Why Sanofi Is a Buy

Cramer's Favorite Health Care Play: Sanofi

Mad Money's Cramer, explains why Sanofi-Aventis is his favorite medical breakthrough stock, saying it has excellent management; its growth platforms are working; and it supplies a juicy dividend.

All week, Cramer has been highlighting big pharma stocks that are poised to pop in the year to come. But the “Mad Money” host saved his fave stock for last, namely, Sanofi-Aventis .

Sanofi is the world’s largest drug company with a stock that sports a 4.8 percent dividend yield. The stock has run up by 16 percent last year, if you had reinvested dividends, but Cramer thinks it could still go higher.

Cramer likes Sanofi because three of its biggest drugs are going generic this year, but the company saw the dangers coming and took steps to make sure it never happens again. He hands it to the company’s management, who he praised for their strategic thinking and leadership.

Going forward, the company is investing in high growth platforms that are protected by more than just a patent, such as vaccines where barriers to entry are high, diabetes and generics. In doing so, the company hopes to build brand loyalty.
Cramer thinks Sanofi is a buy, buy, buy.

When this story was published, Cramer's charitable trust owned Sanofi.

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