Jim Cramer is in complete awe the power of Valeant, and its incredible 14 percent move higher on Monday. Especially considering that it hasn't even combined with Salix yet, an acquisition announced on Sunday.

Valeant announced quarterly earnings a day earlier than expected, and Cramer was blown away.

"I am shocked at how much better it is doing than we thought," said the "Mad Money" host.

Analysts expected to hear organic growth of approximately 12 percent, $2.2 billion in revenues and $600 million in cash flow. Instead, Valeant delivered 16 percent organic growth, $2.3 billion in revenue and cash flow of $624 million. Talk about blowing the lid off of earnings!

Cramer attributes the strength of Valeant not only to its earnings, but also to the fact that it excels at making strategic acquisitions. The Bausch & Lomb acquisition in 2013 proved to be profitable, and Valeant's Top 20 global brands are doing very well.

Allergan previously fought being acquired by Valeant; Allergan dedicates a significant portion of its budget to research and development, while Valeant does not.

"But it sure doesn't seem like it is hurting Valeant. Its new products are doing so well," said Cramer.

With its pending acquisition of Salix, Valeant expects to save $500 million in corporate overhead reductions and cutbacks in R&D. The deal is expected to be completed within six months.

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And while the Street expects $10 a share next year from Salix, Cramer wouldn't be surprised if it got $12 a share. Additionally, Salix has other gastrointestinal products down the pipeline that could add even more value.

Cramer commented on the potential value of Valeant, stating, "This is the fastest growing major pharmaceutical. It is easier to see that it could trade to $240 if it executes and the irritable bowel syndrome drug gets approved. It's not a pipe-dream. It's a reality."

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