exv99w1

Exhibit 99.1

International Headquarters
One Enterprise Aliso Viejo, CA 92656
949.461.6000 FAX 949.461. 6636

Contact:
Laurie W. Little
Valeant Pharmaceuticals
949-461-6002
laurie.little@valeant.com

VALEANT PHARMACEUTICALS REPORTS
FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS

• Company beats Cash EPS guidance for 2008

• Despite continued deterioration in foreign exchange rates, Company reiterates Cash EPS guidance for 2009

ALISO VIEJO, Calif., February 24, 2009 – Valeant Pharmaceuticals International (NYSE: VRX) today announced fourth quarter and full year financial results for 2008.

“With our new strategic initiatives beginning to take hold in the fourth quarter, we continue to make strides in staging Valeant for sustainable future growth,” said J. Michael Pearson, chairman and chief executive officer. “We added to our future revenue and cash flow potential by acquiring three solid dermatology businesses, while we continue to see the impact of our cost reduction efforts. We exceeded our goal of $0.60 — $0.80 cash earnings per share for 2008 and expect this solid progress to continue into 2009.”

New Segment Information:

We restructured our organization in the fourth quarter of 2008 in order to improve our execution and align our resources and product development efforts in the markets in which we operate. Our products are sold through three new segments comprising of Specialty Pharmaceuticals, Branded Generic — Europe and Branded Generic — Latin America. The Specialty Pharmaceuticals segment includes product revenues primarily from the U.S., Canada, Australia and divested businesses located in Argentina, Uruguay and Asia. The Branded Generic — Europe segment includes product revenues from branded generic pharmaceutical products primarily in Poland, Hungary, the Czech Republic and Slovakia. The Branded Generic — Latin America segment includes product revenues from branded generic pharmaceutical products primarily in Mexico and Brazil.

Revenues:

Total revenue was $183.0 million in the fourth quarter of 2008 as compared to $188.9 million in the fourth quarter of 2007.

Specialty Pharmaceutical product sales were $89.2 million in the fourth quarter of 2008, as compared to $91.7 million in the fourth quarter of 2007, a decrease of 3% primarily due to

operations divested in the first half of 2008 and the impact of unfavorable currency fluctuations, partially offset by product sales from acquisitions completed in the fourth quarter of 2008. At constant exchange rates, net of acquired and divested product sales, specialty pharmaceutical product sales in the fourth quarter of 2008 were flat as compared to the fourth quarter of 2007. Excluding divested businesses, product sales for the specialty pharmaceutical operations grew 6% for the quarter, and 11% at constant exchange rates.

Sales in Branded Generic — Latin America in the 2008 fourth quarter were $36.9 million as compared to $44.4 million in the same period in the prior year, primarily due to unfavorable currency fluctuations of $7.3 million. Product sales at constant exchange rates in Latin America were flat as compared to the fourth quarter of 2007.

Sales in Branded Generic — Europe were $35.9 million in the 2008 fourth quarter as compared to $35.9 million in the same period in the prior year. Product sales at constant exchange rate increased $4.4 million, or 12% over the fourth quarter in the prior year.

Alliance revenue increased 24% to $21.0 million in the 2008 fourth quarter as compared to $16.9 million in the same period in 2007. This increase is due to the recognition of deferred revenues of $4.4 million from the retigabine collaboration agreement with GlaxoSmithKline (GSK).

Operating Expenses/Earnings:

The company’s cost of goods sold was 26% for both the 2008 fourth quarter and the fourth quarter of 2007.

Selling, General and Administrative expenses decreased 7% in the fourth quarter of 2008 to $66.4 million as compared to $71.5 million in the fourth quarter of 2007, primarily due to the benefit of exchange rates and cost reduction activities at the company.

Research and development costs decreased 60% to $11.9 million in the 2008 fourth quarter as compared to $29.4 million reported in the same period in 2007. This decrease is due to the effect of the GSK collaboration, as well as cost reduction efforts by the company. Under collaboration accounting R&D spending in the quarter on the collaboration was offset by a credit from the initial upfront payment.

In the fourth quarter, the company recorded purchased in-process research and development charges of $186.3 million, related primarily to the previously announced acquisition of Dow Pharmaceutical Sciences, Inc. The company also recorded restructuring, asset impairment and disposition expenses of $17.0 million in the quarter.

Loss from continuing operations was $150.5 million for the fourth quarter of 2008, or a loss of $1.82 per diluted share as compared to income from continuing operations of $2.1 million, or $0.02 per diluted share for the fourth quarter of 2007. Valeant intends to continue to buy assets in the future, which means that company financials will be subject to certain adjustments for purchase accounting that could significantly change GAAP EPS. Valeant

believes that excluding these adjustments, such as acquired in-process research and development (IPR&D), restructuring, asset impairments and dispositions, amortization expense, gain on early extinguishment of debt and the tax effect of such changes, facilitates investors’ understanding of the trends in the company’s underlying business. Therefore, the company uses a Cash EPS metric to evaluate company financial performance. On a non-GAAP basis, or Cash EPS basis, adjusted income from continuing operations was $43.2 million or $0.52 per diluted share in the fourth quarter of 2008 as compared to adjusted income from continuing operations of $25.1 million, or $0.28 per diluted share in the fourth quarter of 2007. For the full 2008 year, Cash EPS was $0.81 as compared to $0.86 for the full year 2007.

2009 Guidance

The company has provided a Cash EPS target of between $1.35 and $1.60 in 2009. This calculation of Cash EPS will exclude certain items, such as acquired IPR&D, restructuring, asset impairments and dispositions, amortization expense and the tax effect of such changes and, for 2009, the new non-cash accounting charge for interest on the convertible debt related to FSP APB 14-1.

Conference Call and Webcast Information:

Valeant will host a conference call today at 11:00 a.m. EST (8:00 a.m. PST) to discuss its 2008 fourth quarter and year end results. The dial-in number to participate on this call is (877) 295-5743, confirmation code 83660030. International callers should dial (973) 200-3961, confirmation code 83660030. A replay will be available approximately two hours following the conclusion of the conference call through March 3, 2009 and can be accessed by dialing (800) 642-1687, or (706) 645-9291, confirmation code 83660030. 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 contains forward-looking statements, including, but not limited to, statements regarding the growth and future development of the company, future acquisitions or dispositions of assets and guidance with respect to expected results of operation. 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 related to the company’s ability to realize the benefits of its

strategic restructuring plan, market conditions and other factors that may influence the company’s determination as to whether and when to repurchase its securities, the ability of the company to complete the programs in compliance with applicable requirements, and other risks and uncertainties discussed in the company’s annual report on Form 10-K for the year ended December 31, 2007 and other filings with the SEC. Valeant wishes to caution the reader that these factors are among the factors that could cause actual results to differ materially from the expectations described in the forward-looking statements. Valeant also cautions the reader that undue reliance should not be placed on any of the forward-looking statements, which speak only as of the date of this release. The company undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this 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 in-process research and development, restructuring, amortization, gain on early extinguishment of debt, and certain taxes. 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.

Financial Tables, including a reconciliation of GAAP to non-GAAP financial measures, follow.

###



Valeant Pharmaceuticals International		Table 1
Consolidated Condensed Statement of Income
For the Three and Twelve Months Ended December 31, 2008 and 2007


	Three Months Ended									Twelve Months Ended
	December 31,									December 31,
(In thousands, except per share data)	2008			2007			% Change			2008			2007			% Change
Product sales	$	162,023		$	171,991			-6	%	$	593,165		$	603,051			-2	%
Alliance revenue (a)		20,991			16,949			24	%		63,812			86,452			-26	%

Total revenues		183,014			188,940			-3	%		656,977			689,503			-5	%


Cost of goods sold		41,589			44,976			-8	%		167,916			158,060			6	%
Selling, general and administrative (“SG&A”)		66,350			71,478			-7	%		278,019			292,001			-5	%
Research and development costs, net		11,867			29,429			-60	%		86,967			97,957			-11	%
Acquired in-process research and development		186,300			—			—			186,300			—			—
Restructuring, asset impairments and dispositions		17,001			9,601			77	%		21,295			27,675			-23	%
Amortization expense		12,357			13,438			-8	%		49,973			55,985			-11	%


		335,464			168,922			99	%		790,470			631,678			25	%

Income (loss) from operations		(152,450	)		20,018						(133,493	)		57,825

Interest expense, net		(798	)		(5,864	)					(13,357	)		(25,337	)
Gain (loss) on early extinguishment of debt		3,327			—						(11,555	)		—
Other income (expense), net including translation and exchange		5,447			(844	)					2,063			1,659


Income (loss) from continuing operations before income taxes and minority interest		(144,474	)		13,310						(156,342	)		34,147

Provision for income taxes		5,974			11,224						39,701			13,535
Minority interest		2			—						7			2

Income (loss) from continuing operations		(150,450	)		2,086						(196,050	)		20,610

Income (loss) from discontinued operations, net		(14,798	)		(22,419	)					172,336			(26,796	)


Net loss	$	(165,248	)	$	(20,333	)				$	(23,714	)	$	(6,186	)


Basic earnings (loss) per common share:
Income (loss) from continuing operations	$	(1.82	)	$	0.02					$	(2.24	)	$	0.22
Discontinued operations, net		(0.18	)		(0.24	)					1.97			(0.29	)

Net loss	$	(2.00	)	$	(0.22	)				$	(0.27	)	$	(0.07	)

Shares used in per share computation		82,585			90,459						87,480			93,029


Diluted earnings (loss) per common share:
Income (loss) from continuing operations	$	(1.82	)	$	0.02					$	(2.24	)	$	0.22
Discontinued operations, net		(0.18	)		(0.24	)					1.97			(0.29	)

Net loss	$	(2.00	)	$	(0.22	)				$	(0.27	)	$	(0.07	)

Shares used in per share computation		82,585			90,978						87,480			93,976


(a)		Alliance revenue for the three and twelve months ended December 31, 2008 relates to ribavirin royalty of $16.6 million and $59.4 million respectively and alliance revenue from the GSK collaboration of $4.4 million in the three and twelve months ended December 31, 2008. Alliance revenue for the three and twelve months ended December 31, 2007 includes ribavirin royalties of $16.9 million and $67.3 million respectively and a $19.2 million milestone payment received from Schering-Plough related to the out-licensing of pradefovir in the twelve months ended December 31, 2007.



Valeant Pharmaceuticals International		Table 2
Reconciliation of GAAP EPS to Cash EPS
For the Three and Twelve Months Ended December 31, 2008 and 2007


	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
(In thousands, except per share data)	2008			2007			2008			2007
Income (loss) from continuing operations	$	(150,450	)	$	2,086		$	(196,050	)	$	20,610

Non-GAAP adjustments:
Acquired in-process research and development		186,300			—			186,300			—
Restructuring, asset impairments and dispositions		17,001			9,601			21,295			27,675
Amortization expense		12,357			13,438			49,973			55,985

		215,658			23,039			257,568			83,660
(Gain) loss on early extinguishment of debt		(3,327	)		—			11,555			—
Tax on adjustments		(18,726	)		(44	)		(1,351	)		(22,985	)

Total adjustments, net of tax		193,605			22,995			267,772			60,675

Adjusted income from continuing operations	$	43,155		$	25,081		$	71,722		$	81,285


GAAP earnings per share — diluted	$	(1.82	)	$	0.02		$	(2.24	)	$	0.22


Cash earnings per share — diluted	$	0.52		$	0.28		$	0.81		$	0.86


Shares used in diluted per share calculation — GAAP earnings per share		82,585			90,978			87,480			93,976


Shares used in adjusted diluted per share calculation — Cash earnings per share		83,738			90,978			88,467			93,976

To supplement the financial measures prepared in accordance with generally accepted accounting principles (GAAP), the company uses non-GAAP financial measures that exclude certain items, such as acquired in-process research and development, restructuring, asset impairments and dispositions, amortization expense and the tax effect of such charges. 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 presentation includes Cash Earnings Per Share, which is a non-GAAP financial measure that represents earnings per share, excluding acquired in-process research and development, restructuring assets impairments and dispositions, amortization expense, gain or loss on early extinguishment of debt and the tax effect of such charges.


Valeant Pharmaceuticals International		Table 3
Consolidated Condensed Statement of Product Sales — by Segment
For the Three and Twelve Months Ended December 31, 2008 and 2007

(In thousands)

Product sales


	Three Months Ended							Twelve Months Ended
	December 31,							December 31,
	2008		2007		% Change			2008		2007		% Change
Specialty pharmaceuticals
U.S.
Dermatology (a)	$	31,598	$	30,170		5	%	$	91,708	$	92,751		-1	%
Neurology & Other		39,855		35,187		13	%		127,641		131,968		-3	%

Total U.S. (a)		71,453		65,357		9	%		219,349		224,719		-2	%
Canada		14,161		14,810		-4	%		56,988		51,952		10	%
Australia (a)		3,558		4,109		-13	%		21,602		19,467		11	%

		89,172		84,276		6	%		297,939		296,138		1	%
Divested business		—		7,426		—			5,784		30,544		-81	%


Total specialty pharmaceuticals		89,172		91,702		-3	%		303,723		326,682		-7	%

Branded generic — Latin America		36,930		44,381		-17	%		136,638		151,299		-10	%
Branded generic — Europe		35,921		35,908		0	%		152,804		125,070		22	%


	$	162,023	$	171,991		-6	%	$	593,165	$	603,051		-2	%

Total, net of divested businesses	$	162,023	$	164,565		-2	%	$	587,381	$	572,507		3	%

Currency impact and product sales excluding currency impact


	Three Months Ended									Twelve Months Ended
	December 31,									December 31,
			2008										2008
	2008		excluding							2008			excluding
	currency		currency				%			currency			currency				%
	impact		impact		2007		Change			impact			impact		2007		Change
Specialty pharmaceuticals
U.S.	$	—	$	71,453	$	65,357		9	%	$	—		$	219,349	$	224,719		-2	%
Canada		3,309		17,470		14,810		18	%		85			57,073		51,952		10	%
Australia		1,155		4,713		4,109		15	%		(633	)		20,969		19,467		8	%

		4,464		93,636		84,276		11	%		(548	)		297,391		296,138		0	%
Divested business		—		—		7,426		—			27			5,811		30,544		-81	%

Total specialty pharmaceuticals		4,464		93,636		91,702		2	%		(521	)		303,202		326,682		-7	%

Branded generic — Latin America		7,300		44,230		44,381		0	%		1,218			137,856		151,299		-9	%
Branded generic — Europe		4,445		40,366		35,908		12	%		(17,935	)		134,869		125,070		8	%


	$	16,209	$	178,232	$	171,991		4	%	$	(17,238	)	$	575,927	$	603,051		-4	%

Total, net of divested businesses	$	16,209	$	178,232	$	164,565		8	%	$	(17,265	)	$	570,116	$	572,507		0	%


(a)		Products sales in the U.S. and Australia in the three and twelve months ended December 31, 2008 include the sales of products acquired in the fourth quarter from Coria in the U.S. and DermaTech in Australia of $8.2 million and $0.8 million, respectively. Product sales excluding currency impact, divested businesses and sales of products acquired from Coria and DermaTech grew 3% for the three months ended December 31, 2008 and declined 2% in the twelve months ended December 31, 2008.

Note: Currency effect is determined by comparing adjusted 2008 reported amounts, calculated using 2007 monthly average exchange rates, to the actual 2007 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.


Valeant Pharmaceuticals International		Table 4
Consolidated Condensed Statement of Cost of Goods Sold and Non-GAAP Operating Income — by Segment
For the Three and Twelve Months Ended December 31, 2008 and 2007
(In thousands)

Cost of sales


	Three Months Ended										Twelve Months Ended
	December 31,										December 31,
			% of					% of						% of					% of
			product					product						product					product
	2008		sales			2007		sales			2008			sales			2007		sales
Specialty pharmaceuticals	$	18,442		21	%	$	17,532		19	%	$	64,027			21	%	$	66,589		20	%
Branded generic — Latin America		9,193		25	%		14,083		32	%		46,338			34	%		44,486		29	%
Branded generic — Europe		13,919		39	%		13,277		37	%		58,408			38	%		46,430		37	%

Corporate		35		—			84		—			(857	)		—			555		—


	$	41,589		26	%	$	44,976		26	%	$	167,916			28	%	$	158,060		26	%

Non-GAAP operating income (a)


	Three Months Ended								Twelve Months Ended
	December 31,								December 31,
						%							%
	2008		2007			Change			2008		2007		Change
Specialty pharmaceuticals	$	34,768	$	18,735			86	%	$	44,300	$	46,204		-4	%
Branded generic — Latin America		13,624		13,500			1	%		29,670		40,713		-27	%
Branded generic — Europe		10,641		12,891			-17	%		43,187		42,840		1	%


		59,033		45,126			31	%		117,157		129,757		-10	%

Alliances & Corporate		4,175		(2,069	)		—			6,918		11,728		-41	%


Total Non-GAAP operating income	$	63,208	$	43,057			47	%	$	124,075	$	141,485		-12	%

Currency impact and non-GAAP operating income excluding currency impact


	Three Months Ended									Twelve Months Ended
	December 31,									December 31,
			2008										2008
	2008		excluding							2008			excluding
	currency		currency				%			currency			currency				%
	impact		impact		2007		Change			impact			impact		2007		Change
Specialty pharmaceuticals	$	1,356	$	36,124	$	18,735		93	%	$	(651	)	$	43,649	$	46,204		-6	%
Branded generic — Latin America		2,311		15,935		13,500		18	%		1,626			31,296		40,713		-23	%
Branded generic — Europe		1,243		11,884		12,891		-8	%		(4,508	)		38,679		42,840		-10	%


	$	4,910	$	63,943	$	45,126		42	%	$	(3,533	)	$	113,624	$	129,757		-12	%


(a)		Excludes from GAAP operating income (loss) of ($152.5) million, ($133.5) million, $20.0 million and $57.8 million in the three and twelve months ended December 31, 2008 and 2007 respectively, the following non-GAAP adjustments: acquired in-process research and development, restructuring, asset impairments and dispositions and amortization expense in the three and twelve months ended December 31, 2008 and December 31, 2007 of $215.7 million and $257.6 million and $23.0 million and $83.7 million, respectively.


Valeant Pharmaceuticals International		Table 5
Consolidated Balance Sheet and Other Data
(In thousands)


	As of		As of
	December 31,		December 31,
	2008		2007
Balance Sheet Data
Cash and cash equivalents (a)	$	199,582	$	309,365
Marketable securities (a)		19,193		52,122

Total cash and marketable securities	$	218,775	$	361,487


Accounts receivable, net	$	144,509	$	147,863
Inventory, net		72,972		80,150
Long-term debt		447,862		782,552


(a)		December 31, 2007 includes cash and cash equivalents and marketable securities of discontinued operations.

Other Data


	Twelve Months Ended
	December 31,
	2008			2007
Cash flow provided by (used in):
Operating activities, continuing operations	$	206,770		$	100,565
Operating activities, discontinued operations		9,759			(8,044	)
Investing activities (b)		169,918			(39,342	)
Financing activities (b)		(475,004	)		(93,317	)
Effect of exchange rate changes on cash and cash equivalents (b)		(21,226	)		23,924


Net decrease in cash and cash equivalents (b)		(109,783	)		(16,214	)
Net increase (decrease) in marketable securities (b)		(32,929	)		41,752


Net increase (decrease) in cash and marketable securities (b)	$	(142,712	)	$	25,538

(b) Includes results from discontinued operations.


	Three months
	ended
	December 31,
	2008
GSK Collaboration — Retigabine
Valeant SG&A	$	483
Valeant R&D		10,193

		10,676
GSK		2,394

	$	13,070


Equalization (difference between individual partner costs and 50% of total)	$	4,141


	Three months ended December 31, 2008
	Balance sheet		Alliance revenue			SG&A			R&D
Accounting impact

Upfront payment from GSK	$	125,000		—			—			—
Incurred cost							483			10,193
Release from upfront payment deferral		10,909		(4,374	)		(483	)		(6,052	)

		114,091
Equalization receivable from GSK		4,141								(4,141	)

	$	109,950	$	(4,374	)	$	—		$	—