Jim Cramer Says Investors Should Consider Adding Drug Stocks

TheStreet's Action Alerts PLUS Portfolio Manager Jim Cramer believes the pharmaceutical sector has come full circle and some of the best stocks in the group may be ready to move higher. On Wednesday, Valeant's (VRX) outgoing CEO, Michael Pearson, and Pershing Square's Bill Ackman spoke in front of the Senate Special Committee on Aging and said the company had made 'mistakes' with regard to deals it made which included planned increases in drug prices. Cramer said, 'I think the group is ripe for deals. And I think that people should run to the group and not away from it. Johnson & Johnson (JNJ) - Get Report is still my favorite with a terrific triple-a balance sheet. Bristol-Myers (BMY) - Get Report with much better than expected earnings. We own Allergan (AGN) - Get Report for the transformational deal that we think is going to come.'

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