Cramer: Buy Bristol-Myers, Pfizer Stock
Most investors had long stayed away from pharmaceutical stocks because the major drug companies were losing patent protection on their largest products. Although the “patent expiration apocalypse” continues, many investors are now buying big pharma because they think the worst is over.
Cramer sees a major opportunity here and after recommending Merck on Monday’s “Mad Money,” he’s getting behind Bristol-Myers and Pfizer , as well.
Bristol-Myers and Pfizer have been working on a groundbreaking drug called Eliquis, an oral anticoagulant that prevents stroke in patients with atrial fibrillation, which is the most common form of cardiac arrhythmia or irregular heartbeat. It appears to be highly effective and could be a needle mover, too. If approved in March, the drug could generate more than $5 billion in peak sales with the money being divided between the two companies.
Cramer said Eliquis is just one reason to own Bristol-Myers and Pfizer, though. Both stocks sports juicy dividend yields of 4.3 and 4 percent respectively.