Wall Street forgot about takeovers and what those deals can mean for stocks. It forgot how desperate some companies are to grow. It finally remembered on Wednesday, Jim Cramer says, when M&A framed the entire market's action and gave biotech its the best day since 2009.
Since February lows, only a select group of stocks have managed to bounce back. However, in the wake of stocks left behind, health care has been in the doldrums. Cramer attributed this to the fact that they are easy political whipping boys in primary season and have had some disappointing earnings.
Allergan CEO Brent Saunders reminded investors of the importance of these deals, when, after confirming the departure from its deal with Pfizer, he told CNBC's "Squawk on the Street" that he was ready to do more buying, stating "Anything that is a growth-oriented business with strong fundamental businesses and a good R&D pipeline to sustain that growth is of interest to us."
Cramer interpreted this as meaning that in short, Saunders will buy anything that can give Allergan growth.
With those words, after months of lagging behind, pharma and biotech stocks were sparked back to life.