Cramer's 'Mad Money' Recap: Diabetic Stock

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Take a look at DexCom(DXCM Quote), Jim Cramer told viewers of his "Mad Money" TV show on Friday, saying that "this company has the next big medical device."

DexCom makes the most important advancement in the treatment of diabetes since we figured out how to manufacture insulin, he said, referring to its new glucose-monitoring system for diabetics. This device allows people to monitor their insulin levels every five minutes, and it's up for Food and Drug Administration approval in the next six weeks.

There are more than 12 million people in the U.S. diagnosed with diabetes, which, he said, is the fifth leading cause of death. It will be a lot easier to control glucose levels and treat diabetes when the patient can easily monitor insulin levels, he said.

Plus, he believes an even better diabetes treatment will combine real-time monitoring of glucose levels with an insulin pump that has a continuous monitoring device. The device will tell the pump when to administer insulin and at what levels.

Johnson & Johnson(JNJ Quote) has the pump, he said, adding that the company paid a 35% premium to buy the company that owned the technology.

With DexCom, it can make this device, he said. And even if Johnson & Johnson doesn't buy the company, Cramer believes it's worth investing in DexCom for its products and great management. But he warned viewers to wait for a pullback before buying the stock.