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Jim Cramer calls CVS Health cheap; GRAIL FDA approval delayed until 2027

1 report, 1 independent Updated Oct 7
AI-generated briefing. Brind wrote this from the reports listed below. It can be wrong. Each section says how much you can rely on it, and the sources are linked so you can check.

What happened

Some supportReported by 1 outlet

Jim Cramer called CVS Health 'insanely cheap' at $86, noting it trades at 11 times earnings. He stated that Caremark's profit depends on the gap between what it pays for drugs and what it collects. Separately, it was noted that GRAIL has no FDA approval until 2027.

From aol.com

Why it matters

Some supportBrind's analysis of the reports

Cramer argued that the stock's recent drop overreacted to a proposed, but not yet final, 340B regulatory change. Caremark's financial structure is tied to drug payment gaps, while GRAIL's high valuation is contrasted with its delayed regulatory timeline.

From aol.com

Who's involved

  • CVS HealthCompany whose valuation was reviewed by Jim Cramer
  • CaremarkCVS Health's pharmacy benefit manager, whose profit depends on drug payment gaps
  • GRAILBiotechnology company awaiting FDA approval for its products
  • FDARegulatory body responsible for GRAIL's product approval

Who could feel it

Possible knock-on effects

These are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.

  • Eli Lilly and CompanySpeculative

    Caremark's profit dependency on drug payment gaps could increase the risk of coverage restrictions for Eli Lilly and Company's drugs.

  • Express ScriptsSpeculative

    PBM market pressure might affect Express Scripts' margins and competitive position.

Keep exploring

The entities involved

Coverage

Newest first; wire copies grouped