Valeant Pharmaceuticals International 8-K Valeant Pharmaceuticals Reports Third Quarter 2007 Results

Exhibit 99.1

Contact:
Jeff Misakian, Valeant Pharmaceuticals
949-461-6184

VALEANT PHARMACEUTICALS REPORTS
THIRD QUARTER 2007 RESULTS

— Company to Divest Infergen^® —

     ALISO VIEJO, Calif., November 1, 2007 — Valeant Pharmaceuticals International (NYSE: VRX) today announced results for the third quarter of 2007.

Third Quarter 2007 vs. 2006 Highlights:

• Revenues from continuing operations decreased one percent to $208.6 million, compared to $210.8 million.

• Product sales from continuing operations increased two percent to $194.5 million, compared to $189.9 million.

• Loss from continuing operations was $2.2 million, or $0.02 per diluted share, compared to income of $7.7 million, or $0.08 per diluted share.

• Adjusted for non-GAAP items, income from continuing operations was $4.1 million, or $0.04 per diluted share, compared to $13.7 million, or $0.14 per diluted share.

• Financial results for the Infergen operation were reflected as discontinued operations and prior periods were restated accordingly.

     A reconciliation of GAAP to non-GAAP results is provided in Table 2.

     The company also announced that it is in discussions with a potential buyer for the sale of Infergen^®. The company looks to complete the Infergen sale in the 2007 fourth quarter.

     Timothy C. Tyson, president and chief executive officer, said, “Our performance this quarter was disappointing and we are clearly not pleased with the results. Sales were impacted by issues in the Mexican distribution chain again, and some key U.S. product sales were weaker than expected. We believe we have stabilized the Mexican distribution issue, but will continue to monitor payments from the wholesalers. Results in the third quarter also were affected by the decline in royalties and higher research and development costs. We have already taken steps to improve the company’s operating performance by divesting low-margin products and streamlining our salesforce in certain markets. Our decision to sell Infergen is the largest step so far in this plan. Despite these challenges, there were some positive indicators in our promoted products that point to the overall stability of our base business. Our clinical activities on our pipeline continue to progress well, with key clinical data for retigabine and taribavirin expected in the first quarter of 2008.”

Revenues:

     Product sales increased two percent in the third quarter of 2007 compared to the same period last year, led by a 10 percent increase in promoted brands, which was partially offset by a decline in non-promoted products, mainly in Mexico. The promoted brands increase was primarily due to higher sales of Mestinon^®, Bisocard™, Dermatix™, Efudex^® and Migranal^®, offset by declines in sales of Zelapar^® and Kinerase^®. The decline in Zelapar sales reflects stocking for the product’s launch last year.

     Alliance revenue decreased 33 percent in the 2007 third quarter compared to the same period last year. The decline reflects competitive dynamics in the ribavirin market in Europe and Japan and the cessation of ribavirin royalties from Roche as a result of a loss of patent coverage in Europe.

Regional Sales Performance:

     North America product sales increased five percent in the 2007 third quarter, primarily due to increased sales of Migranal, Diastat^® AcuDial™ and Efudex, partially offset by declines in Zelapar and Kinerase.

     Sales in the International region declined 10 percent in the 2007 third quarter compared to the same period last year, primarily due to continued challenges in the Mexican distribution channel that resulted in declines in most product sales in Mexico. Overall sales of Bedoyecta™ in the third quarter were three percent ahead of those in the same period last year, reflecting continued underlying demand and the product’s launch in the United States.

     Sales in the Europe, Middle East and Africa (EMEA) region increased 11 percent in the 2007 third quarter compared to the same period last year, primarily due to the effects of foreign currency. The EMEA region also benefited from increased sales of promoted products in Central and Eastern Europe and new products acquired or launched in the year. Sales of Mestinon, Bisocard and Dermatix increased in the third quarter, which were offset by a decrease in vision care products due to the divestment of the company’s ophthalmic business in the Netherlands earlier in 2007.

Financial Metrics — Continuing Operations:

     The company’s gross margin on product sales was 70 percent in the 2007 third quarter, the same ratio recorded in the 2006 third quarter.

     Selling expense was 33 percent of product sales in the 2007 third quarter, the same ratio recorded in the comparable period last year. Selling expense in the 2007 third quarter included severance costs from salesforce realignment steps. General and administrative expenses were 15 percent of product sales in the 2007 third quarter, compared to 14 percent in the third quarter last year. General and administrative expenses in the third quarter were higher than last year primarily due to technology improvements and increased legal and business development costs.

     Research and development costs were 13 percent of product sales in the 2007 third quarter, compared to 11 percent in the same period last year. The increase primarily reflects increased clinical trial activity in 2007.

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Discontinued Operations:

     The board of directors has approved the disposition of Infergen and the company is in negotiations with a potential buyer. The financial results for the Infergen operation were reflected as discontinued operations and prior periods were restated accordingly. Valeant looks to complete the negotiations and close the sale in the 2007 fourth quarter.

     Mr. Tyson commented, “Infergen has shown important clinical benefits in treating refractory patients with hepatitis C. But the market has been more challenging than we anticipated and the product no longer is a strategic fit in our portfolio. The sale of Infergen will improve our operating profitability and allow us to invest resources for better shareholder returns.”

Share Repurchase Update:

     Under the company’s repurchase program, Valeant repurchased 3.1 million shares of its common stock in the 2007 third quarter at an aggregate amount of $52 million. The third quarter activity brings the total shares repurchased in 2007 to 4.7 million shares at an aggregate amount of $80 million.

Conference Call and Webcast Information:

     Valeant will host a conference call today at 10:00 a.m. EDT (7:00 a.m. PDT) to discuss its 2007 third quarter results. The dial-in number to participate on this call is (877) 295-5743, confirmation code 19276755. International callers should dial (706) 679-0845, confirmation code 19276755. A replay will be available approximately two hours following the conclusion of the conference call through November 8, 2007 and can be accessed by dialing (800) 642-1687, or (706) 645-9291, confirmation code 19276755. The company will also 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 global specialty pharmaceutical company that develops, manufactures and markets a broad range of pharmaceutical products primarily in the areas of neurology, infectious disease and dermatology. More information about Valeant can be found at www.valeant.com.

     Efudex, Diastat AcuDial, Kinerase, Mestinon, Zelapar, Migranal, Bedoyecta, Dermatix and Bisocard are trademarks or registered trademarks of Valeant Pharmaceuticals International or its related companies. Infergen is a registered trademark of Amgen, Inc., and Valeant Pharmaceuticals North America is the exclusive licensee from Amgen of this mark in the U.S. market. All other trademarks are the trademarks or the registered trademarks of their respective owners.

FORWARD-LOOKING STATEMENTS:

     This press release contains forward-looking statements, including, but not limited to, statements regarding sales of and demand for the company’s products in Mexico and elsewhere, the timing of anticipated clinical data, and the potential sale of Infergen and its impact on operating

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profitability. 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 resumption of sales through the company’s Mexican distribution channels, the ability of the company to reach an agreement and successfully close the sale of Infergen and improve operating performance, projections of future sales, product development and regulatory approval, the execution and success of the company’s strategic plans, and other risks and uncertainties discussed in the company’s 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 special charges and credits. 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 Follow

###

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Valeant Pharmaceuticals International	Table 1
Consolidated Condensed Statement of Income
For the Three and Nine Months Ended September 30, 2007 and 2006

	Three Months Ended									Nine Months Ended
	September 30,									September 30,
(In thousands, except per share data)	2007			2006			% Change			2007			2006			% Change
Product sales	$	194,545		$	189,872			2	%	$	565,166		$	555,015			2	%
Alliance revenue (including ribavirin royalties) (a)		14,078			20,968			-33	%		69,503			60,694			15	%
Total revenues		208,623			210,840			-1	%		634,669			615,709			3	%
Cost of goods sold		59,033			57,326			3	%		167,089			173,804			-4	%
Selling expenses		64,396			62,634			3	%		190,482			183,254			4	%
General and administrative expenses		29,276			26,621			10	%		83,738			85,084			-2	%
Research and development costs		24,886			20,328			22	%		68,612			73,999			-7	%
Gain on litigation settlement (b)		—			(17,550	)		-100	%		—			(51,550	)		-100	%
Restructuring charges		—			17,139			-100	%		13,575			96,687			-86	%
Amortization expense		18,130			16,774			8	%		54,277			48,511			12	%
		195,721			183,272			7	%		577,773			609,789			-5	%
Income from operations		12,902			27,568						56,896			5,920
Interest expense, net		(6,764	)		(7,751	)					(19,318	)		(23,677	)
Other income (expense), net including translation and exchange		(262	)		(454	)					2,556			1,240
Income (loss) from continuing operations before provision for income taxes		5,876			19,363						40,134			(16,517	)
Provision for income taxes		8,081			11,659						8,154			24,360
Minority interest		1			1						2			2
Income (loss) from continuing operations		(2,206	)		7,703						31,978			(40,879	)
Income (loss) from discontinued operations, net		(9,813	)		6,004						(18,979	)		6,097
Net income (loss)	$	(12,019	)	$	13,707					$	12,999		$	(34,782	)
Basic earnings per common share
Income (loss) from continuing operations	$	(0.02	)	$	0.08					$	0.34		$	(0.44	)
Discontinued operations, net		(0.11	)		0.07						(0.20	)		0.07
Net income (loss)	$	(0.13	)	$	0.15					$	0.14		$	(0.37	)
Shares used in per share computation		91,705			93,093						93,705			92,907
Diluted earnings per common share
Income (loss) from continuing operations	$	(0.02	)	$	0.08					$	0.34		$	(0.44	)
Discontinued operations, net		(0.11	)		0.06						(0.20	)		0.07
Net income (loss)	$	(0.13	)	$	0.14					$	0.14		$	(0.37	)
Shares used in per share computation		91,705			95,265						95,003			92,907

(a) Alliance revenue for the three months ended September 30, 2007 relates to ribavirin royalty of $14.1 million. Alliance revenue for the nine months ended September 30, 2007 includes ribavirin royalties of $50.3 million and a $19.2 million milestone payment received from Schering-Plough related to the out-licensing of pradefovir.

(b) For the three months ended September 30, 2006, the $17.6 million gain relates to the settlement of disclosed litigation with Milan Panic. For the nine months ended September 30, 2006, the $51.6 million total comprises this gain and the settlement with the Republic of Serbia.

Valeant Pharmaceuticals International	Table 2
GAAP Reconciliation of Basic and Diluted Earnings Per Share
For the Three and Nine Months Ended September 30, 2007 and 2006

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(In thousands, except per share data)	2007			2006			2007			2006
Income (loss) from continuing operations	$	(2,206	)	$	7,703		$	31,978		$	(40,879	)
Non-GAAP adjustments:
Gain on litigation settlement (a)		—			(17,550	)		—			(51,550	)
Professional fees related to Special Committee option investigation (b)		—			—			630			—
Restructuring charges (c)		—			17,139			13,575			96,687
Product impairment (d)		—			683			310			683
Tax (e)		6,260			5,769			(8,787	)		15,569
Adjusted income from continuing operations before the above charges	$	4,054		$	13,744		$	37,706		$	20,510
Adjusted basic EPS from continuing operations	$	0.04		$	0.15		$	0.40		$	0.22
Adjusted diluted EPS from continuing operations	$	0.04		$	0.14		$	0.40		$	0.22
Shares used in basic per share calculation		91,705			93,093			93,705			92,907
Shares used in diluted per share calculation		92,816			95,265			95,003			94,880

(a) For the three months ended September 30, 2006, the $17.6 million gain relates to the settlement of disclosed litigation with Milan Panic. For the nine months ended September 30, 2006, the $51.6 million total comprises this gain and the settlement with the Republic of Serbia.

(b) Non-recurring professional fees relating to the investigation by the Special Committee into stock option practices and the related restatement of financial statements.

(c) Charges relate to our restructuring plan announced in April 2006.

(d) Product impairment on a certain product in Spain.

(e) Tax effect for non-GAAP adjustments, including tax benefits from U.S. net operating losses not recognized for GAAP purposes, and reversal of the tax benefit of resolving the 1997 — 2001 IRS examination.

Valeant Pharmaceuticals International	Table 3
Reconciliation of Consolidated Operating Income to Non-GAAP Adjusted Earnings
Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)
For the Three and Nine Months Ended September 30, 2007 and 2006
(In thousands)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2007		2006			2007		2006
Consolidated operating income (GAAP)	$	12,902	$	27,568		$	56,896	$	5,920
Depreciation and amortization		22,344		21,948			66,480		65,671
EBITDA (non-GAAP) (a)		35,246		49,516			123,376		71,591
Other non-GAAP adjustments (b)		—		(411	)		14,205		45,137
Adjusted EBITDA (non-GAAP) (a)	$	35,246	$	49,105		$	137,581	$	116,728

(a) We believe that EBITDA and Adjusted EBITDA are meaningful non-GAAP financial measures as earnings-derived indicators of the cash flow generation ability of the company. We calculate EBITDA by adding depreciation and amortization back to consolidated operating income. Adjusted EBITDA excludes the additional costs set forth in note (b) below. EBITDA and Adjusted EBITDA, as defined and presented by us, may not be comparable to similar measures reported by other companies.

(b) See table 2 for explanation of non-GAAP adjustments.

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 special charges and credits. Management does not consider the excluded items part of the 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. Guidance is provided only on a non-GAAP basis due to the inherent difficulty in forecasting such items.

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.

Valeant Pharmaceuticals International	Table 4
Supplemental Sales Information
For the Three and Nine Months Ended September 30, 2007 and 2006
(In thousands)

	Three Months Ended				%			Nine Months Ended				%
	September 30,				Increase/			September 30,				Increase/
	2007		2006		(Decrease)			2007		2006		(Decrease)
Neurology
Diastat® AcuDial™(P)	$	15,676	$	14,802		6	%	$	39,134	$	38,533		2	%
Mestinon®(P)		13,820		11,449		21	%		38,402		33,592		14	%
Cesamet®(P)		7,279		6,487		12	%		20,051		13,832		45	%
Librax®		4,301		3,002		43	%		12,423		10,926		14	%
Migranal®(P)		2,614		1,133		131	%		9,395		6,949		35	%
Dalmane®/Dalmadorm®(P)		3,046		2,538		20	%		8,138		7,548		8	%
Tasmar®(P)		2,714		1,635		66	%		7,067		4,487		57	%
Melleril(P)		1,972		1,567		26	%		5,326		4,340		23	%
Zelapar® (P)		1,825		3,824		(52	%)		3,401		3,824		(11	%)
Other Neurology		15,264		16,092		(5	%)		47,257		46,311		2	%
Dermatology
Efudix/Efudex®(P)		16,997		15,502		10	%		46,991		46,061		2	%
Kinerase®(P)		5,729		6,622		(13	%)		22,255		22,506		(1	%)
Dermatix™(P)		4,056		2,553		59	%		10,394		7,364		41	%
Oxsoralen-Ultra®(P)		1,032		613		68	%		8,968		7,714		16	%
Other Dermatology		9,231		10,315		(11	%)		26,686		30,894		(14	%)
Infectious Disease
Virazole®(P)		2,453		2,142		15	%		11,064		11,723		(6	%)
Other Infectious Disease		5,916		4,448		33	%		16,310		14,069		16	%
Other Therapeutic Classes
Bedoyecta™(P)		14,268		13,879		3	%		31,478		36,970		(15	%)
Solcoseryl(P) (a)		4,993		4,908		2	%		18,788		12,882		46	%
Bisocard(P)		5,864		4,045		45	%		16,133		11,522		40	%
Nyal(P)		3,340		2,134		57	%		9,094		8,691		5	%
MVI (multi-vitamin infusion)(P)		3,176		3,629		(12	%)		8,425		9,396		(10	%)
Espaven(P)		1,841		3,340		(45	%)		5,955		7,625		(22	%)
Protamin(P)		1,532		1,397		10	%		4,956		4,722		5	%
Other Pharmaceutical Products (a)		45,606		51,816		(12	%)		137,075		152,534		(10	%)
Total Product Sales	$	194,545	$	189,872		2	%	$	565,166	$	555,015		2	%
Total Promoted Product Sales(P)	$	114,227	$	104,199		10	%	$	325,415	$	300,281		8	%

(P) Promoted products represent promoted products with estimated annualized sales greater than $5 million.

(a) Product sales for the three and nine months ended September 30, 2007 include $0 and $4.1 million respectively, for products (Reptilase, Solcoseryl in Japan and opthalmic business in Netherlands) which have been divested in 2007 , compared to $2.8 million and $10.1 million for the same periods in 2006.

Valeant Pharmaceuticals International	Table 5
Consolidated Condensed Statement of Revenue and Operating Income — Regional
For the Three and Nine Months Ended September 30, 2007 and 2006
(In thousands)

	Three Months Ended								Nine Months Ended
	September 30,								September 30,
Revenues	2007			2006			% Change		2007			2006			% Change
North America	$	65,295		$	62,091			5%	$	196,504		$	185,237			6%
International		54,273			60,530			-10%		146,514			170,191			-14%
EMEA		74,977			67,251			11%		222,148			199,587			11%
Total specialty pharmaceuticals		194,545			189,872			2%		565,166			555,015			2%
Alliance revenue (including ribavirin royalties) (a)		14,078			20,968			-33%		69,503			60,694			15%
Consolidated revenues	$	208,623		$	210,840			-1%	$	634,669		$	615,709			3%
Cost of goods sold	$	59,033		$	57,326			3%	$	167,089		$	173,804			-4%
Gross profit margin on pharmaceutical sales		70	%		70	%				70	%		69	%

	Three Months Ended								Nine Months Ended
	September 30,								September 30,
Operating Income	2007			2006			% Change		2007			2006			% Change
North America	$	21,179		$	17,429			22%	$	65,060		$	51,313			27%
International		12,689			18,589			-32%		22,486			50,695			-56%
EMEA		11,890			10,658			12%		43,019			27,268			58%
		45,758			46,676			-2%		130,565			129,276			1%
Corporate expenses	$	(20,394	)	$	(16,674	)		22%	$	(56,132	)	$	(55,150	)		2%
Total specialty pharmaceuticals		25,364			30,002			-15%		74,433			74,126			0%
Restructuring charges		—			(17,139	)		-100%		(13,575	)		(96,687	)		-86%
Gain on litigation settlement		—			17,550			-100%		—			51,550			-100%
R&D		(12,462	)		(2,845	)		338%		(3,962	)		(23,069	)		-83%
Total consolidated operating income	$	12,902		$	27,568				$	56,896		$	5,920

	Three Months Ended									Nine Months Ended
	September 30,									September 30,
Gross Profit	2007		%			2006		%		2007		%			2006		%
North America	$	52,895		81	%	$	50,156		81%	$	165,601		84	%	$	153,876		83%
International		37,179		69	%		43,312		72%		97,604		67	%		115,686		68%
EMEA		45,438		61	%		39,078		58%		134,872		61	%		111,649		56%
Total specialty pharmaceuticals	$	135,512		70	%	$	132,546		70%	$	398,077		70	%	$	381,211		69%

(a) Alliance revenue for the three months ended September 30, 2007 relates to ribavirin royalty of $14.1 million. Alliance revenue for the nine months ended September 30, 2007 includes ribavirin royalties of $50.3 million and a $19.2 million milestone payment received from Schering-Plough related to the out-licensing of pradefovir.

Valeant Pharmaceuticals International	Table 6
Consolidated Balance Sheet and Other Data
(In thousands)

	September 30,		December 31,
Balance Sheet Data	2007		2006
Cash and cash equivalents	$	354,996	$	326,002
Marketable securities		13,833		9,743
Total cash and marketable securities	$	368,829	$	335,745
Accounts receivable, net	$	200,742	$	227,452
Inventory, net		117,105		130,747
Long-term debt		780,318		778,196

Other Data	Nine Months Ended
	September 30,
	2007			2006
Cash flow provided by (used in) continuing operations
Operating activities	$	107,082		$	79,014
Investing activities		5,740			(21,668	)
Financing activities		(99,355	)		(18,994	)
Effect of exchange rate changes on cash and cash equivalents		15,527			4,679
Net increase in cash and cash equivalents		28,994			43,031
Net increase (decrease) in marketable securities		4,090			(647	)
Net increase in cash and marketable securities	$	33,084		$	42,384

Stock-Based Compensation	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2007		2006		2007		2006
Cost of goods sold	$	151	$	226	$	504	$	1,026
Selling expenses		846		707		2,660		2,335
General and administrative expenses		2,219		4,151		6,932		10,752
Research and development costs		147		533		633		2,116
Total	$	3,363	$	5,617	$	10,729	$	16,229

Valeant Pharmaceuticals International	Table 7
Supplemental Non-GAAP Information on Currency Effect
(In thousands)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2007			2006		2007			2006
Consolidated
Product sales	$	194,545		$	189,872	$	565,166		$	555,015
Currency effect		(8,423	)				(20,725	)
Product sales, excluding currency impact	$	186,122				$	544,441
Operating income	$	12,902		$	27,568	$	56,896		$	5,920
Currency effect		(1,157	)				(2,310	)
Operating income, excluding currency impact	$	11,745				$	54,586
Geographic Product Sales
North America pharmaceuticals	$	65,295		$	62,091	$	196,504		$	185,237
Currency effect		(925	)				(1,009	)
North America pharmaceuticals, excluding currency impact	$	64,370				$	195,495
International pharmaceuticals	$	54,273		$	60,530	$	146,514		$	170,191
Currency effect		(1,194	)				(3,122	)
International pharmaceuticals, excluding currency impact	$	53,079				$	143,392
EMEA pharmaceuticals	$	74,977		$	67,251	$	222,148		$	199,587
Currency effect		(6,304	)				(16,594	)
EMEA pharmaceuticals, excluding currency impact	$	68,673				$	205,554

Note: Currency effect is determined by comparing adjusted 2007 reported amounts, calculated using 2006 monthly average exchange rates, to the actual 2006 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 8
Discontinued Operations with Infergen
Summarized Financial Information
For the Three and Nine Months Ended September 30, 2007 and 2006

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2007			2006			2007			2006
Infergen:
Product sales	$	8,636		$	9,134		$	26,959		$	34,148
Costs and expenses:
Cost of goods sold (a)		8,365			2,978			14,523			10,860
Selling expenses		6,586			4,948			19,619			14,874
General and administrative expenses		679			591			1,367			1,241
Research and development costs		1,279			521			5,279			3,271
Amortization expense		1,650			1,650			4,950			4,950
Total costs and expenses		18,559			10,688			45,738			35,196
Loss from discontinued operations, Infergen		(9,923	)		(1,554	)		(18,779	)		(1,048	)
Other discontinued operations:
Other income		—			6,064			—			5,738
Consolidated discontinued operations:
Income (loss) from discontinued operations		(9,923	)		4,510			(18,779	)		4,690
Benefit for income taxes		160			12			231			9
Income (loss) from discontinued operations		(9,763	)		4,522			(18,548	)		4,699
Disposal of discontinued operation, net		(50	)		1,482			(431	)		1,398
Income (loss) from discontinued operations, net	$	(9,813	)	$	6,004		$	(18,979	)	$	6,097

(a) The three and nine months ended September 30, 2007 include a technology transfer payment of $5.3 million.