NEW YORK (TheStreet) -- Perrigo  (PRGO - Get Report) stock is down by 4.8% to $122.50 in pre-market trading on Friday, as Valeant (VRX) finalizes a contract to hire its CEO, Joseph Papa, sources told the Wall Street Journal.

Valeant hopes to announce the appointment of Papa as CEO as early as next week, but has met resistance from Perrigo's board, the Journal adds. Perrigo's board hasn't said whether it would allow Papa to void a non-compete clause in his contract.

During Papa's nearly 10 years as CEO of Perrigo, he led the company through a merger with an Irish rival to move its headquarters abroad and reduce its taxes. Papa also fended off a hostile takeover bid from Mylan (MYL). The company has nonetheless reported weak earnings in recent quarters and has cut its 2016 outlook.

Perrigo is scheduled to hold its annual meeting on Tuesday, pressuring the company to name an interim or permanent successor quickly. 

"We are aware of the speculation regarding our Chairman and CEO Joseph Papa. As is our company policy, we do not comment on speculation or market rumor," Perrigo said in a statement today.

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

Perrigo's strengths such as its robust revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures are countered by weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

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

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.