The "Mad Money" host mentioned a note by Barclays analyst Douglas Tsao on Wednesday morning, which said Valeant's "business has hit an inflection point with its existing business stabilizing."
"I was very tough on [Papa] when he first got there," Cramer said on "Squawk on the Street." "But he came in and said, 'We have to fix the balance sheet, we have to get rid of any sort of tape from investigations and then we have to start getting our new compounds in. And he's doing all three.'"
He, "delivered, delivered, delivered," Cramer added.
Papa, who took the helm of the specialty pharmaceutical company in May 2016, has worked to restore investor confidence in the company after several investigations into its accounting and pricing practices hit its shares.
Valeant, which has a market cap of $8.6 billion, has seen its shares rise more than 95 percent over the past year. The stock was up more than 6 percent late morning Wednesday after earlier hitting a new 52-week high.
Cramer in April cautioned investors against selling Valeant's stock, saying, "I know that's a controversial view, but I'm with Joe and I always welcome him on the show because he's a gent."
Earlier this month, Valeant said it would change its name to Bausch Health Cos., mirroring the name of its flagship optics unit.
Papa also told Cramer earlier this month, shortly after Valeant reported earnings, that for the first time since 2015, the company is now seeing organic growth.