2011 NPV C

March 30th, 2011

11 Strategies to Becoming a Smarter Faster Pharma The Valeant Experience

Valeant Canada
Early 90 s Sales: 15 Million Products: Generic, OTC Focus: Organic growth, Limited Product Development Philosophy: Complacent, Slow, Risk Adverse, Reactive Corporate Focus: Centric 2010 Sales: 220 Million Products: Diversified, Branded Products GP/Specialist, OTC, SPA Focus: Strategic Acquisition, InLicensing and JV s Philosophy: Aggressive, Fast, RiskTaking, Proactive Regional Focus: Decentralized

Valeant Canada Achievements Over Past 3 years

Completed 15 deals Streamlined all functions and processes Installed a culture of quick and opportunistic decision making Investment in employee development and wellness Support for continued investment on Canadian market

Valeant Canada has become a Faster and Hopefully Smarter Pharma Company

New Management at Valeant Pharmaceuticals International Drove Change Why was a change required Limited growth potential (no pipeline) Questionable business decisions Cumbersome processes People with questionable performance Lacking sense of urgency Risk adverse mentality Inappropriate spend in most areas including R&D

Valeant Wanted to become a Smarter Faster Pharma Company Through

Simplification
Reduce Staff Flatter Organization Simplify Processes Decision making Reduce Spend Prioritize Projects

Growth
Licensing and Acquisition in Areas of Focus Invest in People

Stabilization
Establish Platform Upon Which to Build Future Product Focus, Processes People, etc.

To become Faster and Smarter You Need

Top leadership with clear vision and Team that is extremely tight and communicates well

Simple business model with quick and Efficient decision making With Right People , Right Focus and Right Philosophy

People
Hire very talented people Challenge them to go beyond the boundries of their jobs
More responsibilities Push for cross-fertilization Promote team work Performance based compensation Training + development Special projects

Focus
Establish a clearly defined growth strategy Identify+ Acquire assets that are undermanaged and fix them Identify assets where significant synergy values can be established

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Management Philosophy
Bias towards action rather than over-reflection and analysis Open to taking acceptable risks for the sake of greater speed Trust judgment of local management decentralized approach Limited layers of management to take decisions, resulting in speedy transfer of information and rapid decision making Simplification of all processes Lean financial + metric driven Connected to facts

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Faster Smarter Pharma (11 Steps)

Select Right People
Biais to Speed of Decision Making

Growth Strategy Well Defined

Biais to Risk Taking

Driven to Succeed Performance Based Culture

Simplification of Processes

Faster Smarter Pharma

Connected To Facts (data & KOLs) Lean Financial & Metric Driven

Top Management Alignment & Focus Learning Organization

Teamwork and CrossFertilization

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All these Steps Result in Faster Smarter Pharma Company that is

Quick paced Lean Flexible Forward looking Growing Confident Outside zone of comfort Adapting to thrive