LAVAL, Quebec—Following an 11 percent drop in revenues for Q2, Valeant Pharmaceuticals’ chairman and CEO Joseph C. Papa said the company would be restructured into three new segments and would also consider selling off certain assets in an effort to reduce their debt over the next 12 to 18 months.

"We continue to make progress towards stabilizing the organization," Papa said during a conference call with investors on Aug. 8. "We are also announcing a new strategic direction for Valeant today, which, at its heart has a mission to improve patients' lives, and will involve reorganizing our company and reporting segments. Although it will take time to implement and execute our turnaround plan, I am confident that we will show progress in the coming quarters.

“In the past, Valeant has been organized primarily by geography. We intend to structure the company through three new segments: first, a durable growth segment, representing approximately 50 percent of our revenue. This will encompass the Bausch + Lomb franchise, global consumer, and most of our international markets.

“Second, a growth segment, representing approximately 30 percent of our revenue, will include our branded Rx products, where a majority of our future investment will occur. Finally, our cash generating segment, representing approximately 20 percent of our revenue, will encompass those portfolios which we will look to optimize as a high-margin and low-investment business. Valeant plans to roll out this new segment structure in the third quarter, Papa said.

Total revenues for Valeant (NYSE: VRX) (TSX: VRX) decreased 11 percent to $2.42 billion in the second quarter of 2016 as compared to $2.73 billion in the second quarter of 2015, “driven primarily by a decline in product sales revenues from our existing business, as well as negative foreign currency exchange impact, partially offset by incremental product sales revenues from acquisitions completed in 2015,” according to a statement from the company.

For the three months ending June 30, revenues for the dermatology sector dropped 55 percent to $208.4 million compared to $461.9 million for the same period in 2015. Ophthalmology Rx revenues dropped 25 percent to 101.7 million versus 135.4 million for the same period in 2015. Finally, contact lens revenues increased 8 percent to 55.3 million for the second quarter compared to 51.2 million for the same period in 2015.

Valeant is currently evaluating strategic alternatives for a number of “core and non-core businesses and geographies” that represent revenue greater than $2 billion, although the company didn’t provide more specifics on those.

“We have received indications of interest on these assets, and we have engaged respected banks and advisors to assist us in exploring our options. We fully intend to make decisions regarding our asset base in the best long-term interest of our shareholders. We expect to simplify the business and reduce our debt through strategic measures and cash generation over the next 12 to 18 months,” Papa said.