Valeant Pharmaceuticals International
 

Filed Pursuant to Rule 424(b)(3)
Registration No. 333-112904
PROSPECTUS SUPPLEMENT NO. 3
(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 No. 3 dated September 13, 2004.

     The information appearing in the following table supplements or supersedes (where the name of the selling securityholder appears in our prospectus or any supplement thereto) in part the information in the table under the heading “Selling Securityholders” in our prospectus (as amended by any previous prospectus supplement) and was provided by or on behalf of the selling securityholders.

                                   
Principal Amount of Percentage of
Notes Beneficially Principal Amount of Number of Shares of Common
Owned Prior to Notes Offered by Common Stock That Stock
Name of Selling Securityholder(1) This Offering This Prospectus May Be Sold(2) Outstanding
3.0% convertible subordinated notes due 2010 (CUSIP No. 91911XAA2)                
Advisory Convertible Arbitrage Fund (I) L.P.
  $ 0     $ 0       0       0 %
DBAG/ London
    35,000,000       35,000,000       1,107,176       1.30 %
Geode U.S. Convertible Arbitrage Fund (a segregated account of Geode Capital Master Fund Ltd.)
    1,000,000       1,000,000       31,633       *  
Global Bermuda Limited Partnership
    1,300,000       1,300,000       41,123       *  
Lakeshore International, Ltd.
    5,200,000       5,200,000       164,494       *  
Pacific Life Insurance Company
    250,000       250,000       7,908       *  
Radcliffe SPC, Ltd (for and on behalf of the Class A Convertible Crossover Segregated Portfolio)
    10,075,000       10,075,000       318,708       *  
 
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)
  $ 11,039,000     $ 11,039,000       349,203       *  
     
     
     
     
 
4.0% convertible subordinated notes due 2013 (CUSIP No. 91911XAC8)
                               
Barclays Global Investors Diversified Alpha Plus Funds
  $ 1,157,000     $ 1,157,000       36,600       *  
Credit Suisse First Boston LLC
    3,900,000       3,900,000       123,371       *  
Delta Air Lines Master Trust — CV
    705,000       705,000       22,301       *  
Delta Pilots Disability & Survivorship Trust — CV
    345,000       345,000       10,913       *  
Forest Fulcrum Fund LP
    131,000       131,000       4,144       *  
Forest Multi-Strategy Master Fund SPC (on behalf of its Multi-Strategy Segregated Portfolio)
    1,006,000       1,006,000       31,823       *  
HFR CA Global Opportunity Master Trust
    1,530,000       1,530,000       48,399       *  
HFR RVA Select Performance Master Trust
    174,000       174,000       5,504       *  
HighBridge International LLC
    14,000,000       14,000,000       442,870       *  
KBC Financial Products USA Inc.
    6,550,000       6,550,000       207,200       *  
LLT Limited
    425,000       425,000       13,444       *  
Lyxor/ Forest Fund Limited
    3,809,000       3,809,000       120,492       *  
Motion Picture Industry Health Plan — Active Member Fund
    40,000       40,000       1,265       *  
Motion Picture Industry Health Plan — Retiree Member Fund
    35,000       35,000       1,107       *  
OCM Convertible Trust
    2,030,000       2,030,000       64,216       *  
Pacific Life Insurance Company
    200,000       200,000       6,326       *  
Partner Reinsurance Company Ltd.
    645,000       645,000       20,403       *  
Sphinx Convertible Arbitrage SPC
    1,650,000       1,650,000       52,195       *  
State Employees Retirement Fund/ State of Delaware
    885,000       885,000       27,995       *  
UBS AG London Branch
    28,000,000       28,000,000       885,740       1.04 %
Vanguard Convertible Securities Fund, Inc.
    8,920,000       8,920,000       282,171       *  
Xavex Convertible Arbitrage 4 Fund
    240,000       240,000       7,592       *  
Zurich Institutional Benchmarks Master Fund Ltd.
    1,378,000       1,378,000       43,591       *  
 
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)
  $ 40,363,000     $ 40,363,000       1,276,827       1.50 %
     
     
     
     
 

  * 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 6, 2004, if required.

    The following information supplements in part the information under the heading “Plan of Distribution” in our prospectus and was provided by or on behalf of the selling securityholders:

    (A) The following selling securityholder is a registered broker-dealer that obtained its notes other than as compensation for services: Forest Fulcrum Fund LP. As a result, it is deemed to be an “underwriter” within the meaning of Section 2(11) of the Securities Act.

    (B) The following selling securityholders are affiliates of registered broker-dealers: AG Domestic Convertibles, L.P., DBAG/ London, and UBS AG London Branch. These selling securityholders have represented to us that they purchased their notes in the ordinary course of business and at the time of the purchase had no agreements or understandings to distribute the notes or the common stock into which the notes are convertible.