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Valeant's new CEO: I'm not in it for the money

Valeant Pharmaceuticals' new CEO Joseph Papa stands to receive over $67 million, but he insists he's not in it for the money.

"This is not about the money," Papa said in an interview with CNBC's Jim Cramer. "To me this is all about if I can play a small role in improving Valeant and [if] that has a beneficial impact on the entire pharmaceutical industry, I think I will have done something that is important."

According to published reports, Valeant will pay Papa $67.4 million in cash, options and restricted stock this year.

Valeant announced on April 25 that Papa would assume the role of chairman and CEO of the embattled company, to succeed Michael Pearson. Papa has more than 35 years in the pharmaceutical industry, including his most recent role as CEO of Perrigo.





Joseph Papa, CEO of Valeant speaks with Jim Cramer on the set of Mad Money
Ashlee Espinal | CNBC
Joseph Papa, CEO of Valeant speaks with Jim Cramer on the set of Mad Money
"We are generating cash, we are generating EBITDA, we've got over $10 billion of sales. So, I do think the footprint is in place." -Joseph Papa, Chairman & CEO, Valeant Pharmaceuticals

The controversial company's stock has plunged 85 percent in the past year, amid accusations of price gouging, channel stuffing and accounting irregularities. Last week, billionaire investor Warren Buffett and his business partner Charlie Munger blasted Valeant's managementin harsh terms.

Papa said he feels comfortable that the framework to turn the company around, including its debt laden balance sheet, is in place.

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"We are generating cash, we are generating EBITDA, we've got over $10 billion of sales. So, I do think the footprint is in place," he said.

Papa outlined his plan of action taking over the helm at Valeant. First, he plans to stabilize the company by working with employees, physicians and patients. Then he plans to turn it around through launching new products, and taking care of debt holders.

"The biggest surprise and the reason that really got me, is I looked at their pipeline. Because to me, that is going to predict how a company is successful in the future. Are they going to grow organically or not," Papa said.

Ultimately, Papa said he thinks he can manage through the issues with Valeant's balance sheet, which Cramer described as a "dire situation."

"It is an absolute priority, but I do think we can manage through that and also get the returns that we are looking for, for our shareholders.

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