Valeant Pharmaceuticals Files Presentation for Cephalon Stockholders

April 19, 2011

Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) today filed with the Securities and Exchange Commission a presentation in connection with its written consent solicitation to stockholders of Cephalon, Inc. (NASDAQ: CEPH) for removal of Cephalon's current Board of Directors and election of its seven nominees in their place.

Valeant compares its $73.00 per share all-cash offer, which woulddeliver immediate and certain value to Cephalon stockholders, to the uncertainty of Cephalon's standalone plan, which relies on the successful commercialization of a risky pipeline portfolio. Valeant reaffirms its position that it would be willing to increase its offer price modestly if Cephalon's Board of Directors would allow Valeant to conduct due diligence and the results of such due diligence support a higher offer. However, given Cephalon's rejection of Valeant's offer and refusal to engage in discussions, completing a transaction may only be possible following the written consent solicitation with a new Board of Directors in place.

Valeant is concerned that Cephalon's stockholders are not receiving a balanced message from the current Cephalon Board of Directors regarding the company's status or Valeant's offer.

* Cephalon's pipeline is risky and represents uncertain value. Cephalon has not developed a major novel product through actual launch since the U.S. launch of Provigil in 1998, which had already been launched in France by another company in 1994. All of Cephalon's other large drugs, including Actiq, Treanda, Nuvigil, Fentora and Amrix, were all either already marketed or based off of marketed products. The current strategy of developing untested biotech products departs dramatically from Cephalon's historical focus of marketing products other companies have primarily developed and taken through the regulatory process.
* Cephalon is not a high-growth biotechnology company. Provigil, which accounted for approximately 41% of its net sales in fiscal year 2010, will face generic competition next year. Based on IBES consensus equity research estimates, from 2011-2013, Cephalon's revenues and EPS are expected to fall by 20% and 42%, respectively.
* Cephalon's share price performance prior to Valeant's offer reflected its declining fundamental value. Repeated pipeline failures and an inability to fill the impending loss of Provigil have negatively impacted Cephalon's valuation. In fact, Cephalon's 52-week high was following rumors of a sale process and dropped off sharply after Cephalon was unable to attain approval for Nuvigil for the treatment of jet lag. Concern over Cephalon's business model was demonstrated by 68% of Wall Street analysts having ratings equivalent to "sell" or "hold" prior to Valeant's offer.
* Valeant's offer represents a full and fair premium. Valeant's $73 per share all cash offer represents a 29% premium to Cephalon's 30-day trading average at announcement. The median premium to 30-day trading averages in all U.S. acquisitions since 2006 was 25%, and 60% of those acquisitions were completed at a premium of less than 30% to 30-day trading averages. In addition, Valeant's offer already accounts for the substantial value leakage due to change of control costs for Cephalon's convertible debt and call spread.

Timing is critical to Valeant. Wall Street analysts project Cephalon's earnings to decline by more than 40% after Provigil loses patent protection in 2012. Cephalon's value to Valeant erodes each day Valeant is delayed in implementing its business strategy as Provigil's patent expiration approaches.

Cephalon's Board has presided over a loss of value for its stockholders over the last five years and Valeant believes Cephalon's current Board's incentives are not aligned with stockholders. Over the past 5 years, Cephalon's share price has declined by a compound annual growth rate of -0.5%. The decline was even more rapid in the year leading up to Valeant's' offer, with the share price declining 19%.(1) Additionally, Valeant believes the current Board's interests are not fully aligned with shareholders as the Board and management own only 0.25% of basic shares outstanding, and 4 of 9 Board members hold no common shares of Cephalon at all.

We ask that stockholders vote for the new Board slate in the consent solicitation. The proposed Board slate is comprised of highly qualified and well-respected professionals that have the right experience, skills, and qualifications to effectively govern Cephalon at this critical juncture:

* In-depth understanding of the pharmaceutical business model and pipeline valuation through executive positions and directorships at leading companies, such as GlaxoSmithKline, Quintiles, Meda and Valeant
* Experience in transformative acquisitions, including Novartis / Alcon, OSI / Astellas, Valeant / Biovail and Glaxo Wellcome / SmithKline Beecham
* Exceptional corporate governance record, including one winner of the National Association of Corporate Directors Lifetime Achievement Award and another former Director of the Year of the National Association for Corporate Directors

Valeant believes this vote is a referendum on whether stockholders want to pursue Valeant's offer and as such we expect the new Board will enter into negotiations and/or remove the poison pill to facilitate a tender in which the stockholders can make a decision for themselves.

"We remain committed to the consent solicitation process we have outlined," said J. Michael Pearson, chairman and chief executive officer. "Cephalon's stockholders own the company and should decide whether they prefer to engage in discussions for our $73 cash offer or continue with the risks and uncertainties associated with Cephalon's research-dependent standalone strategy. We believe the choice is clear and if stockholders agree with us, we will move forward as quickly as possible. If not, we will move on."

Valeant expects to mail its consent solicitation materials to Cephalon stockholders during the week of April 18, 2011 and has set a May 12, 2011 deadline for delivery of consents.

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