Questions continue to mount at  Valeant Pharmaceuticals (VRX) and rival Perrigo (PRGO - Get Report) amid a reshuffling within the c-suite at the two embattled drug companies. 

While the news of a new chief executive at Valeant came as little surprise, what was surprising was the way in which Joseph Papa left Perrigo, according to  TheStreet's Jim Cramer. 

"He said no to $160 billion bid, a Mylan bid. Somehow he managed to defeat that, and now you've got a stock that's so far below that," Cramer said. "In the meantime it looks like the earnings weren't that good ... I think Perrigo doesn't even necessarily give you the full depiction of what's going on there." 

Perrigo in November spiked a $34 billlion hostile takeover bid by generics giant Mylan (MYL - Get Report) , and in March, it completed its $4.1 billion acquisition of Belgian health-products provider Omega Pharma NV. 

Meanwhile on Monday, Valeant named Papa, who resigned from his post as chief executive at Perrigo, as its new CEO. 

Papa's installation came as part of an effort by the pharmaceutical company to calm nerves in the wake of its significant stock price drop. It also came after Valeant on Friday received notices of default from debt holders due, in part, to a decision to delay filing of its annual report.

Valeant's departing CEO, Michael Pearson, is scheduled to testify in front of the Senate Special Committee on Aging on Wednesday.

Cramer said his negativity around Valeant has been tempered following recent comments from Bill Miller, the chairman of Legg Mason (LM - Get Report) , who earlier this month expressed his optimism about the future of the beleaguered pharmaceuticals company. 

"Papa wouldn't go in now after a good vetting," Cramer noted.  

But what continues to be a concern at Valeant is its massive debt load. 

"You have to hope that they find some way to get that debt off their balance sheet or cut the debt," Cramer said. "It's the debt that everyone's so worried about. 

Valeant investors were seemingly encouraged by the new CEO appointment on Monday, with shares spiking 4% in early trading. 

Valeant has so far admitted to at least $58 million of improperly booked revenue tied to its former partnership with mail-order pharmacy Philidor, which has led to the delay of its annual 10-K filing with the SEC.