Cramer: Hottest play in a bearish pharma sector

Right now almost every company in the pharmaceutical sector is caught in a bear market, with exception of Johnson & Johnson. While the drug index is down 9 percent for the year, Johnson & Johnson has actually managed to rally more than 4 percent.

What made the success more stunning to Cramer was that for years, Johnson & Johnson had been one of the worst performers in the industry. The rebound might seem sudden, but it has actually been in the works for a long time.

"The truth is that Johnson & Johnson is finally benefitting from a turnaround that was many years in the making, a comeback that has been spearheaded by CEO Alex Gorsky. Yes, the difference here is all about leadership," the "Mad Money" host said.

Johnson & Johnson
Adam Jeffery | CNBC

When Gorsky took over as CEO in April 2012, he inherited a troubled company left by his predecessor, William Weldon. But now that Gorsky has gotten things in order, the businesses involving drugs, medical devices and consumer products are all in better shape.

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Cramer was most excited about its pharma division, which he thinks could have the best pipeline in the industry.

Not only does the company have 11 drugs with more than $1 billion in sales, including two successful arthritis drugs, but it also has various recently approved compounds that could have the potential to be very big. Those are Darzalex for multiple myeloma, Xarelto for blood clots and strokes and Imbruvica for chronic lymphocytical leukemia.

And with $18 billion in net cash, Cramer is absolutely in love with Johnson & Johnson's triple-A rated balance sheet.

Cramer also believes that that the strong dollar has now peaked and is heading lower, which means that Johnson & Johnson could be one of the best pharma companies to own since it gets roughly half of its sales from overseas.

"JNJ has become of the few pharma companies that I think can withstand this election year and come out on the other side much higher than where it is now," Cramer said.

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