Cramer’s Favorite Big Pharma Catch-Up Play

Here's why Cramer is bullish on Merck:

The company is finally over the patent cliff and on solid ground. "Right now, going forward, of all the big pharma companies Merck has the least exposure to drugs losing patent protection and going generic. That's huge," said Cramer.

Merck has a broad portfolio of products. "That includes a decent-sized animal health business that they could spin-off," Cramer said. "They also have a big and rapidly growing diabetes business and a vaccine division that's also growing fast."

Merck has an incredibly deep pipeline. "Merck has 35 drug candidates in phase 2 or phase 3 development—that's the second most of any pharmaceutical company out there," Cramer said. "Within their late-stage pipeline, the company has 16 phase 3 programs, the last phase before a drug can come up for FDA approval. And of those 16, there are five drugs that could be approved this year."

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What's the bottom line?

As drugs such as Merck's new ragweed allergy medication or its ovarian cancer drug get FDA approval, Cramer thinks Merck will come back into favor with the Street – not only will investors see new profit potential but they'll also be drawn by the 3.75% yield.

And as that happens, Cramer anticipates something called a reversion to the mean trade. That is, Cramer thinks this laggard will play a big game of catch-up as the Street assigns Merck a similar premium to its big pharma brethren.

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My Favorite Easter

Today is my 39th Easter. And it will always be my favorite Easter.

I have had some blessed ones in the past. Childhood memories of Easter baskets, corsages for mom, Gospel tunes at church… Memories of the Easter Parade along Monument Avenue in Richmond, Virginia – Easter bonnets and a throwback to an older time…

I remember the many Easter weekends that coincide with the azaleas blooming and the playing of the Masters Tournament in Augusta, Georgia – in particular, I recall Bernhard Langer professing his faith in Jesus Christ upon winning his 2nd Green Jacket on Easter Sunday in 1993.

And more recently, I fondly remember going to Easter sunrise service at Arlington National Cemetery with my wife and great patriot friends in Washington, DC.

But this year, Easter takes on a more special meaning as I sit here with my wife, my 2 ½ year old son and my 1 year old daughter listening to old Gospel tunes (insert rant here about lousy, modern, non-descript “praise music” sung by pointy-glasses wearing, black pants wearing, open-collared shirt wearing hipsters… but I digress) before we head out for the day.

I have not written on RedState for a very long time – in large part because last year I was diagnosed with Cancer… Hodgkins Lymphoma, to be more specific. I spent many months going through treatment, including a promising trial drug. As of today, I have now had 3 clear scans and am in “clinical remission.”

Today is my favorite Easter, indeed. Praise God.

I praise Him for his many blessings – the love of my family and friends. The pure joy of having my son tell me he “loves me too much,” or my daughter looking at me with her big blue eyes and saying “Da.” I praise Him for a wife whose devotion to me through “sickness and health” reminds me what a real promise before God truly means.

I also Praise Him for freedom. The care that I received through modern advances in healthcare at MD Anderson was truly amazing. And it is the product of free markets… an imperfect system, to be sure. But it is the product of freedom, not the musing of an arrogant tyrant in Washington who believes the state should tell us what to do. The state can only tell us what to do if we let it.

Jesus taught us much about love, forgiveness and doing unto others. But Jesus also taught us a lot about hypocrites, false prophets and supposed leaders who are full of it.

This Easter, I am thankful for all I have but also all that I must continue to do to “fight the fight, finish the race and keep the faith.” (see 2 Timothy 4:7).

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