UPDATE 1-Valeant CEO Papa plans to lower debt by more than $1.5 bln in 2016

(Adds details from Papa comments, background)
By Caroline Humer
NEW YORK, May 23 (Reuters) - Valeant Pharmaceuticals (NYSE:VRX) Inc
VRX.TO plans to lower its debt by at least $1.5 billion this
year, Chief Executive Officer Joseph Papa said on Monday during
his first large meeting with investors since taking the top job
three weeks ago.
Valeant has about $30 billion in debt and has had to appease
creditors, who had the option of forcing early payment of some
loans and bonds after Valeant missed deadlines for filing
financial records with regulators and triggering default
notices.
Papa told investors at the UBS Global Healthcare Conference
that the company would fund the payoffs in part through the sale
of non-core assets outside of its main franchises if it can get
attractive prices for the assets.
Papa said core assets include the dermatology business,
Bausch & Lomb eyecare, and its gastroenterology products, many
of which were acquired in its purchase of Salix Pharmaceuticals
last year.
The company has been working on trying to regain its footing
after sharp drug price increases last year drew criticism and
investigations from U.S. lawmakers. The states of Massachusetts
and New York are also conducting inquiries into its patient
assistance programs and pricing.
When distribution for its dermatology products with Philidor
RX Services fell apart last year, the company replaced it with a
deal with Walgreens Boots Alliance (NASDAQ:WBA) WBA.N , which Papa said has
had some "speed bumps."
Papa said the company will launch a second phase of the
program this summer.
Valeant last week announced plans for a new discount program
on the price of two heart drugs, Isuprel and Nitropress, and is
now working on potential changes in the price of other drugs
that have come under scrutiny in Congress. Those include
Cuprimine and Syprine, two drugs that are used to treat a
genetic disorder that causes copper to build up in the body's
organs.
"I have a couple more of those products that I still need to
work on," Papa said. "And I told Congress I would work on
those."