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, and i promise to help you find it. "mad money" starts now ♪ hey, i'm cramer. booyah from the bay area welcome to a special edition san francisco "mad money". welcome to cramerica other people want to make friends. i'm just trying to save you some

money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. when you're on the hunt for stock, you should be thinking of innovation if you don't find innovation, you could end up hitting the goal post and lose the game. creating tremendous wealth like today, where the dow only rallied 98 points. and nasdaq climbed although the industry spent most of the days at more lofty levels i came out to san francisco to cover the amazing new creations that so many companies reveal. not that long ago if you told me you were going to invest in innovation, that would mean you

are investing in tech. but tech has hit a bit of a wall here nothing that makes you think i need that or i got to have it, or my company has to have it, it is life or death unless you count augmented reality emojis take loxo oncology a stock that was just 134 on friday, and today $32. given them a chance to snap up this cutting edge business lilly is paying $8 million for loxo which is developing a pipeline for cancer drugs. dependent on single gene

abnormalities. now that we are able to easily sequence dna they want to harness it this isn't the kind of thing that can happen overnight. we are getting to the point where dna sequences is good enough in the hands of a little company like loxo, it might not have gone anywhere. but in the hands of eli lilly, it could be blown out worldwide. can you image a shanghai hospital, if you have a gene for a lung cancer, loxo could be a lifesaver. initially eli lilly took a hit loxo's technology is visionary and now belongs to lilly and the

stock went higher because of it. for a long time when we thought of pharma, we thought of drugs for the same old remedies. sales forces that pushed product. but that is no longer the case that is what is so exciting about being out here take novartis, a doctor, got a master degree of public policy from harvard and happens to be an actual scientist. this guy is reinventing it maybe solutions, i do. many of which could be turned out to be blockbusters that produce billions of shares you will hear from him later tonight. pay close attention to what he

is doing with gene therapy, and heart therapy. how about emma wongsly who runs glaxo. yielding 5%. really exciting. that is what many investors want from big pharma, but not me. i want breakthroughs, life saving products. until they got there, the product didn't seem it could innovation walmsly could combined products. number one or number two brands in a host of categories. advil, chapstick, tums

excedrin i like it. some good cash flow, dominant products they are hardly the kind of products we want from a pharmaceutical company we want innovation we want frank zappa and the mothers of innovation which is what she is giving us. under her leadership, she has a vaccine against shingles go take it she has the latest hiv treatment. working with 23 and me, illness. what else? how about migraines? a subject that i know far too intimately for comfort migraines can be so debilitating, that it is hard to

put your clothes on in the morning. days where you can't possibly work along comes eli lilly and amgen with new formulations that could cut down or eliminate migraines. as someone who suffers from them, these drugs are truly miraculous finally therapeutics thanks to positive data on postpartum depression drugs. checking the progress of this thing, most doctors didn't think an effective treatment was even possible sage's drug had a dramatic effect on almost half of the patients who took it don't you wish you owned some sage going into this morning's session?

of course, there is another component here the economy is slowing and these are the kinds of companies you buy when you are worried about a slow down. something that is still on the table even as the fed finally got religious about holding off on more rate hikes last week however, there are more to these drugs than that. not just a way to bet on a weaker economy no real companies with real needs these drugs are often very expensive, but many are meant to help you get out of a hospital faster, or don't even go to one in the first place i am hearing about great technology coming out of the show in vegas. the best of the best are here in san francisco at the jp morgan conference i say we take some calls and go to jr in nevada.

>> caller: big booyah from las vegas how are you? >> doing fabulous. love vegas what's up. >> caller: i was on your show about 11 years ago asking a similar question and i think you were absolutely right in september 2007, trying to protect us by calling out the feds if the apocalypse happens and the feds drives up interest rates like a clown car, how do you feel about a mix long rate mix euro dollars vegas is strong with man money and cashed based businesses. >> that is quite a mouthful there. i want to own cds. that would be reckless and imprudent and make it that cash would be king and expensive housing. so i am heading towards cds.

unexciting but i don't want to make money in the apocalypse how about kyle in maryland >> caller: booyah. my question is about the head and shoulders pattern you discussed. is there a strict priceless for the head and right shoulder to form in addition when trying to locate the head, how significant must the price point being in order to consider a true head. >> the answer is yes i like the symmetry of it. if you get the symmetry, you know where things are going to break down for a head, you are talking about multiple days up and multiple at the top and multiple going down although it tends to go down fast er. it is a reliable pattern and one that you need to be aware of thank you kyle. >> real innovation is not

limited in silicon valley. health care companies like the ones we are interviewing here at the jpmorgan conference is where i am looking for innovation. one market in san francisco. it is the largest health care conference of the year tonight i have exclusive look at the companies. first up, as novartis, could the economy boost life expectancies. ceo is joining me for the first time, my exclusive with amgen. and after months of bk in the dull drum, semis turn around stay with cramer >> 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.

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nancy pelo pelo we are out here in san francisco for the jpmorgan health care conference one of the few events where you get almost all of the executives in a single place. take novartis, and the up coming spin off of its icon eye care division doubling down on bio tech especially gene therapies. now earlier today, we had a chance to speak with vasant narasimhan, taking over as ceo a little over a year ago take a look. >> we are out here at jpmorgan and interviewing a lot of ceos,

i think novartis has the most drugs in the pipeline. >> we have 26 potential blockbusters in confirmatory development and 12 that could be coming in the next few years consistent investment in r and d has paid off in the company. i am quite optimistic and quite bullish about our outcome. >> there is blockbusters, and then there is blockbusters. >> we hope a few of these will turn into mega blockbusters. but it is difficult. launching in our industry requires a lot of discipline and consistencies to get the launches out we see, we have a set of medicines that are transformative this is something that cures children potentially of a terminal disease and that is extraordinary.

>> your company doesn't seem to be afraid of solving something even though once you solved it, it doesn't produce years of growth. >> we want to win for ten years at least and then win for decades to come. historically, we are about small molecules and ant bodies my belief there are a lot of diseases that we can tackle with these technologies and society wants that my conviction is that we will figure out the payment system and challenges if you are a company that consistently brings cures to patients, you are positioned to be successful. >> you are willing to get rid of al com. >> there is so much great science and possibility, we

can't use our capital across all of the different areas we are in so what we are doing with it is a spin, a tax neutral spin to our shareholder. saying look, you get to own al kon, and have the opportunity to own that great company and own novartis. >> alcon surgical is really important. you are willing to lose the surgical part too. >> what we are looking for is places that are true synergies in the group when i look at medical devices and contact lenses, it doesn't fit with our core medical model. >> you own the international rights to ama vid. how is it working for you.

you can give me a sense here in january. >> these migraine patients have not had a solution ever. migraine is an incredibly prevalent disease. affects a lot of women, working age. this is a disease in need of solution so they came on and we saw explosiveness in place what is interesting about it is this is a patient driven launch. patients who demand this medicine because they want a better life. >> people may be the theme of 2019 people taking control. something you guys are looking at. >> when you look at digital tech, everybody wants to control their health and have that information. social media coming together

that is the drive. >> this is a new way, here is the floor, tell me what that does because it is a radical way to treat. >> like i said, we are all about platforms, now we have this new platforms called radio lag in therapy. we take a drug that is specific to a cancer and link it to a radioactive particle that is controlled and take it and kill the cancer we think it could work in prostate cancer and many other solid tumor types. what is amazing for us as a company it is hard to replicate. you need big time capable in managing with the two acquisitions we did last year, we built up that c capability. >> this could be far less invasive, is it only a few

teaching hospitals that i can get it in the u.s. >> right now w the luda thera drug, it takes four infusions but expanding it in more and more centers across the u.s. and asia so we are bullish about it. >> cosentix it has 35% growth? >> approaching 3 billion growth. >> we launched it in 2016. the standard of care for psoriasis, it is safe. what is exciting about that story is we are not finished we are testing it in more and more indications and our goal is to build it into a true mega blockbuster.

>> interesta, years. >> slow start, but taken off we have a bunch more data coming out. additional heart failure indications which don't have an option when you think of those patients sitting at home. what it does is it gives them their lives back these patients can walk up and down the stairs. >> this is the fastest growing of the big pharmas you have to look at novartis stay with cramer

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we saw so many different groups rally today retail zoomed.

thanks to some good holiday sale figures and a challenge to dollar tree management that reverberated through the off price cohort strength in the beaten up oils now that crude is bouncing and nearing 50 bucks and major gains in health care the biggest move today was the incredible rally in the semiconductor stocks a group that has spent months being clobbered. specifical specifically bemocapital of micron to share or bear skin and buy the stock. micron got cheaper then they turn out to be more expensive because their earnings are collapsing faster than their shape price.

last spring the maker of d r.a.m. saw its stock peak at under 50 bucks trading at least four times earnings it was the cheapest stock of the s&p 500. the flash market when supplies are tight, many customers will do what is called double ordering. once more factories come online, micron's stock price down at these levels, they decided enough was enough. d ram prices would need to fall 44% from here.

as bmo pointed out, micron's price reduction. why does this upgrade matter when micron reported last month, the company issued a horrific buy down and the chip makers had already been devastated by nvidia when lowered the boom on early october. i am talking about kovo, and eventexas instruments. today it rebounded there is a little more to it than that. ceo of nvidia brought out new graphic chips that could reignite the gaming. intel is the cheapest and steady

player second, i consider broadcom the ceo hock tan that has diversified. i like a and d now come roaring back. recognition that the worst is already baked in finally kicking the tires on texas instruments. more importantly, semis are a good leadership group. when rallied could make a big difference for the market. more than 3% yield to snap out of its seemingly endless funk. oh, and even micron of course could be worth owning although i think it has one more bad quarter before it makes it i agree with bmo that the stock

is worth buying right here much more "mad money" and including an exclusive, don't miss my sit down with someone who never sits down, with amgen. and then talking to ceo. and the rapid fire in the special san francisco edition of the "lightning round." stay with cramer

while we are talking about health care, let's not forget about my favorite bio tech, amgen. here is a company that throws off a ton of cash, on top of

that, amgen has two new drugs, ammio vig and repatha for ldl cholesterol. but beyond repatha, this company has a great story to tell. mr. bradway welcome to "mad money." >> thanks for having me. >> on behalf of millions of migraine sufferers, i want to thank you. i had 20 to 25 a month which is a lot. we have got this drug, and it is called ammio vig and it is going to get rid of your migraines, you invented something huge

>> we are excited and i am glad you are getting better it is a biologic as you know, that interferes with the pathways that causes migraines. >> it is clear from your conference calls that this may be one of the fastest launches th that you have ever seen in your career. >> 150,000 patients already benefit from it. that reflects the huge pent up demand from migraine sufferers >> there are competitors, lilly is telling me, our is the easiest, you probably got yours through mccan hen. >> the first in class, we are

excited to do everything we can to make sure the patients have access to it. >> so repatha, today you cut the price. really good cardiologist say you should be on even if your cholesterol is not that high this may be the largest drug in history if you get it right. >> cardiovascular disease is the biggest public health burden we face as a society. not just here in the united states but around the world. in the united states we spend $600 billion a year on cardiovascular disease and the main reason is ldl levels are too high. this is a therapy, a biologic designed to lower the bad cholesterol, ldl which it does on average by 63%.

some time ago, we lowered the price by 60% for the every two weekly price and today for the monthly as well. too many patients were prescribed this therapy but struggling to pay for it at the pharmacy counter and we made the decision to lower by 60% and the reaction has been very encouraging. >> would it make up for the price that you cut the price >> patients that were walking away from the prescriptions. doctors already identified them for being high risk are now able to get access to the medicine. >> when you look at your q3, you got double digit growth, but then you have product sales growth of 1% to the others are you prepared with all your cash to be able to deal with the possibility that some people say, wait a second, those new drugs aren't happening fast enough and old drugs falling off

faster. >> our cancer portfolio is growing, cardiovascular, bone growth and migraine. so we expect to be a company that continues to grow ha handsomely we are excited by the innovation we see rising. >> said we have the flexibility. everything that is in the marketplace, every time you see a deal that is done, you can assume that we have looked at it as well, did you look at it? >> we looked at transactions that we think we can add value to companies. we pay close attention to what is happening in cancer, bone health, inflammation and disease

like that. >> you have bought 733 million shares the stock has had a run. is it still valuable to by even right here >> i guess i would say two things we committed to returning capital to our shareholder we have increased it by more than 400% since we initiated the dividend and active repurchaser of shares >> there is a lawsuit going on, you said on the last conference call there is a possibility that we get a judge decision maybe in the first quarter for one of your most important drugs. i am wondering if i should wait to tell people to wait until the court decision comes down. >> intellectual property is a

feature. and we have some underway now. >> someone who is, owns the stock should not be fretting every minute. >> intellectual property defense is a fact of life in pharmaceutical industry. >> i want to go back to my favorite dr. newman. he asked this. only about 10% of the people who could have these drugs no about them and then a lot of people who don't understand, and don't have migraines who think you are just a guy with a headache, and doesn't want to work that day. th this is a different kind of illness. and unless you have one, i don't think people know about it. >> we have helped to explain the biologic basis of migraine help people to understand this is a disease and sufferers don't have to suffer in silence. we are doing our level best to

try to educate patients and physicians and employers as well about the challenge of migraine, the fact that it is a serious neurologic disease, debilitating disease >> and there is a lot of lost workdays, lack of productives for people who want to be productive with migraines. >> and it potentially afflicts particularly women in the prime of their working and primary lives. >> thank you for what you do bob bradway. chairman and cro of amgen. with the chase ink business unlimited card, i get unlimited 1.5% cash back.

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the "lightning round" is over. let's start with mark. >> caller: booyah. this is mark from florida. my wife and i had a stock that we liked a lot which was maizeler robotics. we wants to get your take on it. >> so medtronic people were saying that the view for fiscal 20 was below what people were looking for. i am not giving up on medtronic until i do a little more work. ted in georgia. >> caller: stamps.com. >> it is a wild trader and not my favorite. i don't understand how they make their money. i do welcome them on the show though let's go to lisa from illinois.

>> caller: thanks for taking my car. i purchased transocean back in 2008 it took a big hit in 2010 it is now about $8 per share i see they recently won a five year drilling contract with chevron. should i keep holding onto the stock or sell it now. >> at this point, i want you to hold on. i think this group is dramatically over sold let's go to al in nebraska. >> caller: i'm here. >> hit me. hit me again. >> caller: this is al. i am calling from nebraska pan

handle a five earning ratio and pays 5% but lost over half its value since the merger. >> this stock has no mojo. it is a goal post hitter kraft heinz is a stock that if it goes back to 50, i want you to sell, sell, sell. can i be more clear? no louis in ohio. >> caller: yeah. booyah my stock is hmsy >> if that is what you like, you want to be in that cohort, then i suggest you go back to centene which is all the way down to 115. and that ladies and gentlemen,

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for those of you worried about a worldwide economic slow down, you need recession resistant stocks in your portfolio. nothing rescission proof than

pharmaceutical company you don't want just any big pharmastock. you want something take bausch formerly known as valeant. one of the greatest turn around stories in history double downs in the most promising divisions like bausch and lomb health care we got a chance to sit down with joe papa take a look at this one. >> joe, this presentation says it all tell people what it means. >> we are excited that 2019 we

are pivoting to offense. we think mega trends are going to drive our health care business number three, it is all about new products we have been successful with launching the new products and now we are seeing some of the growth what i would refer to is our significant seven. and the final area is we started to do some mma where we can bolt on products into our existing business. >> some analysts are saying that is back to the old valeant i think it is opposite. >> we put a stocking horse bid for a company called synergy it is a perfect add on to our

products we are already in it. >> organic growth, this is actual, it came from the lab, organic growth this is not valeant, this is bausch. >> we increased our r and d increase significantly i am paying over a thousand people every day to bring new products to the marketplace and they are doing a good job. products that can help make a difference in patient's lives. >> salex is a unique property and you have taken it to the next level >> 16% organic growth.

drugs that are helping patients. it is making a difference for patients we found that if patients have hepatic enself lopthy, we could reduce hospitalization 50%. >> your ceo said we admit we are over levered. >> he has done a fabulous job and giving us freedom to operate. today we are still levered about seven times. that is the best way to get out this situation we have a plan, we will continue to increed ebitda. and that is the best way to get out of this situation. >> you should have done a big

equity offering and i don't think that is your style. >> we view the best way to do it is grow the ebitda, and the revenue and we have a plan to work our way through this. we have to think about all the alternatives to be clear we think the best way is to grow the company. >> a couple of nights a week i don't like to sleep, it is a waste of time. i got one thing that makes it happen, and it is called lummafy, how big is this one little bottle? >> it has done outstanding it has picked up over 25% market share. more importantly, it is the number one recommended product by physicians for relieving redness of the eye from both the optometrist and ophthalmologist.

it works within one minute and lasts eight hours. >> and it doesn't sting. i think alcon is going to be more focused is that something you need to worry about? >> when people look at alcon, they are going to say good business importantly, we think we have the most integrated eye care company in the world even including alcon we have the surgical business, the prescription business, over-the-counter consumer business and clearly the rx business so we have got the most integrated business in the world when it comes to eye care, and contact lenses et cetera we are excited about that that means in terms of having an integrated business. and it helped us with the success of lumfy we are talking about all the optometrist about the product. >> there are people who went

from seller to buy and one reason whyspsoriasis. >> we think products will help patients by improving it because everybody needs a product like a hypocorticoid steroid that helps their patients and it will save people money. it is a lot more expensive than injectables. and over 85% of the patients use a topical product, and we think we have the right product. >> just a sense of mission, joe, like you said, because you got through litigation and all through bad press and you no you

are on top chairman and ceo of bausch health what a company what a transformation. he predicted on our show and a lot of people didn't believe it he was right [cell phone rings] where are you? well the squirrels are back in the attic. mom? your dad won't call an exterminator... can i call you back, mom? he says it's personal this time.. if you're a mom, you call at the worst possible time. it's what you do. if you want to save fifteen percent or more on car insurance, you switch to geico. it's what you do. where are you? it's very loud there. are you taking a zumba class? state of the art technology makes it brilliant. the lexus nx, experience the crossover in its most visionary form. experience amazing at your lexus dealer.

onmillionth order.r. ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah. ♪ we don't bake.

♪ opportunity. what we deliver by delivering. you know, i have been a supporter of amazon, you follow on with the club today largest company had a very big move i want you to stay in amazon if you don't own it, you should be a buyer because of amazon retail, and amazon advertising, it is much more than just a prime membership most important at the top of the show, i talked about innovation. i think amazon is innovating at the same place as many of the drug cos i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money. i'm jim cramer, and i will see you tomorrow

narrator: in this episode of "american greed"... [ polka music plays, indistinct singing ] narrator: ...all hail the king -- the polka king. when he came on stage, people went crazy. he rode into the event on a horse. it was just spectacular to see. narrator: but jan lewan isn't content with just being a music star. he's got bigger plans. yackoski: he had ambition, and he just went and built himself a little empire. announcer: "the jan lewan group." [ cheers and applause ] narrator: lewan's american dream is built on the backs and bank accounts of his biggest fans. everybody's invited to my home.