The New Valeant: Delivering on Our Commitments J.P

The New Valeant: Delivering on Our Commitments J.P. Morgan Healthcare Conference

January 10, 2017 Forward-Looking Statements

Certain statements made in this presentation may constitute forward-looking statements, including, but not limited to, statements regarding expected future performance of Valeant Pharmaceuticals International, Inc. (“Valeant” or the “Company”), including statements reiterating guidance, the anticipated growth of and plans for the Company’s operating and reportable segments, the anticipated timing of the closing of certain of the Company’s recent divestitures and the anticipated use of proceeds from such divestitures, the anticipated receipt of clinical data for certain of our pipeline products and the expected timing of such data, the anticipated steps and phases for certain of our R&D projects and the expected timing of such steps and phases, the anticipated submission, approval and launch dates for certain of our pipeline products and R&D programs, the expected timing of the loss of exclusivity of certain of our products and the estimated impact of such loss of exclusivity, anticipated debt reduction and repayment (including our ability to pay down debt and the availability of cash flow and asset sales proceeds for such purpose), and the Company’s mission and the plans, goals and strategies related thereto. Forward-looking statements may generally be identified by the use of the words “anticipates,” “expects,” “intends,” “plans,” “should,” “could,” “would,” “may,” “will,” “believes,” “estimates,” “potential,” “target,” or “continue” and variations or similar expressions. 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 discussed in the Company's most recent annual and quarterly reports and detailed from time to time in Valeant’s other filings with the Securities and Exchange Commission and the Canadian Securities Administrators, which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. Valeant undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this presentation or to reflect actual outcomes, except as required by law.

2 Non-GAAP Information

To supplement the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), the Company uses certain non-GAAP financial measures including EBITDA. Management uses non-GAAP measures as key metrics in the evaluation of Company performance and the consolidated financial results. The Company believes these non-GAAP measures are useful to investors in their assessment of our operating performance and the valuation of our Company. In addition, these non-GAAP measures address questions the Company routinely receives from analysts and investors and, in order to assure that all investors have access to similar data, the Company has determined that it is appropriate to make this data available to all investors. However, non-GAAP financial measures are not prepared in accordance with GAAP, as they exclude certain items as described herein. 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.

3 We Have Stabilized - Reiterating 2016 Guidance

OUR MISSION To Improve People’s Lives With Our Healthcare Products

STABILIZE TURNAROUND TRANSFORM 2016 2017-2018 2018+

Focus on specialty driven markets w/above average growth rates Paid down debt Lead in our categories Attracted new talent Invest in pipeline/quality/product launches New Product Approvals Launch new products Derm Recovery Strengthen balance sheet Salix Growth Reallocate spending on high ROI Balance organic and inorganic growth Launched new segments programs Improve gross profit

4 Address legacy Issues Significant Progress in 2016 / Delivering on Commitments

Streamlined Portfolio – Divested (or agreed to divest) 3 Skincare Brands, Dendreon, Delta (Brazil), Vietnam/Indonesia, Brodalumab EU Rights, Ruconest, OEM Business, Other Built New Leadership Team

Launched New Prior Authorization Program for Dermatology/Dermatology Rx Recovery

Continued Consistent Growth in Consumer Business

Partnered with Wilson’s Disease Association

Initiated Xifaxan New Formulation Activities/PCP Strategy

Stabilized Salesforce

Launched Relistor® Oral Tablets

Won 18-0 Vote from Brodalumab FDA Advisory Committee

Licensed Novel Bowel Cleansing Product Candidate

Introduced PreserVision® AREDS 2 Formula + Multivitamin

Launched Bausch + Lomb ULTRA® for Presbyopia contact lenses

Reduced Permanent Debt – Paid down ~$1.84B in full year 2016; $294M in Q4 (exceeded $1.7B commitment for 2016) 5 Delivering on Commitments: Divestitures

• Upon completion of the transactions announced today, we will have generated asset sale proceeds of ~$2.35B (upfront) and future milestones of ~$0.35B, or total potential proceeds of $2.7B

• We have simplified our operating model by divesting or agreeing to divest:

 CeraVe, AcneFree & AMBI  Delta (Brazil)  Dendreon  Euvipharm (Vietnam)  Synergetics OEM  Armoxindo (Indonesia)  Ruconest  Paragon  Brodalumab EU Rights  Cosmederme (Canada)

6 Delivering on Commitments: Divestitures

• Announced sale of CeraVe, AcneFree and DIVESTITURE AMBI skincare brands to L’Oreal for $1.3B in cash • Reshaping consumer product portfolio in STRATEGIC RATIONALE response to compelling in-bound interest from global beauty company

• Substantial return on investment PURCHASE PRICE • +20x annualized earnings contribution to VRX

TIMING • Expected to close in Q1 2017

USE OF PROCEEDS • Pay down term loan debt

7 Delivering on Commitments: Divestitures

• Announced sale of Dendreon to Sanpower DIVESTITURE Group for $819.9M in cash

• Exiting non-core oncology business in U.S. STRATEGIC RATIONALE Diversified Products segment

• Premium to purchase price in February 2015 PURCHASE PRICE • ~7x multiple of EBITDA

TIMING • Expected to close in Q2 2017

USE OF PROCEEDS • Pay down term loan debt

8 Delivering on Commitments: New Leadership Team

New Leadership Hires

Paul Herendeen Christina Ackermann Bill Humphries Executive Vice President, Finance Executive Vice President Executive Vice President, Chief Financial Officer General Counsel Dermatology

Scott Hirsch Louis Yu Sam Eldessouky Senior Vice President, Business Chief Quality Officer Senior Vice President Strategy Corporate Controller

Expanded Roles

Tom Appio Tracy Valorie Dennis Asharin Mark McKenna Senior Vice President, Executive Vice Senior Vice President Senior Vice President, Manufacturing and Supply President/President, Int’l Bausch + Lomb GI Chain Joe Gordon Barb Purcell Kelly Webber Chuck Hess Senior Vice President/General Senior Vice President Senior Vice President, GM, Surgical Manager, Neurology, Bausch + Lomb Generics and Obagi Human Resources

+ Primary Care Sales Force Expansion

9 Delivering on Commitments: Stabilized Valeant Sales Force

Quarterly Sales Force Retention

94.0% 93.6%

91.1%

89.2%

1Q 2016 2Q 2016 3Q 2016 4Q 2016 Delivering on Commitments: Strengthened Balance Sheet

Commitment Result

• Repay $1.7B permanent debt in 2016  Achieved $1.84B • Complete all 2017 scheduled amortization Achieved payments by year-end • Evaluate/complete asset sales within 6 months Achieved/Continuing

We continue to expect free cash flow and non-core asset sales to reduce debt by more than $5B within 18 months from Aug. 9th 2016

11 Delivering on Commitments: Grew GI/Salix Business

• Promoted brands in the portfolio grew +10% YoY with 4% growth from H1 to H2 2016 • Successfully stabilized sales force in H2 compared to H1 with 45% reduction in voluntary turnover • Initiated primary care salesforce expansion in Q4 • Xifaxan continues to drive performance of Salix business with projected +17% Y/Y growth and 4% growth in H2 v. H1

GI Promoted Brands TRx Growth

2014 2015 2016

1,331,032 +10%

1,207,401

+16%

1,041,332

Annual TRx Creating the “New Valeant”

OUR MISSION To Improve People’s Lives With Our Healthcare Products

STABILIZE TURNAROUND TRANSFORM 2016 2017-2018 2018+

Focus on specialty driven markets Paid down debt w/above average growth rates Lead in our categories Attracted new talent Invest in pipeline/quality/product New Product Approvals launches Launch new products Derm Recovery Strengthen balance sheet Balance organic and Salix Growth Reallocate spending on high ROI inorganic growth Launched new segments programs

Improve gross profit

13 Address legacy Issues Invest in R&D/Quality/New Product Launches

R&D PROGRAM HIGHLIGHTS % of R&D Launch Timeframe Programs 43 R&D Facilities 2017-2019 ~80% 2020-beyond ~20% # R&D/Quality 1,000+ Employees

Derm, Y/Y Increase in Other, 20 38% R&D Spending 23 GI, 16 Total Company active R&D projects ~135 B+L, 76 Expected new product launches 50+ in 2017

14 R&D Catalysts in 2017

• SAN-300 (Rheumatoid Arthritis) Phase II data read out H1 • enVista® Trifocal (Intraocular Lens) Initiate IDE study in H1 • New Material (Ophthalmic Viscosurgical Device); Initiate IDE in H1 • Loteprednol Gel 0.38% (Ocular Inflammation) Complete Phase III enrollment • IDP-120 (Acne) Initiate Phase III in H2 LATE PHASE • IDP-123 (Psoriasis) Initiate Phase III in H2 • New Xifaxan® Formulation (New Indication) Initiate Phase III in H2 • IDP-126 (Acne Combination) Initiate Phase I in H2 • Teneo (Excimer laser); Initiate IDE study in H2

• Bausch + Lomb ULTRA® Extended Wear Indication – H1 • Luminesse (Eye Brightener) – H1 • SUBMISSIONS IDP-118 (Psoriasis) – H2 • IDP-121 (Acne Lotion) – H2 • IDP-122 (Psoriasis) – H2

• Stellaris Elite™ – H1 • Next Generation Thermage – H1 • Vitesse – H1 LAUNCHES • Brodalumab for Psoriasis – H2 • Latanoprostene Bunod (Vyzulta™*) for reduction of IOP in ocular hypertension or glaucoma – H2 15 *Provisionally • Bausch + Lomb ULTRA® and Biotrue® ONEday toric lenses approved name

Brodalumab: PDUFA Date - February 16, 2017

• Biologic for treatment of severe psoriasis • Total Psoriasis Market: ~$10B • 2Q17 Anticipated Launch1 • Mechanism of Action: works closer to receptor (blocker) than other biologics • Suicidal Ideation Labeling PASI 100 (NRI): Brodalumab 210 Q2W Superior to Ustekinumab

IL-17 Receptor Blocker

1 Subject to US FDA regulatory approval

16 IDP-118: First Half of 2017 Filing Opportunity

• Potential Indication: moderate to severe plaque psoriasis in adults • Unique Topical Combination - 1st corticosteroid-retinoid combination for psoriasis • Studied in over 1900 subjects in a comprehensive clinical program comprising 11 studies – This combination with its dual mechanism of action will potentially allow for expanded use of these well-known active ingredients - use for longer than all approved potent and super potent steroids and with considerably reduced irritation due to our novel formulation. • Two Positive Phase 3 Trials, Long Term Safety Trial near completion • Patient Population: Adults with moderate to severe plaque psoriasis • Treatment duration: 8 weeks ; primary endpoint of Investigator Global Assessment (IGA) of Clear (0) to Almost Clear (1)

Phase 3 % Treatment Success (IGA of 0/1)

IDP-118 Vehicle P-value

Study 301 35.76 6.98 P < 0.001

Study 302 45.33 12.51 P < 0.001

17 Latanoprostene Bunod (Vyzulta™*): A Novel Monotherapy IOP Lowering Agent

• ~3M Americans affected by glaucoma • Latanoprostene bunod (LBN) ophthalmic solution 0.024% • 17M Prostaglandin Rx’s written annually (LBN) is a nitric oxide-donating prostaglandin analog being evaluated for the reduction of intraocular pressure (IOP) – ~70% latanoprost molecule • • Total Glaucoma Market ~$3B LBN is thought to lower IOP by increasing outflow through both the trabecular meshwork and uveoscleral pathways – Prostaglandin Market valued at $1.6B CLINICAL RESULTS • In a Phase 2b dose ranging study, LBN demonstrated greater IOP reduction compared with Xalatan (latanoprost ophthalmic solution 0.005%), with the differences reaching more than 1 mm Hg (p<0.01) for LBN.1 – In addition, 68.7% of subjects treated with LBN , compared to 47.5% of subjects treated with Xalatan (latanoprost ophthalmic solution 0.005%) achieved a mean diurnal IOP ≤18 mm Hg at the primary efficacy timepoint (p<0.05)1

• In two Phase III studies, LBN provided a mean IOP reduction of 7.5-9.1 mm Hg over three months of treatment (statistically superior to timolol between 2 and 12 weeks)2,3

• LBN was safe and well tolerated with no significant adverse events. Rates for hyperemia were comparable to latanoprost2,3

References: 1. Weinreb RN, Ong T, Scassellati Sforzolini B, et al. A randomised, controlled comparison of latanoprostene bunod and latanoprost 0.005% in the treatment of ocular hypertension and open angle glaucoma: the VOYAGER study. Br J Ophthalmol. 2015;99:738- 745. 2. Weinreb RN, Scassellati Sforzolini B, Vittitow J, Liebmann J. Latanoprostene bunod 0.024% versus Timolol maleate 0.5% in subjects with open-angle glaucoma or ocular hypertension: the APOLLO study. Ophthalmology. 2016;123(5):965-973. 3. Medeiros FA, Martin KR, Peace J, et al. Comparison of latanoprostene bunod 0.024% and Timolol Maleate 0.5% in Open-Angle Glaucoma or Ocular Hypertension: the LUNAR study. Am J Ophthalmol . 2016;168:250-259.

Symphony National IDV monthly data MAT Nov 2016 *Provisionally approved name 2017 Vision Care Product Launches

Completing the Full Family of Contact Lenses

• Soft contact lens toric for astigmatism market valued over $700M • Category growth of 5% with significant growth in daily disposable segment • Bausch + Lomb US share of segment is in low single digits presenting large opportunity for growth

BIOTRUE® ONEDAY FOR ASTIGMATISM BAUSCH + LOMB ULTRA® FOR ASTIGMATISM

19 B+L / International: Continue to Lead Growth in China 2017

EFFECTIVE CHANNEL LOCAL PORTFOLIO TO DEDICATED & STABLE MANAGEMENT TO CAPTURE DIVERSE NEEDS TEAM PROMISES & DELIVERS MAXIMIZE GROWTH

• Protect base • Channel segmentation • 30- year anniversary to • Drive global innovation • Leverage ecommerce generate excitement • Maximize Bescon • Flagship store online

20 B+L / International: Gain Momentum in Japan in 2017

LAUNCH W/ EXCELLENCE TO RE-ENTER COSMETIC LENS STRENGTHEN CUSTOMER RE-ENGAGE KOL & ECP SEGMENT WITH BESCON RELATIONSHIPS

• Aqualox • Tailor made for Japanese • Gain distribution of Biotrue • Biotrue for Astigmatism young consumers platform at Hoya (#1 volume • Biotrue MF (2nd year) chain) • Engage ecommerce customers with Soflens daily & Starry • Active management of distributors • Re-allocate sales force based on business trends

21 Valeant Consumer Healthcare 2016 Performance

Top Us Consumer Healthcare Companies1

• Biotrue is #1 multi-purpose solution brand with highest loyalty metrics 7.1% • PreserVision AREDS 2 Formula 120ct is #1 selling 6.7% vitamin item in the U.S. 5.0% • Soothe is the fastest growing OTC Dry Eye brand 4.0% 3.8%

2.0% 1.7% 0.8%

-0.5% -1.1% -1.8% -1.9% -2.4% -2.6%

VALEANT PHARMA INTL GLAXOSMITHKLINE PHARMAVITE LLC SANOFI AVENTIS US LLC JOHNSON & JOHNSON ABBOTT LABS INC CHURCH & DWIGHT CO INC PFIZER INC PRESTIGE BRANDS KAO CORP OF JAPAN PROCTER & GAMBLE RECKITT BENCKISER INC ALCON BAYER AG HOLDINGS INC

$ MM $796 $2,604 $833 $1,410 $6,224 $1,189 $1,288 $2,100 $805 $624 $14,887 $1,633 $3,313 $632

1 YTD 12-25-16. Based on IRI Definition of Manufacturers in Healthcare with >$500MM in Annual Sales. Excludes private Label.

22 Source: IRI Market Advantage – Total US MULO - Valeant Includes Costco Branded Rx: GI (Relistor)

• Since the launch of Relistor tablet, the franchise has seen a 26% growth in writers.

• Relistor tablet has averaged 11% week over week NRx growth since launch in September.

• Relistor has 84% commercial access entering 2017

• New sales force expansion New Development Opportunities??? announced to focus on potential PCP prescribers of Xifaxan for IBS-D and Relistor for OIC

23 U.S. Diversified Products

Despite potential pending losses of exclusivity in the coming years:

Potential 2016 2017 LOE Risk Products Ziana Lotemax Gel Zirgan Macugen Visudyne Deflux Glumetza Solesta Zegerid Isuprel Virazole Mephyton Nitropress Syprine Edecrin Ammonul Est. Impact on 2017 ~$800M

There are several promotable product opportunities in this portfolio, including: Diastat, Librax, Migranal and Wellbutrin.

24 Summary: Fiction v. Fact Fiction Fact

VRX has ~135 active R&D programs and is poised to “VRX doesn’t do R&D” launch 50+ new products in 2017

VRX has committed to single digit price increases in “VRX just buys companies and raises prices” US Branded Rx

VRX has hired 250+ salespeople in the US over the “Difficult to recruit and retain people at Valeant” last 6 months and recruited and installed a new leadership team

“VRX can’t generate enough cash to meet its VRX has paid down $1.84 B of permanent debt and obligations” made all scheduled 2017 amortization payments

VRX has agreed to sell Dendreon for 7x and 3 “Valeant has to sell assets at distressed prices” skincare brands for +20x earnings contribution

“Valeant relies on US prescription market pricing ~87% of all B+L/International EBITDA is alone for its earnings” independent of US prescription pricing model

25 We Have Stabilized – Beginning Turnaround

OUR MISSION To Improve People’s Lives With Our Healthcare Products

STABILIZE TURNAROUND TRANSFORM 2016 2017-2018 2018+

26 Address legacy Issues