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A Healthy Merger

The expected merger of Hologic and Cytyc should create the “greatest women’s health company on earth,” Cramer said on Mad Money Thursday. It should also give investors the chance to profit off the synergies of these two diagnostic plays.

A combined Hologic and Cytyc will have offerings in digital mammography, 3-D breast imaging, bone density, biopsies and medicines to block pre-term delivery of babies. The HOLX-CYTC blend will also give the firm the chance to consolidate manufacturing and shrink overhead back at the office by selling its products through only one sales force.

Hologic said earnings could go as high at $2.40, with growth hitting 25% over the next several years. Even still, Cramer called the estimates light. Investors should be willing to pay 50 times earnings for HOLX, he said, making the stock buyable up to $100. Cramer’s only behind it up to $70, though, and that’s on the strength of analyst support alone.

Cramer made the right call on the Inverness Medical-Cholestec deal, and he has high hopes for HOLX-CYTC as well. He urged investors to get in ahead of the expected close three weeks from now.

Jim's charitable trust owns Hologic and Inverness Medical.

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