Fourth Quarter and Year End 2011 Financial Results Conference Call

February 27, 2012

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Forward-looking StatementsForward-looking StatementsCertain statements made in this presentation may constitute forward-looking statements, including, but not limited to, statements regarding guidance with respect to integration-related activities, product candidates in development, timing of product launches and expected benefits from acquisitions by the Company. 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 InformationTo 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.

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Agenda

1. Fourth Quarter & Year End Results

2. U.S. Dermatology Update

3. Financial Update

3

Fourth Quarter 2011 Results

Total Revenue = $688 million34% revenue growth over 2010

Product sales = $654 million34% product sales growth over 201010% organic product sales growth over 2010

Cash EPS = $0.9488% Cash EPS growth over 2010

Adjusted Cash Flow from Operations = $253 million 22% adjusted cash flow from operations growth over 2010Excluding changes in working capital - adjusted cash flow from operations grew at >50% over 2010

4

2011 Financial Summary

$0.62

$0.73

$0.54 $0.57

$0.94

$0.66

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Reported Cash EPS Adjusted Cash EPS

Total 2011 Revenue = $2.46 BillionTotal Cash EPS = $2.93

* Adjusted for Cloderm divestiture (Q1 2011) and Trobalt milestone (Q2 2011)

$529$569$565

$609 $601$688

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Reported Product Sales Adjusted Product Sales

5

Strong Organic Growth39%

-4%

14%

3%

7%10%

Organic Growth

32%

-5%

13% 13%10% 9%

Organic Growth

Fourth Quarter 2011 Full Year 2011

Branded Generics - LA

Canada/Australia

U.S Neurology & Other

U.S Dermatology

Total Organic Growth

Branded Generics - EU

6

Adjusted Cash Flow From Operations

$253

$208

$260

$204

1st Qtr 2nd Qtr* 3rd Qtr 4th Qtr

Excluded Items:

Total 2011 Adjusted Cash Flow from Operations = $925 Million

* Includes $40 M Milestone payment from GSK

• Legal Settlements• Restructuring/Acquisition

Related Costs• Working Capital Changes• Tax Benefit from Stock Options• Effect of ASC 470-20

7

2011 Performance v. Guidance

Original Expectations

Revenue $2.1-$2.3 billion

Organic Growth ~8%

Cash EPS $2.25 - $2.50

>$800 million in Adjusted Cash Flow from Operations

Final Results

Revenue $2.46 billion

Organic Growth 9%

Cash EPS $2.93

$925 million in Adjusted Cash Flow from Operations

8

Deal Update

Completed in Q4 2011OrthoDermikAfexaiNova

Announced YTD 2012ProbioticaEyeTech

9

Progress on 2012 Synergy ProgramRun rate

expected by mid-year

Run RateYTD

$200 million

$135 million

U.S. Dermatology Update

Rajiv De Silva

11

U.S. Dermatology Integration StatusCompleted Ongoing

Sales and MarketingSales force optimization/restructuringMarketing combinationA&P rationalization

R&DProgram rationalizationPeople reduction

Supply Chain / ManufacturingSupply agreementsLong-term tech transfers

FinanceOrder to cash

Information TechnologyCommercialManufacturing plant

12

Maintaining Growth During Acquisitions in U.S. Dermatology

2011 vs. 2010 Volume Growth

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

54%

25%29%

27%

0%

10%

20%

30%

40%

50%

60%

70%

Acanya Atralin Zovirax* CeraVe**

* Zovirax volume in TRx grams; **Cerave Scan Volume growth

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Acanya and Atralin Showing Sustained Prescription Volume Growth

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

Q12009

Q22009

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

AcanyaAtralin

Source: Wolters-Kluwer; Data for all prescribers

Revamping of Co-Pay Cards

14

Promotional Efforts Turning the ElidelGrowth Curve

-7%

-14%

-16%

-20%

-15%

-10%

-5%

0%

FY 2011

Q4 2011

Jan-12

Elidel YOY TRx Growth All Prescribers

Source: Wolters Kluwer Health

Elidel YOY TRx Growth Dermatologists

9%

-2%

-7%-10%

-5%

0%

5%

10%

15%FY 2011

Q4 2011

Jan-12

15

Zovirax Franchise Rejuvenated Through New Strategy

Source: Wolters-Kluwer; Data for all prescribers

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011

TR

x G

ram

s vs

. Pri

or

year

% G

row

th

-1%

12%

43%

47%

16

70%

Driving CeraVe Growth Through New Product Introduction

HydratingCleanser

Lotion Cream Facial PM Lotion AM FoamingCleanser

+26% +27% +34%

+101%

+361%+332%

Original SKUs Newer SKUsProportion of Business 30%

Source: IRI Scan data; Retailer data

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U.S. Dermatology Pipeline Update

New Products

LifecycleManagement

Generics

# of Projects

4

~15

3

~20+

Onychomycosis (IDP-108)Psoriasis (IDP-118)Acne (IDP-107 / MC5)

AcanyaRAMSculptra

Key Projects

Undisclosed

Financial Update

Howard Schiller

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Financial Summary

* Excludes fair value step-up adjustment to inventory and other non-GAAP items** Q410 & Q411 includes the impact of working capital changes of $22 million and $62 million respectively

Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 2011

Product Sales $489m $500m $530m $570m $654m $2,255mTotal Revenue $515m $565m $609m $601m $688m $2,463m

Cost of Goods Sold %* 31% 24% 29% 28% 25% 27%SG&A % 22% 21% 22% 21% 21% 21%R&D Expense $18m $14m $18m $18m $17m $66m

Operating Margin (excluding amortization) 45% 50% 53% 50% 57% 51%

Cash EPS $0.50 $0.62 $0.73 $0.66 $0.94 $2.93

Adjusted Cash Flow from Operations $187m** $204m $260m $208m $253m** $925m

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Segment Trends

Q4 10 Q4 11 FY 11 FY 12 e

U.S. Dermatology 103.9 174.2 568.3 900-925U.S. Neurology & Other 213.0 202.8 829.3 675-750Canada/Australia 80.5 101.3 340.1 550-625Branded Generics Latin America 69.0 65.8 254.9 >275Branded Generics Europe 48.3 144.4 470.9 >625South East Asia/South Africa N/A N/A N/A ~100Emerging Markets N/A N/A N/A >1.0 B

Total Revenue 514.6$ 688.5$ 2,463.5$ $3.1 - $3.4 b

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Price vs. Volume Trend

4QPrice

4QVolume

4QTotal

2011Price

39% -1%

8%

2%

1%

0%

-3%

14%

3%

%

2011Volume

33%

-12%

11%

12%

10%

U.S. Neuro

8% -11% -4%

Branded Generics – Europe

0% 7% 10%

Canada/ Australia

2%

2011Total

U.S. Derm

-6% 45%

12%

32%

Branded Generics - LA

2% 1%

13%

13%

22

COGS Trend

Q4 10 Q4 11 FY 11

U.S. Neuro & Other 24% 17% 17%U.S. Dermatology 35% 11% 15%Canada/Australia 28% 23% 28%Branded Generics - Europe 38% 47% 48%Branded Generics - Latin America 42% 37% 39%

Total 31% 25% 27%

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2011 Adjusted Cash Flow from Operations

$166$59

$2,876

$2,653

$68 $164$394

$925

$639

Current cash (2/24) position ~$570 m

+ $275 m undrawnrevolver

Cash December

2010

SecuritiesRepurchases

Acquisitions Cap Ex

Restructuring/Integration/

Legal Settlements

Other* Cash December

2011

IssuanceLT Debt

Adjusted CashFlow

from Operations

* Includes 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

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Currency Impact

Currency

2010 vs

20112012 YTD

PolandSerbiaHungaryRussia

AustraliaCanada

MexicoBrazil

South Africa

-16%-4%-17%-5%

--2%

-13%-13%

-22%

10%1%9%9%

4%2%

7%9%

6%

- Foreign currency per 1 U.S. Dollar

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Additional UpdatesNew Segment Reporting

U.S. DermU.S. Neuro & OtherCanada/AustraliaEmerging Markets

Number of Shares Outstanding317 million diluted shares as of December 31, 2011

Decreased by 12 million shares from December 31, 2010

Strong LiquidityCurrent cash position of ~$570 million $275 million undrawn revolver

Recent Financing$600 million senior secured Tranche B Term Loan

LIBOR + 2.75% with 1% LIBOR floor

Fourth Quarter and Year End 2011 Financial Results Conference Call

February 27, 2012