Cramer's Morning Take: Eli Lilly & Bristol Myers 12/4/24

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Jim Cramer (1:04)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

Jeff Marks (1:12)

This morning, Eli Lilly announces the head to head phase three trial, which showed ZetBound had superior weight loss in over Nordic Swagovie. ZetBound on average 20.2 percent weight loss over 72 weeks versus Swagovie 13.7. So superior. I think we kind of knew this, but this is more data that backs it up.

Jim Cramer (1:32)

I think it should return to the $900 level. I think that the only getting factor is Dave Ricks, and Andrew O. Sorkin is going to interview. Does Dave Ricks have the capacity to meet the demand? That is really the issue here.

Jeff Marks (1:45)

Yeah, I know Truist Day, they point out a couple catalysts to keep an eye out for Lilly. One is Novo Nordisk. So Novo Nordisk and Lilly, they both are working on their next generation medicines as well.

Jim Cramer (1:56)

The fact that this is up indicates that they're working on something.

Jeff Marks (1:59)

So they're going to have a readout soon. It's expected to show weight loss of about 25 percent. So anything below that would be very positive for Eli Lilly. Tolerability could, of course, be a question. That's what we saw with AMGEN just last week. And then there's going to be an FDA decision soon on the inclusion of these drugs, Lilly's terzepotide, on the drug shortage list, which impacts compounding pharmacies. Obviously, as a Lilly shareholder, we don't want to see the stock on the shortage list because that means compounders can't come in. Exactly. So why don't we just take a step back, though? So we took a look at Eli Lilly. Same day, we bought shares of Bristol Myers as well. Stock hit a 52-week high on Monday, and it's pulled back about 3% since then.

Jim Cramer (2:44)

I'm going to use every opportunity to buy more of Bristol. And I hope, you know, this is one we didn't know the lessener. I actually hope Bristol goes here. Okay, I hope Bristol goes there because then we can buy so much. Corona Therapeutics would say, boy, it does have a drug that's been sanctioned by the FDA that will allow the first schizophrenia treatment in 30 years. And the previous schizophrenia people don't understand was just this miserable, made you fat, made you terrible. People got off the drug because they hated how they looked. I know that sounds too, I don't know, glamour or too much about, too vanity. But no, I mean, like, you gain like 200 pounds. So if you're 150 pounds, you might be 300, 350 So people stop taking it. These have no side effects. People do not understand how big, this drugs doesn't use for bipolar. It's going to be used for people who have Alzheimer's. So I think that people don't understand. This $50 stock is going to be, I think, a $100 stock.

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