If not for the plunge in Apple's stock on Thursday, Wall Street would've been laser-focused on the monumental tie-up between biotechnology giants Bristol-Myers Squibb and Celgene, CNBC's Jim Cramer said.
But the $74 billion deal isn't just important because of its enormous price tag, the "Mad Money" host said. It also offers a read on a space that might be reaching its limits and is due for a "long-awaited" wave of consolidation, he said.
"The fact is, there are simply too many drug companies out there that can be more valuable to potential acquirers than they are to the stock market itself," Cramer explained, pointing to the numerous companies that have whittled down their drugmaking franchises to cover only one illness or produce just one type of medication.
"[The deal] shows you how Bristol-Myers needed more than just Opdivo," its leading cancer treatment, he said. "The company needs a suite of anti-cancer products and pipelines. With Celgene, maybe it finally has the diversification that it's been looking for."
To read more about the Bristol-Myers-Celgene deal, click here.