LAVAL, Quebec—Valeant Pharmaceuticals, Inc. (NYSE/TSX: VRX) reported its total revenue for the third fiscal quarter ended Sept. 30, 2014, was $2.1 billion, up 33 percent compared to the third quarter of 2014, with the U.S. and emerging market businesses contributing strong double-digit, same-store organic growth. Total same store sales organic growth was 19 percent for the quarter, including the impact from generics, and Bausch + Lomb organic growth was 12 percent. Bausch + Lomb, which Valeant acquired last year, has been included in the company’s same-store organic growth calculations from Aug. 5, 2014, onward, according to a conference call the company had with investors on Monday, Oct. 20, 2014.

“Valeant delivered exceptional results for the third quarter and exceeded our expectations on all key metrics,” said J. Michael Pearson, chairman and chief executive officer, on the conference call with investors, “This is our second best revenue quarter ever. With our acquisition of Bausch + Lomb now annualized (Aug. 5) and the impact of generics largely behind us, the true strength of our business and operating model can be clearly seen by our financial results.”

Consumer business grew 43 percent quarter-over-quarter, driven by key consumer brands in the optical field, PreserVision, Ocuvite and BioTrue multipurpose solutions. Prescription ophthalmology revenues grew 57 percent quarter-over-quarter. The company’s core brands, Prolensa and the Lotemax franchise, continue to grow and were complemented by the strong performance of Besivance, Zylet and Zirgan. The dermatology business grew 33 percent quarter-over-quarter.

Revenues for Valeant’s contact lens business grew 82 percent quarter-over-quarter. According to third-party data, the business has expanded its U.S. market share from 7 percent to over 10 percent since last year’s acquisition of B+L. BioTrue ONEday and PureVision 2 for presbyopia continue to capture market share. The BioTrue ONEday lens continues to accelerate. For the second quarter in a row, it grew over 90 percent per year. Bausch + Lomb Ultra, a recently introduced lens, is selling to capacity on a pilot line.

“The new Bausch + Lomb Ultra lens was a significant contributor to revenues today as it's only produced on our pilot line, has received very positive reviews from eyecare professionals, and will be an important new product in our lens franchise,” Pearson told investors. “While Ultra only contributed less than $5 million in revenue to our current quarter, we expect this to increase significantly when commercial quantities are available from our first installed commercial line in the second quarter of 2015. We think this could be a very, very large product given the reception in the marketplace. Unfortunately we won't have commercial capacity until the second quarter, but we've ordered three additional lines to the first line. Bausch + Lomb's market share had fallen to 6 percent in the U.S. and had been on the decline for a decade. So it's a lot easier to gain share if you're a very small player. We’re very excited about the Ultra lens.”

About Bausch + Lomb’s overall performance, Pearson said, “B+L continued its strong performance, delivering 12 percent organic growth in Q3, adjusted only for foreign exchange. B+L's third quarter revenues in 2012, 2013, and 2014 have been consistent at approximately 24 percent to 25 percent of B+L's annual revenues. Under Valeant's ownership, B+L has grown at a compound annual growth rate of 10 percent. We expect this trend to continue in the fourth quarter.”

Howard Schiller, CFO, added the following about Bausch + Lomb’s performance since its integration into Valeant: “We are thrilled with the integration and performance of Bausch + Lomb during our first year of ownership. Since closing, we've accelerated organic growth from less than 5 percent to 10 percent. This increased growth rate has been achieved by continued strength in the pharmaceuticals business, the turnaround of the lens and surgical businesses, a combined consumer business with increased scale, the benefit from our decentralized approach and leveraging our emerging market capabilities for our expanded business. As we've said many times in the past, this successful integration will serve as the blueprint of Allergan.”

Valeant’s well publicized and as yet unsuccessful attempts at acquiring Allergan were also discussed during this week’s conference call with investors. “We delivered a very strong third quarter and basically have shown through performance that all the allegations made by Allergan are just wrong,” Pearson said, referring to Allergan’s accusations of insider trading and poor performance in response to Valeant’s acquisition attempts.

“So I think that we're in very good position to win this thing. And so we look forward to the upcoming vote. And there's no way we're going to walk away at this point. We'll wait until Dec. 18,” added Pearson, referring to the upcoming meeting at which Allergan’s largest shareholder, Pershing Square, will seek to replace six board members, clearing the way for Allergan to accept Valeant’s takeover bid. The current board said as recently as Sept. 29, 2014, that Valeant’s offer is “grossly inadequate.”

About the potential Allergan acquisition, Schiller told investors, “We remain completely committed and focused on completing the Allergan transaction. Six months ago when we made the offer to Allergan, to date the Allergan board and management have been unwilling to engage with us or take the time to better understand our strategy and business model. We remain open to speaking with Allergan in any time they decide to engage. We look forward to the Dec. 18 Special Meeting that has been called by Pershing Square where shareholders will be given the opportunity to remove a majority of Allergan's Board. We believe that Allergan's shareholders need to remove a majority of the directors in order for Allergan to be compelled to negotiate.”

Pearson concluded, “We're aligned that we are going to win this battle, that we are going to acquire Allergan. We are committed to marching forward and getting this deal done.”