Cramer's Morning Take: Eli Lilly 2/6/24

Jim Cramer (0:01)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club morning meeting.

This is a day which I regard as a consolidation day. Many of the tech stocks that have been completely on fire are not doing well today, but that is understandable given the fact that they've moved up. And meanwhile, some more industrials and some companies that are in healthcare are doing very well. And I would say, Jeff, that I don't want to discount any particular day, but you do have a moment periodically when you have stocks that are up so much, they're going to take breathers.

Jeff Marks (0:30)

Absolutely. You do have some strategists. Warning about some of the huge move in tech stocks.

Why don't we just jump to Eli Lilly. So yesterday, ahead of earnings, it rallies 5%. You get the numbers. The numbers were great. Now up about 1%.

Obviously, it's up on a spike over the last couple of days.

Jim Cramer (0:48)

But it was, you know, you had it up 30 at one point. Now, just so people understand, that's a heat-seeking missile. You bought it yesterday.

Boom, you nail it for 30

Any trader will want it. That's called scalping. Any trader would scalp. They bought it yesterday.

Jeff Marks (1:03)

But the quarter was great. Revenue's up 28%. Beating estimates. Adjusted earnings up 19%.

That was a 19 cent beat.

Terzepotide, Monjaro, ZetBound. Big sales beats there. Monjaro 2.2 billion versus 1.77 billion. I know some analysts were talking about there was a one-time, roughly $400 million benefit, but still a beat. ZetBound, 175 million versus 140 Guidance, revenue, much better than expected. Adjusted earnings in line, but keep in mind that right now, it's really a revenue story with these two key products, and there's going to be a higher cost associated with ramping their sales. So in line, earnings, I think will win. And then positive news on the pipeline, because terzepotide, now they're also finding it works with NASH, fatty liver disease.

Jim Cramer (1:49)

Which is a horrible disease. It often leads to liver cancer, of which there's almost no hope.

I think what people have to understand is that there's a couple of companies that are working on this, like Magical Pharma, and their stocks are being destroyed because the numbers were so good at Lilly. There's also some people who are saying, hey, they're not good enough. I think they don't understand that once you have the kind of toehold that Lilly has in it, they can tweak and make it better, maybe mix it with other things. But this is going to become the standard of care for NASH, in which there are six to 10 million people who have this, many of them die.

Jeff Marks (2:19)

And remember, why it matters is that as these drugs have shown for more indications that they're able to work, whether it's NASH, sleep apnea, heart is obviously a big thing, cardiovascular risk. That just strengthens the case for them to get approved by the health insurance companies, broaden that approval, more people can start taking it.

Jim Cramer (2:41)

And it matters.

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SPEAKER_3 (2:57)

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