Jim Cramer is seeing some amazing action in the world of healthcare. A massive consolidation is happening, and he expects that it is just getting started.
On Friday morning, the market learned that CVS purchased Omnicare in a $12.7 billion transaction. Omnicare is a company that provides medical care to senior citizens, typically in assisted living facilities. Cramer expects that as baby boomers get older, this niche business will continue to grow.
In 2006 CVS acquired pharmacy benefit manager Caremark, and then removed tobacco out of its stores. This was done in order to transform itself into CVS Health, which is less of a drugstore chain and more focused on healthcare.
Likewise, Rite-Aid similarly purchased pharmacy benefit manager Envision Pharmaceutical Services for $2 billion.
And now Cramer wants Walgreens Boots Alliance to step up to the plate, too, and either buy a company that helps to control drug costs or merge with one. Why the heck couldn't its formal partner McKesson merge with it?