Cramer: The Biotech Revaluation Is On

NEW YORK ( Real Money) -- They came right back yesterday. It was as if they didn't skip a beat, aided by the fine results by Johnson & Johnson ( JNJ) and Coca-Cola ( KO).

It was as if they had a Food and Drug Administration buy program. Of course, the yield hunters went right after stock like Eli Lilly ( LLY) and GlaxoSmithKline ( GSK) and the now-perennial, 52-week-high AstraZeneca ( AZN), the latter totally undeserving of the honor given its poor performance of its actual business as opposed to its stock.

But what I find so astounding isn't the strength in the classic, somewhat high-yielding soft goods stocks but the amazing resilience of the stocksthatgoupeveryday. I am making that one word, because it is the new title I am using for Gilead Sciences ( GILD), Biogen Idec ( BIIB), Celgene ( CELG)) and, perhaps most stunningly, Regeneron Pharmaceuticals ( REGN).

Now, each of these companies has some terrific drugs in the works. There are novel formulations and terrific pipelines. That's terrific, but I have to tell you that this everyday revaluation -- one I warned you about when I suggested you buy calls on these stocks -- is pretty stunning.

Editor's Note: This article was originally published on Real Money on April 17. To see Jim Cramer's latest commentary as it's published, sign up for a free trial of Real Money.

Regeneron in particular is most amazing. It has a terrific ophthalmological pipeline as well as the blockbuster Eylea, and it has a potential for a brand-new anti-cholesterol franchise that isn't based on statins, for those who can't tolerate them.

Everyone wants yield because of the scarcity of bonds that give you anywhere near even the reduced yields that Procter & Gamble ( PG) and Clorox ( CL) give you.

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