First Quarter 2012

Financial Results

Conference Call

May 3, 2012

1

Forward-looking Statements Forward-looking Statements

Certain statements made in this presentation may constitute forward-looking statements, including, but not limited to, statements regarding the closing of pending transactions, expected revenue and synergies, product approvals and launches and financial guidance for 2012. Forward-looking statements may be identified by the use of the words “anticipates,” “expects,” “intends,” “plans,” “could,” “should,” “would,” “may,” “will,” “believes,” “estimates,” “potential,” 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 or quarterly report filed with the Securities and Exchange Commission ("SEC") and other risks and uncertainties detailed from time to time in the Company's filings with the SEC and the Canadian Securities Administrators ("CSA"), which factors are incorporated herein by reference. Readers are cautioned not to place undue reliance on any of these forward-looking statements. The Company 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.

Non-GAAP Information To supplement the financial measures prepared in accordance with generally accepted accounting principles (GAAP), the Company uses non-GAAP financial measures that exclude certain items, such as amortization of inventory step-up, stock-based compensation step-up, restructuring and acquisition-related costsTBD, acquired in-process research and development ("IPR&D"), legal settlements, amortization and other non-cash charges, amortization of deferred financing costs, debt discounts and ASC 470-20 (FSP APB 14-1) interest, loss on extinguishment of debt, and (gain) loss on investments, net, and adjusts tax expense to cash taxes. Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. By disclosing non-GAAP financial measures, management intends to provide investors with a meaningful, consistent comparison of the company’s core operating results and trends for the periods presented. Non-GAAP financial measures are not prepared in accordance with GAAP; 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.

Note 1: The guidance in this presentation is only effective as of the date given,

May 3, 2012, and will not be updated or affirmed unless and until the Company

publicly announces updated or affirmed guidance.

2

Agenda

1. First Quarter Results

2. Emerging Market Overview

3. Specialty Pharmaceuticals Update

4. Finance Update

5. 2012 Guidance Update

3

Strong 1Q Earnings and Cash

Generation Performance

Q1 2011*

Q1 2012*

Q1 2012

vs

2011

Product Sales $500 M $768 M 54%

Cash EPS $0.56 $0.99 77%

Adjusted Cash Flow $204 M $255 M 25%

*First quarter 2011 excludes $36 M from the out-license of Cloderm and first quarter of 2012 excludes $66 M from divestiture of

IDP-111 and generic Efudex

4

Strong Organic Growth

Organic Growth

24%

-10%

22%

12%

First Quarter 2012

Emerging

Markets Canada/

Australia

U.S Neurology

& Other U.S

Dermatology

Total Company

Organic Growth

11%

5

Deal Update Announced YTD 2012

Probiotica (Brazil) – Closed

EyeTech (U.S.) – Closed

Pele Nova (Brazil) – Closed

Pedinol (U.S.) – Closed

Natur Produkt (Russia) – (Expected to Close mid-year)

Gerot Lannach (Russia) – Closed

Atlantis (Mexico) – (Expected to Close 2Q12)

AcneFree (U.S.) – (Expected to Close mid-year)

Other transactions

Divested Bioskin

Acquired assets - Ortho Dermatologics – Canada

Acquired assets – Ortho Dermatologics - Brazil

Total Purchase Price = ~$600 million

Expected 2012 Revenue Run Rate = ~$280 million

Sales Multiple Paid = ~2.1 X

6

Progress on 2012 Synergy Program

Run rate

expected by

mid-year Run Rate May 3, 2012 $200 million

$165 million

Run Rate Feb 23, 2012

$135 million

Run rate

expected by

Year-end

$230+ million*

* Includes acquisitions announced and closed in 2012

7

Emerging Markets

Total Run Rate (After deals closed)

Brazil

Mexico

Latin America

All Other

Serbia

Russia

Central/Eastern Europe

Poland

South Africa

Thailand

Malaysia

Philippines

South East Asia/South Africa

Export

Asia - Other

Additional Updates:

Europe – 76 new launches year-to-date

Brazil – Regederm launched in April

>$1.2 billion

~$350M

~$100M ~$750M

Specialty

Pharmaceuticals

Update

9

US Neurology Performance

Q1 2012 Net Sales Q1 2012 vs. Q1 2011

Wellbutrin XL

Cardizem CD

Ultram ER

Core

Neuro & Other

Total

All Other

Wellbutrin XL

Cardizem CD

Ultram ER

Total

$48M

$135M

$183M

6%

(10)%

(37)%

10

Strong Continued Performance on Key

Dermatology Growth Assets

2012 vs. 2011 Volume Growth (MAT)

Source: Wolters Kluwer Health; IRI Scan data; Retailer data

37%38%

28%

12%

0%

10%

20%

30%

40%

50%

60%

70%

Acanya* Atralin Zovirax** CeraVe***

*Acanya impacted by unusually high March 2011 TRx volume

**Zovirax volume in TRx grams

***CeraVe scan volume growth

11

Strong Dermatology Brand Performance

Despite Weak Market Growth in March

Source: Wolters Kluwer Health

Market

Growth 2012 vs. 2011

Q1 2012 March 2012

Topical Calcineurin Inhibitors

(Derm only) – e.g., Elidel 6.9% (0.2%)

Fixed Dose Acne Combo

(BPO / Clindamycin) – e.g.,

Acanya

(4.5%) (10.6%)

Tretinoins – e.g., Atralin 5.6% (3.9%)

Anti-Viral – e.g., Zovirax 3.9% (0.4%)

12

Other Portfolio Updates

Canada

Product Launches

Lodalis; Sublinox

Generic competition for Cesamet

U.S. Neuro & Other

Potiga U.S. launch

U.S. Dermatology

IDP-108 Update

Financial Update

Howard Schiller

14

Financial Summary Q1 2011* Q2 2011 Q3 2011 Q4 2011 Q1 2012*

Product Sales $500M $530M $570M $654M $790M

Total Revenue $565M $609M $601M $688M $856M

Cost of Goods Sold% 27% 29% 28% 25% 26%

SGA% 21% 22% 21% 21% 19%

R&D Expense $14M $18M $18M $17M $22M

Operating Margin 50% 53% 50% 57% 55%

(excluding amortization)

Cash EPS $0.62 $0.73 $0.66 $0.94 $1.14

Adjusted Cash Flow from

Operations $204M $260M $208M $253M $322M

Fully Diluted Share

Count 333 M 331 M 323 M 317 M 316 M

* Includes out-licensce of Cloderm in Q1’11 and divestiture of dermatology products in Q2’12

15

Revenue by Segment Q1 2012 vs Q1 2011

38%

27%

12%

23%

Neuro

Derm

Canada / Australia

Emerging Markets

U.S. ~52% U.S. ~65%

Q1 2011 Q1 2012

24%

28%17%

31%

16

Cost of Goods Sold (COGS)*

Sequential increase due to:

Increased Canada contract

manufacturing

Product Mix (U.S. & Europe)

Unfavorable Exchange Rates

(Europe)

Delayed plant consolidations

* COGS based on product sales only

Q4’11 Q1’12

U.S. Neuro 17% 18%

U.S. Derm 11% 10%

Can/Aus 23% 26%

Emerg Mkts 42% 47%

Total COGS 25% 26%

17

Q1’12 Cash Flow

$164

$322

$350 $113

$302

$11 $87$8 $330

Cash

December

2011

Securities

Repurchases Acquisitions Cap

Ex

Restructuring/

Integration/

Legal

Settlements

Other2 Cash

March

2012

Net Issuance

LT Debt

Adjusted

CashFlow

from

Operations1

2Includes payment of withholding tax upon vesting of share based awards, one-time working capital adjustments, proceeds from the

exercise of stock options and other miscellaneous cash outflows

1Includes impact of divestiture of IDP-111 and 5FU

18

Financial Updates

FX Impact

Resulted in a ~$20 million reduction to revenue

Working Capital Improvement

Improved from 35% of LTM revenue in Q4 11 to 30% of LTM revenue in Q1 12

Inventory increased vs Q4 due to stock build related to tech transfers (Brazil,

U.S.)

Securities Repurchase Program

Repurchased over 2 million common shares for an aggregate purchase

price of $108.7 million

316 million fully diluted share count as of March 31, 2012

Currency Poland Serbia Hungary Russia Australia Canada Mexico Brazil South

Africa

Q1’11

vs

Q1’12

-11%

-8%

-12%

-3%

5%

-2%

-7%

-6%

-10%

2012 Guidance

J. Michael Pearson

20

Annual Financial Guidance for 2012

Previous Guidance

Revenue $3.1 - $3.4

billion

$3.95 - $4.20 Adjusted

Cash EPS

> $1.2 billion in

Adjusted Cash Flow

from Operations

As of May 3, 2012

Revenue > $3.4 - 3.6 billion

$4.45 - $4.70 Adjusted Cash

EPS

> $1.4 billion in Adjusted

Cash Flow from Operations

See Note 1 regarding guidance

First Quarter 2012

Financial Results

Conference Call

May 3, 2012