Valeant Pharmaceuticals International 8-K Exchange and Registration Rights Agreement

Exhibit 99.4

Summary Historical and Adjusted Financial Data

The following table sets forth summary historical and adjusted financial data for Valeant Pharmaceuticals International. The consolidated statement of operations data for the years ended December 31, 2006, 2007 and 2008 and the consolidated balance sheet data as of December 31, 2006, 2007 and 2008 have been derived from our audited financial statements. The consolidated statements of operations data for the three-month periods ended March 31, 2008 and 2009 and the consolidated condensed balance sheet data as of March 31, 2009 have been derived from our unaudited consolidated condensed financial statements. The consolidated statement of operations data for the twelve-month period ended March 31, 2009 have been derived from the consolidated statement of operations data for the year ended December 31, 2008 and the three-month periods ended March 31, 2008 and 2009. You should read this summary historical financial data together with our consolidated financial statements and related notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2008 and our Quarterly Report on Form 10-Q for the three months ended March 31, 2009.

																	Twelve Months
										Three Months							Ended
	Year Ended December 31,									Ended March 31,							March 31,
	2006			2007			2008			2008			2009				2009
	(Dollar amounts in thousands)
Revenues:
Product sales	$	603,810		$	603,051		$	593,165		$	139,210		$	152,833			$	606,788
Services revenue		—			—			—			—			6,738				6,738
Alliance revenue (including ribavirin royalties)		81,242			86,452			63,812			12,773			18,352				69,391
Total revenues		685,052			689,503			656,977			151,983			177,923				682,917
Costs and expenses:
Cost of goods sold (excluding amortization)		161,008			158,060			167,916			35,755			39,697				171,858
Cost of services		—			—			—			—			4,326				4,326
Selling, general and administrative		283,559			292,001			278,019			69,439			64,216				272,796
Research and development costs, net		105,443			97,957			86,967			29,294			8,735				66,408
Acquired in-process research and development		—			—			186,300			—			—				186,300
Gain on litigation settlements		(51,550	)		—			—			—			—				—
Restructuring, asset impairments and dispositions		88,616			27,675			21,295			(13,190	)		1,211				35,696
Amortization expense		51,295			55,985			49,973			13,329			17,004				53,648
Total costs and expenses		638,371			631,678			790,470			134,627			135,189				791,032
Income (loss) from operations		46,681			57,825			(133,493	)		17,356			42,734				(108,115	)
Other income (expense), net including translation and exchange		766			1,659			2,063			(1,531	)		1,212				4,806
Gain (loss) on early extinguishment of debt		—			—			(12,994	)		—			4,599				(8,395	)
Interest income		12,367			17,584			17,129			4,724			1,835				14,240
Interest expense		(56,292	)		(56,923	)		(45,385	)		(13,384	)		(8,013	)			(40,014	)
Income (loss) from continuing operations before income taxes		3,522			20,145			(172,680	)		7,165			42,367				(137,478	)
Provision for income taxes		36,577			13,535			34,688			4,659			11,569		��		41,598
Income (loss) from continuing operations		(33,055	)		6,610			(207,368	)		2,506			30,798				(179,076	)
Income (loss) from discontinued operations, net of tax		(37,332	)		(26,796	)		166,548			3,293			398				163,653
Net income (loss)		(70,387	)		(20,186	)		(40,820	)		5,799			31,196				(15,423	)
Less: Net income attributable to noncontrolling interest		3			2			7			2			1				6
Net income (loss) attributable to Valeant	$	(70,390	)	$	(20,188	)	$	(40,827	)	$	5,797		$	31,195			$	(15,429	)

												Twelve Months
								Three Months				Ended
	Year Ended December 31,							Ended March 31,				March 31,
	2006		2007		2008			2008		2009		2009
	(Dollar amounts in thousands)
Balance Sheet Data (at end of period):
Cash and cash equivalents	$	311,012	$	287,728	$	199,582						$	139,909
Total assets		1,503,386		1,492,321		1,185,932							1,068,886
Long-term debt		698,502		716,821		398,802							340,394
Stockholders’ equity		509,857		479,571		251,748							259,381
Other Data:
EBITDA (1)		116,708		129,459		(65,052	)		35,151		63,498		(36,705	)
Adjusted EBITDA (2)		153,774		157,134		142,543			21,961		64,709		185,291
Capital Expenditures		35,625		29,140		16,575			3,631		7,076		20,020
Credit Statistics:
Ratio of long-term debt to Adjusted EBITDA													1.8	x
Ratio of Adjusted EBITDA to interest expense													4.6	x
Ratio of Adjusted EBITDA minus capital expenditures to interest expense													4.1	x

(1)	EBITDA is a non-GAAP measurement that consists of income (loss) from operations plus depreciation and amortization. EBITDA is not a recognized term under GAAP and does not purport to be an alternative to net earnings as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Additionally, EBITDA is not intended to be a measure of free cash flow available for management’s discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. Our presentation of EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Management uses EBITDA to measure and evaluate the operating performance of our core business operations because our resource allocation, cost of capital and income tax positions are managed at a corporate level, apart from the activities of the operating segments, and the operating facilities are located in different taxing jurisdictions which can cause considerable variation in tax expense.
(2)	Adjusted EBITDA is a non-GAAP measurement that consists of EBITDA plus the sum of acquired in-process research and development, gain on litigation settlements, and restructuring, asset impairments and dispositions. For the purposes of calculating Adjusted EBITDA, we have not included stock based compensation of $20.3 million, $12.4 million, and $5.1 million for the 2006, 2007, and 2008 fiscal years, respectively, and $2.4 million and $4.3 million for the three months ended March 31, 2008 and 2009, respectively.
	We believe that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future. Such supplementary adjustments to EBITDA may not be in accordance with current SEC practice or with regulations adopted by the SEC that apply to registration statements filed under the Securities Act and periodic reports presented under the Securities Exchange Act of 1934, as amended.

The following table reconciles income (loss) from operations, as reflected on our summary historical financial data in accordance with GAAP, to Adjusted EBITDA.

														Twelve Months
									Three Months					Ended
	Year Ended December 31,								Ended March 31,					March 31,
	2006			2007		2008			2008			2009		2009
	(In thousands)
Income (loss) from operations	$	46,681		$	57,825	$	(133,493	)	$	17,356		$	42,734	$	(108,115	)
Depreciation and amortization		70,027			71,634		68,441			17,795			20,764		71,410
EBITDA	$	116,708		$	129,459	$	(65,052	)	$	35,151		$	63,498	$	(36,705	)
Adjustments:
Acquired in-process research and development (a)		—			—		186,300			—			—		186,300
Gain on litigation settlements (b)		(51,550	)		—		—			—			—		—
Restructuring, asset impairments and dispositions (c)		88,616			27,675		21,295			(13,190	)		1,211		35,696
Adjusted EBITDA	$	153,774		$	157,134	$	142,543		$	21,961		$	64,709	$	185,291

(a)	In connection with our acquisitions, portions of the purchase price are allocated to acquired in-process research and development on projects that, as of the acquisition date, had not yet reached technological feasibility and had no alternative future use. Such costs are charged to research and development expense as of the date of the acquisition. In October 2008, we acquired Coria for approximately $96.9 million of which $0.5 million was allocated to in-process research and development costs and charged to expense. In December 2008, we acquired Dow for approximately $385.1 million of which $185.8 million was allocated to in-process research and development costs and charged to expense.
(b)	In 2006, we recorded a gain on litigation settlement from litigation with a former chief executive officer, Milan Panic, of $17.6 million relating to Ribapharm bonuses. We also recorded a gain on litigation settlement from litigation with the Republic of Serbia of $34.0 million relating to the ownership and operations of a joint venture we formerly participated in known as Galenika.
(c)	In 2006, we incurred an expense of $88.6 million relating to the 2006 Restructuring. The expense included employee severance costs of $11.6 million, abandoned software and other capital assets of $22.2 million, asset impairment charges relating to fixed assets at a manufacturing facility and our former headquarters and research facility of $53.2 million and contract cancellation and other cash charges of $1.6 million.

CAPITALIZATION

The following table sets forth our cash and cash equivalents and capitalization as of March 31, 2009 on an actual and on an as adjusted basis to give effect to the previously announced offering of the notes and the receipt of the net proceeds therefrom, but does not give effect to any specific application of such proceeds.

	As of
	March 31, 2009
	Actual		As Adjusted
	(In thousands)
Cash and cash equivalents	$	139,909	$	485,418
Debt:
8.375% Senior Unsecured Notes (1)	$	—	$	353,309
3.0% Convertible Subordinated Notes due 2010 (2) (3)		133,885		133,885
4.0% Convertible Subordinated Notes due 2013 (2) (4)		205,369		205,369
Capital Leases		1,140		1,140
Total Long-Term Debt		340,394		693,703
Total Stockholders’ Equity		259,381		259,381
Total Capitalization	$	599,775	$	953,084

(1)	The face value of the 8.375% Senior Unsecured Notes is $365.0 million. The notes were issued at a price of 96.797% of their face value, resulting in approximately $353.3 million of gross proceeds. The $11.7 million discount will be amortized and included in interest expense over the term of the notes.
(2)	FSB APB 14-1 requires bifurcation of a component of the convertible debt instruments, classification of that component in equity, and the accretion of the resulting discount on the debt to be recognized as interest expense. Since adoption of FSP APB 14-1, we are required to separately account for the debt and equity components of our convertible notes. The balance above represents the carrying values for the convertible notes net of unamortized discount.
(3)	The face value of the 3.0% Convertible Subordinated Notes as of March 31, 2009 was $141.6 million.
(4)	The face value of the 4.0% Convertible Subordinated Notes as of March 31, 2009 was $240.0 million.