The prospect of a new CEO is pushing Valeant Pharmaceuticals (VRX)  shares up 8% Friday. The potential CEO is allegedly Joseph Papa, the current CEO of Perrigo (PRGO - Get Report)  , the maker of private-label, over the counter drugs. Shares of Perrigo, however, are down 3% on the news.

A CEO Papa would be very good news for Valeant shareholders, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment.

Perrigo is another story. Mylan (MYL - Get Report) tried to acquire Perrigo once, but didn't. Could another company take a shot at Perrigo? Cramer said it might, if interested in Perrigo's generic drug brands.

As for Papa, it wouldn't be a bad time to leave Perrigo, but will he do it when his company's stock has fallen by so much? Cramer wondered. Shares are off almost 40% over the past year.

 

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.