Why Jim Cramer Thinks Merck (MRK), Pfizer (PFE), GlaxoSmithKline (GSK) Bids Are Coming After InterMune (ITMN) Deal

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says Roche called its purchase of InterMune  (ITMN) a "bolt-on" acquisition.

Cramer says the $8.3 billion bid signifies that big pharmaceutical companies are thinking big even as Roche calls this a "bolt-on" acquisition. Cramer notes in the old days, "bolt on" would have meant anything less than $1 billion.

Cramer calls this deal important because so many biotech companies are losing money the way InterMune was before it had a breakthrough. His game plan is for a prospective buyer to find a biotech company in stage three, which means it is about to get FDA approval, and looks like it is a need that is unmet.

Must Watch: Jim Cramer Says Roche's "Bolt-On" Acquisition Means Big Pharma is Thinking Big

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Cramer believes bids are coming from Merck  (MRK) , Pfizer  (PFE) and GlaxoSmithKline  (GSK) because they need to do bolt-on acquisitions for growth.

ITMN Chart ITMN data by YCharts

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

More from Markets

Let the Najarian Brothers Help You Generate Income With Options

Let the Najarian Brothers Help You Generate Income With Options

Oil Stocks Jump as Global Crude Oil Rally Gains Steam

Oil Stocks Jump as Global Crude Oil Rally Gains Steam

P&G Tops Forecasts in Early Q3 Earnings Release Following Merck KGaA Deal

P&G Tops Forecasts in Early Q3 Earnings Release Following Merck KGaA Deal

Amazon Prime Tops 100 Million Members and 4 Other Stories You Must Know Thursday

Amazon Prime Tops 100 Million Members and 4 Other Stories You Must Know Thursday

Amazon, Procter & Gamble, Southwest and Netflix - 5 Things You Must Know

Amazon, Procter & Gamble, Southwest and Netflix - 5 Things You Must Know