Valeant issues statement to shareholders of Cephalon

Apr 22 2011

Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) today issued the following statement to shareholders of Cephalon, Inc. (NASDAQ: CEPH):

In a letter to its shareholders today, the Cephalon Board of Directors stated that it "is presently undertaking a review of all of the Company's alternatives and options – and is focused on maximizing Cephalon shareholder value."  We know for certain that Cephalon has not engaged with Valeant despite what we believe to be a compelling all-cash $73 per share offer, even though we have repeatedly stated that our offer price could increase if Cephalon engaged with us and permitted us to conduct due diligence.  As it has been over a month since we presented our offer to Cephalon, we believe the Cephalon shareholders deserve answers to the following questions:

• Exactly which "alternatives and options," beyond the continuation of Cephalon's current risky standalone plan, are being reviewed by the Cephalon Board of Directors, and what is the timeframe for that review?
• Does its review include a potential sale of Cephalon? If so, why hasn't the Cephalon Board of Directors engaged with Valeant?
• How can the Cephalon Board of Directors truly be undertaking a review of all "alternatives and options," with a focus "on maximizing Cephalon shareholder value," without engaging with Valeant to determine exactly how much Valeant may be willing to offer following due diligence?
• Why does the Cephalon Board of Directors insist on continuing to stand between Valeant's all-cash offer and the owners of Cephalon?

SOURCE Valeant Pharmaceuticals International, Inc.