NEW YORK (TheStreet) -- Valeant Pharmaceuticals (VRX) stock climbed by 1.05% to $84.71 in Thursday's trading session, as CEO Michael Pearson's health improves, Bloomberg reports. 

Pearson has been on a medical leave of absence since he was hospitalized with a severe case of pneumonia late last year. His departure came as Valeant has faced investigations into its drug pricing and distribution practices. 

Additionally, tweeted that the company's board is unsure whether it wants Pearson to return. 

Nomura analysts argued that removing Pearson from the company could have negatively implications, writing, "We believe investors still view much of Valeant's strategy and success as driven by Pearson and losing him as a leader may remove much of the company's competitive advantage," Barron's reports.

If the board removes Pearson, it will need to replace him with an outsider well versed in the pharmaceutical industry, the analysts continued. Alternatively, the board might consider selling all or part of the company. 

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.

Valeant's strengths such as its robust revenue growth, good cash flow from operations and expanding profit margins are countered by weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and generally higher debt management risk.

You can view the full analysis from the report here: VRX

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.

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