Pharma Companies Get a Jolt of Cash

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Look at that money flowing out of Genentech (DNA - commentary - Cramer's Take) and into the other high-growth health care companies. Look at the money flowing into Celgene (CELG - commentary - Cramer's Take) or into Abbott (ABT - commentary - Cramer's Take) and into Amgen (AMGN - commentary - Cramer's Take) and Biogen (BIIB - commentary - Cramer's Take). Even Gilead (GILD - commentary - Cramer's Take) is barely down despite the CV Therapeutics (CVTX - commentary - Cramer's Take) deal. This is $193 billion in health care deals in the last few weeks! That's a lot of cash to come back in!

This is the wonder of excess cash, of money from the sidelines that comes back in, except that this time the sidelines are the drug money that wants pharma growth, and the above companies all have it.

Plus, we are getting a face on the enemy: It is Henry Waxman -- again -- and his desire to truncate patent protection for biotech, not just old pharma. We don't want to see this, but then again, that's why the stocks have fallen, and once we know what the enemy is, than the pharma counteroffensive will begin. Do not forget that these drug companies have powerful friends in many districts that were able to blunt President and Mrs. Clinton before with a similar cast of characters in the Congress.

To me it looks like we have a nice combination of beaten-down stocks, good growth and money that is at last freed up to invest, dedicated money that stays with the remainder of the group no matter what.

Random musings: Adam Feuerstein has a new edition of Biotech Select out today, if you want the ins and outs of this merger and the CV Therapeutics deal. ... Also, great job by Rick Bensignor, for that Bank of America (BAC - commentary - Cramer's Take) home run call!

At the time of publication, Cramer was long ABT, CELG and GILD.

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