Jim Cramer has touted several DJIA upside calls in 2012, but on Monday’s MAD MONEY on CNBC Cramer touted Merck & Company, Inc. (NYSE: MRK) as the great pharma outfit with what may be the next big drug. Rather than Lipitor from Pfizer Inc. (NYSE: PFE), the aim for a new drug in late-stage trials by Merck treats the 65% of patients who do not get helped out by traditional statin drugs. Cramer called it a $5 billion or $10 billion sales opportunity which is even big enough to move the needle for Merck’s upside. Cramer also likes that Merck pays a very high dividend yield well over 4% for investors who are waiting.
Merck shares closed down 1.1% at $38.77 today and the last trade after the Cramer tout put Merck up 0.9% around $39.15 or so in the after-hours. Its 52-week trading range is $29.47 to $39.43 and that means that Merck could put in a 52-week high now. Pfizer is around $21.71 and its 52-week high is $22.17.
Read Also: Cramer talks up Broadcom (BRCM) as his value chip play
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