Making matters worse, Arena only receives a 40% cut of the revenue from Belviq as its partnered with other companies for its development. At Arena's current valuation that pegs Belviq as a $6 billion opportunity, far greater than forecast. There's also competition to consider as Vivus (VVUS) may receive approval for its weight loss drug, Qnexa, as early as next week and that drug may come to market before Belviq.
All things considered, Cramer said that Arena has a risk-reward that's too dicey. He prefers Onyx Pharmaceuticals (ONXX), another of his five candidates from Monday's show. He said Onyx's blood cancer drug is also awaiting FDA approval and would be the company's second drug on the market.
Here's what Cramer had to say about callers' stocks during the "Lightning Round":
Tractor Supply (TSCO): "I am not sure that this climate is right for them. I say stay on hold."Honeywell (HON): "I like Honeywell. I prefer to buy it on weakness." Walt Disney (DIS): "Disney is firing on all cylinders. As it comes down, you want to pull the trigger and buy." Goodrich (GR): "It's done. Ring the register and sell, sell, sell." Select Comfort (SCSS): "Select Comfort is not the king and that industry worries me." Lululemon Athletica (LULU): "I still like Lulu. I'm not giving up on Lulu." Chipotle Mexican Grill (CMG): "This is a great growth stock that you need to buy on the way down in a horrible market. I'll include Starbucks (SBUX) and Celgene (CELG)."