Cramer's 'Mad Money' Recap: Stock Therapy

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Rewarding Behavior

"There's a bull market in insanity," said Jim Cramer on his "Mad Money" TV show Thursday, and Psychiatric Solutions (PSYS Quote) is the way to play it.

Treatments for mental illness have improved over the years, and at the same time, demand has grown, said Cramer.

As awareness has increased, the stigma that used to be associated with mental illness has faded.

Psych Solutions, a psychiatric hospital company, is a "safe, secular growth stock" that can't be hurt by a slowdown in the economy, said Cramer.

The company is growing organically, and through "disciplined" acquisitions -- its most recent being the mental health division of Ardent.

Cramer said that Psych Solutions recently had a stock offering at $50, so "don't pay too much." But, the bottom line is, "if you want to catch the bull market in mental health -- and it is a huge bull market -- buy some Psychiatric Solutions."

A caller wanted to know which pharmaceutical companies are best positioned in the market for antipsychotic drugs.

Cramer mentioned Eli Lilly (LLY Quote), along with Bristol-Myers Squibb (BMY Quote) and its drug Abilify, adding that he would "do a 'mon back* on Bristol."

Cramer also talked about Cyberonics (CYBX Quote) and its implantable drug delivery system for epilepsy, which he said might someday be used for the delivery of antipsychotic drugs, as well.

Pay Attention to Shire

Adult use of attention-deficit disorder (ADD) medications more than doubled from 2000 to 2004, said Cramer, and pediatric use has grown 70%.

In fact, he said, the use of ADD medications has grown faster than any other kind of drug except for those for rheumatoid arthritis.

The play Cramer likes from these data is Shire Pharmaceuticals Group (SHPGY Quote). Shire makes Adderall XR, the "No. 1 drug" for ADD and attention-deficit-hyperactivity disorder (ADHD).