Jim Cramer on How Valeant Created a Bear Market for Pharma

TheStreet's Jim Cramer says Valeant (VRX) keeps hurting the entire pharmaceutical industry, and the bear market shows no signs of ending soon. 'The important thing is Valeant has destroyed pricing for the drug companies,' said Cramer from the floor of the New York Stock Exchange on Friday. 'All of the drug companies are on the defensive.' Cramer said one example is Allergan (AGN) - Get Report , which has lost value even though it has an offer from Pfizer (PFE) - Get Report . Cramer said with drug pricing under a microscope, pharma company executives know it's dangerous to try to raise prices and the price to earnings multiples of companies are shrinking. Cramer is portfolio manager of the Action Alerts PLUS charitable trust.

At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS held no positions in stocks mentioned.