Jim Cramer Explains Why Eli Lilly Isn't Solely Responsible for Insulin Controversy

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Jim Cramer talked to Eli Lilly's (LLY) - Get Report CEO, David Ricks, Tuesday night. 

And he had some thoughts on the insulin controversy. 

But first, let's back up.

Shares of Eli Lilly are up 81% for the year and have added more than 41% in just the past three months.

When asked about the controversy surrounding insulin prices and availability, Ricks said the issue is not with Eli Lilly but rather with the underlying economics of drug wholesalers and middlemen, which prefer not to carry low-margin drugs.

Ricks also fired back at Elizabeth Warren after she accused the drugmaker of failing to go through with its pledge to provide lower-priced insulin. Ricks called the accusation "nonsense."

Cramer explained Ricks response on TheStreet's daily live show. 

"[Ricks] kind of said that's nonsense. That was actually the term he used. I thought he did a quite compelling explanation. They do indeed have a half-price insulin, but the system isn't offering it and that's not his fault. And I, if they have that would be like this. Okay. So let's say you're making Ritz crackers. All right? And people think that Ritz Crackers cost too much. So he's offering a half-price Ritz Cracker, but the supermarkets aren't putting it up. So what are you going to do? You blame him. But is he supposed to call Kroger and say, guys, right next to the full price Ritz Cracker? I want you to put the half-price Ritz Cracker. Well, they're not going to do that. They make less," Cramer explained. 

Watch the full video for more.