Q2 2010 Earnings Call Transcript

Transcript Call Date 08/02/2010

Operator: Good morning. My name is Gordon and I'll be your conference operator today. At this time I'd like to welcome everyone to the Valeant Pharmaceuticals' Second Quarter 2010 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. Thank you.

Laurie Little, you may now begin your conference.

Laurie W. Little - VP, IR: Thank you, Gordon. Good morning, everyone and welcome to Valeant's second quarter 2010 financial results conference call. Joining us on the call today are Mike Pearson, Chairman and Chief Executive Officer; Peter Blott, Chief Financial Officer; and Rajiv De Silva, Chief Operating Officer, Specialty Pharmaceuticals.

In addition to this live webcast a copy of today's slide presentation could be found on our website under the Investor Relations section within the webcast event details.

Before we begin, please turn to your attention to the second slide containing our cautionary statement regarding forward-looking statements and other important information. Certain statements made in this presentation and other statements made during this call and the Q&A session afterwards may constitute forward-looking statements. All forward-looking statements involve risks and uncertainties that could cause actual results to differ materially. These include, but are not limited to risks and uncertainties discussed in the Company's most recent annual or quarterly report filed with the SEC, and risks and uncertainties relating to the proposed merger as detailed from time-to-time in Valeant's and Biovail Corporation's filings with the SEC, and in Biovail's case the Canadian Securities Administrators.

In addition to supplement the consolidated financial results prepared in accordance with Generally Accepted Accounting Principals, the Company uses non-GAAP financial measures that exclude certain items. These non-GAAP items include financial measures such as adjusted cash EPS, product sales growth and adjusted cash flow from operations. Reconciliations of GAAP to non-GAAP measures can be found in the tables to our second quarter financial press release, which was issued earlier today, and can be found on our website at

Please also note the additional information we've included regarding our proposed merger with Biovail and where investors can find important information about the proposed transaction.

With that, I will turn the call over to Mike Pearson.

J. Michael Pearson - Chairman and CEO: Thank you, Laurie. Good morning everyone, and thank you for joining us. On today's call, I would like to first discuss our second quarter results and the outlook for the rest of the year. Second, update you on our progress against our six strategic initiatives for 2010. Third, I'll have Rajiv discuss Valeant's operations. Fourth, have Peter give some more details around our financial performance. Finally, at the end, I would like to briefly discuss our integration planning process with the merger with Biovail.

On slide three. Our businesses again delivered another solid quarter on both the top line and the bottom line. Each of our businesses delivered double-digit growth and contributed to our overall product sales growth of 32% for the quarter and 33% for the year-to-date. Our cash EPS also grew 33% on an annual basis and we're raising our earnings guidance for the year to $2.80 to $3.05 cash EPS.

Read our Earnings Call Transcript disclaimer.
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