Cramer's 'Mad Money' Recap: Drugstore Cowboy

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The time is right for you to own the drug dealers, Jim Cramer told "Mad Money" viewers Thursday, meaning that it's time to buy drugstore stocks.

In the tug of war going on right now between who gets the lion's share of the drug money, Cramer believes that the drugstores have the upper hand.

That's because many drugs are coming off patent this year and their generic versions will be launched, and because of the new Medicare Part D drug benefit, said Cramer.

Though everyone hates generics, pharmacies love them because they make more money from selling generic prescriptions, Cramer said.

Among the many reasons for this, he cited the fact that insurance companies give pharmacies a reimbursement when they fill generic prescriptions.

And Cramer said that branded drugs are more expensive for pharmacies to acquire. That's a lot of money when you think about how many prescriptions a drugstore chain fills, he said.

As for the Medicare Part D drug benefit plan, Cramer acknowledged that it's poorly organized and confusing, and that there are not many people enrolled.

But, he said, just because this has been "a small-scale disaster for senior citizens," that doesn't mean it's been bad for the pharmacies.

There will be new tax breaks for medical expenses that will directly benefit drugstores.

So Cramer said to take a look at CVS(CVS Quote), even though it's not best of breed like Walgreen(WAG Quote).

That's because Cramer believes that the stock is cheap, trading near the average market multiple, even though he likes its growth picture.

And CVS is getting to pick the best stuff from Albertson's(ABS Quote).

But he told a caller not to sell Walgreen to swap into CVS, because Walgreen is best of breed and "a winner." He added that CVS is more uniquely levered because of what it's getting from Albertson's.