Alexion's primary drug, Soliris, is one of the most expensive drugs available, costing $500,000 a year. The company is now seeking to expand Soliris to treat rare kidney diseases, which could add another $900 million to Soliris already $2 billion in revenues. Tack on other possible uses for Soliris and Cramer said Alexion could have $5.4 billion in revenue over the next few years. That's part of the reason why shares of Alexion are up 321% since Cramer first recommended it in October 2010. Then there's Gilead Sciences, primarily known for its quad pill HIV treatment that can be taken just once a day. Gilead also has a strong hepatitis-c franchise, which could be worth $8 billion over the next six years. Cramer explained that unlike the current treatment, which is a 24-week injection regiment with varied results, Gilead's treatment is only a 12-week oral treatment that has seen 100% cure rates in some patients. Unlike many other stocks, Alexion and Gilead are secular growers, said Cramer, and therefore don't need a strong global economy to do well.
In the Lightning Round, Cramer was bullish on Eli Lilly ( LLY), Monro Muffler ( MNRO) and Kinder Morgan Energy Partners ( KMP). Cramer was bearish on Cooper Tire & Rubber ( CTB), Fusion IO ( FIO), Kinder Morgan ( KMI) and Nvidia ( NVDA).
Cramer Goes 'Bad'
In a special interview, Cramer spoke with actor, writer and director Bryan Cranston, star of the new motion picture "Argo" as well as AMC's TV series "Breaking Bad." Cramer said "Breaking Bad," while centered around a highly successful drug dealer, also affords viewers an honest look into exactly what it takes to start and operate a small business. Cranston agreed with Cramer's sentiments, saying that while many view actors as portraying fantasy, in reality actors try and define the truth and honesty around their characters. In the case of "Breaking Bad," Cranston said he shadowed university professors for a few days just to better understand the world of science and chemistry. For the movie "Argo" he spent a week at CIA headquarters learning that while the spy trade does have its secretive mystique, it's also filled with the same bureaucracy we all face every day.