Cramer’s Stop Trading: Merck
Speakers
Jim Cramer
— Host, Mad Money
Summary
Jim Cramer previews the JPMorgan Healthcare Conference and says the healthcare sector can be on fire into next Tuesday because of a heavy, largely positive news flow. He highlights the Merck upgrade as a forerunner, calls AI and drug discovery a major theme for the year, and notes biotech's recent strength despite FDA and venture-funding concerns. He also briefly discusses Moderna and Pfizer and says Eli Lilly is worth watching at the conference.
- Cramer focuses on Merck after a Hold-to-Buy upgrade and a potential breakout.
- He expects the JPMorgan Healthcare Conference to drive positive healthcare news flow and deals.
- AI and drug discovery is framed as a key theme for the year.
- Biotech is noted as having taken off in late 2025 despite FDA approval concerns.
- Moderna and Pfizer are mentioned with speculative, non-directional commentary.
- Eli Lilly is named as a conference watch item but without a detailed thesis.
Ideas
Merck upgraded; watch breakout into conference.
Cramer is keeping an eye on Merck after a firm upgraded it from Hold to Buy, citing a potential breakout. He views the upgrade as a forerunner of positive news flow ahead of the JPMorgan Healthcare Conference, where announcements and deals are expected.
Healthcare sector strong into JPM conference.
Cramer believes the healthcare sector can be on fire from now through next Tuesday because the JPMorgan Healthcare Conference will bring a wave of announcements and deal-making. He expects the news flow to be largely positive and sees the Merck upgrade as a forerunner of that positive flow.
AI drug discovery is key theme.
Cramer says a major theme for the year will be AI and drug discovery, arguing that AI can help pharmaceutical companies make progress on new drugs. He cites Jensen Huang's view that this is the year AI will work to come up with new drugs and says AI is real hope for drug discovery.
Biotech strong; healthcare big this year.
Cramer notes biotech took off in the last quarter of 2025 despite concerns about FDA approvals and weaker venture confidence, and he says healthcare will be a very big issue this year. He plans to discuss several biotech companies and ties the theme to AI-driven drug discovery.
