actavis before a generic of the older version becomes available.et's bring in reporter meg tirrell with the details. i feel like this happens a lot when drugs go off patent and they go generic. >> it happens from time to time. it's all about life cycle managements. you're trying to extend the time patients are staying on the more expensive brand and drug. they call this is hard switch. they also call it product hopping. essentially this all came to a head in september when the new york attorney general sued actavis saying this shouldn't be legal. and basically they got a federal judge to grand an injunction to stop actavis from pulling the older drug off the market. the old drug is called namenda-ir. now they have namenda-xr that is once a day. patients should switch to that anyway, they say. the patent runs out in july. so cheaper versions are going to come onto the market then. they think if they can switch patients over to the one a day version by then, it will be cheaper to switch back in july. actavis has appealed in injunction and that hearin

actavis, horizon teva valeant. pharma names that are loved and will stay loved as long as they keep growing faster than traditional companies at a time when growth remains hard to come by. >> irwin in new york. >> caller: good afternoon, jim. i'm a little confused and upset about novavax. back in the end of march around march 20th, the stock was trading about $9.70 a share. on march 25th they come out and anaunsed they are going to release 30 million shares roughly at $7.25 a share. the stock the next day dropped $2 and change to $7.50. why would they price a secondary offering $2 and change below that? >> that is a good idea. what they wanted to do was have it so everybody who bought on that deal made money. if you are someone who just got to that stock, you are thrilled with them and that's what they wanted to do. they felt you are already in it you made money, now let the new guys make money. a lot of guys price deals too high and that gets them hurt. i understood that. that is just a term of the way they do it.

the 2011 the market cap of actavis was $7 billion. today it is $120 billion. >> wow. >> perrigo was 6.4 billion. today it is 28.3 billion. mylan 10 going to 37 today. and teva lags well behind going only from 47.5 billion to 63 billion. >> wow. >> what accounts for this frenzy as we've seen in these companies getting bid up with market caps increasing? is it that their earnings power has increased? is it the affordable care act? is it simply that they're getting bigger, their prospects for the future are getting brighter. >> a lost the activity was driven by tax consideration. both mylan and perrigo are companies that have essentially inverted. moving overseas to get that lower tax rate. in generics specifically this industry is all about scale. i was just talking with someone, you need to get bigger or you could possibly be bought yourself. we're seeing this frenzy absolutely continue. one issue this raises especially among generic drugmakers antitrust and regulators may start to look at generic drug prices are starting to rise. we'r

>> few people would be bold enough to short actavis.hether or not they should i'm not saying. >> but i'm saying -- >> there's a great deal of momentum to your point and it's a hard stock one would expect to get in front of. >> i'm looking at monsanto and i look at it and i say to the staff, monsanto's awful how much is it going to be up it's up about a buck and a half. >> they're having issues monsanto. when it comes to the europeans. >> right, issues are not reflected in the stock. sam zell would say that's not a correct price. well, it's not a correct price but i can sell you a malshares. in the end the price short term is controlled where you can sell a million shares. warren buffett's here and watching this, he likes coca-cola. >> he does so? >> i'm saying i think coca-cola's overvalued, perhaps. i think buy green mountain, keurig, monster, i change my posture at coca-cola. i see godaddy, i think it's going to open higher. >> godaddy prizece 23 million shares. ticker gddy which you mentioned. >> that's a toppish symbol. >> that's it

. >> one drug company, it's valeant, it's actavis, it's mylan, it's teva perrigo, and not talked aboutuch meloncrot. >> also inverted. >> a st. louis-based company that's got that -- >> of course. perrigo is where? >> perrigo's an israeli company with michigan plants that is in pennsylvania that is chiefly an irish company. >> and mylan is -- >> it's a melting pot. >> mylan's in the netherlands, of course they inverted through the abbott deal. yeah. >> it's great country. >> brent saunder figured it out. watch malloncrot. sorry "wall street journal." it's 192 bid this weekend from j and j, i'm not playing that game. i go to david. is this a done deal? he said do not put that in your -- do not put that in your game plan. so i left it out. so suddenly i wake up the paper next day, i'm an idiot i didn't say that the deal was done. thank you very much for making me not look like an idiot. >> you are welcome. >> can be an idiot for other things, love for the apple watch. >> on sale tonight 3:00 a.m. pacific, are you going to be up? >> i've got two bands. going for two bands, one watch. >> w

had take over after takeover there is also some bigger fish hunting around for companies like mylan actavishat maybe teva might be interested in mylan. this would be mylan's biggest deal ever if it goes through. these guys say they have been talking for a while. looks like there has been conversation between the chairman of mylan and the head of perrigo for some time. erik: presumably, i guess perrigo's intransigence is why mylan is going public, and a hope that -- drew: we are in weird takeover rules. irish domiciles. as soon as you make the offer you have to make it public and put one of these filings out. seems like the conversations have been informal for a long time. robert coury is an informal guy very talkative. it could be years. a 25% premium over where perrigo closed, that is pretty good but not at the level of some premiums we have seen and pharmaceutical take a first. stephanie: perrigo trading at $208. does the strong dollar make this deal more attractive? drew: both of these companies are domiciled overseas. they are already inverted. you are not seeing attacks play. it does m

you're not going to see actavis getting into the shares. >> we work for brian roberts, comcast, theyabout the stock price. >> they do. the same point, many media companies are also growth companies. are. >> they have done a lot to try to to address stock prices. i'm not just a house man. i could have been talking to cvs ringing the bell. >> cramer's "mad dash" in a moment. edie falco "nurse jackie," on the trading floor. they're going to ring the opening bell. a look at that. and one look at premarket on the last session of the week. we're back in a moment. ♪ at mfs, we believe in the power of active management. every day, our teams collaborate around the world to actively uncover, discuss and debate investment opportunities. which leads to better decisions for our clients. it's a uniquely collaborative approach you won't find anywhere else. put our global active management expertise to work for you. mfs. there is no expertise without collaboration. the pursuit of healthier. it begins from the second we're born. after all, healthier doesn't happen all by itself. it needs to be earned