Valeant Pharmaceuticals International 8-K Completion of Acquisition or Disposition of Assets

Exhibit 99.1

The following unaudited pro forma condensed consolidated statements of operations for the years ended December 31, 2006 and 2005 and unaudited pro forma condensed consolidated balance sheet as of September 30, 2007 give effect to the sale of Infergen, which was consummated on January 14, 2008. The pro forma condensed consolidated financial information should be read in conjunction with the Company’s historical financial statements and related notes thereto contained in its combined Annual Report on Form 10-K for the year ended December 31, 2006 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2007.

The results of operations for Infergen were classified as discontinued operations in the unaudited consolidated financial statements and notes in the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2007, in accordance with Statement of Financial Accounting Standards No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets.” Accordingly, there are no pro forma adjustments to continuing operations necessary to reflect the Company’s sale of Infergen for the nine-month period ended September 30, 2007, and thus the Company has not presented the September 30, 2007 statements of operations herein.

The Company acquired the rights to Infergen on December 30, 2005. Accordingly, there are no pro forma adjustments to continuing operations required for the results of operations for the year ended December 31, 2004. The only pro forma adjustment to continuing operations for the year ended December 31, 2005 is to remove the acquired in-process research and development charge of $47,200,000 recorded in 2005.

The unaudited pro forma condensed consolidated balance sheet contained herein contains estimates based on presently available information and certain assumptions that the Company believes are reasonable. The actual amounts could differ from these estimates. The unaudited pro forma condensed consolidated balance sheet is presented for illustrative purposes only and is not necessarily indicative of the financial position that would have been achieved by the Company had the sale of Infergen been completed as of the dates indicated, or of the financial position that may be obtained by the Company in the future. In addition, the unaudited pro forma condensed consolidated balance sheet does not reflect changes that may occur as a result of activities subsequent to the disposition described above.

Pro Forma Condensed Statement of Operations

	Year Ended December 31,									Year Ended December 31,
(in thousands)	2006			2006			2006			2005			2005			2005
	(as reported)			(adjustments)			(as adjusted)			(as reported)			(adjustments)			(as adjusted)
Revenues:
Product sales	$	825,996		$	(42,716	)(1)	$	783,280		$	732,240		$	—		$	732,240
Ribavirin royalties		81,242			—			81,242			91,646			—			91,646
Total revenues		907,238			(42,716	)		864,522			823,886			—			823,886
Costs and expenses:
Cost of goods sold (excluding amortization)		256,980			(18,838	)(1)		238,142			222,358			—			222,358
Selling expenses		264,834			(20,077	)(1)		244,757			232,316			—			232,316
General and administrative expenses		117,172			(1,315	)(1)		115,857			108,252			—			108,252
Research and development costs		109,618			(4,176	)(1)		105,442			114,100			—			114,100
Acquired in-process research and development		—			—			—			173,599			(47,200	)(1)		126,399
Gain on litigation settlements		(51,550	)		—			(51,550	)		—			—			—
Restructuring charges and asset impairment		138,181			—			138,181			1,253			—			1,253
Amortization expense		71,876			(6,600	)(1)		65,276			68,832			—			68,832
Total costs and expenses		907,111			(51,006	)		856,105			920,710			(47,200	)		873,510
Income (loss) from operations		127			8,290			8,417			(96,824	)		47,200			(49,624	)
Other income (loss), net, including translation and exchange		1,152			—			1,152			(6,358	)		—			(6,358	)
Interest income		12,610			—			12,610			13,169			—			13,169
Interest expense		(43,726	)		—			(43,726	)		(40,326	)		—			(40,326	)
Income (loss) from continuing operations before income taxes and minority interest		(29,837	)		8,290			(21,547	)		(130,339	)		47,200			(83,139	)
Provision (benefit) for income taxes		34,219			45			34,264			55,151			—			55,151
Minority interest, net		3			—			3			287			—			287
Income (loss) from continuing operations	$	(64,059	)	$	8,245		$	(55,814	)	$	(185,777	)	$	47,200		$	(138,577	)
Basic and diluted income (loss) per share:
Loss from continuing operations	$	(0.69	)	$	0.09		$	(0.60	)	$	(2.03	)	$	0.52		$	(1.51	)
Shares used in per share computations		93,251						93,251			91,696						91,696

(1) To eliminate the operations directly related to the Infergen product rights.

Pro Forma Condensed Balance Sheet
(in thousands)

	September 30,						September 30,
	2007						2007
	(unaudited)			(adjustments)			(adjusted)
							(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents	$	354,996		$	70,800	(3)	$	425,796
Accounts receivable, net		200,742			17,900	(3)		218,642
Inventories, net		117,105			—			117,105
Assets held for sale and assets of discontinued operations		65,395			(65,395	)(2)		—
Other current assets		43,590			—			43,590
Total current assets		781,828			23,305			805,133
Property, plant and equipment, net		110,591			—			110,591
Other non-current assets		603,992			—			603,992
Total non-current assets		714,583			—			714,583
	$	1,496,411		$	23,305		$	1,519,716
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Trade payables	$	39,476			—		$	39,476
Accrued liabilities		142,009			12,600	(2)		154,609
Other current liabilities		15,646			—			15,646
Total current liabilities		197,131			12,600			209,731
Long-term debt, less current portion		780,318			—			780,318
Other non-current liabilities		83,101			—			83,101
Total non-current liabilities		863,419			—			863,419
Total liabilities		1,060,550			12,600			1,073,150
Stockholders’ Equity:
Accumulated deficit		(837,029	)		10,705	(4)		(826,324	)
Other stockholders equity		1,272,890			—			1,272,890
Total stockholders’ equity		435,861			10,705			446,566
	$	1,496,411		$	23,305		$	1,519,716

(2)	To eliminate the assets of the Infergen product rights that have been sold and to record certain liabilities related to this transaction.
(3)	To reflect the receipt of cash proceeds of $70.8 million at closing and $17.9 million, representing notes receivable proceeds of $20.5 million less $2.6 million for imputed interest and potential off-set amounts.
(4)	To reflect net gain on sale as if sale was closed on pro forma balance sheet date.