liz: what is the biggest difference between big pharma and specialty pharma?historical reasons for the name differences. if you look at the top companies, lilly, abbott, johnson & johnson, they're thought of major pharma. everybody a step below them is considered specialty pharma. david: why is it that specialty has been so outperforming the big guys? >> business model of specialty pharma is not to invest in a ton of r&d, sg and a. they take the drugs and market them. so essentially because the invest less in r&d and need to less in sales and marketing because the drug is partially known by doctors their cost structure is loor. they are able to sell those drugs, bring their prices up. those companies outperform. liz: i think we get very suspicious when we see exponential jump in success as far as investing in these names is concerned. does this continue or are p-e ratios getting toppy at this point? >> the pe's have not gotten frothy. they're trading 12 to 13 times earnings. below the major pharma companies because they don't do r&d. three drivers of those com

shot big pharma is funneling some of its addiction money into making sure pot is never legal take for example the partnership for drug free kids' confidential financial disclosure show that the group's largest donors include produce pharma the manufacturer of oxy cotton and abbott laboratories maker of the opioid vika and what about the community anti-drug coalition of america kadcyla the largest anti-marijuana reform organization out there turns out cad co also counts purdue pharma as a major supporter as well as alchemies the maker of a powerful and extremely controversial new painkiller called zero high drawl which is reportedly ten times stronger than oxy cotton. ball to really what this comes down to is protecting markets and profits big pharma has the painkiller market of billions of dollars on lockdown but for only as long as marijuana remains mostly illegal. and not just illegal but the most illegal drug despite lawmakers calling on the drug enforcement agency to update its drug schedules to reflect modern science on the actual risks of marijuana these big pharma funded organi

pharma is consolidating industry.igger and smaller are having trouble basically surviving. so what we're seeing are very large transactions. $50 billion plus. we saw pfizer attempted takeover of astrazeneca for over $100 billion that was thwarted. but what is driving it, as you said, is clearly the desire to basically narrow down in a specific area as well as to use significant amounts of cash that are basically trapped in foreign jurisdictions that if they come back to the u.s. and are given to shareholder, that will get taxed at u.s. rates. might as well use the money, make acquisitions to strengthen the companies. david: right. liz: jeff, let's broaden this discussion from one big company buying a slightly smaller company to what would matter to our viewers. how do they participate in 1.75 trillion in deals? what is the best way to manuever through this and cherry-pick some of the names that might be participants and make some money here? >> sure. well basically t sectors that have seen heightened activity. we ment

no, we're going to talk about the potential for stock deals from pharma. "fast money" starts now. our traders tonight -- what a difference a day makes. stocks staging a big comeback today. the nasdaq and russell 2000 coming back. is the market giving investors the all-clear sign? >> well, i think it's just recovery. you had a cover positions, right out of the gates, you didn't see any follow through. at this point, it's not all-clear. but what is going to be the follow through from here? sanctions? that doesn't have any bite to it. >> i thought the market, best case today, up five in the s&p. and i thought there may be a rally early and close up late. but it's potentially broken here. i think we'll test 108 and and then test the broader market. i don't know what changed in 20 hours, maybe the options expiration tim talked about. >> you thought it was going to be worse than yesterday. >> well, if you look at the rest of the emerging markets here, or other risk assets, they're higher today than they started yesterday. they're higher as if this event never happened. and the russell,

the community anti-drug coalition of america and others and these documents reveal that produced pharma maker of the popular narcotic drug oxycontin is a major donor to both groups and abbott laboratories the maker of the narcotic vika is also a major donor to the partnership for drug for kids pharma giants pfizer and janssen pharmaceutical have also given money to anti american want to legalization groups so why would the manufacturers of powerful narcotic opiate drugs like oxycontin and by couldn't be giving money to groups that strongly oppose marijuana legalization well what's the powerful narcotic drugs biggest competition turns out as medical marijuana that's right marijuana produces many of the same pain relieving results as opioid painkillers but without the side effects of death or addiction while these legal narcotic drugs like like it in an oxycontin kill thousands of americans every year and addict millions pot is not addictive it is never ever killed anybody so it's only natural big pharma would want to prevent marijuana legalization from becoming a reality because that wou

and it's like the gw pharma. people don't understand. what happens is, stocks go up, they shoot up like this, then they come down and you've got to buy them when they're down, because then they get recharged. got to european blues? i say get over it. europe is a reason to buy, not sell. don't let them tell you otherwise. on "mad money" tonight, got milk? there's a stock with a potential for huge upside, hiding in your grocery store dairy aisle. find out who it is. and then, you should be cracking open a can of monster. what is all the controversy around this can mean you should leave the stock on the shelf? my call is just ahead. plus, like we just mentioned, a biotech looking to fight pain and addiction. we'll find out if you can invest in its innovative treatments. stay with cramer. >>> don't miss a second of "mad money." follow @jimcramer on twitter. tweet cramer, #madtwooets. send jim an e-mail to "mad mone money"@cnbc.com. or give us a call at i-800-743-cnbc. miss something, head to madmoney.cnbc.com. ♪ [ girl ] my mom, she makes un

pharma which is legitimate @jimcramer on twitter., i never have, i never will. stop it already. when you buy a speculative stock with limited to no revenues let alone earnings, you have to recognize that stock can go to zero, at least stops there. that's why a spec should never be more than 10% of your portfolio if you keep it that way. if you're doing more than that, i think there'll be too much pain if things go wrong. these are not blue chips, people. they're meant to make quick money. and if the story changes, you must run, not walk and cut your losses. >>> most of all, though, remember you can't rely on someone else to make your decisions for you. you can and should decide when to take profits and losses. you don't need me to hold your hand. particularly when it looks like this one. stick with cramer. ♪ during the cadillac summer's best event, lease this 2014 ats for around $299 a month and make this the summer of style. ♪ that's why i always choose the fastest intern.r slow. the fastest printer. the fastest lunch. turkey club.

purdue pharma, makers of oxycontin, provided hundreds of thousands of dollars to many of the largestprevention groups. these drug prevention groups are spending their resources, their money, not on fighting prescription painkiller abuse which is an epidemic. the cdc says it kills over 16,000 people a year. instead, they're focusing most of their resources on fighting marijuana which some experts say is a cheaper, safe alternative to this product. >> is that your thinking about -- i mean, you don't explicitly say this in the piece. you just sort of say what your reporting said about where the funding is coming for some of these groups which are connected to big pharma that manufactures the kind of drugs you talked about. is that what you're thinking, this will represent a threat to the pharmaceutical companies selling drugs that are widely consumed and widely abused, in fact, that are prescription pain pills? >> it's difficult to say. the prescription drug companies wouldn't comment, but the record shows that these large drug prevention groups have refused to join coalitions to reform

and what we're seeing is tremendous innovation, not just in large pharma but in biotech. of cash to investors by both of these companies, as well as large cap pharma. and a high level, obviously, of m&a which i'm sure we'll talk about this morning. >> yeah, if we had to look at the drug -- i don't know how much time you had, barbara. i saw some of the drugs were down. some were up. is there any trend that we can discern from earnings season just so far this year? not this quarter, about what types of products are working, and which ones are not? >> well, i think that, you know, it's actually become a line item in managed care, obviously for -- and that gilead -- >> the world's most expensive -- >> the most expensive drug >> but it got the attention. $1,000 a pill. >> this cost $84,000. so it's important to differentiate. >> good point. what we're seeing both from merck, as well as pfizer, bristol-myers and others, are these new immunooncology drugs which are hundreds of thousands of dollars but clearly are fundamentally changing. the treatment paradigm in oncology. >> can

is going to end the way i think big pharma is got a lot of money they're going to make sure to to you know all these industries are going to try and make sure that we want to stay as a legal because we make a lot of money off of doing a legal issue just get in the business of marijuana that's another option that's all for now but we love hearing from you simply check out our facebook page facebook dot com star team please tweet us at erin aid at sam sachs that's your that's the handle great having them on as always thank you for watching have an awesome weekend see you next time. we never saw that coming. we had no idea or children were gay. i would actually just. pray to god you know be normal. they. and. i swear my life changed i became like a. stop still to. instruct school teachers to tell pupils young people that homosexuality is not an acceptable lifestyle also instructs them to say that homosexual sex in private is a crime and. if the church was going to fire me. i was going to do this with. history is never really dead as long as it's with us the sort of the first world war on

. >> especially in the pharma space. invert u.s. company can abroad.t will change one day. >> it takes time to get it through. >> it will be a very long time. >> it could be the next big trend with report about. the way we go, we could see reverse takeovers. the train always reverses the correction. hyde.ampbell and caroline stay with us and we will take a quick a quick break. new york is waking up and victor, germany is the in the world cup. stay with us. ♪ >> welcome back to "the pulse." on your ipad and bloomberg.com. it is time for new energy headlines. china. at least 30% of new government vessels will be powered by alternative fuel sources by 2030. the latest efforts to combat their smog problems. the new cars will be electric. will -- trading, but he trading company will build a power station. construction will begin in august. nearly $200 million plant will be running by 2017. facebook, walmart and other major u.s. companies are having an easier process for buying alternative energy. the companies say there is difficulty in vetting cost competi

stem the way i think big pharma is got a lot of money they're going to make sure to you know all these industries are going to try and make sure that they want to stay is illegal because they make a lot of money off of doing it is just getting the business of marijuana that's another option that's all for now but we love hearing from you so please check out our facebook page facebook dot com slash been bused our team please tweet us at aaron aid at sam sachs but that's the handle great having salmon as always thank you for watching have an awesome weekend see you next time. well. it's technology innovations all the developments around russia. that's huge you're covered. we welcome there and made an abbey mark to a tour of the coast on the r. t. network. it's going to give you a different perspective give you one star never i'll give you the information you make the decision don't worry about how bring you the work of the revolution of the mind it's a revolution of ideas and consciousness and frustrated with the system the extreme right approach which would be described as angry i think

way of same sex marriage we have a hard rap after this but same sex marriage or do you think big pharma is going to end the way i think big pharma is got a lot of money they're going to make sure to you know all these industries are going to try and make sure that they want to stay is illegal because they make a lot of money off of doing it is just getting the business of marijuana that's another option that's all for now but we love hearing from you so please check out our facebook page facebook dot com slash been star team please tweet us at erin aid at sam sachs that's your that's the handle great having them on as always thank you for watching have an awesome weekend see you next time. israel. rained down on goals a killing civilians including children we hear from those right in the midst of the shelling his family relations between the u.s. and germany reach a new low over spying is kicks out a top cia official relationship as kim says it's ready for a cease fire meets the families devastated by all me every. one of the media turns a blind eye to get its own not see. yes. people.

inwill talk much more m&a the big pharma sector.pen champion rory mcelroy, the 25 there'll be came the third youngest golfer to win three majors holding up late round pushes by two others. he was not the only mcelroy was a winner yesterday. his father jerry is a barkeep in northern ireland. he bet some friends 10 years ago that his son would win the british open before his 26th birthday. he did and his dad netted $170,000. no word yet on the size of the party at the mcelroy's last night. coming up, we will talk more on to and dive into the deal buy shyer pharmaceuticals. ♪ >> you are watching "in the loop." let's go back to the business of deals. shire was bought for $18 billion in this is the latest of a huge wave of m&sa. this year. 53%activity has climbed from last year. is still with me. the biggest distraction for you between m&a and back in 2005? happened -- it's don't think we are in an animal instinct environment but these numbers are crazy. the fear is gone. all of this stuff going on in the ukraine and the middle east and

alexion pharma.re is so much happening here on wall street. david: one of the big surprises, gm despite the recalls up big-time again. the car sales were through the roof. >> it was about the auto sales for gm despite the fact they recalled 29 million cars. people are going in and actually to get the fixes and actually bought new cars. david: gopro again higher, double-digit. >> go, go, gopro. 49 bucks and chain. [closing bell ringing] david: nicole, thank you very much. we have this rally covered. we have a lot of investment analysis for you, including charles payne coming up later in the hour to tell us what he thinks about individual stocks. he has a great record. look at record, this will be one for the history books. big history-making day. look at nasdaq today, up 1.14%. huge jump on the tech-heavy nasdaq. dow jones industrials up about 130 points. off its highs. it didn't make the 11,000 mark. we were hoping it was. we have the champagne ready to go, didn't quite make it there, but the s&p ano

the most common actually that big pharma is focused on are diabetes. 110 medicines in development now for diabetes. 67 in development for alzheimer's. that's really important. 5 million americans currently have alzheimer's. 36 million people worldwide have dementia. that's expected to triple by 2050 if we don't get new drugs that stop or slow the disease. it's been a really tough area. we don't understand the biology well enough for alzheimer's. and then diabetes is a huge area. it's a $64 billion market worldwide. this is huge. sanofi, know vor nordisk, merck and lilly are in this area. 27% of baby boomers are said to have diabetes. that's growing. we didn't even mention cancer and high cholesterol. all of these companies working in these areas. you can't not focus on it if you're in big pharma. >> my kid has diabetes actually. >> oh, really? >> he's 20 now. but he was 3 when he got it. there's two types of diabetes. it's interesting, what they're doing with drugs. and what they're doing with stem cell research, which are not obviously drugs. and arti

tough day for shares of horizon pharma. two major pharmacy benefit managers, cvs and expressscripts will place two of its biggest selling drugs on their exclusion list, that leaves a higher amount of drug costs to patients who don't switch to other less costly alternatives. both of the drugs in question treat arthritis. the stock was off 34% to 9:15. >>> tyson is selling a chunk of its acquisitions to a rival. they will sell some latin american chicken operations leaving china as its only major u.s. operation. volumes of stock up more than 2% to $40.56. >>> smith & wesson settles sec bribery charges. the company will pay $2 million for making improper payments to foreign officials as a way to win firearms contracts overseas. the violations occurred between 2007 and 2010. shares feld to $13.57. >>> herbal life reported disappointing earnings after the closing bill, the makers of weight loss and nutritional products reported a 17% drop in earnings. after the close, shares initially dropped on the report, they finished the reg

line is specialty pharmacy is the big companies, big companies, they need product, so the specially pharma companies are taking products and specialty areas like inflammation and putting packages of drugs together that are attractive to a bigger acquirerer. >> any disclosures in terms of if you hold it or you clients? >> we own all three of those companies in our mutual fund. >> thank you so much for joining us. >> thanks for having me. >>> coming up, the deadline to comment on one of the fcc's most controversial propels is fast approaching and dividing some of the biggest players on the internet. >>> some new data from the labor department shows in june 33 states added jobs, 17 lost them compared to the month before. and with that, the unemployment rate dropped in 22 states from may to june. it rose in 14 states and it stayed the same in some 14 others. right now mississippi and rhode island have the highest unemployment rates at 7. 9%. north dakota has the lowest as 2.7%. >>> the deadline for anyone wanting to weigh in on the fcc's controversial proposal concerning so-called net neutrali

some of the same big corporations that are also contributing to republicans -- wal-mart, pfizer, big pharma, comcast and others, friendly corporate lobbyists help run this. one of its board members is a lobbyist for the us chamber of commerce and they call themselves the new deal. >> that is exactly what's wrong and why people are sick of politics that you would think that the answer, that a democratic organization would think that the answer is for them to get corporate money as well. that's what happened in texas. the people didn't turn right wing. they quit voting because the democrats quit being democrats for exactly the reason that, of what cory booker is doing there. they went out and got the corporate money. and you take that check, you know, you're not going to be talking populist old democratic rallying the troops and going at the bastards and big shots and b.s.'ers. you're not going to be talking about good jobs at good wages, not just jobs. good, you know, jobs that have wages attached to them, living wages. you're not going to be talking about medicare for all, you know, not med

big pharma is fighting back. scott cohn is here.s a look behind the scenes. >> they are fighting back hard, pfizer made $20 billion in u.s. revenues. the company says that's not what all this effort is about. we got a look pence this pfizer lab in connecticut. they're buying drugs online here, too. then they test them and actually build criminal cases for the fed feds. >> the big motivation here is patient safety. when want to make sure when a patient gets a pfizer medication, they get a pfizer medication, not some knockoff. >> that is brian donnelly, he's a pharmacist and undercover agent. he says what is produced by the counterfeiters is downright scary. >> they will use things like brick dust to hold it together. they'll use wallboard, sheet rock, to hold these things together because they compress well. then, of course, they may use different things to color these things, printer ink, for example. to color it. >> now, storefronts like these are popping up, they will place an order for you. they say they are operating legally and

. >> they are going to farm out pharma. that is the take away. >> they are going to be selling thees to another ipo in next month. >> it has got a big share of the market. theas about two thirds of market in the united states. >> the growth is still there. the amount addicted, this is going to be a company that can continue to build a unit on its own. >> sales fell five percent in the second quarter. >> while it has a huge market from 68. is down the competition is from generics. you know when generics come in market share drops quickly. >> they are not ruling out a sale of the unit. , it seems asegy though they are going to tackle the share sales. they are going for an ipo. >> we are seeing a bit of london, what the city looks like. a bit dark. open.rkets in 11 minutes time for the futures up by about a third of one percent. -- ftse futures up i about a third of one percent. ♪ >> welcome back. 7:52 here in london. we look at the big macro themes of the day. >> you have gdp wednesday. it has payrolls and inflation data on f

and pharma trying to buy shyer.ing the pipeline, getting ahead of patents expiring. this is the disruptive innovation, if you like, catching up with the boardroom and chief executives saying they have to act. >> matt, thank you for joining the m & aand and a -- boom in the u.s. up, mohamed el-erian is joining me to break down the it means forhat the u.s. economy, and the fed. that is tomorrow, starting at 8:00 a.m. eastern time. ♪ >> it is 56 minutes past the hour and that means bloomberg television is on the market. we are minutes away from a read on factory orders and right now, makes read -- a mixed read on stocks. the dow jones is little changed from yesterday stop within three points of reaching 17,000. we are not quite there yet. look there,taking a the adp employment number was better than economists anticipated. perhaps that sets us up for a fairly decent june jobs report that comes out tomorrow because of the holiday shortened week. at 2.6 zeroyield is percent, the-about a week. and copper is 2.7%, fairly f

investigative report by leaf falling at the nation that reality may still be a long way off thanks to big pharma as to legalization efforts to let me break down the report i'm joined now by our to political commentator sam sacks oh what's up sam what's up so start going over what companies and organizations are actually behind this and legalization effort in the us sure well this is pretty interesting as you're. as you mentioned those polls are moving toward legalization you're seeing more and more laws introduced that. either legalize marijuana or decriminalize marijuana or legalized marijuana and you'd expect the opposition to government be moral groups or health care groups of the same sort of problems maybe with smoking or drinking alcohol or something like that but instead you see the opposition coming from companies that want to protect their bottom line to protect profits basically protect the markets that they have a stranglehold on right now so you see as you mentioned pharmaceutical companies coming out and funding and this is a thinks as you mentioned reporting by leaf on funding orga

. >> here is what to watch for in pharma and biotech in the second half. the habitat will continue to be hot with gilead expected to receive approval on a drug combination in october and more data on drugs from merck and bristol-myers in november. among biotext, expect clinical data readouts on important pipeline products that could have big implications. and never discount m&a. analysts expect it the record year to continue. and the second half's largest deal may in fact be a rerun of the first half. analysts expect pfizer to make a second run at buying astrazeneca. that's the second half. for "nightly business report," i'm meg turrell. >> so what is next for the stock market and which sectors will be the winners and the losers? we turn now to steven whiting, global chief investment strategist at city private bank. steven, thank you so much for joining us. >> thank you. >> who would have guessed back in january that this is where we would be in july? what is your outlook for the rest of the year? >> we had a good first half of the year if you count in div

like other big pharma companies, j&j used to develop drugs the old-fashioned way, internally. today the company is collaborating with outside startups, inviting them into their incubator lab in la jolla, california. as part of our special daylong coverage inside johnson & johnson, bloomberg sent carol massar to get an inside look at the company's innovation lab. take a look. >> could billion-dollar drugs come out of this process? >> we are indoubt. the incubator in la jolla, california. entrepreneurs are looking at everything. >> we're trying to come up with new molecules to treat diseases in a brand-new way. >> they are renting out lab , grantinghe incubator access to millions of dollars of equipment that startups usually can't afford. >> there are no strings attached. >> there are no strings attached. >> to me it was essential that this was a no strings attached model. otherwise, they would not come. >> mayor coming. or hundred companies have applied for space in the incubator since -- 400 companies have applied for space and incubator since 2012. >> why are you doing this?