e424b3
 

Filed pursuant to Rule 424(b)(3)
Registration No. 333-112906
PROSPECTUS SUPPLEMENT NO. 1
(To Prospectus dated August 6, 2004)
(VALEANT LOGO)

Valeant Pharmaceuticals International

$240,000,000 3.0% Convertible Subordinated Notes due 2010

$240,000,000 4.0% Convertible Subordinated Notes due 2013
and
the Common Stock Issuable upon Conversion of the Notes

     This prospectus supplement relates to the resale by various selling securityholders of $240,000,000 aggregate principal amount of our 3.0% convertible subordinated notes due 2010, $240,000,000 aggregate principal amount of our 4.0% convertible subordinated notes due 2013 and shares of our common stock into which the notes are convertible. This prospectus supplement may only be delivered or used in connection with our prospectus dated August 6, 2004. Our common stock is quoted on the New York Stock Exchange under the symbol “VRX.”

     Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

Prospectus Supplement dated August 16, 2004.

     The information appearing in the following table supplements or supersedes in part the information in the table under the heading “Selling Securityholders” in our prospectus and was provided by or on behalf of the selling securityholders.

                                     
Principal Amount
of Notes Principal Amount Number of Shares Percentage
Beneficially of Notes Offered of Common Stock of Common
Owned Prior to by This That May Be Stock
Name of Selling Securityholder(1) This Offering Prospectus Sold(2) Outstanding
3.0% convertible subordinated notes due 2010 (CUSIP No. 91911XAA2)                
Drake Offshore Master Fund, Ltd
    10,000,000       10,000,000       316,336       *  
F.M. Kirby Foundation, Inc. 
     935,000       935,000       29,577       *  
International Truck & Engine Corporation Retiree Health Benefit Trust
    275,000       275,000       8,699       *  
International Truck & Engine Corporation Retirement Plan for Salaried Employees Trust
    405,000       405,000       12,811       *  
LDG Limited
    178,000       178,000       5,630       *  
MSS Convertible Arbitrage 1 c/o TQA Investors, LLC
    9,000       9,000       284       *  
Partners Group Alternative Strategies PCC Ltd. 
     400,000       400,000       12,653       *  
Sphinx Fund c/o TQA Investors, LLC
    201,000       201,000       6,358       *  
Sturgeon Limited
    450,000       450,000       14,235       *  
TQA Master Fund Ltd. 
     1,617,000       1,617,000       51,151       *  
TQA Master Plus Fund Ltd. 
     2,608,000       2,608,000       82,500       *  
Travelers Indemnity Company – Commercial Lines
    780,000       780,000       24,674       *  
Travelers Indemnity Company – Personal Lines
    515,000       515,000       16,291       *  
Xavex Convertible Arbitrage 7 Fund c/o TQA Investors, LLC
    568,000       568,000       17,967       *  
Zurich Institutional Benchmarks Master Fund
                               
Ltd. c/o TQA Investors, LLC
    319,000       319,000       10,091       *  
 
All other holders of 3.0% convertible subordinated notes due 2010 or shares of common stock issued on conversion of such notes and future transferees, pledgees, donees, and successors thereof(3)
  $ 63,464,000     $ 63,464,000       2,007,594       2.33 %
     
     
     
     
 
4.0% convertible subordinated notes due 2013 (CUSIP No. 91911XAC8)                
CSS, LLC
    2,000,000       2,000,000       63,267       *  
Sturgeon Limited
    390,000       390,000       12,337       *  
   
All other holders of 4.0% convertible subordinated notes due 2013 or shares of common stock issued on conversion of such notes and future transferees, pledgees, donees, and successors thereof(3)
  $ 106,723,000     $ 106,723,000       3,376,032       3.86  
     
     
     
     
 

  * Less than 1%.

(1)  Information concerning the selling securityholders may change from time to time. Any such changed information will be set forth in amendments or supplements to our prospectus dated August 6, 2004, if and when required.
 
(2)  Unless otherwise indicated, includes all shares of common stock issuable upon conversion of the notes and assumes a conversion rate of 31.6336 shares for each $1,000 principal amount of notes and a cash payment in lieu of any fractional share. However, this conversion rate will be subject to adjustment as described under “Description of the Notes — Conversion Rate Adjustments.” As a result, the number of shares of common stock offered hereby may increase or decrease in the future. Also assumes that the notes are convertible immediately. As described above under “Description of the Notes — Conversion of Notes,” the notes are convertible only in specified circumstances.
 
(3)  Information concerning other selling securityholders will be set forth in amendments or supplements to our prospectus dated August 16, 2004, if required.