                                  |
| 4.7              |   | Registration      Rights Agreement, dated as of February 25, 2008, by and between Axcan      Intermediate Holdings Inc., the Guarantors named therein and Banc of      America Securities LLC, HSBC Securities (USA) Inc., RBC Capital Markets      Corporation (Exhibit 4.5 to Axcan Intermediate Holdings Inc. Form S-4      filed October 7, 2008). |
| 4.8              |   | Registration      Rights Agreement, dated as of May 6, 2008, by and between Axcan      Intermediate Holdings Inc., the Guarantors named therein and Banc of      America Securities LLC, HSBC Securities (USA) Inc., RBC Capital Markets      Corporation (Exhibit 4.6 to Axcan Intermediate Holdings Inc. Form S-4      filed October 7, 2008).       |
| 4.9              |   | Parallel      Debt Agreement, dated as of February 25, 2008, between Axcan LuxCo 1      S.àr.l. and Axcan LuxCo 2 S.àr.l and The Bank of New York, relating to the      Senior Secured Notes Indenture (Exhibit 4.12 to Axcan Intermediate      Holdings Inc. Form S-4 filed October 7, 2008).                                               |
| 4.10             |   | Parallel      Debt Agreement, dated as of May 6, 2008, between Axcan LuxCo 2 S.àr.l. and      Axcan LuxCo 2 S.àr.l and The Bank of New York, relating to the Senior      Notes Indenture (Exhibit 4.13 to Axcan Intermediate Holdings Inc. Form S-4      filed October 7, 2008).                                                             |
| 4.11             |   | Pledge      Agreement, dated as of February 25, 2008, between Axcan Intermediate      Holdings Inc., as Pledgor, Bank of America, N.A., as Administrative Agent      and Collateral Agent, and Axcan LuxCo 1 S.àr.l., as Company (Exhibit 4.14      to Axcan Intermediate Holdings Inc. Form S-4 filed October 7,      2008).                     |
| 4.12             |   | Pledge      Agreement, dated as of February 25, 2008, between Axcan Intermediate      Holdings Inc., as Pledgor, Bank of America, N.A., as Administrative Agent      and Collateral Agent, and Axcan LuxCo 2 S.àr.l., as Company (Exhibit 4.15      to Axcan Intermediate Holdings Inc. Form S-4 filed October 7,      2008).                     |

----

| Exhibit No. |   | Exhibit |
|------------------|--------|---------|

| 4.13  |   | Deed      of Pledge of Membership Rights, dated February 25, 2008, between Axcan      Intermediate Holdings Inc. and Axcan US LLC, as Pledgors, and Bank of      America, N.A., as Pledgee, and Axcan Coöperatieve U.A., as Coop (Exhibit      4.16 to Axcan Intermediate Holdings Inc. Form S-4 filed October 7,      2008).                                                                                                                                                                                                                                                          |
|-------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.14  |   | Pledge      and Security Agreement, dated as of February 25, 2008, between certain      subsidiaries of Axcan Intermediate Holdings Inc. identified therein, as      Grantors, and Bank of America, N.A., as Administrative Agent (Exhibit 4.17      to Axcan Intermediate Holdings Inc. Form S-4 filed October 7,      2008).                                                                                                                                                                                                                                                              |
| 4.15  |   | Supplement      No.1, dated as of December 5, 2008, to the Pledge and Security Agreement      dated as of February 25, 2008 among Axcan Intermediate Holdings Inc., as      the Parent Borrower, Axcan US Partnership 1 LP, as the Co-Borrower, Axcan      MidCo Inc., as Holdings, certain other Subsidiaries of Axcan Intermediate      Holdings Inc. from time to time party thereto and Bank of America, N.A.,      as Administrative Agent for the Secured Parties (as defined therein)      (Exhibit 4.3 to Axcan Intermediate Holdings Inc. Form 10-Q filed February      13, 2009). |
| 4.16  |   | Pledge      Agreement, dated as of February 25, 2008, between Axcan LuxCo 2 S.àr.l.,      as Pledgor, Bank of America, N.A., as Administrative and Collateral Agent,      and Axcan Nova Scotia 1 ULC, as Company (Exhibit 4.18 to Axcan      Intermediate Holdings Inc. Form S-4 filed October 7,  2008).                                                                                                                                                                                                                                                                             |
| 4.17  |   | Deed      of Hypothec in favor of Bank of America, N.A., dated as of February 25,      2008 (Exhibit 4.19 to Axcan Intermediate Holdings Inc. Form S-4 filed      October 7, 2008).                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.18  |   | Debenture,      dated as of February 25, 2008 (Exhibit 4.20 to Axcan Intermediate Holdings      Inc. Form S-4 filed October 7, 2008).                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 4.19  |   | Pledge      of Debentures, dated as of February 25, 2008, between Axcan Pharma Inc.      and the Secured Parties (as defined therein) (Exhibit 4.21 to Axcan      Intermediate Holdings Inc. Form S-4 filed October 7,  2008).                                                                                                                                                                                                                                                                                                                                                              |
| 10.1  |   | Management      Services Agreement, dated as of February 21, 2008, by and among Axcan      Holdings Inc., Axcan Intermediate Holdings Inc. and TPG Capital, L.P.      (Exhibit 10.1 to Axcan Intermediate Holdings Inc. Form S-4 filed October      7, 2008).                                                                                                                                                                                                                                                                                                                               |
| 10.2  |   | Joinder      to Management Services Agreement, dated as of February 25, 2008, by and      among TPG Capital, L.P., Axcan Pharma Inc. and Axcan US Partnership 1 LP      (Exhibit 10.2 to Axcan Intermediate Holdings Inc. Form S-4 filed October      7, 2008).                                                                                                                                                                                                                                                                                                                             |
| 10.3+ |   | Exclusive      Development/License/Supply Agreement, dated May 16, 2000, between Eurand      S.p.A. (f/k/a Eurand International S.p.A.) and Axcan Pharma US, Inc.      (f/k/a Axcan Scandipharm Inc.), as amended by Amendment No. 1, dated March      23, 2007 (Exhibit 10.5 to Axcan Intermediate Holdings Inc. Form S-4 filed      October 7, 2008).                                                                                                                                                                                                                                     |
| 10.4+ |   | Finished      Product Supply Agreement, dated October 8, 2003, by and between      Sanofi-Aventis U.S. LLC (successor in interest of Aventis Pharmaceuticals      Inc.) and Axcan Pharma Inc., as amended by Amendment No. 1, dated August      2, 2008 (Exhibit 10.6 to Axcan Intermediate Holdings Inc. Form S-4 filed      October 7, 2008).                                                                                                                                                                                                                                             |
| 10.5+ |   | Manufacturing      Services Agreement, dated October 1, 2003, between Patheon Inc. and Axcan      Pharma Inc. (Exhibit 10.7 to Axcan Intermediate Holdings Inc. Form S-4      filed October 7, 2008).                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.6+ |   | Supply      Agreement, dated May 7, 2004, between Paddock Laboratories, Inc. and Axcan      Pharma Inc. (Exhibit 10.8 to Axcan Intermediate Holdings Inc. Form S-4      filed October 7, 2008).                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.7  |   | Credit      Agreement, dated as of February 25, 2008, between Axcan Intermediate      Holdings Inc., as Parent Borrower, Axcan US Partnership 1 LP, as      Co-borrower, Axcan MidCo Inc., as Holdings, Bank of America, N.A., as      Administrative Agent, Swing Line Lender and L/C Issuer, and the other      lenders from time to time party thereto (Exhibit 10.9 to Axcan      Intermediate Holdings Inc. Form S-4 filed October 7,  2008).                                                                                                                                          |
| 10.8  |   | Guaranty,      dated as of February 25, 2008, among Axcan MidCo Inc., Axcan Intermediate      Holdings Inc., Axcan US Partnership 1 LP, certain other Subsidiaries of      Axcan Intermediate Holdings Inc. from time to time party thereto and Bank      of America, N.A., as Administrative Agent (Exhibit 10.10 to Axcan      Intermediate Holdings Inc. Form S-4 filed October 7,  2008).                                                                                                                                                                                               |

----

| Exhibit No. |   | Exhibit |
|------------------|--------|---------|

| 10.9              |   | Supplement      No.1, dated as of December 5, 2008, to the Guaranty dated as of February      25, 2008 among Axcan MidCo Inc., Axcan Intermediate Holdings Inc., Axcan      US Partnership 1 LP, certain other Subsidiaries of Axcan Intermediate      Holdings Inc. from time to time party thereto and Bank of America, N.A.,      as Administrative Agent (Exhibit 10.1 to Axcan Intermediate Holdings Inc.      Form 10-Q filed February 13, 2009).                                                       |
|-------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.10†      |   | Amendment      and Restatement of Employment Agreement between Axcan Pharma Inc., Axcan      Pharma US, Inc., Axcan Holdings Inc. and Dr. Frank A.G.M. Verwiel, dated      May 16, 2008 (Exhibit 10.11 to Axcan Intermediate Holdings Inc. Form S-4      filed October 7, 2008).                                                                                                                                                                                                                              |
| 10.11†      |   | Employment      Agreement between Axcan Pharma Inc., Axcan Pharma US, Inc., Axcan Holdings      Inc. and David Mims, dated June 3, 2008 (Exhibit 10.12 to Axcan      Intermediate Holdings Inc. Form S-4 filed October 7,  2008).                                                                                                                                                                                                                                                                             |
| 10.12†      |   | Employment      Agreement between Axcan Pharma Inc., Axcan Pharma US, Inc., Axcan Holdings      Inc. and Steve Gannon, dated July 3, 2008 (Exhibit 10.13 to Axcan      Intermediate Holdings Inc. Form S-4 filed October 7,  2008).                                                                                                                                                                                                                                                                           |
| 10.13†      |   | Employment      Agreement between Axcan Pharma Inc., Axcan Pharma US, Inc., Axcan Holdings      Inc. and Alexandre P. LeBeaut, dated September 15, 2008 (Exhibit 10.14 to      Axcan Intermediate Holdings Inc. Form S-4 filed October 7,      2008).                                                                                                                                                                                                                                                         |
| 10.14†      |   | Employment      Agreement between Axcan Pharma Inc. and Nicholas Franco, dated October 5,      2007 (Exhibit 10.15 to Axcan Intermediate Holdings Inc. Form S-4/A filed      November 7, 2008).                                                                                                                                                                                                                                                                                                               |
| 10.15†      |   | Axcan      Pharma Inc. Severance Pay Plan (Exhibit 10.16 to Axcan Intermediate      Holdings Inc. Form S-4/A filed November 12, 2008).                                                                                                                                                                                                                                                                                                                                                                        |
| 10.16†      |   | Axcan      Holdings Inc. Management Equity Incentive Plan (Exhibit 10.17 to Axcan      Intermediate Holdings Inc. Form S-4/A filed November 12,      2008).                                                                                                                                                                                                                                                                                                                                                   |
| 10.17†      |   | Axcan      Pharma Inc. Incentive Compensation Plan for Executives (Exhibit 10.18 to      Axcan Intermediate Holdings Inc. Form S-4/A filed November 12,      2008).                                                                                                                                                                                                                                                                                                                                           |
| 10.18†      |   | Form      of Axcan Holdings Inc. Management Stockholders’ Agreement (Exhibit 10.19      to Axcan Intermediate Holdings Inc. Form S-4 filed October 7,      2008).                                                                                                                                                                                                                                                                                                                                       |
| 10.19†      |   | Form      of Restricted Stock Unit Grant Agreement between Axcan Holdings Inc. and      U.S. Grantee (Exhibit 10.20 to Axcan Intermediate Holdings Inc. Form S-4      filed October 7, 2008).                                                                                                                                                                                                                                                                                                                 |
| 10.20†      |   | Form      of Restricted Stock Unit Grant Agreement between Axcan Holdings Inc. and      French Grantee (Exhibit 10.21 to Axcan Intermediate Holdings Inc. Form S-4      filed October 7, 2008).                                                                                                                                                                                                                                                                                                               |
| 10.21†      |   | Form      of Penny Option Grant Agreement between Axcan Holdings Inc. and Optionee      (Exhibit 10.22 to Axcan Intermediate Holdings Inc. Form S-4 filed October      7, 2008).                                                                                                                                                                                                                                                                                                                              |
| 10.22†      |   |  Axcan      Holdings Inc. Employee Long Term Incentive Plan. (Exhibit 102.3 to Axcan      Intermediate Holdings Inc. Form 10-K filed December 22,    2008).                                                                                                                                                                                                                                                                                                                                              |
| 10.23†*     |   | Amendment      to Employment Agreements dated as of December 31, 2008 between Axcan      Pharma Inc., Axcan Pharma US, Inc. and Axcan Holdings Inc. and each of Dr.      Frank A.G.M. Verwiel (amending the Employment Agreement dated May 16,      2008), Steven R. Gannon (amending the Employment Agreement dated July 3,      2008), David W. Mims (amending the Employment Agreement dated June 3,      2008) and Alexandre P. LeBeaut (amending the Employment Agreement dated      September 15, 2008) |
| 10.24*            |   | Advancement      and Indemnification Rights Letter Agreement dated December 16, 2009      between TPG Capital, L.P. and Axcan Holdings Inc.                                                                                                                                                                                                                                                                                                                                                                   |
| 12.1*             |   | Computation      of Ratio of Earnings to Fixed Charges.                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 21.1*   |   | Subsidiaries      of Axcan Intermediate Holdings Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 31.1*             |   | Certification      of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                 |
| 31.2*             |   | Certification      of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002.                                                                                                                                                                                                                                                                                                                                                                                                 |

----

| Exhibit No. |   | Exhibit |
|------------------|--------|---------|

| 32.1*  |   | Certification      of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted      Pursuant to Section 906 of the Sarbanes-Oxley Act of  2002.                                                                                                                                                                                                                                       |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 32.2*  |   | Certification      of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted      Pursuant to Section 906 of the Sarbanes-Oxley Act of  2002.                                                                                                                                                                                                                                       |
|   |   | *      Exhibits marked with an asterisk (*) are filed herewith.+      This Exhibit was filed separately with the Commission pursuant to an      application for confidential treatment. The confidential portions of the      Exhibit have been omitted and have been marked by the following symbol: [      ** ].†      Denotes management contract or compensatory plan or      arrangement |

----

| DR.      FRANK A.G.M. VERWIEL /s/                                                Dr.      Frank A.G.M.Verwiel   | AXCAN      PHARMA INC./s/                                                    Name:Title:  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| STEVEN      R. GANNON  /s/                                                   Steven      R. Gannon   | AXCAN      PHARMA US, INC./s/                                                    Name:Title:    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| DAVID      W. MIMS  /s/                                                   David      W. Mims                   | AXCAN      HOLDINGS INC./s/                                                    Name:Title:      |
| ALEXANDRE      P. LEBEAUT  /s/                                                   Alexandre      P. LeBeaut     |                                                                                                                                                                                                                                                                                                                                                                               |

----