tv Mad Money CNBC January 14, 2014 6:00pm-7:01pm EST
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see you tomorrow at 5:00 for "fast money." "mad money" has a huge lineup. that's coming up 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 somewhere. i promise to help you find it. "mad money" starts now. hey, i'm cramer! welcome to "mad money." welcome to cramerica. my job not only to entertain, but to teach. call me at 1-800-743-cnbc. maybe george michael was right. when he sang you gotta have
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faith. if you're going to make big money in the stock market, something i believe is possible, or else you wouldn't be watching, you need to have some faith in the ability of companies and the people running them to deliver. today, the dow climbed 116 points and the nasdaq rocketed 1.69%. [ applause ] more than any moment in a long time i have seen a need to invoke george michael's terrific investing advice. that's because there were some winners at work that you would have missed out on if you didn't have faith. . let's start with len schleifer. we all know that big biotech is swooning of late. a lot said they were tapped out, but there's much more to regeneron than a eylea. and that eylea is doing far better than the analysts expected. now, as i peruse the analyst reports, i was struck by
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variations of the same phrase over and over and over again. little upside, not enough upside. however after regeneron's magnificent move up today, stock at one point up $34 all i can say is if that's what baked in looks like, then patty cake, patty cake, bake me another stock cake with that. and then the arthritis, the asthma and the eczema drugs are in the pipe line and their close to launching an anti-cholesterol drug for those who can't tolerate statins including yours truly. those who lost faith because the stock was stalled didn't realize you had to bank on somebody who had gotten it right. regeneron was at 5 bucks when len first came on the show nearly nine years ago. now it's at 300. hmm, how about a spectacular
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5,900% gain? and a break through deal with the geisinger health. regeneron has built into a huge pharmaceutical company, it needs to have giant human samples to do the sequencing. so it can invent the drugs of tomorrow. with geisinger regeneron gets the concept of 40,000 human test subjects especially when most have trouble of getting concept of 10 to 20 people. remember, they're one of the four horsemen of the apocalypse and sanifi doesn't want to end up as regeneron road kill or how about alger. here's a company you may know as the purveyor of breast implants but it has a top notch eye c car -- care business. last summer with it stock flying
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high at $115 and there could be a generic challenge well before anyone expected it. algeren plunged from 115 to 85 so the ceo told us that there'd be real hurdles to any generic challenge. guess what? pyatt was dead right. the generic challenge was far more difficult than the rumor monger said. brand new ones which is algeren went up today. guy came on, promised us this, and there was no reason to doubt him. everything he has ever said has come true. everything. i mean, you had to have that faith that mild mannered pyatt wasn't blowing smoke. he has been so bankable that the
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idea of anyone questioning him or his outlook was ridiculous. what an investment. or how about google, which is a large part of my charitable trust. last night, google bought a company that makes a smoke alarm and it's so love and so powerful it is driving powerful to the stores. more on that deal later. again, google has a ton of cash. we have to have faith they know what to do with it. in the past i have been skeptical. too skeptical of how google is putting the cash forward to work. today's action is that the stock is up proves i was way too cynical on how google spends its money. it's a team you have to believe in. the amazing track record doesn't give you any other choice. or how about erwin simon from hanes celestial, hain.
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they spent money to buy tilda to buy basmati rice to the world. with the uncle ben's, in with the basmati. this is one more brilliant acquisition, and the stock rallied 5 bucks today. because simon didn't overpay, because it will add 6 to 10 cents to the company's earnings. i first learned of the colossus that he's put together. and hain is a play on "get rich" and to get food in your body that's natural and organic and bedd better than the process food for you. the research hit article after article dripping with cynicism about what simon is trying to accomplish. this the a ceo who recognized that natural and organic aren't
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just fad buzz words with the real long lasting deal and he's proved the doubters wrong on a cereal kind, a basis, that's a big reason why they have been a terrific stock. finally there's the cult stock that's tesla. they've been dormant of late. they have worries about recalls. but today tesla's impresario called for a recall of the word recall. i thought it was the most clever thing i read today. and tesla's revenues will be sharply higher than expected. boy, did that take people by surprise. no wonder the stock went up by 22 bucks. i even as i have said, if the equity is more of a cult because it's hard to value than say ford or gm which added a big dividend end to. now of course not everyone is worth having faith in. plenty of companies haven't rewarded you for having a conviction. i don't lament that i put so much faith in tim kin, the steel
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company which smoked my faith with the worst preannouncement down side in the last game. and three months ago, would it it have hurt him to put more emphasis on the short term? misplaced faith. but here's the bottom line. consistent winners like regeneron and david pyatt, google's and tesla, executives who over and over again have demonstrated they'll reward your faith should we not bank on them? they're the coaches with the history of winning seasons. and they deserve your trust. dave in california. dave? >> caller: booyah, jim. thank you for taking my call. >> what's up, chief? >> caller: jim, i wanted to be diversified so a while back i bought some five below because i like their story and i needed a retailer for my portfolio but they just lowered their guidance. is this a good stock for a long term investor like me or a
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trader? >> i have to tell you, there's an devastating analysis of five below and the things that they have done wrong and the problems that they have in execution. the stock is up a couple of bucks. i'm leaving five below as a company i want you to be in. it would have been a great regional national story, but the inconsistency and the incredible same store stories has left me cold. of course they're welcome to the show if they challenge my analysis. kingsbury in massachusetts. >> caller: jimbo, how is 2014 treating you? >> not bad, thank you. i have the book. i'm working too hard. how about you? >> caller: i'm working quite hard myself. i had a question regarding s.a.f. i wonder if it's undervalued. and then also what europeans are
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on the ipo spinoff of the auto loan. >> kingsbury, i do believe that -- that it's fine. i think spain has turned. but i have put the chips on bbva. which is hitting a 52-week high at 13 and in full disclosure happens to be my bank in mexico. there you go. pretty good job. as michael said, you have to have faith. as we saw today, consistent winners will reward you, regeneron and algeren, google, tesla, to name a few winners. "mad money" will be right back. coming up, pharmaceutical phenom? regeneron has soared over 5,000% since cramer first spoke to its ceo back in 2005. will its science make it soar higher? cramer talks to the ceo to find out. and later, cornering the market?
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the affordable care act is pulling in 30 million more americans into the health care and if walgreens has its way into the doors of its local drugstore. can the company capitalize on the increasing coverage? don't miss cramer's exclusive. plus, an updated outlook on its drug development sent the stock up over 10% in the past week. but is it just the beginning of its run? stick around to find out. all coming up on "mad money." >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. [ male announcer ] the new new york is open.
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"get rich carefully." it's the kind of fast growing biotech company that's a hot bed of innovation. like the big pharma stocks used nob the '80s and '90s. i started to recommend it in 2000 -- 2005 when len schleifer came on and told us a story. now it's at 300 bucks. thanks to the strength of the macular degeneration drug that is surprising. even more good news at the conference. it did substantially better than expe expected. meanwhile the pipe lines is looking promising. bio techs is all about the new drugs that they have in the pipe. the new indication is for important phase 3 diabetic trials. they have a hype poe cholesterol product entering phase 3 this
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year. could do $3 billion to $5 billion and other drugs that could be a blockbuster. asthma and eczema drugs. and no wonder sanifi is so keen on it. little's look at the cofounder and ceo of regeneron, welcome back to "mad money," len. >> thank you for having us. >> i'm look at the research. december 11, 2013, the survey continued limited upside on eylea. the stock is at $274 when they did this. is there a continued limited upside for eylea? >> we think that eylea has lots of opportunities to grow. we think it can grow based on demographics. more people getting old ever. we think it the grow geographically. we think it can grow by new
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indications. we have submitted it to the fda. if we're fortunate enough to get approval we expect the action on that in august of this year. we can grow by additional indications. we have more indications to submit. so i don't think this product has matured just yet. >> how about this anti-cholesterol drug that may be tolerated for people who cannot -- who cannot tolerate the usual statins? you're getting closer and closer on this one. do you think 3 to $5 billion i'm wrong? >> we don't like to speculate but we focus on getting good data. you're talking about the drug that's in phase 3. we had the first phaseout and the data looks good so far. we have got many more phase 3 trials, about a dozen more. most will read out in the second and third quarter of this year. if all goes well, if it's safe and effectiveness like we hope it will be, we hope to begin the is submission process early next year. >> one drug that i thought it
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was a typo, works for both eczema and asthma? >> right. yeah. that's our 14 blocker. you know, there's an epidemic of allergic diseases and our scientists, they figured out many years ago that maybe a common pinch point and causing allergic diseases is this path way and they developed a single drug and they tested it both in asthma and tested it in atopic dermatitis, commonly known as eczema. remarkably enough in early stage testing it showed very impressive activity in both. the first one was the asthma, it was published in the "new england journal of medicine." the atopic dermatitis will be presented at the allergy meetings coming up later this quarter. we've got a long way the go. we haven't established long term safety and efficacy. but it's very promising at this point. >> len, people hear a long way to go and they think that's
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expensive. your partner sanifi ponied up a lot of money. >> we have a great relationship with them. i think the ceo is forward looking, they're ahead of the research. the former head of the nih, they understand what regeneron is about. they're not looking to sanifi-ize us and they help with the financial he have lifting. in 2013 to give you an example, they'll spend over a billion dollars on our collaborative efforts and we'll spend about over $100 million. so we're talking about a 10 to 1 leverage that we get out of our relationship with them. we're thrilled with the sanify team. >> i want to talk about an outfit i have contributed to with my charitable trust because i think they're the best health system in the country, which is geisinger. i know there are people who are desperate to do the human genome. for as many lives as possible.
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but the consent has been a very difficult issue. did you not get 100,000 concepts from this health system in order to be able to map the genome in a way that no other company could? >> yeah, we're not quite at 100,000 concepts. we have over 40,000 samples banked. we'll get great cooperation from the geisinger health system. they're a very forward looking system. led by preeminent people. dr. steele is one of the visionaries in trying to deliver top notch health care along with affordable health care. they seem to know how to do that and they get the fact that genomics over the long term, not the immediate term, but over the long term can make a difference in the way they deliver health care and we think in the way we develop drugs. >> all right, len, the one thing in the time i have left, you have a limerick island plant. a lot of the companies i deal with, parago they have
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reincorporated in ireland. they say because of the weird taxation system we have, they have a lot more money dropped to the bottom line. have you thought of reincorporating in ireland instead of new york? >> we're very proud to be a new york-based company. governor cuomo has been very supportive in building the biomedical community in new york. we get a lot of help in washington from senator schumer and others. we like new york and we're proud to be in new york. we have operations outside the united states. we're building a factory there. i think we have to develop our plans carefully. sort of the way you say get rich carefully. we think we have -- i love the book and i love -- i love the shout-out, jim, thank you very much. in fact, i was -- i'm speaking at jpmorgan conference, and one guy is not paying attention, but he's reading my book. >> my kind of guy. you're the best, len. good luck in all the things you have been doing for
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shareholders. >> thank you, jim. >> well, okay, i'm a little blushing. what can i say? len's made you a lot of money. how about that? is there anything more to it, $5 to $300 i'm banking with len. len schleifer, ceo for regeneron. stay with cramer. coming up -- walgreens is working its way from pharmacy focused retailer to the larger $2.6 trillion health care market. you probably stopped at the corner store. is it time to invest in it? find out in cramer's exclusive. plus, future forecast. biotech alkermes updated the drug pipeline last week, causing the stock to rise on the 10%. is the news fully factored into the share price or could its long term plan mean the rally's just begun? cramer talks to the ceo. all coming up on "mad money." [ male announcer ] this is the story
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of the dusty basement at 1406 35th street the old dining table at 25th and hoffman. ...and the little room above the strip mall off roble avenue. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had the power to do more. dell is honored to be part of some of the world's great stories. that began much the same way ours did. in a little dorm room -- 2713. ♪ this magic moment ♪ tomorrow, kick off the trading day with "squawk on the street," live from post 9 at if nyse. >> i'm seeing a possibility of putting numbers on the earnings. >> it all starts at 9:00 a.m. eastern.
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tomorrow walgreens presents at the big jpmorgan health care conference in san francisco. so i want to use tonight to remind you how much this company and its ceo greg wasson have accomplished in the last few years. you know that right now i like to hold drug positions in this country. especially since 30 million uninsured people could be getting coverage thanks to the affordable care act. it's number two by market share, walgreens. they're focused on creating value for you. they're trying to grow from the national chain to the retailing and supply chain business. meanwhile, the company is revamping the domestic stores and the december same store sales were down. it's about 58% since last year. i think it has more room to check. let's check in with the president and the ceo of walgreens, greg wasson and where
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it's headed and welcome back to "mad money." >> great to be back on, jim. >> first of all, in the new book "get rich carefully" i said, listen, i was skeptical. i didn't realize that you were trying to become more than just a drugstore company and instead of just the $300 billion drugstore market, you're in the couple trillion dollar health care market because of the changes you've made. right? >> one of the things we are excited about, one of our key strategies is to advance the role that pharmacy plays in health care. that's to position the pharmacists to be able to expand and offer more services than they traditionally have. as well as co-locate the health care practitioners in the store to leverage the convenience that we think we have in communities across america to really bring affordable, more convenient health care to the american public. >> now, one of the things that we focused on in the last few years is the creation of -- a consumer that likes value. i think the more walgreens name
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iss is trusted, the more i want to buy. and i do. your private label products. is that part of the big synergy you have going? >> it's a big part of it. we see consumers today that are still cautious and they're looking for value. we think one of the things that we do have because of off trusted brand is the opportunity to bring more retail brands to the marketplace. consumers are indeed trusting and looking for more trusted retail brands. so we launched nearly 2,000 new private brands last year. at the same time, with our partnership with alliance boots, we're also bringing some of their exclusive beauty brands into the u.s. to extend that offer even further. >> alliance bogives you a great foot hold. >> yeah, we're excited about the partnership that we formed. we took a 45% investment in alliance boots and they're the leading retail whole sail brand in europe. we now have the opportunity and we are creating a supply chain
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unmatched in the world. so we can work with pharmaceutical manufacturers in new and creative ways to bring new products and solutions into the consumers' hands across the globe. >> my doctor is at walgreens. that's where i go. when i don't feel well, i go to wal walgreens, i see other people going. but i think there's something going on that you're doing. you're changing the face of the way health care is given in this country. i know it's largely you. talk about how you're differentiated from the other drugstore companies and how you're saving people money and which is making shareholders happy. >> we think we have a tremendous community presence, we have 8200 plus stores.
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we have 63% of the american population that lives within five miles of a walgreens drugstore. we are in hispanic communities, african-american communities. and many communities where there is no access to convenient health care. so we are positioning our pharmacists to be able to offer more services beyond, you know, the very important role that they play for years and that's the safe and effective dispensing of medication and also now they're providing immunizations and vaccinations to help people stay well. we're doing health screenings with them. but you're now co-locating nurse practitioners and we're providing acute episodic care, earaches, sore throats as well as managing and diagnosing chronic care -- diseases such as diabetes, asthma, heart conditions and so forth. >> it's also unusual to see a drugstore affiliated with johns hopkins medical and with the stanford cancer research system including the stanford research
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center. how are you able to use those to help shareholders of course helping people? >> yeah. well, it's very important i think for us to strategic partnerships as we go forward. one thing that i do believe we will see and are seeing is health care is becoming much more coordinated among stakeholders. so the opportunity to work with folks like johns hopkins medical, stanford's cancer research center and other premiere centers across the country to work with. we have well transitions, it's where we're working with hospitals and we're actually with patients at the discharge process when they're leaving the hospital and most patients when they're leaving the hospital they're really not listening to maybe the medications that they're going to be discharged with. our pharmacist and medications are involved in that process. and, you know, helping patients understand the medication, the importance of staying on them. we're decreasing hospital
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readmissions by half. >> you have been great at collaborating with the amerisource burg. you said it would be a win/win. both companies made money. how is that partnership working out for you? >> very well. couldn't be more pleased with the way that's going. you know, the management team have been just a pleasure to work with. we have already moved our branded distribution from -- that we used to do ourselves to amerisource burgan and that went off seamlessly. we have done to move the generic distribution which we did as well, and we'll have that finished by the end of our fist cal year. we're beginning to bring their generic purchasing into the venture that we formed in bern, switzerland where alliance boots and walgreens is buying together and we're bringing amerisource into that venture and beginning to procure for them.
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together, we're absolutely the three of us alliance boots, walgreens and amerisourcebergen procuring more generic drugs than anybody is and we're working with pharmaceutical companies in new and creative ways to help them create value for share shareholders as well. >> well, you created tremendous value. you have a stock that's doing much better on the s&p. it's doubled since last time we have spoken. congratulations for all the things you do for walgreens shareholders. >> thank you, jim. >> that is greg wasson, president and ceo of walgreens company. there are companies that amaze me. there are companies with a big vision. bigger than i ever thought about, and walgreens is one of them. they're executing perfectly. stay with cramer. when money talks it comes to cramer first. >> why are you so bullish? >> we see a huge recovery potential in the united states. >> we are in control of our destiny in this country and i think we need to get after it. >> in our industry, you're either riding that innovation
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curve or you're not. >> my message is don't bet against us. >> watch "mad money" and be the first to know. ♪ ♪ stacy's mom has got it goin' on ♪ ♪ stacy's mom has got it goin' on ♪ ♪ stacy's mom has got it goin' on ♪ [ male announcer ] the beautifully practical and practically beautiful cadillac srx. lease this 2014 cadillac srx for around $319 a month with premuim care maintenance included. ♪
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>> it is time. it is time for the lightning round. you say the name of the stock. sell sell sell. i don't know the calls or the name of the stock ahead of time. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? that, ladies and gentlemen, is marty in texas. marty? >> hi, there. jim, i want to thank you for helping me make money. i'm retired. all i do is sit in front of the screen and listen to your words. >> thank you. >> caller: number one, tivo got a downgrade by goldberg and what's your thinking on that? and i got a stock from my urologist. >> yeah, i thought the downgrade had great gravitas. it made me feel like the stock has had maybe -- maybe needs a
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rest. how about that? let's go to rick in ohio. rick? >> caller: booyah. from wright patterson air force base. >> thank you for serving, how can i help? >> caller: well, it's hold 'em or fold 'em question on bm wear. >> it's absolutely the right part of -- emc owns a big part of it. but this is the virtualization software. i like that. i do not care for emc though. i need to go to irene in indiana. ire irene. >> caller: hi, jim. how are you? how do you feel about know know for dis? >> it's a stock i don't talk about enough. i recommended it, i think it's great. let's go to savino in texas. >> caller: booyah, dr. cramer. >> i'm liking that. how can i help?
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>> caller: my question is starbucks. is it okay debut. >> i think howard schultz said there's no immunity from the mall slow down and he is saying that starbucks is doing poorly. welling they're doing well. he's one of my bankable 21 in jim cramer's "get rich carefully" which i'll be autographing tomorrow night at the "y" in manhattan. i think it can give or take a point or two. let's think big. zooey in washington? >> caller: mr. cramer. thank you so much. i watch your show every day and i'm learning. >> okay. >> caller: thank you very much. i have a g.e. option expiring this year. should i -- >> hold your g.e., they report on friday, i believe it will be good. i mentioned it's even bigger, because i think 2014 will be a good year. juan in pennsylvania.
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juan? >> caller: hey, jim. i want to say happy booyah to you. >> same. >> caller: bmy. >> bristol-myers is terrific. it's rerated a a biotech company. let's go to tom in florida. tom? >> caller: yeah, cramer. how you doing today? >> i have been up since 2:30. it was because i couldn't sleep. >> caller: i want to know your position on netflix. >> i think netflix is a stock whose market cap is not equal to the opportunities. so therefore i believe it can still be owned. but only with keep in the money calls. joe in california, one more, joe. >> caller: booyah, jim. >> what's up? >> caller: i love your show. i have only been watching a year, but i've learned a lot. >> thank you. >> caller: my stock is hd
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supplies. it it's hds. >> they blew up after they became public and that means sell sell sell. the conviction i have is with home depot. buy buy buy. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> announcer: the lightning round is sponsored by td ameritrade. five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. with the mobile trader app. that it's given me time toabout reflect on some of life'seen biggest questions. like, if you could save hundreds on car insurance by making one simple call, why wouldn't you make that call? see, the only thing i can think of is that you can't get any...
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while we're talking about health care, let's not forgot about alkermes. a lot of them create long acting formulas of existing medications. they help people suffering from schizophrenia take their medication and that way they stay on the meds. in the past alkermes was all about drug delivery with extended products. lately though the company has been more focus on developing its own new drugs in house. they have only one on the market, which helps the alcoholics and opiates addicts stay on the wagon. it has a long-acting
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schizophrenia drug and a drug for treating major depressive disorder that has been fast tracked by the fda. 6.2 million people weren't responding to the other therapies. they have 120% gains since we lost spoke to the ceo. i wouldn't be surprised to see this stock had more run to room. since they raised $250 million from invesco yesterday. so they can make from the -- so let's dig deeper here, richard pops, getting a better sense of his company. welcome back to the show. >> good to be here. >> you did something that's really important. a lot of the companies have to give away a lot of upside. in order to get the drugs in the market. you have connected with a major mutual fund basically to be able to keep the upside. is this the new way to do things? >> as you know, this business is about capital. you need capital, you need fortitude and you need a strong shareholder base. we had lot of money going into
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this by when we were approached by invesco in the u.k. to take a big stake in the company today at these values, we said that makes sense for the long term. >> and also keeps you from being -- keeps the company from being stolen by major drug company if you ever got into the real cash bind, right? >> well, we think we're in the position now where we have five or six block bluster potential medicines in development. we want to push these drugs through development. see what they're worth for the benefit of the shareholders. >> i want to talk about alkes, a critical development plan. and enrolling 1,500 patients. major depressive disorder is this something that works for people who nothing -- nothing else is working for? >> that's right. 11 million people a year go on anti-depression medications. many are generic and very good, but about 5 million or so people
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don't just fail one, they fail two and need to go on to the third and might even have to go on on to antipsychotics. this is directed to these specific patients who are failing to get adequate clinical response on the well established medications. and data in phase two has been very powerful and we're launching that pivotal program as a fast track medicine this quarter. >> this is going to be with major psychiatric hospitals or major hospitals that have psychiatrists? where are -- how do you get into the treatment? >> well, the study will not be -- it won't be massive. there are probably 20 or 30 sites and we'll list the trial sites. the goal is to run it as expeditiously as possible. get the hope that we intend and people can benefit from it. >> what about the long acting schizophrenia. where are we and you're talking
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about 2015, not that far from now. >> that's right. we're going to get pivotal data from the phase three in the first half of this year in '14. so we have enrolled all the patients in the study. it's a 600 patient study. so we'll get those data in the second quarter, let's say. we'll file the new drug application thereafter and hope to be on the market if successful in 2015. this is a market that's on the threshold of big-time change because the data is becoming increasingly clear that for patients with schizophrenia adherence to medication, if people are on their medications for longer periods of time leads to better outcomes. >> you're talking six injections a year. >> that's right. the first product we are getting the data from in the next quarter or so is once a month. but we just announced last month we're working on every two month forms. that's six injections a year, providing antipsychotic
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treatment. >> weight gain or no? >> this is abillify, so this is one of the better tolerated of the antipsychotics. >> the anti-opioids, i thought it was a great category. it's not growing the way i expected. is it people are sticking to the other methods that are not as empirecally effective as this drug? >> we're changing the way the world works now with vivitril. it's effective and it's on patent well into the 20s. as we chip away at changing the behavior, that treatment with a once a month injectable product that blocks the opioid receptor, i think we're on the right track. >> you had a criminal justice trial. anything coming from the prison systems to make sure that's less
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recidivi recidivism? >> this is an area that's of interest to ours. we're using a long acting opioid so we're getting a lot of data from the studies and we expect that to build over time. >> you're building a major pharmaceutical company. >> it was our goal. >> thank you so much for coming on "mad money." >> well, thank you for your support, jim. we're hard at it. >> when we first saw this company in the teens, we realized the tremendous potential. you know who is realizing that potential for you? mr. pops, chairman and ceo of alkermes. i'd still be a buyer of the stock. stay with cramer. [ male announcer ] we could say a lot
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how good is this google purchase? how meaningful is their acquisition of nest? judging by flank blake, the bankable ceo, i say it's huge. he came on the show. and i was pressling him about how he can grow sales, home depot is only building one new store in the u.s. this year. and he said it's all about new products. products that people really want. like let's take a listen to what he told us about nest. >> we think the housing market is recovering, but there's an exciting new technology coming into the new. nest, new way of doing smoke
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deterd detectors so you don't have the chirping in the middle of the night. >> so i get up at 3:30 instead of 3:00. >> people are interested in a smart smoke detector. one that has no annoying sound. gives you a soothing voice, how about one that doesn't chirp in the night and make you guess which one it is, because it responds to the wave of your hand and stops chirping. now, before that i had gone through one of the sleepless night i had a bout with a chirper. i have nine smoke detectors and i can never figure out which one it is. i don't have any contacts in, which one, which one? this is the one with the battery ready to be changed. yeah, you have about a minute between each chirp and unless you're directly underneath it it's not sure what it is. i know there's a light, but i can't see the darn thing.
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after 15 minutes, you give up, you try to go back to sleep but you can't. oh, yeah, where's it written by the way that batteries and the chirping can only begin between 2:00 and 4:00 a.m.? i can see how people would be clamoring for the product that's what blake said is happening. what does it have to do with google? google executives felt the same way that blake does. probably had the same problem which is why they shed off $3 billion for the nest and the revolutionary product and the smart thermostat. lots of people have been talking about the thermostat that you can control it remotely. and that's part and parcel that you want to control your house. in order to get in without fumbling with keys and i was quite taken by adt's poll system where you can create your burglar protection. however, adt and -- you know, they're duking it on this. which is one of the reasons why adt has been such a dog.
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plus, i know coned has a device made by honey well, that i have gits away with -- that it gives away with installation. that catches on, i don't know a soul who would pay for a nest, but still, the idea that google is capturing one more aspect of the internet that makes your handheld device more valuable shows us that the company understands the psyche of you. and anything that makes the consumer more connected to the device and to the internet has to be considered a win, especially given the most important do it yourself home retailer home depot has said that the customers can't get enough of this smoke detector. it's a better use than google will get from keeping the cash in the bank. and if you drives you to the google powered device or machine, it's a definite win for the stock which was up 26 bucks
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today. doesn't that exactly confirm how smart google really is? stick with cramer. [ male announcer ] this is the story of the little room over the pizza place on chestnut street the modest first floor bedroom in tallinn, estonia and the southbound bus barreling down i-95. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had the power to do more. dell is honored to be part of some of the world's great stories. that began much the same way ours did. in a little dorm room -- 2713. ♪ this magic moment ♪
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you've got to have faith in the bankable ceo's. think of schleifer and pops. they're your coaches. there's a president obama talks about the economy today and i didn't hear any new ideas. i heard more inequality and class warfare and spread the wealth. nothing pro-growth. meanwhile, america's losing its economic freedom. we're dropping out of the top ten to twelfth place in the heritage foundation "wall street journal" survey. new regs from health care, finance and energy all caused that plunge. insurance companies are worried about the low percentage of healthy young people signing up for obamacare. they are also worried about the low total overall but unfortunately, they're comforted by a federal bailout that looms
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