Technically, when the outer skin is removed, the integrity of the drywall to hold paint and paper has been compromised. This is the program.
If this area is small and your plans are to re paper, I have done this before with good results. prime this area very well, with several coats. Then paper over it. As long as it does not get wet it will hold.
But for painting, you will need to cut out a square that is larger than the brown area and patch it. make sure that the hole is square and it goes from stud to stud. If the square is perfectly drawn and measured, this sure makes the patch job easy.