>> dan nathan. >> iwm here. >> that's the best picture ever. >> so good. >> i'm melissa lee. see you back here tomorrow at 5:00 for more "fast money." "mad money" starts right now. . my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market in summer and i promise to help you find it. ""mad money"" starts now! hey, i'm cramer, welcome to ""mad money."" welcome to cramerica. my job is not just to entertain you, call me, 1-800-743-cnbc. it's always darkest before the dawn, a fact of life. and if you want to know why this stockmarket has been able to

pull out some pretty fabulous gains, including today, where the dow awarded 131 points, the s&p climbed 4.9% and the nasdaq rocketed .126%. the reason is simple. it is donning in europe. i typically don't like to talk about europe, typically at the top of the show, candidly, i prefer talking about america. [ music playing ] i like talking about great companies, great business people. i let other dos that, because my nature is to be an optimist. i'm critical. ooimt i'm skeptical. just today while teaching a finance class at madison high school down the road from my house in summit, new jersey new jersey, somebody asked me if the next 50 years will be as good as the last 50. i didn't think about it. i said, "of course." just so you know, i am not on the call for negativity. but with europe, well, let's just say i have reluctantly had

to focus on it because there has been such a black hole and there has been nothing at all to be optimistic about whatsoever. even this opted mist knows -- optimist knows when pessimism is the right course of action. nothing positive until the last two-to-three weeks. let me put the european into context. it was almost when the curtain fell, right around then american companies realized there were major opportunities to be had in europe, now that there was a peace dividend and the countries of eastern and central europe were going capitalist. the moves to expand in europe where there were more than twice as many people we have in the united states accelerated with the creation of the euro. one currency for all our companies to expand in europe. no-brainer. almost every international companies, the food, drug, enterprises moved aggressively, tried to take it from europeans and become dominant.

spent a fortune there. why not? our company seemed to be stagnant. new markets are the life blood of growing sales. don't we all talk about how we need to see higher revenue, except for this show i'm happy with earnings. europe became a full blown crisis and it started in 2009. now, unlike our federal reserve chief who moved aggressively to lower interest rates to get people to work and start the economy, other than that, the europeans perhaps have worries about hyperinflation in germany in another century, which led to chaos and ultimately the nazi regime in world war ii, well, they never took two aggressive in lowering rates the europeans actually raised rates, not once, but twice, which was disasterous. >> the house of pain! >> now, so many of our companies are so big in europe that the recession there reduced the earnings in some countries dramatically, plus, europe is the primary market for chinese

goods. 25% of those goods go to europe. so china's been hurt badly by the european recession, too, programs more than we are. no matter how hard the chinese government tries to simulate it's on economy the people's republic is an export driven nation and the slow down in europe crushed their efforts. we see the efforts of that slowdown pretty much with every piece of data coming out of china, including weak data last night. europe got so bad that many of our major companies have been reporting shortfalls or slowdowns. almost all the industrial companies we talked to have been hit and it's europe. all of technology, even google. think about these industries, travel, finance, oil and gas, chemical, steel, you name it. even the food and drug companies as the europeans trade down in record numbers and their government stopped paying for reimbursing for many of the revolutionary medicines developed here in this country. don't believe me?

why don't do you this, why don't you go back and read an all sellgene's koumps call the ceo has been worried about is stingy european approvals and reimbursements. in fact, when i was listening to the facebook call last night, it almost knocked my socks off that europe is strong. hey, well, that was one of the many reasons why the stock climbed today. it was the only company i know this whole quarter who said results haven't been slowed down by europe. europe is strong. now, though, in the last few weeks, literally, i'm talking about the last few weeks. i'm not talking about it figuretively, literally, there have been stirrings in europe that things have been getting better. just recall on our own show when you listen to these ceo interviews like i do, four companies we had on this week, eaton, ppg, adnet and timken, all companies with big exposure have said things are bottoming or they're starting to get better. think about the representation we had on this show just this

week. we had companies that are kings in electronics, aerospace, chemicals, all things technology and steel. that's a vast panaply of everything involved in manufacturing. they all said europe's bottomed. they may be going higher. earlier this week we saw results from deutsche bank and ups on the heels of barclays. these are giant banks. this morning, i interviewed rod martin a spin-off of aig who said his parenteen company's business in europe is turning. okay. that's the netherland. do you know something i thought you'd never hear me say. i think tomorrow we hear a terrific quarter from nothing other than the royal bank of scotland. they have been the worst of the worst over there. we also heard from general motors today saying its business in europe, gigantic, by the way,

has started to turn. ed for may say the same. both stocks have become aggressive, buy, buy, buy, because of the resistance, i switched to one of their words like croix sant came -- like croissant. their ben bernanke rolled back the res of their, yes, moronic interest rates giving them the same scheme our country has. while you may think bernanke isn't working. many in the industry will disagree with you. europe has been taking a mandated approach, by germany, with each country attempting to cut its budget deficit and hold back spending at precisely the time that business was falling off a cliff, unemployment was reaching levels we associated with the depression. the only things these guys do, they never cut back on their anti-pollution budget. that's all they ever carant. but the borrowing costs for all their countries have been

reduced dramatically, they have fallen. in many cases, the administration is miniscule. we don't talk about them enough. it became clear the hubble companies were about to rebel and in other words things had gotten so out of hand bad that the germans had let and got the green light to pump up 700 million strong european economy again. i suspect there will be more hiring the next year in europe than we have had at any time in the last six years. i cannot express how good this news is, unmitigated. did you know today was the first time, the first time the european central bank and european union have shown any interest in making things better for business in years. any interest. now, many people think our stocks are horribly overdone. that was the theme that even rippled through the high school class today. think about this, if we get europe to turn, you will see a radical expansion with so many companies that have made europe a focus before the downturn that they have taken down immense costs.

we will see china pump up its economy by constructing buildings that are not needed. they will require a real demand. we will see demand rise for our cars, our steel, our oil and gas, our food, our drugs, our machinery, our international banks, even citigroup, morgan stanley and most important our technology which gets, on average, about 25% of its sales from europe. this move today could be the single most important game changer that could occur in 2013. you know what, it can explain why so many companies reporting disappointing profits, our stocks aren't going down, in many cases are going higher. european rate cuts a turn in europe. that's the key to the puzzle. because if europe comes back online, stocks win wone be nearly as expensive on earnings that we think. you know what? we wish we bought them when they were cheap, which pay very well be now. here's the bottom line. you might not believe me. i don't know a soul who does believe me.

i don't care. the combination of the companies i speak to who do business in europe, the ones on the ropes, and the european central bank's bold move and great move today to cut rates has put in a bottom in europe and a recovery has already begun. yes, the turn has come. they explained so much of this move that people have been puzzled over. you know what, it will keep explaining it for many quarters to come. i want to go to joyce in texas. joyce. >> boo-yah, jim. i'm so happy that you took my call. my question is on oil states international, ticker symbol ois, gains, jenna partners bought 5 million of this shares. they set it was undervalued. the stock was even higher today. what do you think of this stock, james? >> i agreement i like the oils. the oil states is an oily company. i don't like the natural gassings as much, particularly now it's getting warmer. i think you got a winner. i would hold on to that stock.

over there, a bottom over there that isn't discounted. just maybe at last, in fact the rebound, i think it's already begun. i expect to see many, many good quarters from companies that do business in europe for the rest of the year, if i am right about this turn. and i think i am. "mad money" will be right back. . coming up, frown line, investors weren't happy with allergan as disappointing data caused it to get crushed after earnings, but sticking with this stock have your portfolio sitting pretty? cramer's got the ceo in the hot seat next. and later, drilling destiny the oil boom marchs on as the u.s. gets closer to the dream of energy independence, but as on shore assets continue to drink on crude, as the opportunity to invest, has it moved elsewhere? cramer's got the plays. plus, sequester shock. first, washington red tape ties

up the skies. are your men's next. cramer is looking at looming delays in drug development and whether charles river labs can rise above the cuts when he talks to its ceo, all coming up on "mad money." don't miss a second of "mad money," follow @jimcramer on 26th. hash hsh jimkramer, e-mail at cnbc.com or give us a call at 1-800-743-cnbc. miss something? med e head to madmoneycnbc.com. .

♪ if you want to understand the power of the pipeline in the drug business, you only need to take one lookr look at the stock of allergan yesterday, see what i mean. here's a company you know i've liked for a long time. the maker of botox has genuine medicine and a franchise along with a migraine treatment and much, much more. allergan reported yesterday

going up 24% best in the group. on the surface you might have thought there was nothing particularly wrong with the quarter. allergan beat the estimates by a penny. they posted heir higher than expected revenue, they gave guidelines for the whole year, nothing to write home about. if the stock was obliterated falling 15 points in a single sex, two reasons allergan has been developing had some disappointing data. the company announced it would be delaying these drugs by one or two years. one is for macular degeniation, another -- degeneration and another for baldness. these drugs are in phase 2 development. we're talking about products that couldn't hit the market until 2017, if it anigh lated the stocks -- annihilated these two stocks, these two candidates, these were the exciting part of the portfolio. so yesterday's sell-off wasn't an overreaction.

allergan still has a terrific portfolio. part of the pipeline has been pushed out. they still have consistent earnings per share and has a big five-year growth. i want to talk to the ceo and hear more about these delays in the future of his companies, even if it is on the heels of a not so great day of an innovator. mr. pyatt, thank you for coming to mad money. >> before we get into the topic, i have great news, the first members of the media hearing this, earlier today, a couple hours ago, the fda panel voted unanimously in favor of our volumizing filler. so i just wanted to get that out there, voluma. it's some of the less great news of earlier this week. >> we are going back and forth in our research. i need an answer, the juvederm

is a drug filler? >> that's right. it's a medical devierks in fact. basically, it's the first in its genre for building up the volume in mid-face and everywhere in the world that this has been introduced, it has a dramatic effect on market expansion because it's performed so well at a higher price. it is better for allergan and our ability to re-invest in r afternoon after d. we end up with more market share as well. >> is this used more my dermatologists or is there a traevening period like the migraine drug? >> yes, with everybody. it is injectable. it's the next base product which is now the leading product both in the united states and around the world and, obviously, let me know when you want me to go back to the other topics. >> david, we got to go there. i was surprised by the reaction. i felt like maybe because i'm not up on the company. i said, look, nothing's changed

for the next three/four years. right? the numbers, the path you set out, you told us many times. on mod main still very much intact? >> absolutely. to put it in context, the retinal compound for macular degeneration and the hair growth product, basically, we hit the pause button. we were not convinced by the strength of the data to go straight into phase 3, sometimes you have to take a bit longer to get the right ruchlt as you point -- the right result. as you pointed out, so ably, had these products been pushed out in the best case would have been products at the five-year of our strategic end period, maybe into 2018. now they're probably delayed one-to-two years each. >> okay, now, maybe this is what i was thinking about. you talked about the idea of

using a 10x formulation. ten times what are you useing. i don't know if i want to try a drug ten times more powerful than the current one or you would have started out that strong. >> right. well, that's a great question. because, again, as you know, we have latisse on the market. this is the product indicated for lengthen, darkening and thickening eyelash, obviously for females. same drug as in our glaucoma compound and in the best of circumstances, the same strength would just work just fine. we always knew all along, however, that we could go substantially higher in dose. it does mean more work because clearly for fda and other agencies, we have to show these products are not only well tolerated but absolutely safe in addition to the efficacy. so now we're going to really step up and, of course, we're going to start with males and this is a huge market and we remain very optimistic about our ability to move this forward,

albeit with a small pause. >> now, darkan, that was the one that really was doing the work today, there are a substantial amount of people i talked to said the drug will never see the light of day because it can't be as effective as others. i think you would have just shut down the trials if that was the case. i think you wouldn't put out any hope at all. you would have said, we're done with it. >> absolutely. if you look at the reactions of the analyst community, you get everything from the point of view you just expressed, all the way to the other side where people now say it's a free call option. we have delivered absolutely no data. the trialing, looking back, was unfortunate because we were literally off the existing phase 2 trial. we haven't finished the analysis of that. but you can imagine, that's not something we could have kept to ourselves for another three months because originally we said to the investment community, we'll give you the

conclusions of this data in the summer on our q2 earnings call. so we're three months earlier and the data will absolutely be published at the american academy of ophthalmology retina in november. >> are you the best in ophthalmology. i will invoke a hindsight with just 20/20 do you think, you, yourself, would have reign reigned in some entheysiasm. you did not come on our show and say it was in the bag. do you feel you were too confident, are you not that kind of guy. you have never overpromised and underdelivered. >> well, i think, we are still very positive about the pharmacology of this drug class in terms of its binding and affinity, probable duration, but this is something, of course, that has to be proven beyond pre-clinical work in animals, obviously in humans. and that's why we're taking a pause. because we got to get this exactly right. this will be the most expensive

phase 3 trial ever conducted in allergan's 60 years in ophthalmology. so we want to optimize it. we want to make sure we understand the safety profile exactly correctly as well as the ev peace. -- efficacy. so there remains a lot of people in the community that are very interested and somewhat optimistic about the vent wal fate of this very important -- of the vent wal fate of this important company. we are committed toichlt we will shortly go into the cline wick a third phase 2 trial. >> david pyatt. you have yet to come on. thank you so much, sir. >> thank you. >> i am in the camp that says you are a free call only aer began. this destruction, the baldness drugs, they're no longer in the stock price. if you get it, it's a bonanza, a free call for a free company with trick management. stay with cramer.

tomorrow on "squawk box," a big day for jobs data, where the numbers continue to surprise. get first word on the nation's employment picture. plus, before warren buffet holds court with more than 40,000 share olders -- share hoerlsd, becky holes up with him. warren buffet in his first live share holder event. it all starts tomorrow on "squawk box" 6:00 a.m. on cnbc. .

on a good day for the market when it bounced up more than $2, it's time to return to one of my favorite themes for 2013. hallelujah! the renaissance, we talked about this trying to make money here. when it comes to new on shore discoveries in all the bigtially price, it's been good, lately,

new discoveries are starting to pick up in a region it was a tarnished, both literally and figuratively with the huge macondo oil spill back in 2010. i'm talking about, gum the gulf of mexico. that's why tonight i wanted to rebound the gulf. energy trader expert at the street.com and real money. because some of these stocks, let's just say they have very much worth owning now, especially if you think the price of crude could be stablizing, courtesy of a recovery of both economies around the globe. so if the gulf of mexico was replacing fine oil and gas, if it's finally come through the post-macondo regulatory fallout, how do you play? how about with bp? the oil spills was the past for these guys. as the company comes out of a dramatic and difficult period, i think the stock can go higher,

courtesy of the strength in this high gulf of mexico assets as well as new find in the north sea. i think bp could be looking at numerous estimate bumps and analyst upgrades down the road, especially if they get resolutions on these lawsuits. we get the settlement on the macondo spill, bp could stil spill. the apportionment of blame could be placed any time after july 12th. phase 2 of the trial starts in november. i know, a lot of litigation ahead. don't forget, bp put aside $40 million for damages, they have paid out a lot already, it's pure upside from wall street's perspective. after the spill in 2010, the government put all kind of constraints and mortaria mutually on the gulf, specifically. but those constraints have graduallized over time. since the beginning of 2011, bp deployed eight new rigs to the

area. the company is looking to raise that to ten rigs down the road. it's not like bp is wildcating here. come on. the company is trying to restore the three main fields in the region where they have infrastructure in place. bp is in places where they know there is oil. a sure thing in this business is something lucrative. bp sold off $38 billion of noncore assets. some were in the gulf of mexico. it didn't fit in the company's strategy. they will develop oil and gas fields that tie back to the gulf. granted, raising all that money to pay huge sentiment isn't what bp had chosen to do. but they sold the assets that didn't fit. they kept the ones that did. it turns out they had a lot more assets than they thochlt when bp reported this week, it was a blowout, a much better number. we saw proof it was a safer oriented company than it used to be t. balance sheet is much improved, two years from now the

company should generate $35 billion, regardless of how the trial goes, the company is committed to boying back up to $8 million of stock. even better, bp is waiting for you to get the house fully in order with the magnificent 4.95% yield. i say take bp's bountiful dividend and by a ware there could be volatility over the trial. i tell people, if you can't take it, you are deep in the money calls, you don't get that dividend. let say it's mired in major litigation. how else can you play with the resurgence in the gulf of mexico? bp is exploiting fine, other companies made new discoveries in the gulf. here i'm thinking of a company like darko. it operates in the gulf, including the shenandoah. anadarko, the vast majority of the oil reserves in the united states, some exposure to algeria

and the rest of the worked, too. that being said, the gul of mexico is a big surprise. in fact, the fines in the gulf are much more of a needle-mover than say bp. it's a smaller company, at least relatively speaking. this company was discovered in 2009. it was only at the end of march we learned the potentials, europe could exceed 300 million barrels. that could be a lowball figure. given their track record, if you had to better another company making a deep water find in the gulf of mexico, i would bet on tell. a lot of people are buzzing to me the reserve there is are understated. who else? if you want a big oil integrated company without bp woe, chevron, i know, it's run a lot. it has terrific exposure in the gulf of mexico, in the form of coranado. then there is conco -- conno co which -- conoco. right now this isn't a real

revenue drive for conoco. if they have success, i think that can boost the mobile. conoco people purchase it more of a failure gas company than these other majors. we heard positive things from slumberge and hallerjen. they're global. while they benefit from the rebound in the gulf. it's one of the many businesses that will hurt including natural drilling in this country. if you are looking to play the lazarus revival of the joy in the gulf, you might want to go with something more focussed on deep water drilling rig, something like camron international. they have a lot of exposure to the deep water market. they make the critical components for equipment used in the oil and gas business. the products are used all over the world, onshore and offshore

in locations that people are starting to do again. camron was dismissed from claims in the macanada oil spill. they weren't involved. the business is doing darn well here with strong bookings and a rising backlog that gives them excellent earnings visionibility over a multi-year period. i felt they were a takeout candidate. i reiterate if the company's businesses weren't so good, i would never say that but they r. hey, it's drill, baby, trip. despite the horrible oil spill three years ago and the government's restrained drilling in the region, the gulf of mexico is having an oil and gas production renaissance right now. can you play with bp, the high yield outweighs the legal risk. anadarko, a company finding new oil in the gulf or an oil drilling and service play. camron, interfarm, first time mentioned on "mad money." if you want to play the deep water rig services side, donna in california. donna! >> caller: hi there, jim cramer.

this is donna at grass valley, california. >> grass valley, they're one of my favorite areas. what's up? >> caller: i'd like to know your thoughts on transcanada corp. and that keystone xl project. should i be loading up on this one? >> i know, maybe, look, i think this is the problem. a lot of people want to say the transcanada is just keystone. we know it as a great pipeline growth company and i have always been for that enbridge and i reiterate that you got a total winner in the transcanada corporation. i think they're fantastic. we've had them on this show. let's go to marcia in texas. please, marcia. >> caller: hi, jim, i wanted to ask youant a permit base finance texas. it's called legacy reserves. >> legacy reserves? oh, boy. i don't know these guys. i thought i knew everybody in the gulf when i see that yeeshlgsd i got to do some work. i want to be sure it's something that could be a wasting asset.

let me come back on legacy reserves. let's go to fred in my home state of new jersey. fred. >> caller: jim, boo-yah to ya. >> ya. >> penn west, symbol pwe, what's the story with this stock? is its dividends safe? >> we don't like penn west that much. i'll tell you why, it's a canadian trust. nothing against canada, you know i love canada but there are county rules different in canada than the occupation, so i'm always uncomfortable recommending that stock on par with u.s. companies. it just is going to cause, you got to speak your count to your accountant before you go there. that one is from calgary. the gulf of mexico, tcall g. and the ways to play it? hey, how about bp? i know, a little litigation risk. no litigation rick, go for anadarko well some. then i think camron, cam will be dismissed. that may be the best of all.

. fá7á#c#,d%et)7c#á#i

[ music playing ] oh, yeah, it is time, it's time for the lightning round!

fine, i play this out then the lightning round is over. are you ready? it's time for the lightning round. russ in new jersey. russ! >> caller: hey, boo-yah, jim, how are you doing? >> real quick. i expected a day at madison, i was doing well, how are you? >> caller: i love the warm weather. a shout out to virginia and your crew. >> she has a dress on. regina's got a new dress, smokin'. it's all right. >> caller: my question is acmi after all the insider buying and the stock up in the 26% in the last few weeks, does it still have something to run? >> yes, it does, i sit here, i do a scene and akamai came up. i said, that was such a bad quarter. do you think the insiders, do they know more than i do? yes, akamai goes higher.

let's go to nicky in florida. nicky! >> caller: hi, jim. thanks for all your investment ideas. >> sure trying. >> caller: i bought american power on your recommendation at 45. are you still bullish on amt at 83 or should i take profit? amt is an atm. it's a money machine. jim catholic came on the show. he's told an unbelievable story. do not sell american tower. i need to go to ray in texas. ray! >> caller: bbb-boo-yah, jim. first of all, thank you for turning a lamb into a raging bull. secondly, it's my birthday, i want to ask you with 170 million estimated people with hepatitis c, what's the better play, gilead or bristol-myers? >> the answer is gilead, not bristol-myers. gilead up again 52. buy, buy, buy.

vs. a 16-year term. that's what i want. that's my birthday present to you. that, ladies and gentlemen, is the conclusion of the lightning round! ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. td ameritrade.

last night i told you the drug interests all about one thing. it's about the pipeline. the new drugs that pharma biotech companies are developing. if you have a thick pipeline, you have a bright future. if you have a thin future, it could be bleak. we have been talking about larger buy companies. what they all have in common is that the pipeline is all important. that'sy have been following a little company called charles river labs crl for some time now. i like to think of it as an arms deal to the drug companies. not that they provide drug dealers. they provide universities and the government with everything they need to discover new drugs. in early stage clinical trials, including the lab rats and mice they need to be tested on. it's years that the tools make the process of finding new drugs

faster and efficient. as biocompanies outsource more and more of the lab work, they see a major opportunity to take share over the next several years. however, this company could be facing real short term obstacles. charles river reported and it did meet earnings estimates by 2 cents over the 60% basis. ref fews came in light. sales of research models the large biopharma clients represent the bulk of the business were softer than expected. though the pre-clinical service is expected to generate sales growth this year for the first time since 2008. in response to the stock, an update. it fell a buck 23 or 2.68 performance. let check in with james foster, the chairman and president, find out more about the quarter and his company's prospects going forward. mr. foster, welcome back to "mad money." >> nice to be here, jim. >> one of the things we spend a huge amount of time on, by

saying, unless you have a robust pipeline, we don't want to pay a lot for your stock. it seems big pharma. many of the big farm pa companies who you think would have a vision for the future are cutting back on the basic research to try to milk their current phase 3 drugs. >> yeah, the drug companies for a while have been putting an emphasis on the clinic because they have a lot of drugs rolling out patent and they have to fix the gap, the inevitable gap they may have. i think that emphasis makes some sense for the short-therapy. we are hearing more of our clients are beginning to spend more money on early discovery than they have for the last few years and also more money on developing drug drugs that have been languishing in the pipeline for a while. so we do think that the emphasis is going to balance back out. that's really important for the drug companies in order to have robust pipelines as you opened the show talking about four,

five, six years from now. and i do think they're acknowledging. that i think many of the drug companies have better pipelines as a result of this and also for us, if there is a little bit of an emphasis in the clinic, a lot of pre-clinical work is done contemporaneously with the work being done with humans in the clinic and that's good for the drulg development process as well. >> i was also surprised in the comfort i'm quoting here. you said when it comes to biofarm if 2012 unevenness in general led to the decline. why is there unevenness? those companies have a vision. why aren't they plowing? the stocks are high. they can raise all the money in the world. why aren't they ploi plowing to general rivers to raise more drugs? >> they are all being very conscious. our actually our business with biotech companies was up in the quarter. we're finding that sector to be

very strong. they are, of course, funded largely by the pharmaceutical industry and everybody focuses on funding from the capital markets. actually the pharmaceutical industries i think were more important resource for them. they have become the discovery engines for the drug industry and they're being very focused on how they develop these drugs. they're trying to find single molecule that may be successful as opposed to multiple ones and focus in on get i think that's smarter for them. smarter for the drug companies that fund them. beneficial for us, who our job is to help them make these go and no-go decision as early in the process as possible, either when they have a lead compound or they have the first time they put drugs in new animals and discern whether it's effective and safe, or when they go to regulated trials. the earlier they can decide that the drug is likely fought to be beneficial, they need to stop it and as soon as they decide that

that's the compound they really want to roll with and really want to invest in, that will be very powerful and i think a higher likelihood of greater number of drugs being approved. you know, last year, there were a higher number of drugs approved than in the prior four or five years. many of those were biologicals. by the way, we worked on 50% of those. that makes us very proud. and we will continue to play a major role in helping both large and small drug companies move their drugs through the development pipeline. >> okay. how about you do reference the sequester. i understand, because you are quoted on the conference call, jim, as saying, loose, you do -- you breed the animals for the government and there have been some, some signs that sequester is going to curtail some of their spending coming down. >> so, jim, we had a negligible impact from the sequester in the first quarter. we did get indications that the small contractor wasn't renewing

and some staff that we weren't allowed to rehire. we did size it on a call today saying that for on an annual basis, it was likely to be 3, less than $3 million. it's possible that would be larger. we don't think so. we have had feedback from a lot of the people at nih, where we do a lot of work that some of the reductions they're going to see there will not apply to the critical care of these important research models. you know, these lab animals are very important research tools, so we think we'll have a very modest impact from the sequester going forward. >> jim, finally, we listened to a lot of the drug companies that reported in the last few weeks. really, their sales aren't that great. they are trying to do everything to make the quarter, it seems like me, does that make it very short term so they can show a lower expense line? a lot of guys who had a lower expense lines than we thought. >> yeah, we did see a softer

quarter with them in the first quarter. i don't think it was to make their numbers. i think it was because they hadn't finalized -- a lot of them hadn't finalized their budgets. a lot were slow to work. they had a sorting out process in the first quarter where they needed to decide on what drugs they need at all and internally versus externally. increasingly, i think they're taking a longer view with us. we cited a lot of longer terms, strategic deals, which are scientific partnerships, where they're doing the discovery and we're doing a lot more development i think in the final analysis, we have to do what we do best. i think that's a really good value proposition for all concerned. >> all right. that's james foster, chairman and ceo of charles river. thanks for being on the show. >> thank you, jim. >> some of it is reflected somewhat with charles river labs. this is the company that is the best. if they're really going to have

great robust pipelines, they're going to have to start paying more and do more business with charles river labs. stay with cramer. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. awarded five-stars from smartmoney magazine.

and never back down. who believe the american dream doesn't just happen, it's something you have to work for. ♪ we're for those kinds of people. because we're that kind of airline. and we never stop looking for a better way. it's how we've grown into america's largest domestic airline. we are southwest. to get our adt security system. and one really big reason -- the house next door. our neighbor's house was broken into. luckily, her family wasn't there, but what if this happened here? what if our girls were home? and since we can't monitor everything 24/7, we got someone who could. adt. [ male announcer ] while some companies are new to home security, adt has been helping to save lives for over 135 years. we have more monitoring centers, more of tomorrow's technology right here today,

and more value. 24/7 monitoring against burglary, fire, and high levels of carbon monoxide starting at just over $1 a day. and now get adt installed for just $99. isn't your family worth america's number-one security company, adt? our girls got us thinking, but the break-in got us calling. and after buying two of everything, it was nice to only need one security system -- adt. [ male announcer ] get adt installed for just $99. and ask about adt pulse, advanced home management here today. adt. always there. the relentness, they are starting to bug people. i got bad news for you t. rallies are probably not over, especially with aig's earnings after the close. that's because we are seeing

extraordinary earnings. perhaps they blew the doors off the quarter. japan now a primary market. excellent life insurance sales and remarkable resurgence in their portfolio. anyone who had subpar subprime assets that didn't start as subprime, well, let's say they springing back to life, signature's mad money accident insurance, what a comeback. harper and travel trust, you can follow along, showed a similar strength to cigna. everyone knows take a look at your premium, it's going higher. travelers, the company never got bad investments. it's been able to raise rates, buy back stocks travellers has bought back 40% of the sales. we saw how the mortgage insurance turns. this has been a horrendous business. the models showed them the mortgage borrowers would never walk away.

they turned out to be dead wrong. we saw two terrific quarters yesterday. my special favorite and genworth is him coing back. they are revved for to continue to roll off and new business comes in. the profits will explode. genworth reported profits. heaven forbid if they were to ipo its mortgage insurance. it's worth a business, which brings me to aig, which just reported a monster blowout after the close today. i thought hedge funds would be good, who cares? they delivered a buck 34 earnings. it was looking for 88 cents. a 46 cent beat. yes, a mortgage insurance business that just turned profitable like genworth. i rarely get people to buy those stocks when i push them, they're so boreing. even travelers, the move isn't over, in fact, i can argue when it comes to the portfolios and premium increase, we are very much in the early, early innings

here, even as all those stocks have had new runs. i say step up to the plate. they are serving up juicy softballs. there is still a lot of pitches left in this game. stay with cramer. next, the stanley cup playoffs continue on cnbc. .

aig was good. yesterday facebook was great. it goes much higher, why? because they have what we really want. they have growth. right here on "mad money," i'm jim cramer. i will see you tomorrow! ♪ nbc sports welcomes you to the following presentation of the national hockey league. >> the faithful are ready for the first time in over two years a home playoff game in monittre. over 41,000 will fill the arena tonight to capacity. the canadiens begin their path to the stanley cup. the norris tro