Nader explained that NPS looks for value in the drug market and orphan drugs provide that value because they have no competition, they cost far less to develop and there is still a true need for the products. Compare that to the $1.3 billion needed to bring a traditional blockbuster drug to market and it's easy to see why orphan drugs are far more attractive. However, even with the orphan drug distinction, Nader noted NPS is still not going it alone. The company has major partners and licensing agreements for almost all of its drugs, helping to provide it with the cash it needs as well as a predictable profit picture in the future. Cramer said that this drug maker is doing things right and he wants to continue to be a buyer.
Am I Diversified?
In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets. The first portfolio included: SPDR Gold Shares ( GLD), Alcoa ( AA), Caterpillar ( CAT), Lululemon Athletica ( LULU) and Chipotle Mexican Grill ( CMG). Cramer said that Lulu and Chipotle are both high-growth momentum stocks and this portfolio needs to replace Lulu with a drug stock like Abbott Labs ( ABT) The second portfolio's top holdings included: ConocoPhillips ( COP), AT&T ( T), Energy Transfer Partners ( ETP), Eli Lilly ( LLY) and Bank of America ( BAC). Cramer said that Conoco was too much like Energy Transfer and he would sell the latter in favor of General Electric ( GE). The third portfolio had: Boeing ( BA), American Capital Agency ( AGNC), Accenture ( ACN), Apple ( AAPL) and Energy Transfer Partners ( ETP) as its top five stocks. Cramer said that this portfolio was terrific. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDCTo watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
Jefferies analysts note that recent construction spending data indicates a cycle rotation away from construction-exposed names and toward industrial- and durable goods-levered firms could be playing out.