winning big with vaccines, Jim Cramer said on TheStreet.com TV's Wall Street Confidential Web video Friday.
Cramer said the company decided to get into vaccines when everyone said there was no money in vaccines. That thinking turned out to be wrong.
also are doing well with vaccines, Cramer said.
Gardasil, the human papillomavirus vaccine from Merck, is going to be huge, Cramer and stockpickr.com's James Altucher agreed. It's going from about $300 million to $4 billion in revenue over the next year, and that's just one vaccine, he said. Plus, now they're doing late-stage trials on a hepatitis-B vaccine. "I think if you want a solid 15%, maybe 20% a year for a long time, Merck is a great bet," Altucher said.
Cramer & Altucher: Give Vaccines a Shot
var config = new Array(); config<BRACKET>"videoId"</BRACKET> = 1285244668; config<BRACKET>"playerTag"</BRACKET> = "TSCM Embedded Video Player"; config<BRACKET>"autoStart"</BRACKET> = false; config<BRACKET>"preloadBackColor"</BRACKET> = "#FFFFFF"; config<BRACKET>"useOverlayMenu"</BRACKET> = "false"; config<BRACKET>"width"</BRACKET> = 265; config<BRACKET>"height"</BRACKET> = 255; config<BRACKET>"playerId"</BRACKET> = 1243645856; createExperience(config, 8);
"This is a re-energized Merck," Cramer said. "It's a really great Merck. It keeps going up. It keeps beating numbers, but it's still only back to where it was a couple of years ago, so I agree with you, I think there's more
room for it to climb."
When Altucher pointed out
, where vaccine growth was 50%, Cramer said it is another company that he likes.
For years, vaccines were risky, because if something went wrong, it was only a matter of time before a company had a class-action suit against it. "So the drug companies pretty much decided there was no real money in vaccines," Cramer explained. One of the big changes the analysts didn't pick up on is that since then, the plaintiffs' bar has been beaten back, so the litigation risk of vaccines has declined.
"It's a great trend and I would buy Merck," Cramer said.
At the same time, rather than vaccines, rapid diagnostics are more important to nip the illness in the bud, Cramer said. This is why
Inverness Medical Innovations
, a stock that he owns for his charitable trust,
Action Alerts PLUS, and has been recommending, is up another couple of points today after being up yesterday, he said.
At the time of publication, Cramer was long Inverness Medical Innovations.
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. Click
here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click
here to order his book, "Real Money: Sane Investing in an Insane World," click
here to get his second book, "You Got Screwed!" and click
here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by
TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.