Jim Cramer can be a handful (as my dad would say). The man yells more than my toddler son when his chicken nuggets are too hot. 

Jim’s hyped up everything from meme stocks to SPAC disasters, and sometimes his enthusiasm feels… misdirected. (Remember his love for Silicon Valley Bank right before it imploded? Or the infamous “Bear Stearns is fine” call?) But this time, he might actually be onto something. Cramer is screaming from the rooftops that Bristol Myers Squibb is the best pharma stock after Eli Lilly… and for once, his excitement makes sense.

Cramer’s obsession with BMS comes down to one drug: Cobenfy. Already approved for schizophrenia, BMS is now pushing to get it approved for Alzheimer’s-related psychosis… a massive, untapped market with zero FDA-approved treatments. If successful, analysts predict Cobenfy could generate $10 billion a year, with JPMorgan expecting at least $5 billion in annual sales by 2030. 

The timing couldn’t be more perfect for BMS, which desperately needs new revenue streams as some of its top-selling drugs face patent expirations. Unlike other Alzheimer’s drugs that target toxic brain plaques, Cobenfy treats psychosis and agitation… which affect millions of patients and currently have no dedicated treatment options. Even better, unlike existing antipsychotics, Cobenfy doesn’t increase the risk of death, making it a safer alternative.

Now, BMS does have a problem. Its top-selling drugs Eliquis, Opdivo, and Revlimid… are all set to lose patent protection over the next few years. Since these drugs make up 62% of total sales, this is obviously a big problem. But BMS isn’t sitting around hoping for the best. They’re executing a full-blown pivot, cutting $3.5 billion in costs, betting big on new, high-growth drugs, and buying up smaller biotech firms to fill their pipeline. Cobenfy is the centerpiece of this strategy, and if it delivers, BMS will survive the patent cliff… and they’ll see substantial growth.

While all this plays out, BMS is literally paying investors to wait. At 4.5%, BMS has one of the best dividend yields in Big Pharma… more than double the S&P 500 average. Even if the stock doesn’t rocket higher overnight, investors still get paid just for holding it.

Cramer’s excitement might be exhausting, but this time, he’s actually right. BMY is cheap… trading around $59 per share, with a forward P/E ratio of just 7. That’s a serious discount compared to pharma giants like Eli Lilly (P/E over 60) and even Pfizer (P/E around 13). It’s got a potential blockbuster drug, a defensive dividend, and a strategy built for survival. If you like undervalued stocks with serious upside, Bristol Myers Squibb could be your next winning trade.

Stocks.News has positions in Eli Lilly, Bristol Myers Squibb, and JPMorgan mentioned in article.