Jim Cramer on Abbott: "I Think It's a Terrific Time to Do Some Buying"

Abbott Laboratories (NYSE:ABT) is one of the stocks Jim Cramer recently offered insights on. Cramer highlighted the company’s acquisition of Exact Sciences and said that it complements Abbott’s diagnostic business, as he remarked:

“This morning, Abbott Labs announced that it’s buying Exact Sciences, that’s the colorectal cancer screening company, for about $21 billion. It’s a 51% premium where it was trading before we started hearing talk of the deal. This transaction will be the largest healthcare deal in two years and the largest diagnostic acquisition ever. Exact Sciences has a great product… Of course, this kind of deal probably would’ve been blocked by Biden’s antitrust regulators if only because the FTC under Lina Khan seemed reflexively hostile to all mergers. But under Trump, it’ll probably sail through.

Now, normally, an acquired stock only gets hit hard if they’re paying… for the target with their own shares. But Abbott’s paying in cash, and it’s still dropped more than $6 over the past two days since the deal was reported. I think that’s crazy. Abbott has a big hole in its diagnostic business, and Exact Sciences would plug it. The rest of the business is doing quite well. So I think it’s a terrific time to do some buying, especially as once in the portfolio, it will accelerate Abbott’s growth rate.”

Abbott Laboratories (NYSE:ABT) develops and sells healthcare products, including generic medicines, diagnostic systems, nutrition brands, cardiovascular and diabetes care devices, and neuromodulation technologies.

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Disclosure: None. This article is originally published at Insider Monkey.