Bausch Health Companies Inc (BHC)

[mlkrborn]

10:09 am VRX Discusses Integration Plans (VRX)

Inside this morning's 8-K, Valeant Pharmaceuticals' (VRX 62.05 +2.07) Chairman and Chief Executive Officer, sent an email communication to employees of Valeant and Biovail (BVF) updating the companies on integration progress. It discloses

The company said, "In terms of integration planning, we are largely finished. The new strategy is agreed, the organizational design is largely done, and the synergy targets, both in terms of dollars and timing, have been significantly exceeded. Over $300 million of cost synergies have been identified and we expect to realize well north of $200 million in 2011. The rest will be captured in 2012."

The company also said, "As suggested in my earlier communication, we are planning to reduce headcount by approximately 25% across the U.S. and Canadian business of the combined company. In addition, our combined cash tax rate by the end of 2012 is expected to be approximately 15%. The new Valeant will employ a decentralized organizational model. We will create ten operating units ? U.S. Dermatology ? Rx, U.S. Dermatology ? OTC, U.S. Neurology / Other, U.S. Ophthalmology, Barbados, Canada, Mexico, Brazil, Europe, and Australia/New Zealand. Corporate targets for each, and what I expect from each of our units, are: 1. Constant currency growth >20%. 2. Organic growth >10%. 3. EBIT margin >35%. 4. Cash flow from operations ? Annual target. While not all units will exceed each metric every year, we expect the portfolio of businesses to deliver in aggregate."