Biotechnology companies Nuvelo Inc. and Cambridge Antibody Technology Group Plc will see their shares rise as the companies develop drugs with larger partners, Jim Cramer said on his ``Mad Money'' television program on CNBC.
Cramer, a market commentator and former hedge-fund manager, said smaller drug companies can use relationships with large pharmaceutical companies to ``raise their profiles'' and boost their ``exposure.''
Nuvelo has joined with Bayer AG, Germany's biggest health-care company, to develop an experimental clot-busting drug, while Cambridge Antibody has an alliance with AstraZeneca Plc to develop treatments for inflammatory disorders.
Cambridge Antibody's drug Humira, which is licensed to Abbott Laboratories, could be approved for more medical applications and further boost revenue, Cramer said.
Nuvelo's ``blood-clot dissolver has a lot of potential applications, and it's close to the end of the pipeline,'' Cramer said. ``The next test results should be available in the first half of 2007.''
The stocks were first mentioned in an article by PR Week, Cramer said. He also recommended Nastech Pharmaceutical Co., which has a partnership with Procter & Gamble Co. Inc. to develop an osteoporosis treatment and Genzyme Corp.
BJ's Wholesale Club Inc., the third-largest U.S. warehouse retailer, is losing market share to Costco Wholesale Corp., the largest U.S. warehouse-club retailer, Cramer said. Costco is benefiting from a move to add more high-end brands, such as Sony, Panasonic, Sharp and Samsung, to the range of electronic goods it sells, he said.
``Costco is a must-have retailer; look at the brands they are carrying,'' Cramer said. ``Electronics aren't just what's driving the revenue; product warranties will be the key.''
While most product warranties can add as much as 20 percent to the cost of an electronic product, Costco allows its club members to return faulty products free for up to three years after purchase. That move cuts the cost to consumers of buying expensive electronic equipment, Cramer said.
ViroPharma Inc., the drugmaker, could be a stock worth $30 a share to $40 a share, Cramer said. Earlier today, the company said it expects 2006 sales of $160 million to $170 million. Six analysts, on average, estimated revenue of $167.7 million in a Thomson survey. Cramer says the company's sales forecast is ``conservative.''
Cramer recommended CVS Corp., Walgreen Co., Commerce Bancorp, Principal Financial Group, Conexant Systems Inc., Foster Wheeler Ltd., Conexant Systems Inc., Omnova Solutions Inc., Allegheny Technologies Inc., Fluor Corp., Medco Health Solutions Inc., Apple Computer Inc., JDS Uniphase Corp., NMT Medical Inc. and Evergreen Solar Inc., in response to questions during the show's ``Lightning Round'' segment.
He also recommended ConocoPhilips and Occidental Petroleum Corp. and told viewers to avoid Chicago Iron & Bridge Co., Chevron Corp., TurboChef Technologies Inc., EarthLink Inc., Drew Industries Inc., Dell Inc., Ciena Corp. and American Axel & Manufacturing Holdings Inc.