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Cramer Doesn't Like Buying Regeneron's Stock Just Because Of Trump Treatment

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Cramer Doesn't Like Buying Regeneron's Stock Just Because Of Trump Treatment

U.S. President Donald Trump receiving treatment for COVID-19 from Regeneron Pharmaceuticals Inc (NASDAQ: REGN) isn't reason enough to buy the stock, according to CNBC's Jim Cramer.

Trump: Regeneron Is A 'Cure': Trump conducted his first TV interview since contracting the illness with Fox Business' Maria Bartiromo. He said he views his antibody cocktail treatment from Regeneron as a "cure" as opposed to Gilead Sciences, Inc.'s (NASDAQ: GILD) remdesivir which he described as "fine."

"I view it as a cure because I took it," said Trump.

Eli Lilly And Co (NYSE: LLY) is working on a similar treatment to Regeneron's cocktail and Trump called it a "great drug" that may have also resulted in a similar victory against the illness.

Related Link: Regeneron CEO Says Company 'Proud' Trump Received COVID-19 Antibody Treatment

Cramer Says Don't Buy The Stock: Investors should avoid buying Regeneron's stock based on Trump's characterization of its cocktail as a cure, Cramer said on "Squawk on the Street." If anything, investors can "think more about Regeneron because it's got good science."

Investors should avoid falling into a trap and assuming Regeneron's antibody cocktail represents a major shift in the narrative.

"This is not like they're suddenly making Humira, the greatest selling drug of all time, or they're not making Keytruda," Cramer said.

Trump may have also "created a false expectation" for a proven medical cure to the disease, Cramer said. But still, his treatment success is a "pretty good" indication for a "great company" like Regeneron.

In fact, Regeneron's Dupixent therapy for the treatment of allergic diseases is "far more important" to the company and a more compelling reason for owning the stock, Cramer said.

Regeneron's stock was up about 1.7% to $602 at publication time.

President Donald Trump departs Walter Reed National Military Medical Center and boards the Presidential motorcade en route to the helicopter pad Monday, Oct. 5, 2020, in Bethesda, Md. (Official White House Photo by Joyce N. Boghosian)

 

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