Updated from 10:21 a.m. EDT

NEW YORK (TheStreet) -- Perrigo  (PRGO - Get Report) stock is down by 15.29% to $102.80 on heavy trading volume this afternoon, as the drugmaker appointed John Hendrickson to succeed Joseph Papa as CEO, effective immediately. 

Papa is expected to join rival Valeant Pharmaceuticals (VRX) as CEO in early May. 

"I am just amazed that Papa leaves now," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.

Under Papa's leadership, Perrigo rejected a $26 billion hostile takeover bid from Mylan (MYL). Papa persuaded shareholders to reject the deal because he had a multiyear turnaround plan, Cramer noted. 

"Papa had come on 'Mad Money' and talked about how the Mylan bid dramatically undervalued Perrigo," Cramer said in the above video. "That was clearly untrue."

Johnson & Johnson (JNJ) is "coming back with a vengeance" and taking market share, which is further pressuring Perrigo, Cramer stated this morning. 

Additionally, Perrigo might take an impairment charge within its branded consumer healthcare business, previously known as Omega Pharma, that it acquired in March 2015. The 3.8 billion euro transaction included the assumption of 1.3 billion euros in debt.

Perrigo's rejection of the Mylan bid, the possible impairment charge from Omega and heightened competition from Johnson & Johnson could set up a "wall of shame" situation for Perrigo, Cramer mentioned. 

Papa's decision to depart "under what is probably a terrible moment for Perrigo" raises eyebrows, he continued.

"It's just poor timing," Cramer added. "He leaves Perrigo in a less than optimal financial situation."

Even so, Papa maintains enough "street cred" to boost Valeant shares this morning, Cramer said. Valeant stock is up 1.25% to $36.43 in afternoon trading on Monday.

Papa is being viewed as a savior for Valeant, which underscores just how low the expectations for Valeant have become, Cramer contended.

"He's not exactly [Johnson & Johnson CEO] Alex Gorsky," Cramer said. "The fact that they got someone is a big deal."

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.