Amid reports that its Obagi Medical Products and Solta Medical units  are on the block, Valeant Pharmaceuticals is assuring investors that the company is focused on the future and has plans to fix its dermatology unit.

Valeant CEO Joseph Papa cited the company’s strengths during the company’s annual meeting, notably a leading portfolio of dermatology brands (of note, Solta and Obagi were not spotlighted as assets during the meeting), a strong new product pipeline, great global platforms and a highly diversified product portfolio. Still, he said, there significant challenges in dermatology including profitability, speed bumps in the Walgreen’s program start up and negative publicity about the company.

“We need to fix the dermatology business,” he said.

Bloomberg News reported that Valeant is working with Morgan Stanley to explore the sale of Obagi and Solta to raise cash and reduce debt. The sale could fetch up to $500 million.  Bloomberg also reported that the company is pondering the sale of its smaller cosmetic and pharmaceutical units as well. These include the Provenge treatment for advanced prostate cancer and other drugs, which were acquired from Marathon Pharmaceutical, LLC. The stock has fallen 76 percent this year, valuing the company at $8.2 billion, Bloomberg reports.

Stay tuned.