excellent job on the power pitch. i mean, the fans at home might not have thought so but on the desk we did. number two, we talked about the double bottom, the stock is moving to the upside >> we like>> my mission is simpe you money. i'm here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money" and the west coast edition o cramerica. my job is not just to entertain but to educate and but teach us call me at 1-800-743-cnbc. or tweet me at jim cramer. innovation is the life blood of capitalism and that makes

silicon valley tglobal health cares when nasdaq leading the way while the dow gains 83 points, s&p up 6.7% we're here to cheer the most economic system in history. capitalism is taking the lumps like since the great depression and some is self-inflicted we have real problems with income inequality like the money that boeing was to pay dennis mulingberger can the new ceo change the company's trajectory or a corporate culture that seems to have gotten rotten and the ugly emails and it appears engineers deceived the federal regulators about the need for more pilot training to handle the maps but they did need training to handle the systems as the company made

clear last week. boeing is not putting capitalism best foot forward here undeniably so. let's not throw the baby out with the bath water. and that stems from the everything i see happening here in san francisco now we have a real windfall here this week jp morgan is hosting the largest health care con presence of the year and we'll explore the new drugs and devices that the companies with working on this year the theme is personalization and health care and that runs on the customer. on your choice when you listen to democrats running for president, you hear there is a lot wrong with our health care system and that's true although that doesn't necessarily mean that single payer is the answer. however, i don't want to lose sight of everything that our system does right. first we heard about a decline in cancer deaths now some because innovative drug

and drug companies with slowly but surely finding more and more ways to beat this horrible disease. bristol-myers has the best oncology franchise and they margined with celgene in a deal announced a year ago already paying dividends and i don't mean the 7.2% that bristol pays shareholders the october evo and others are studying variety of different cancers when we met with the ceo of bristol myers this morning he talks about drug price restraint. i think it is real i think the drugs are saving lives. or how about emma warmsly. they are teaming up with 23 and me to find out who is most s susceptible. this keeps the life saving innovations away from people nen there are vaccine.

glaxo is the vaccine king. they invented a vaccine for shingles and a third of americans will get it. it doesn't have to happen. we wipe it out you get the vaccine, you don't get shingles how about cvs health willing to be pegged as a corner drug store they stepped in right now they are testing out health hubs giving you care that you would have to see a doctor for. it is a trial. but they're planning to expand the program to 1,500 stores. if you already have a general practitioner that is not a big deal but tons of young people don't have the doctor and they go to the emergency room cvs might be the answer to the breakdown in the health care system now that is merged with aetna, it could help 50 million baby boomers help do with all of the forms of medicare insurance.

i need help myself remember when walgreens would take all of the business with varic os machines. don't have the sound board remember when it took a billion dollars tobacco hit decided that cvs couldn't be in the business of health care and also sell cancer sticks. the company has triumphed over every single worry and don't forget about gw pharma we've begin up on the cannabis stocks they're crushing it. maybe medical marijuana will make a dent in the health care system but not any time soon but they make cannabis inspired drugs and they announced a $100 million quarter with a drug that mimics some of the properties of marijuana in order to help young people with epilepsy gw is speaking at the conference to talk about the dangers of the

disease and the strength of the marijuana adjacent medication and igniting the cannabis is not real cannabis. it is artificial don't get too excited. i'm still cautious but we like what we heard about the canopy growth when we had bill nuance on, they own a big chunk. i say be careful and canopy up 10 % i don't see legislation happening in america any time soon they're not going to legalize it nationally and that is why gw pharma legal artificial marijuana is able to outsell the entire industry. that is why that is a better stock. of course the nasdaq wasn't just about health care. the 5g wireless story that we keep flogging worked with apple leading the way with semi and cell tower stocks, i keep telling you that 5g is a huge theme. one still in its infancy don't flip the stocks and say i'll make a couple of bucks and go that is wrong. the cybersecurity stocks are up

to two as the u.s. would alaunch a cyber attack on iranian infrastructure so we still have the stocks of crowdstrike and c scale and palo alto search although they gave up some of the gains to the bell. and alphabet is nearly a trillion dollars stock i don't like this move it is based on nothing fundamental, just the momentum in so many take names. more on that later we're witnessing the same thing in the trillion dollars club and that is microsoft and apple which means their stocks may not be able to with stand earnings results short of a super beat. not just better than expected by a couple of pennies. i don't know if that is possible facebook is in the same boat but the bottom line is innovation drives capitalism and capitalism drives innovation you can't have one without the other. believe me, it has been tried and it hasn't worked let's take some calls. i think we should start with kyle in pennsylvania kyle >> caller: hey, mr. cramer, how

are you doing again? >> i'm doing well. kyle, what is going on. >> caller: good. i want to start off saying thank you for inspiring a younger generation including myself and so a while ago i opened some position in -- and shopify and i plan on holding dollar tree for a while despite the stock coming down 20% in late november. so the company reported a 1.08 eps in the analysis consensus of an estimate of 1.13 and a revenue of $5.75 billion and the consensus of $5.74 billion and the next earnings is march 4th of 2020 and my question for you is do you think dollar tree has the ability to show long-term growth becoming a $100 stock again in 2020. >> yes i do think it has that but remember that was not a great quarter and today 13 below -- five below reported a bad quarter preannouncement and the stock was down 13. this cohort is not any good. but you have shopify that is one of the greatest

stories. it is all about empowerment of the individual you're doing fine. so hold dollar tree and don't sell any shopify innovation, people, drives capitalism and capitalism drives innovation you can't have one without the other. some have tried. they've failed from the cnbc one market in san francisco, zoitis was up since it was dropped off from pfizer and we like it from the get go with a new ceo at the helm can the move continue. i have the exclusive and forget momentum, i'll tell you which stocks are finally being propelled by actual events in this market and it is one of the greatest turn arounds for 2019 but what does 2020 have in store for glaxosmithkline. i'm talking to the ceo with a new exclusive. so 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. i can. the two words whispered at the start of every race. every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry. words that move us all forward.

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while we're out here in san francisco for the jp morgan health care conference we're checking in with the favorite companies in the favorite companies the like zoetis. this is a long time cramer fave. it is a classic play on the humanization of pets this stock is up 340% since it was spun off by pfizer in 2015 with with gains last year and the ceo just retired so can the new management continue to propel the stock higher. let's talk to kristen peck the

new ceo to get a better sense. welcome to "mad money." >> thank you i'm very excited and energize to take over as ceo so thank you so much for having me i appreciate it. >> well first, juan ramon was a huge fan of our viewers. so what can you do to keep his legacy going >> well i'm super proud of everything we built at zoetis and i've been there with juan ramon who i adore and the management team from the start and as you seed we had over 340% in shareholder returns since inception so it is really great to do that i think as well as you look at some of the -- growing faster than the market so we've had a great -- and my job is to build on that momentum and really continue to invest in innovation, and in wellness and really drive the company forward. so i'm super excited to do that and to be here with with you, who is a big fan of our space and stock so thank you. >> i'm a big fan i'm a pet lover, dogs, cats. what innovations do you have for

animals for dogs who we though can't tell us that something is wrong. >> innovation is the life blood of zoetis and we do it better than anyone. if you look over the last five years we've launched 1100 new products in life cycle innovations and we do that by investing over $1.1 billion in our r&d, rbd and capital expenditures and we have flea, tick and heartworm and parasites and we got approval last year in the eu and we're launching in q1 and very excited that we've completed our technical section and are now in administrative review and we're pretty confident we're going to get approval in q1 and launch thereafter. >> and you have to put together a paste of drug that are

effective and zoetis does that and any preview of what you will talk about at the conference. >> we talk about innovation. as we talked about we're excited about the new products that we have certainly in ante bodies for both dogs and cats continuing to grow our determine portfolio as you talk about all of the time about apple quell and dermatitis is zoetis is great at building markets and now it is a $1 billion market. so we're also excited about digital and data and livestock and looking at animal care. >> one of the things that you've been instrumental in helping me with is this notion of african swine fever and what it is go doing -- we have a trade agreement on wednesday with no bio security and that is one of

the most important thing in the world and i want others to know about it. >> african swine is an issue in china. over 50% of the pigs in china have already been lost and to put that in a little bit of context, that is more pigs in the u.s. produces in a year. so this is a big opportunity for many countries just like the u.s. and i think as you look at the china trade deal to do exports not just of pork but poultry. but what is exciting for zoetis they have to source the protein from the u.s. and brazil and europe where we have a significant presence it is a very serious disease but an opportunity for the rest of the markets. >> and you talk about something in our country it is almost impossible to get to a pig farm because of security but you said the chinese don't have that. >> bio security is a really important issue. and having strong bio security measures in place is not just good for the animals, it is good for the consumer and it is good for business and i would say three things are really important in bio security the first is good vaccine

programs to prevent disease. the second is good surveillance programs to be testing but also really important is sanitary environments to raise the animals. and one of the challenges in china where the majority of the pigs were raised in backyard farms, we're putting bio security measures is challenging. and they are common in the u.s. and europe and many developed markets and there is a big opportunity for our companies to assist china in putting together better bio security as they repopulate. >> i hope they do a $50 billion buy of our -- now another thing you and i talk about as i did with juan ramon, the animals can't talk and we have to talk about australia, they can't tell us what is the matter so we need effective diagnostics and that is something you're moving into. >> as you look at the humanization of pets, more and more people around the globe are medicalizing pets and bringing them to the pet and diagnostic plays an important role becaus

the animals can't speak and so you need to run tests if you have a lethargic dog with a fever, what is underlying that and so we've invested a lot in diagnostics in the last two years. certainly with the acquisition of avaxis but in the last few years it is an exciting space growing faster than the animal health market at around 10%. so it is a fast-growing market but so important for the humanization of pets to understand and make sure each dog and cat is getting the care they need. >> when the vets send you the card reminding you it is time, use the card, believe it and go. because now they could do something about it speaking of doing something about it talk about what your company is doing in australia >> well, it is -- the destruction is devastating and seeing the images and stories are heartbreaking. and if you look at what is happening there, over half a billion animals have been lost and most of the fires are in the national forest so it is a

majority of natural indigenous wildlife but we're partnering around product donations but the real value is partnering with the veterinarians there and as well as the zoologist to try to find products to treat the koala and kangaroos to make a difference and we're proud of our support of beyond blue helping rural communities deal with the emotional and other tolling this taking. this is happening in communities that don't have great support systems and that is so important. >> we're glad you're doing something. speaking of beyond beyond meat is catching fire what happens if people real turn -- livestock is big part of the business what happens in the next generation do turn on livestock and say we don't want to -- to kill animals for our food. could that hurt your business? >> alternative proteins are certainly a hot topic and growing taft but i think what is important to keep in mind is that animal based proteins are still growing globally at 1% to 2% that is driven by a growing

middle class and population growth we're 7.7 billion today and by 2050 it is 9.7 billion so we're focussed on finding sustainable ways of producing animal based protein and investing in digit alan lytics through precision livestock farming which focuses on individual animal care and finding out earlier narms that are better to breed and getting sick we feel like that is the way to create more sustainable production and our partnership with colorado state looking at antibiotic alternatives which i think is important because we're going to grow a more sustainable food supply. >> that is fantastic thank you very much. that is kristen peck, ceo of zoetis "mad money" is back after the break. >> thanks so much.

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we don't want to be in a situation where stocks keep roaring on the same old, same old information. so it is great to see winners rally on good news let's start with with tesla. now we've been hearing that electric vehicles aren't selling well in china so there was fear that the chinese government might pull subsidies as early as next year. something they used to do. but today we're learning thater that willing to extend and that is why tesla is up $50 or close to 10% as long as the community party continues subsidized i think they could have gone higher. and lulu is up on a preannouncement. there was a cohort of investors said that investment like kohl's could weaken lieu will yulu lem.

i know lulu is still expensive but if the earnings are too low that means it could go higher. i expect upgrades tomorrow morning. then beyond meat, the plant based burger and many people were afraid the numbers were tepid because we haven't heard a peep but mcdonald's decided to pack on another 19% today. makes sense people mcdonald's is the largest fast food chain on earth. if they decide for beyond burger in all locations then this stock would head much, much higher and dunkin' donuts announced the snoop dogg endorsed beyond do-double g sandwich baxter is flying on no news

until today with with the better than expected numbers. now it makes a whole lot of sense. of course not every stock is rallying on genuinely new information. we have a ton of winners that keep going higher on endless price target boosts like salesforce where there is nothing new. people keep buying it anyway after bidding time in the wake of a sharper than better expected quarter sales fos is getting the respect it deserved. but there was an incredibly important piece of of information and was ignored. now people are rethinking it and the stock is on a tear but again it is not based on anything new and nvidia gained 3% on another boost based on old information. artificial intelligence and rate tracing for video games stuff i talked about with you endlessly. i love the stock but holy cow. i wish it didn't have so much momentum it is not fair to the ceo jenson

wong but my dog is jumping for joy, at least for treats and finally apple. up another $6 today. got a price target boost again so it was up $6. then doesn't someone have to boost the price target tomorrow. was there any new information here the thesis is the iphone 11 is selling well to this i say no kidding. hello. and i think there is 5g talk and this is still in the first inning like when the star-spangled banner area and that moved up and xp semi and marvel and sky works, corvo, not kurveo, but corvo. the expectations have gotten too high for everything except the oils we're devoid of big sellers right now and the shorts are being steam rolls. still some stocks are rallying on good news not mere momentum, i just wish

there were more of them. there is much more "mad money" including my sitdown with the ceo of glaxosmithkline and cvs went are from one of the most hated names to an investor favorite and i have the ceo and all of your calls in the tonight's edition of lightning round. so stay with cramer. who says our bank isn't tech enough? everyone, look at your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies

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let's talk about one of the great turnaround stories of 2019 and hopefully 2020 glaxosmithkline. the new ceo emma walmsley told us her strategy for breathing new life into what was called a growth store beg pharma company by most of the street. she was in the process of divesting her consumer businesses and making a bio tech acquisition. that strategy is working glaxo rallied 23% last year. it is a huge move for

$118 billion drug company. even appeared still has a 4.3% yield. i think it is safe so can this stock keep climbing. today we sought down with miss walmsley the ceo of glaxosmithkline to learn more about the progress and where her company is headed. take a look. >> emma, people talk about the new drugs you have i think that is fantastic. i want to talk about the reinvention of culture, that you are much more innovative and optimistic than the old glaxosmithkline. >> jim, thank you so much for having me on show. great to be here innovation is the first of our three priorities, innovation and trust at gskand i'm pleased at the progress and momentum over the last couple of years we've had a lot of positive data with patients whether that be on the tesoro acquisition this time last year or our new drug in multiple myeloma and data for hiv patients in terms of the

drug regiments and we hope this data amongst others will give us at least six approvals of new medicines or new indications in 2020 and that we're building confidence in the ability to execute that innovation. whether it be performance in shing rix or trilogy and new carra. >> and that is for shingles. there are millions of people who will get -- who get shingles without shing rix. >> one in three of us, when you look around this set, is twoing to sufficient with this incredibly debilitating disease and we work just delighted to have aa vaccine that demon vats this spectacular efficacy 95% protection and we have 11 million americans protected. but there are 150 million over 50 so we have demonstrated great growth with shing rix but we have a lot of room to grow further including with

globalization. we've just been approved in china too. >> china -- >> so that is an important vaccine business for us. >> but i want to talk about the oncology segment when you feel that you make a giant acquisition it is years before you see any results that is not the case with disarrow, you have something big right now. >> we are pleased with the acquisition and we thought it was a smart risk to take with the medicines of zidula we could have more women with ovarian cancer today it is used to -- the inhibitors were 50% and with the brca gene and if could be relevant for 50 hid positive women and maybe more and the data showed it was relevant for 100% of women so we're hoping to get that on the label for this year. >> sos this is an important

person at this conference, jp morgan is talking about the year of the consumer. 23 and me, brca gene, and humans are taking control of themselves and when they do, they come to you for some of the key medicines. >> well, our partnership with 23 and me and also others recently announced like the crisper pie on here right here in san francisco was because we believe that genetically validated targets for our medicine could improve the productivity of r&d and that is exciting for the industry and for patients. >> now the thauanalysts are say we expect earnings to remain challenged in 2020 with headwinds and talking -- again when i think of earnings challenge i think people say that 4% yield could be in jeopardy but that is not what i hear from you. >> well, first of all, we're investing in the future growth of gsk particularly in our

pipeline and that is why we're so pleased to see the progress there and investing in the new launches with, as i said, we hope at least six approvals in 2020. we want to make sure that that is innovation being brought to patients but our commitments to the dividend remains strong and no change to our policy around that. >> that is important because a lot of people want fixed income and yours is the one i've been telling people is the way to go. we haven't talked enough about the respiratory franchise and how huge it is and what could happen and you're the leader >> we are the leader in respiratory and pleased with the progress on both trilogy, the first triple therapy for copd just approved in china and after addver and we pioneered with new color for the severe asthmatics and we have new potential

vaccines where we have proof of concepts to read out later this year. >> this year >> proof of concept. that is early stage. but one is for rsv and one is a copd this is early stage, but, jim, again, beyond clean water nothing has demonstrated to have as big of impact on the world as vaccination. we're the world leader and that could be responsible for the franchise. >> how do you get people who are anti-vaxers to understand, there is actual very hard data saying that they're wrong. >> well, again, i would repeat the evidence shows that vaccination is -- has a hugely positive impact on human health around the world and we're proud to be world leaders in vaccination not just for shing rix but also our contribution to global health in tb and mol aria

as well. >> malaria would be the biggest. >> we understand, though, that parents have questions and they have the right to have questions about how to protect their children our job is to support governments as they bring forward that evidence and make sure we bring the most quality vaccines we can. >> i want to talk about china. there is so much opportunity there. but you're still very small in china. what could happen to make things better. >> we are starting from a smaller base but there is no debate that the chinese market is very high potential and increasingly exciting as they open up more to innovation so we're pleased to have shing rix approved there and trilogy and our lupus drug too. >> and it is a smoking country so they need help. >> well there are 100 million potential copd sufferers in china. >> it is tough something has to be done

the glaxosmithkline that people know are consumer brands and they generate cash flow but they are not the new glaxosmithkline so you take cart of that. >> i sat here last we're and we talked about our exciting deal with with pfizer and brought together this portfolio of world leading consumer health care brands great portfolio, great footprint in the biggest markets and a great group of people now taking the best from both the pfizer team and the gfk team and we did attention our intention to separate into two countries around three years around 2022 and we're on track with that and leased with the integration so far. and concentrating on making sure we deliver competitive performance along the way. >> and that is guaranteeing the research and development you're spending more how about how much more you're spending than the old glaxo. >> well we're accelerating

investment but putting much more discipline in the way we allocate the funds anyone would spend money we want to spend it for the right kinds of returns and that is one of the biggest cultural transformations that when we see something exciting we double down on it, bcma, our drug will be a great example and two years ago that was in phase one and we're hoping for an approval in fourth line for vcma in the near future. >> congratulations for the new glaxosmithkline and for changing the culture. now we just need some of the -- to recognize how extraordinary the innovation you've brought to glaxosmithkline is that is emma walmsley, the glaxosmithkline ceo. fantastic. >> thank you >> stay with cramer. whether your beauty routine is 3 steps...

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willie >> caller: cramer, big double booyah to you. >> triple booyah back at you. >> my stock is fhn. >> the stock has not done as well as i thought because i think the acquisition was brilliant but i think brian jordan understands to ben in pennsylvania. >> caller: greetings from pittsburgh, p.a. >> my condolences. >> caller: i think there is good value in the energy sector i brought shares in the holly frontier corporation, as a value play seems to me that the p.e. and dividend seem attractive what is your thought. >> i'm not going to disagree i hike valero more than hfc but i understand why you want to buy a stock down and out jeff in california jeff you're up jeff. >> caller: hi, jim yeah, this is jeff from l.a. jim, i got a stock better than any stock that i think statistically. it is up 466% last year.

it is up 129% the last three months, it is up 35% and it went up 25% today it is called cdlx, a marketing company and there is no dips no pullbacks so can i get in it or wait for a pull back. >> and when i hear that and it is fin tech, i have to come back and do homework and then ben and i are going to have a noodle this one this is the hardest rock i've seen it is too sizzling for this guy. i worry about -- bruce. >> caller: jim, good evening and booyah from the land of enchantment. >> i loveland of enchantment. >> caller: i'm over weight in energy and i'm in chevron. >> that is the one to be in other than bp. this has a 4% yield. mike worth is a thinking person

and doing a good job but he is fighting the tide of one the great bear markets in history. sean in new york sean >> caller: booyah jim, how are you doing? >> i'm doing well. how about you? >> caller: who are you rooting for sunday, tennessee or kansas city >> come on, andy reid and tammy reed with two the -- in the world and andy tore is up in the field. it is all andy, hail to the chiefs how could i help. >> caller: okay. tell me, i work -- for 25 years and i still have a couple of shares left and what do you think i should do with them and look at a company called brainstorm. >> what was the stock that -- oh, ibm. ibm downgraded this morning and buy to hold. i have to find out more about that and it didn't make sense and that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: lightning round is sponsored by td ameritrade

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little less than a year ago cvs issued whats was a disappointing guidance the stock got hammered over the spring but i stuck with it thanks to the merger with with

aetna. and then they became afraid that the democratic nominee would put aetna out of business. and that is starting to see more less likely that fall. well the stock caught fire but the darn thing is still cheap. selling for ten times earnings so could the stock have more upside let's take a closer look with larry merlot from cvs health to get a better read on the company prospects. welcome back to "mad money." we're talking about the consumer taking over. the individual increasingly in charge of her health, cvs is at the heart of that move. >> jim, no question. look, we all see the challenges in health care it is become expensive for many. difficult to navigate and that has created the emergence of consumerism in health care jim, we look at the environment and how can we bring solutions to that and we see three imperatives that bring that to life the need to make health care

local and meet people with where they are in the community in their home and in the palm of your hand we have 10,000 community touch points across the country, 75% of the u.s. population lives within a couple miles of a cvs second priority, jim, is how can we make health care more simple. and we see the opportunity to help chur -- help consumers wit the resources they need to make informed decisions and, jim, the third priority is helping people to achieve their best health jim, today two-thirds of the country has one or more chronic diseases it is those chronic diseases that are accounting for 70% to 80% of health care costs and we know they're name, diabetes and cardiovascular and people are not achieving their best health. we can and must do better. >> my regular cvs which i like to go to, i like the stuch in the front of the store and the

prosecutors in the back. that is not the future of the store. >> we're calling them health hubs they're more of a health destination. we're repurposing about 20% of the space in the front store to health-related serves and clair concierge and additional services out the pharmacy and focused on health and beauty care and elements of convenience. we started this time last year in the houston, texas, market. we ended last year with about 50 stores this four markets jim, we're really excited in terms of what we're seeing from the consumers, the acceptance, the interest that is growing with our clients and we'd made a commitment to about 600 hubs by the end of this year that is 12 a week with 1500 by the end of 2021. >> and they do better same store sales than without. >> it is a small sample but we're seeing increased traffic and higher front store margins

and utilization of the health-related services so we're pleased with what we're seeing. >> when i do over your presentation, you and i had doctors and we had doctors and our parents had doctors and you find a gp and millennials, gen x, they don't do that. >> you look at our clinics we have now seen 48 million patients now that is over multiple years. but it really speaks to the accessibility of health, the convenience and the overall experience and the role of the nurse practitioner and the fact in this business model we could play a complimentary role to the role of the primary care physician. >> let's talk about aetna. what are they doing better now that they are with you. >> aetna has done a terrific job growing the government business. seen growth in both medicare and medicaid and the ability to bring together the medical and pharmacy data and you think about the information that aetna

has about the members that they serve. let's call it what is our next best action. to put us on a healthier path. aetna has -- is the case with all insurers, how do you activate that and create the consumer engagement. that is the beauty of this combination. because the cvs community assets bring that to life so we're off to a wonderful start with our integrated model. >> there is a lot of blame game in the system. giovani cav ario from bristol-myers said that the democrats who are front-runners even wish that the whole thing would change and wipe you out. but i don't know, you're not the real problem when i look at the nuts and bolts. >> jim, pbms have proven the ability to reduce the overall cost of pharmaceutical care. and you look at what has been done in terms of managing prescription formula and the fact that the savings associated

with that is getting passed back to the consumer, whether it is discounts at the pharmacy counter through the point of sale or those dollars being passed back to the consumer in lower monthly premiums in their insurance. so the data validates the role that pbm is in the overall cost of pharmaceutical care. >> let's speak about the stock people are worried about the huge amount of debt they took off and i don't think they understand how much cash flow your company generates. >> since the close of the transaction, it is 13 months and we've repaid about $8 billion of the debt you look at cash from operations, 2019 will generate between $10 to $10.5 billion and ample cash to reinvest back in the business and put in capex about 2.3 to $2.6 billion and maintaining our $2 dividend. we have a plan to delever and get our adjusted debt to ebidta

to the low three times in the 2022 and comfortable with the trajectory we're on. >> a lot of people felt why would anybody want to buy health and beauty when they could get it delivered by amazon the health and beauty numbers are holding up. >> jim, we have really focused oun front store business on the growth in those core categories. health, beauty, personal care. and we've been able to -- you think about the new section of data analytics and technology and the role of the extra care royalty program where we've been able to deliver value to our consumers in a very, very personalized way and that has supported growth in those categories very pleased with the performance. >> is there -- would you wake up at night worried that amazon has got some sort of pill pack killer >> jim, our organization has really been focused around how do you make sure we don't leave any white space for disruption and that is created a lot of different innovations that we

had been introducing excited about how our care pass is performing and we tested it and rolled it out across country in the fall. we now have more than a million members and what we're seeing from the customers increased utilization and a higher basket size. >> that is what we want to hear. and that is a huge position in cvs. thank you for everything you do for shareholders that is larry merlot, president and ceo of cvs health. i like this stock. i like this company. and, yes, i like being a customer "mad money" is back after the break. ed to be close to nature. so, we met in the middle. ohhhhh! look who just woke up! you are so cute! but one thing we could both agree on was getting geico to help with homeowners insurance. yeah, it was really easy and we saved a bunch of money. oh, you got it. you are such a smart bear! call geico and see how easy saving on homeowners and condo insurance can be.

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the college admissions scandal. man: we're talking about deception and fraud. woman: the details of the alleged cheating are shocking. narrator: powerful parents accused of paying big money to rig their kids' college admissions. golden: fake test scores. connolly: if you wanted a perfect score on the sat, that's what you got. golden: fake athletic credentials. he asked me how tall my son was, and then he asked me what my son weighed. narrator: getting rich kids in. shutting deserving students out. [ crying ] i'm so scared. the mastermind -- admissions coach rick singer, who tries to build his brand with this video audition for a reality show... just realize that this is a game. narrator: ...playing on parents' anxieties. how come we're not doing this?