Valeant Pharmaceuticals International, Inc. (NYSE:VRX) Q4 2017 Earnings Conference Call - Final Transcript

Feb 28, 2018 • 08:00 am ET


Valeant Pharmaceuticals International, Inc. (NYSE:VRX) Q4 2017 Earnings Conference Call - Final Transcript


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Good morning. My name is Amy, and I will be your conference operator today. At this time, I would like to welcome everyone to the Valeant's Fourth Quarter and Full Year 2017 Earnings 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.

(Operator Instructions)

Thank you.

Art Shannon, SVP of Investor Relations and Global Communications, you may begin your conference.

Arthur Shannon

Thank you, Amy. Good morning, everyone, and welcome to Valeant Pharmaceuticals' fourth quarter and full year 2017 financial results conference call. Participating on today's call are Chairman and Chief Executive Officer, Mr. Joe Papa, and Chief Financial Officer, Mr. Paul Herendeen.

In addition to this live webcast, a copy of today's slide presentation and a replay of this conference call will be available on our website under the Investor Relations section.

Before we begin, we would like to remind you that our presentation today contains forward-looking information. We would ask that you take a moment to read the forward-looking statement legend at the beginning of our presentation, as it contains important information.

This presentation contains non-GAAP financial measures. For more information about these measures, please refer to Slide 2 of the presentation. Non-GAAP reconciliations can be found in the appendix to the presentation posted on our website.

Finally, the financial guidance in this presentation is effective as of today only. It is our policy generally to not update guidance until the following quarter and not to update or affirm guidance other than through broadly disseminated public disclosure.

With that, it is my pleasure to turn the call over to Joe.

Joseph C. Papa

Thanks, Art. Let's start with the topics for today's call. First, I will run through the fourth quarter and full year highlights and briefly review the key achievements of our businesses. I'll then turn the call over to our CFO, Paul Herendeen, to review about the fourth quarter and full year financial results and provide our guidance for 2018. Finally, I will wrap up with the 2018 catalysts before opening the line for questions.

Beginning on Slide 4, approximately 21 months ago, we established a multi-year plan for Valeant's turnaround. After working to stabilize the Company, we are now well into the second phase of the plan of the turnaround, where we're taking steps to drive shareholder value. Our three main areas of focus are resolving legacy issues and derisking the balance sheet, investing in core franchises with attractive growth, and launching new products with meaningful opportunities. We've built a world-class organization and we are confident that we can continue to successfully execute on these initiatives.

Moving now to Slide 5. We've provided an overview of what we have accomplished in 2017. It's been a very busy and productive year. Bausch + Lomb/International, which represents more than half of our 2017 revenues, grew organically in the mid-single-digits during each of the four quarters of 2017. Our Salix business is also growing nicely. That business generated mid-single-digit or