CNBC’s Jim Cramer Urges Investors to Look to the Future for Pharmaceutical Stocks
CNBC’s Jim Cramer emphasized the importance of investing for the long term, advising investors to evaluate certain pharmaceutical stocks for their growth prospects. “Ask yourself what happens if things get better, please. What if the future is brighter than the past?” he said. “If that’s the case, and I think it is, then you’ll have a lot of winners with these drug and medical device plays.”
Cramer reflected on his time at the JPMorgan healthcare conference in San Francisco, where he saw many drug makers that he believes Wall Street is not evaluating accurately. The long-term possibilities for these companies are strong and lucrative, even if the present doesn’t seem quite as impressive.
Cramer highlighted Eli Lilly, known for its popular GLP-1 weight loss and diabetes drugs, despite its recent revenue guidance cut. He argued that the company’s GLP-1 drugs have the potential to treat many conditions beyond their current uses and that the company is developing an oral version of the injectable treatment. Additionally, Eli Lilly has more resources to scale the product than some of its peers.
Cramer also mentioned Merck and Regeneron, citing the breadth of their portfolios and investments in promising new treatments. He noted that Merck’s portfolio includes its top-selling cancer treatment, Keytruda, as well as its anti-cancer vaccine and a multi-billion-dollar acquisition of a newly-approved drug for a serious and rare lung condition. Regeneron’s eye care franchise, asthma treatment, and experimental antibody cocktail, which President-elect Donald Trump received when he contracted Covid, were also highlighted.