Jim Cramer Says Take a Long Term View on Healthcare Stocks

Jim Cramer says healthcare companies will be in the spotlight this week and investors should take a long term view of the sector if the stocks selloff. On Thursday, the House Committee on Oversight and Government Reform is holding a hearing to examine what’s behind recent drug price increases. ‘It is going to be bad, bad, bad for Martin Shkreli,’ said Cramer. Shkreli is the former CEO of Turing Pharmaceuticals who created an uproar after his company dramatically raised the price of a drug from $13.50 to $750 a pill. Beyond the controversy over Shkreli, Cramer notes that pharmaceutical companies have come under pressure due to comments about drug pricing made by presidential hopeful Hillary Clinton throughout her campaign. But that’s not changing Cramer’s mind about the companies he likes. ‘We own Lilly(LLY), which I think is an Alzheimer’s play,’ said Cramer. ‘People sold it down four off the earnings. That was stupid, the earnings were right in line.’