Cramer's Morning Take: Bristol Meyers 2/6/25

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Jim Cramer (1:01)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting. I've got to tell you, this is one of those days, Jeff, where I find that the market is up in the morning. Now, the big gains have happened when the market is down in the morning. People realize their opportunity. So I'm a little dubious, but we have some situations that I'm just going to pound the table on during this period.

Jeff Marks (1:27)

No, absolutely. We had an earnings blitz for companies in the portfolio reporting. Why don't we just go down them one by one? Why don't we start off with Eli Lilly? So we already knew the fourth quarter results, right? They pre-announced you had David Rickson Squawk on the Street. Stock's up now about $120 since then, because the 2025 view is much better than Q4, which initially was a little bit weaker, but seeing strong prescription trends in Manjaro, Zet-Bound, their weight loss drugs.

Jim Cramer (1:58)

And they have so many different trials going on, including a pill form. What I find so interesting about this was I interviewed David Ricks, and David botched 2024 Now, that's not me talking. He said it. But 2025 was going to be great. No one heard what he said about 2025 They all talked about what he said about 2024, and we got to buy some, and I feel very great about it. I would not sell this stuff.

Jeff Marks (2:22)

Yeah, a lot of big readouts this year. The pills you mentioned, Face 3

Jim Cramer (2:25)

If you take a look at the readouts, you start thinking, you know what, maybe it's a chromal morbidity if you're one of the 46% of the people who are obese. You're going to be on this thing. Now, David Ricks told me he felt that maybe 40 million people are going to go on it. That's why you start seeing things like liquor sales go down, chocolate sales go down, a lot of Twinkie sales go down. And don't believe it when the companies just say people are healthier. It is GOP-1.

Jeff Marks (2:49)

Yeah, once again, cementing itself as the top pharma stock. We had another pharma name report today. More of a catalyst story, I would call it, for this year. A lot of readouts for Kubbenfee, but the company is Bristol Meyers. It was a beat on both revenue and earnings. Kubbenfee sales, 10 million, doing well. So you have two big readouts this year, one for Alzheimer's disease psychosis, and also adjunctive schizophrenia. Stock was down initially. Why don't we just call it 4%. The revenue guide was light and earnings. But if you really dig through the outlook and the differences between the street, it's really for things we're not nearly as focused on, one of it being Revlimid, which is facing generic pressure. And then also the strong dollar created headwinds as well.

Jim Cramer (3:34)

I mean, you gotta go, having listened to Chris Burner, the CEO, when he spoke at JP Morgan, he gave you the key, which was that, look, Revlimid's falling off. This is something that they got when they bought Celgene. They paid way too much. And Revlimid's falling off a little bit faster than thought. It was falling off. And what really matters is co-benefit. Why does co-benefit matter? It's the first new drug for schizophrenia in 30 years. It really works. Medicaid's paying for it. Medicare will pay for it. Where I think that the adoption is gonna come from is all the cities. Because what you see, the people who you see on the sidewalk, it's terrible as this is, some is fentanyl, most is schizophrenia.

And they're gonna work with the National Association of Mental Illness. They have worked with pretty much all the great institutions in our country for awareness. And I think it's going to be one of the biggest drugs of all time. And you have to stand there and buy it today. Hand over fist. Join the CNBC Investing Club with Jim Cramer to catch my member exclusive morning minis every day at 10, 20 a.m. Visit cnbc.com/morningtake to become a member today. That's one word, morning take.