Pershing Square Activist Presentation Deck
Durable Portfolio:
Healthcare Trading Comparables
Only a handful of public healthcare companies have durability
similar to Val-gan's product portfolio
► Perrigo Co.
■ -78%¹ durable - assumes its large biologic drug is a patent cliff asset
■ Major businesses: Private label OTC; hard-to-manufacture generics
■ Lower gross margin than Val-gan: 2014E Gross Margin = 42% ¹ vs. ~80%³
■ Trading multiple: 21x 2014 EPS²
► Zoetis Inc.
■ >80%4 durable ~80% of revenues are unpatented or existing patent does
not provide market exclusivity; animal health pharmaceuticals face lower
generic substitution risk than human pharma
■ Major business: Companion and livestock animal health pharmaceuticals
■ Trading multiple: 19x 2014 EPS²
¹RBC Capital Markets Analyst Report, January 6, 2014
*Based on the closing share prices and Bloomberg consensus EPS estimates as of April 21, 2014
*Valeant Public Presentation, April 22, 2014
"ISI Group Analyst Report, January 31, 2013View entire presentation