Mad Money Spotlight: Cougar Biotechnology

Cougar Biotechnology(CGRB) is about to be subsumed by Johnson & Johnson(JNJ) in a buyout valued at nearly $1 billion, and that means it's time for shareholders to exit stage left, Jim Cramer said on his "Mad Money" broadcast Tuesday evening.

"I command you to sell," Cramer told viewers.

Under the deal's terms, J&J will make a cash tender offer for Cougar, a Los Angeles drug developer, at $43 a share. That comes out to about $843 million, a 16% premium to where Cougar stock was trading the day before the deal was announced last Thursday. (The $1 billion deal value also includes the cash Cougar has in the bank.)

Cougar shares were changing hands Wednesday at $42.77, up slightly from the previous session.

From Johnson & Johnson's vantage point, many observers praised the buy, calling it inexpensive, especially since Cougar has a potentially lucrative product on its hands: a prostate-cancer drug that's in late-stage clinical trials.

But there are indications that a few Cougar shareholders may not be pleased. At least one law firm -- a certain class-action specialist called Brodsky & Smith, out of Bala Cynwyd, Pa. -- has said that it's looking into "potential claims" against Cougar's board, including "possible breaches of fiduciary duty."

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