NEW YORK (TheStreet) -- Valeant Pharmaceuticals Int'l (VRX)  stock is up 8.04% to $29.15 on heavy trading volume on Monday after the company announced it would replace CEO J. Michael Pearson and appoint investor William Ackman to its board of directors.

The Quebec-based pharmaceutical company announced that it had launched a search to find a replacement for Pearson. He will remain CEO until then, the company said.

Additionally, Valeant appointed Ackman, head of hedge fund Pershing Square Capital Management, to the company's board of directors. Board member Katharine Stevenson resigned from the board in order to allow for Ackman's appointment.

Valeant needs more than Ackman's board involvement, TheStreet's Jim Cramer says. The company has $30 billion in debt and a leadership situation that is very much in doubt, he said. 

"Before you just go in and think you're out of the woods because Ackman's involved, remember the dermatological business is being challenged aggressively by Allergan (AGN) and the ophthalmological business is also being challenged by Johnson & Johnson (JNJ)," Cramer said. "Your core lines of businesses are under a lot of pressure from really well capitalized companies."

Additionally, Valeant announced that it found that "material weaknesses exist in the company's internal control over financial reporting." The company's former CFO and former corporate controller's "improper conduct" contributed to the misstatement of financial results, Valeant said in a statement.

The company asked former CFO Howard Schiller to resign from Valeant's board of directors but he has not done so, Valeant said. Valeant also placed the corporate controller on administrative leave. 

Last week, Valeant stock plummeted after the company issued weak 2016 first quarter guidance and delayed filing its Form 10-K.

So far today, about 60 million shares of Valeant have traded, well above the company's 30-day average of 20.16 million shares. 

Separately, recently, 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 articles's author.

TheStreet Ratings rates this stock as a "hold" with a ratings score of C. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find 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