Valeant Pharmaceuticals Reports Third Quarter Financial Results
More News related to VRX
- Valent Pharma (VRX) Shares Ride the Lightning, But Is the Storm Breaking? - Barron's (GSK)
- Oceanside Pharmaceuticals Announces Launch of Librax(R) AG
- Valeant Pharmaceuticals Highlights Taribavirin Phase IIb End of Study Data Presentation at American Association for the Study of Liver Disease (AASLD) Annual Meeting
- Valeant Pharma (VRX) Posts non-GAAP EPS of $0.58; Raises FY09 EPS Guidance
- Valeant Pharmaceuticals Reports Third Quarter Financial Results
More News related to Press Releases
- Notable Late-Afternoon ETF Movers for 11/25: UNG, GDX, XRT Higher; UUP Lower
- Notable 52-Week High's and Low's: BMY, JCG, PBR, SLW, GOOG, INCY, NTAP, QADI, GOLD, BONT Higher; SPWRB Low
- Unusual 11 Mid-Day Movers 11/25: RTK, QADI, QBC, KBX Higher; BNHNA, DRAM, TBH, CWTR Lower
- Afternoon ETF Check: UNG, XRT, EWJ Up; VNM, RSX Down
- Notable Analyst Ratings Changes 11/25: EXXI, IWA, VPRT Upgraded; BNHN, NRG, GTE Downgraded
ALISO VIEJO, Calif., Nov. 2 /PRNewswire-FirstCall/ -- Valeant Pharmaceuticals International (NYSE: VRX) today announced third quarter financial results for 2009.
"Valeant continues to perform well, generating strong earnings growth in the third quarter," stated J. Michael Pearson, chairman and chief executive officer. "All of our businesses are growing and generating positive cash flows this quarter. In particular, I would like to note our 18% organic growth rate from total product sales, at constant currency, and our $65 million of adjusted cashflow from operations."
Revenues:
Total revenue was $220.3 million in the third quarter of 2009 as compared to $168.4 million in the third quarter of 2008, an increase of 31%.
Product sales in the Specialty Pharmaceuticals segment were $101.6 million in the third quarter of 2009, as compared to $70.1 million in the third quarter of 2008, an increase of 45%. At constant exchange rates, Specialty Pharmaceuticals product sales increased 47%. Within the Specialty Pharmaceuticals segment, alliance and service revenue was $25.6 million in the third quarter of 2009, which included an $8.5 million profit share related to the 1% clindamycin and 5% benzoyl peroxide product (IDP-111) that was launched by Mylan in August 2009, $5.0 million related to the Dow services business, and $3.8 million of revenue from the GlaxoSmithKline (GSK) collaboration. Because the company entered into the GSK collaboration agreement in October 2008 and acquired Dow in December 2008, no alliance or service revenue was recorded in the third quarter of 2008.
Product sales in Branded Generics - Latin America were $40.7 million in the third quarter of 2009 as compared to $42.6 million in the same period in 2008, a decrease of 5%. At constant exchange rates, product sales in Latin America in the third quarter of 2009 increased 19% as compared to the third quarter of 2008.
Product sales in Branded Generics - Europe were $40.2 million in the third quarter of 2009 as compared to $40.4 million in the same period in 2008, essentially flat. At constant exchange rates, product sales in Europe in the third quarter of 2009 increased 29% as compared to the third quarter of 2008.
Ribavirin royalties were $12.2 million in the third quarter of 2009 as compared to $15.2 million in the third quarter of 2008, a decrease of 20%. This expected decrease is entirely attributable to the expiration of royalty terms in certain European countries on the ten-year anniversary of product launches in the respective countries.
Operating Expenses/Earnings:
The company's cost of goods sold was 29% of product sales for the third quarter of 2009 as compared to 28% in the third quarter of 2008.
Selling, general and administrative expenses decreased 6% in the third quarter of 2009 to $67.2 million as compared to $71.5 million in the third quarter of 2008, primarily attributable to the benefit of cost reduction activities and exchange rates, partially offset by increased costs attributable to acquisitions.
Research and development costs decreased 51% to $11.3 million in the third quarter of 2009 as compared to $23.2 million in the same period in 2008 primarily as a result of the company's new leveraged R&D model.
Net interest expense increased to $12.8 million in the third quarter of 2009 as compared to $7.0 million in the third quarter of 2008, reflecting interest expense related to $365 million aggregate principal amount of senior notes issued in June 2009.
Income from continuing operations was $37.6 million for the third quarter of 2009, or $0.45 per diluted share, as compared to a loss from continuing operations of $7.3 million, or a loss of $0.08 per diluted share, for the third quarter of 2008. On a non-GAAP Cash EPS basis, adjusted income from continuing operations was $48.8 million, or $0.58 per diluted share, in the third quarter of 2009 as compared to adjusted income from continuing operations of $16.7 million, or $0.19 per diluted share, in the third quarter of 2008.
GAAP cashflow from operations for the third quarter of 2009 was $52 million, which includes the impact of ASC 470-20 (FSP APB 14-1) and acquisition transaction costs. Adjusted cashflow from operations for the third quarter of 2009 was $65 million.
2009 Guidance:
The company is updating its previous Cash EPS target and is now targeting Cash EPS between $2.10 and $2.20 in 2009, up from prior guidance of $1.90 to $2.10.
Retigabine Update:
The company, along with its collaboration partner GSK, completed both the New Drug Application (NDA) and the Marketing Authorisation Application (MAA) submissions for retigabine on October 30, 2009.
Conference Call and Webcast Information:
Valeant will host a conference call and a live Internet webcast along with a slide presentation today at 10:00 a.m. EST (7:00 a.m. PST) to discuss its third quarter financial results for 2009. The dial-in number to participate on this call is (877) 295-5743, confirmation code 34747409. International callers should dial (973) 200-3961, confirmation code 34747409. A replay will be available approximately two hours following the conclusion of the conference call through November 16, 2009 and can be accessed by dialing (800) 642-1687, or (706) 645-9291, confirmation code 34747409. The company will webcast the conference call live over the Internet. The webcast may be accessed through the investor relations section of Valeant's corporate Web site at www.valeant.com.
About Valeant:
Valeant Pharmaceuticals International (NYSE: VRX) is a multinational specialty pharmaceutical company that develops and markets a broad range of pharmaceutical products primarily in the areas of neurology and dermatology. More information about Valeant can be found at www.valeant.com.
Forward-looking Statements:
This press release may contain forward-looking statements, including, but not limited to, statements regarding guidance with respect to expected non-GAAP cash earnings per share. Forward-looking statements may be identified by the use of the words "anticipates," "expects," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," or "continue" and variations or similar expressions. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to, risks and uncertainties discussed in the company's most recent annual or quarterly report filed with the Securities and Exchange Commission, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. Valeant undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this press release or to reflect actual outcomes.
Non-GAAP Information:
To supplement the consolidated financial results prepared in accordance with generally accepted accounting principles (GAAP), the company uses non-GAAP financial measures that exclude certain items, such as acquisition transaction fees, special charges and credits including acquired IPR&D, restructuring, asset impairments and dispositions, amortization expense, gain on early extinguishment of debt, the new non-cash accounting charge for interest on the convertible debt related to ASC 470-20 (FSP APB 14-1), which the company adopted on January 1, 2009, and the non-GAAP tax effect of such charges. Management does not consider the excluded items part of day-to-day business or reflective of the core operational activities of the company as they result from transactions outside the ordinary course of business. Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. By disclosing non-GAAP financial measures, management intends to provide investors with a more meaningful, consistent comparison of the company's core operating results and trends for the periods presented. Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies and should be considered as a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. A reconciliation of GAAP to non-GAAP measures can be found in the table below. The company has provided guidance with respect to Cash Earnings Per Share, which is a non-GAAP financial measure that represents earnings per share, excluding certain items, such as acquisition transaction fees included within SG&A, special charges and credits including acquired IPR&D, restructuring, asset impairments and dispositions, amortization expense, gain on early extinguishment of debt, the new non-cash accounting charge for interest on the company's convertible debt related to ASC 470-20 (FSP APB 14-1) and the tax effect of such charges. The company has not provided a reconciliation of these forward-looking non-GAAP financial measures due to the difficulty in forecasting and quantifying the exact amount of the items excluded from the non-GAAP financial measures that will be included in the comparable GAAP financial measures.
Financial Tables, including a reconciliation of GAAP to non-GAAP financial measures, follow.
Contact:
Laurie W. Little
Valeant Pharmaceuticals
949-461-6002
laurie.little@valeant.com
Valeant Pharmaceuticals International Table 1
Statement of Income
For the Three and Nine Months Ended September 30, 2009 and 2008
Three Months Ended Nine Months Ended
(In thousands, September 30, September 30,
except per ------------------ ------------------
share data) 2009 2008 % Change 2009 2008 % Change
-------- -------- -------- -------- -------- --------
Product sales $182,529 $153,181 19% $502,227 $431,142 16%
Service revenue 5,035 - NM 17,379 - NM
Alliance revenue
(a) 32,754 15,243 115% 70,333 42,821 64%
------- -------- -------- --------
Total
revenues 220,318 168,424 31% 589,939 473,963 24%
------- -------- -------- --------
Cost of goods
sold 52,295 42,698 22% 134,742 126,327 7%
Cost of services 4,047 - NM 13,710 - NM
Selling, general
and administrative
("SG&A") 67,230 71,458 -6% 193,981 211,669 -8%
Research and
development
costs, net 11,296 23,239 -51% 29,176 75,100 -61%
Special charges
and credits
including
acquired
in-process
research and
development (b) - - NM 1,974 - NM
Restructuring,
asset
impairments and
dispositions 307 3,527 NM 3,212 4,294 NM
Amortization
expense 17,616 11,488 53% 51,725 37,616 38%
------- -------- -------- --------
152,791 152,410 0% 428,520 455,006 -6%
------- -------- -------- --------
Income from
operations 67,527 16,014 161,419 18,957
Interest expense,
net (12,843) (6,987) (26,847) (23,736)
Gain (loss) on
early
extinguishment
of debt (155) (14,882) 7,221 (14,882)
Other expense,
net including
translation and
exchange (1,350) (1,556) (786) (3,389)
------- -------- -------- --------
Income (loss)
from continuing
operations
before income
taxes 53,179 (7,411) 141,007 (23,050)
Provision
(benefit) for
income taxes 15,545 (148) 39,541 33,726
------- -------- -------- --------
Income (loss)
from continuing
operations 37,634 (7,263) 101,466 (56,776)
Income (loss)
from discontinued
operations, net (354) 210,154 (131) 187,134
------- -------- -------- --------
Net income $37,280 $202,891 $101,335 $130,358
======= ======== ======== ========
Earnings per
share:
Basic:
Income
(loss) from
continuing
operations $0.46 $(0.08) $1.23 $(0.64)
Discontinued
operations - 2.39 - 2.10
------- -------- -------- --------
Basic earnings
per share $0.46 $2.31 $1.23 $1.46
======= ======== ======== ========
Shares used
in per
share
computation 81,907 87,988 82,407 89,123
======= ======== ======== ========
Diluted:
Income (loss)
from continuing
operations $0.45 $(0.08) $1.21 $(0.64)
Discontinued
operations (0.01) 2.39 - 2.10
------- -------- -------- --------
Diluted
earnings per
share $0.44 $2.31 $1.21 $1.46
======= ======== ======== ========
Shares used
in per
share
computation 83,869 87,988 84,040 89,123
======= ======== ======== ========
(a) See Table 3.
(b) Special charges and credits including acquired in-process research and
development for the nine months ended September 30, 2009 relates
primarily to the acquisition of product rights to market Opana in
Canada, Australia and New Zealand.
Valeant Pharmaceuticals International Table 2
Reconciliation of GAAP EPS to Cash EPS
For the Three and Nine Months Ended September 30, 2009 and 2008
Three Months Ended Nine Months Ended
September 30, September 30,
(In thousands, except per share ------------------ ------------------
data) 2009 2008 2009 2008
------- ------- -------- -------
Income (loss) from continuing
operations $37,634 $(7,263) $101,466 $(56,776)
Non-GAAP adjustments (a):
Acquisition transaction fees 2,832 - 3,741 -
Special charges and credits
including acquired in-process
research and development - - 1,974 -
Restructuring, asset impairments
and dispositions 307 3,527 3,212 4,294
Amortization expense 17,616 11,488 51,725 37,616
------ ------ ------ ------
20,755 15,015 60,652 41,910
ASC 470-20 (FSP APB 14-1) interest 2,176 3,797 8,350 11,176
(Gain) loss on early extinguishment
of debt 155 14,882 (7,221) 14,882
Tax (11,911) (9,715) (33,463) 17,376
------- ------- -------- -------
Total adjustments 11,175 23,979 28,318 85,344
Adjusted income from continuing
operations $48,809 $16,716 $129,784 $28,568
======= ======= ======== =======
GAAP earnings (loss) per share -
diluted $0.45 $(0.08) $1.21 $(0.64)
======= ======= ======== =======
Cash earnings per share - diluted $0.58 $0.19 $1.54 $0.32
======= ======= ======== =======
Shares used in diluted per share
calculation - GAAP earnings (loss)
per share 83,869 87,988 84,040 89,123
======= ======= ======== =======
Shares used in adjusted diluted per
share calculation - Cash earnings
per share 83,869 89,788 84,040 90,321
======= ======= ======== =======
(a) To supplement the financial measures prepared in accordance with
generally accepted accounting principles (GAAP), the company uses
non-GAAP financial measures notably cash earnings per share, organic
growth and adjusted cash flow from operations that exclude certain
items, such as acquisition transaction fees, special charges and
credits including acquired in-process research and development,
restructuring, asset impairments and dispositions, amortization
expense, ASC 470-20 (FSP APB 14-1) interest, gain (loss) on early
extinguishment of debt, the non-GAAP tax effect of such charges,
fluctuations in exchange rates and product sales from recent
acquisitions. Management uses non-GAAP financial measures internally
for strategic decision making, forecasting future results and
evaluating current performance. By disclosing non-GAAP financial
measures, management intends to provide investors with a more
meaningful, consistent comparison of the company's core operating
results and trends for the periods presented. Non-GAAP financial
measures are not prepared in accordance with GAAP; therefore, the
information is not necessarily comparable to other companies and
should be considered as a supplement to, not a substitute for, or
superior to, the corresponding measures calculated in accordance with
GAAP.
This table includes Cash Earnings Per Share, which is a non-GAAP
financial measure that represents earnings per share, excluding
acquisition transaction fees included within SG&A, special charges and
credits including acquired in-process research and development,
restructuring, asset impairments and dispositions, amortization
expense, ASC 470-20 (FSP APB 14-1) interest, gain on early
extinguishment of debt and the non-GAAP tax effect of such charges.
Valeant Pharmaceuticals International Table 3
Statement of Revenue - by Segment
For the Three and Nine Months Ended September 30, 2009 and 2008
(In thousands)
Three Months Ended Nine Months Ended
3.1 Revenue September 30, September 30,
------------------------- -------------------------
2009 2008 % Change 2009 2008 % Change
-------- ------- -------- -------- ------- --------
Specialty
pharmaceuticals
U.S.
Dermatology (a) $27,194 $17,116 59% $87,648 $60,109 46%
Neurology & Other 48,162 31,421 53% 126,014 87,787 44%
-------- -------- -------- --------
Total U.S. (a) 75,356 48,537 55% 213,662 147,896 44%
Canada 15,831 15,203 4% 46,150 42,827 8%
Australia (a) 10,429 6,384 63% 24,750 18,044 37%
-------- -------- -------- --------
101,616 70,124 45% 284,562 208,767 36%
Divested business - - NM - 5,784 NM
-------- -------- -------- --------
Specialty
pharmaceuticals
product sales 101,616 70,124 45% 284,562 214,551 33%
Alliance 20,594 - NM 32,351 - -
Service 5,035 - NM 17,379 -
Total specialty
pharmaceuticals
revenue 127,245 70,124 81% 334,292 214,551 56%
Branded generics
- Latin America
product sales 40,679 42,627 -5% 108,061 99,708 8%
Branded
generics
- Europe product
sales (a) 40,234 40,430 0% 109,604 116,883 -6%
Alliances
(ribavirin
royalties only) 12,160 15,243 -20% 37,982 42,821 -11%
-------- -------- -------- --------
Total revenue $220,318 $168,424 31% $589,939 $473,963 24%
======== ======== ======== ========
Total product
sales included
above $182,529 $153,181 19% $502,227 $431,142 16%
3.2 Currency impact and revenue excluding currency impact (b)(c)
Three Months Ended
September 30,
-------------------------------------------
2009
excluding
2009 currency currency
impact impact 2008 % Change
------------- ---------- ---- --------
Specialty
pharmaceuticals
U.S. $- $75,356 $48,537 55%
Canada 1,012 16,843 15,203 11%
Australia 717 11,146 6,384 75%
------- -------- --------
1,729 103,345 70,124 47%
Divested business - - - NM
------- -------- --------
Specialty
pharmaceuticals
product
sales 1,729 103,345 70,124
Alliance - 20,594 -
Service 98 5,133 -
Total specialty
pharmaceuticals
revenue 1,827 129,072 70,124 84%
Branded generics
- Latin America
product sales 10,062 50,741 42,627 19%
Branded generics
- Europe product
sales 12,076 52,310 40,430 29%
Alliances
(ribavirin
royalties only) - 12,160 15,243 -20%
------- -------- --------
Total revenue $23,965 $244,283 $168,424 45%
======= ======== ========
Total product sales
included above $23,867 $206,396 $153,181 35%
Nine Months Ended
September 30,
----------------------------------------------
2009
excluding
2009 currency currency
impact impact 2008 % Change
------------- --------- ---- --------
Specialty
pharmaceuticals
U.S. $- $213,662 $147,896 44%
Canada 6,880 53,030 42,827 24%
Australia 4,766 29,516 18,044 64%
------- -------- --------
11,646 296,208 208,767 42%
Divested business - - 5,784 NM
------- -------- --------
Specialty
pharmaceuticals
product
sales 11,646 296,208 214,551
Alliance - 32,351 -
Service 635 18,014 -
Total specialty
pharmaceuticals
revenue 12,281 346,573 214,551 62%
Branded generics
- Latin America
product sales 29,468 137,529 99,708 38%
Branded generics
- Europe product
sales 41,037 150,641 116,883 29%
Alliances
(ribavirin
royalties only) - 37,982 42,821 -11%
------- -------- --------
Total revenue $82,786 $672,725 $473,963 42%
======= ======== ========
Total product
sales included
above $82,151 $584,378 $431,142 36%
Three Months Nine Months
Ended Ended
September 30, September 30,
--------------- ---------------
2009 2008 2009 2008
------- ------- ------- -------
3.3 Alliance Revenue Segment
---------------- ---------
Ribavirin royalty Alliances $12,160 $15,243 $37,982 $42,821
1% clindamycin and 5%
benzoyl peroxide
(IDP 111) profit share Specialty 8,535 - 8,535 -
Other royalties Specialty 2,281 - 7,920 -
License payments Specialty 6,000 - 6,000 -
GSK collaboration Specialty 3,778 - 9,896 -
------- ------- ------- -------
Total alliance revenue $32,754 $15,243 $70,333 $42,821
======= ======= ======= =======
(a) Product sales in the U.S., Australia, Branded generics - Latin America
and Branded generics - Europe in the three months ended September 30,
2009 include the sales of products acquired in the fourth quarter of
2008 from Coria in the U.S. and DermaTech in Australia, products
acquired in the second quarter 2009 from Emo-Farm in Branded generics
- Europe and in Australia and products acquired in the third quarter
2009 from Tecnofarma S.A de C.V. in Branded generics - Latin America
of $10.8 million, $3.0 million, $3.0 million, $1.8 million and
$4.7 million, and $30.0 million, $6.7 million, $5.3 million,
$2.3 million and $4.7 million in the nine months ended September 30,
2009, respectively.
(b) Note: Currency effect for constant currency sales is determined by
comparing 2009 reported amounts adjusted to exclude currency impact,
calculated using 2008 monthly average exchange rates, to the actual
2008 reported amounts. Constant currency sales is not a GAAP-defined
measure of revenue growth. Constant currency sales as defined and
presented by us may not be comparable to similar measures reported by
other companies.
(c) See footnote (a) to Table 2.
Valeant Pharmaceuticals International Table 4
Statement of Cost of Goods Sold and Non-GAAP Operating Income - by Segment
For the Three and Nine Months Ended September 30, 2009 and 2008
(In thousands)
4.1 Cost of Three Months Ended Nine Months Ended
goods sold September 30, September 30,
--------------------------- -------------------------
% of % of % of % of
product product product product
2009 sales 2008 sales 2009 sales 2008 sales
---- ----- ---- ----- ---- ----- ---- -----
Specialty
pharmaceuticals $22,246 22% $15,918 23% $55,790 20% $45,585 21%
Branded generics
- Latin America 13,141 32% 13,600 32% 30,637 28% 37,145 37%
Branded generics
- Europe 16,852 42% 13,191 33% 48,253 44% 44,489 38%
Corporate 56 (11) 62 (892)
------- ------- -------- --------
$52,295 29% $42,698 28% $134,742 27% $126,327 29%
======= ======= ======== ========
4.2 Non-GAAP operating income excluding currency impact (a)(b)
Three Months Ended
September 30,
-------------------------------------------------------
2009
2009 excluding
% of currency currency % of % of
2009 revenue impact impact revenue 2008 revenue
---- ------- -------- ---------------- ---- -------
Specialty
pharmaceuticals $64,449 51% $680 $65,129 50% $5,043 7%
Branded generics
- Latin America 13,078 32% 3,118 16,196 32% 11,171 26%
Branded generics
- Europe 12,009 30% 3,616 15,625 30% 16,005 40%
------- ------ ------- -------
89,536 43% 7,414 96,950 42% 32,219 21%
Alliances &
Corporate (1,254) - (1,254) (1,189)
------- ------ ------- -------
$88,282 40% $7,414 $95,696 39% $31,030 18%
======= ====== ======= =======
Nine Months Ended
September 30,
--------------------------------------------------------
2009
2009 excluding
% of currency currency % of % of
2009 revenue impact impact revenue 2008 revenue
---- ------- -------- ---------------- ---- -------
Specialty
pharmaceuticals $158,533 47% $4,616 $163,149 47% $9,532 4%
Branded generics
- Latin America 40,692 38% 11,384 52,076 38% 16,047 16%
Branded generics
- Europe 29,303 27% 10,137 39,440 26% 35,779 31%
-------- ------- -------- -------
228,528 41% 26,137 254,665 40% 61,358 14%
Alliances &
Corporate (6,457) - (6,457) (490)
-------- ------- -------- -------
$222,071 38% $26,137 $248,208 37% $60,868 13%
======== ======= ======== =======
(a) See footnote (a) to Table 2 and footnote (b) to Table 3.
(b) Non-GAAP operating income of $88.3 million and $222.1 million for the
three and nine months ended September 30, 2009 excludes the following
GAAP items from GAAP operating income of $67.5 million and
$161.4 million: acquisition transaction fees included within SG&A of
$2.8 million and $3.8 million, special charges and credits including
acquired in-process research and development of $0 million and $2.0
million, restructuring, asset impairments and dispositions of $0.2
million and $3.2 million and amortization expense of $17.6 million
and $51.7 million, respectively. Non-GAAP operating income of
$31.0 million and $60.9 million for the three and nine months ended
September 30, 2008 excludes the following GAAP items from GAAP
operating income of $16.0 million and $19.0 million: restructuring,
asset impairments and dispositions of $3.5 million and $4.3 million
and amortization expense of $11.5 million and $37.6 million,
respectively.
Valeant Pharmaceuticals International Table 5
Consolidated Balance Sheet and Other Data
(In thousands)
As of As of
September 30, December 31,
5.1 Cash 2009 2008
------------- ------------
Cash and cash equivalents $261,559 $199,582
Marketable securities 124,350 19,193
-------- --------
Total cash and marketable securities $385,909 $218,775
======== ========
5.2 Summary of Cash Flow Statement Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2009 2008 2009 2008
-------- ------- -------- -------
Cash flow provided by (used in):
Operating activities, continuing
operations (GAAP) $51,580 $2,589 $133,863 $58,646
Effect of ASC 470-20
(FSP APB 14-1) (a)(b) 12,351 - 35,338 -
Acquisition transaction
fees (a)(b) 861 - 1,727 -
-------- ------- -------- -------
Operating activities,
continuing operations
(Non-GAAP) (a)(b) 64,792 2,589 170,928 58,646
Operating activities,
discontinued operations (426) 13,986 (2,860) 9,632
Investing activities
(GAAP) (c) (48,157) 424,567 (235,751) 512,284
Acquisition transaction
fees (a)(b) (861) - (1,727) -
-------- ------- -------- -------
Investing activities
(Non-GAAP) (a)(b)(c) (49,018) 424,567 (237,478) 512,284
Financing activities
(GAAP) (c) (90,401) (374,017) 171,374 (373,463)
Effect of ASC 470-20
(FSP APB 14-1) (a)(b) (12,351) - (35,338) -
-------- ------- -------- -------
Financing activities
(Non-GAAP) (a)(b)(c) (102,752) (374,017) 136,036 (373,463)
Effect of exchange rate
changes on cash and cash
equivalents (c) 3,343 (12,162) (4,649) 4,799
-------- ------- -------- -------
Net increase (decrease)
in cash and cash equivalents (c) (84,061) 54,963 61,977 211,898
Net increase (decrease)
in marketable securities (c) 16,991 (33,935) 105,157 (2,373)
-------- ------- -------- --------
Net increase (decrease) in
cash and marketable
securities (c) $(67,070) $21,028 $167,134 $209,525
======== ======= ======== ========
(a) See footnote (a) to Table 2.
(b) Cash flow for the three and nine months ended September 30, 2009
includes $12.4 million and $35.3 million relating to payments of
accreted interest on long-term debt and notes payable made during
these periods as determined by and pursuant to ASC 470-20 (FSP APB
14-1), $0 million and $9.0 million for acquisition transaction fees
related to the purchase of Emo-Farm in Poland, $0.7 million and
$0.7 million for acquisition fees related to the purchase of
Tecnofarma in Mexico and $0.2 million and $0.2 million for acquisition
fees related to the purchase of PFI in Australia, respectively.
(c) Includes results from discontinued operations.
Three Months Ended
5.3 GSK Collaboration - Retagibine September 30, 2009
-------------------
Valeant SG&A $9
Valeant R&D 7,456
-------
7,465
GSK incurred cost 10,019
-------
$17,484
=======
Equalization (difference between
individual partner costs and 50% of total) $(1,277)
=======
Three Months Ended September 30, 2009
---------------------------------------
Alliance
Balance sheet revenue SG&A R&D
------------- ---------- ------ ----
Accounting impact
Upfront payment from GSK $125,000 $- $- $-
Release from upfront payment
in prior quarters (30,481) - - -
Incurred cost in current quarter - - 9 7,456
Release from upfront payment in
current quarter (12,520) (3,778) (358) (8,384)
-------
Remaining upfront payment from
GSK $81,999 - - -
=======
Equalization payable to GSK $(1,277) - 349 928
======= ------- --- ---
$(3,778) $- $-
======= === ===
Valeant Pharmaceuticals International Supplemental Table
Reconciliation of Product Sales Excluding Acquisitions
and Currency Impact
For the Three Months Ended September 30, 2009 and 2008
(In thousands)
Three Months Ended
September 30, 2009
-------------------------------------------------
2009
2009 excluding
acquisition 2009 currency &
2009 impact at currency acquisition
as reported 2009 rates impact impact
----------- ----------- -------- -----------
Specialty
pharmaceuticals
U.S. $75,356 $(10,756) $- $64,600
Canada 15,831 - 1,012 16,843
Australia 10,429 (4,857) 446 6,018
-------- -------- ------- --------
Specialty
pharmaceuticals
product sales 101,616 (15,613) 1,458 87,461
Branded generics
- Latin America
product sales 40,679 (4,673) 8,786 44,792
Branded generics
- Europe
product sales 40,234 (3,038) 11,050 48,246
-------- -------- ------- --------
Total product
sales $182,529 $(23,324) $21,294 $180,499
======== ======== ======= ========
Three Months Ended
September 30, 2008
----------------------------------------
Q3 2009 growth at
constant currency, net
2008 as reported of acquisitions
---------------- ----------------------
Specialty pharmaceuticals
U.S. $48,537 33%
Canada 15,203 11%
Australia 6,384 -6%
--------
Specialty pharmaceuticals
product sales 70,124 25%
Branded generics - Latin America
product sales 42,627 5%
Branded generics - Europe product
sales 40,430 19%
--------
Total product sales $153,181 18%
========
See footnote (a) to Table 2.
(Logo: http://www.newscom.com/cgi-bin/prnh/20081125/VALEANTLOGO)
SOURCE Valeant Pharmaceuticals International
Related Categories
Press ReleasesStocks Mentioned
+0.26Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
