NEW YORK (TheStreet) -- Valeant Pharmaceuticals  (VRX) stock is up 12.96% to $36.88 in mid-afternoon trading on Tuesday after the drug maker announced that Joseph Papa has assumed the role of CEO and chairman, replacing CEO Michael Pearson. 

"We have a lot of work to do, but I am confident we will succeed in better serving our customers and realizing the exceptional potential of the company," Papa said in a statement today.

Papa is the former CEO of rival drug company Perrigo (PRGO). 

He does not have a lot of experience in branded prescription drugs, which is Valeant's area of focus, Wells Fargo (WFC) analyst David Maris, who rates the stock "underperform," said last month, Reuters reported. 

"Perrigo has limited international business; Valeant has a lot," Maris added. "Perrigo has acquired a lot of products and divested very few; Valeant's future probably has a lot of divestitures."

But Patrick Kaser, portfolio manager at Brandywine Global, contended that Papa's experience with sales of over-the-counter healthcare products will benefit Valeant's skincare and Bausch and Lomb eyecare lines, Reuters added.

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

Valeant's weaknesses include its deteriorating net income, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

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

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.