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Verona Pharma plc (VRNA): Jim Cramer Approves The Merck Acquisition

We recently published 14 Stocks Jim Cramer Discussed As He Talked About Record Bitcoin Price. Verona Pharma plc (NASDAQ:VRNA) is one of the stocks Jim Cramer recently discussed.

Verona Pharma plc (NASDAQ:VRNA) is a small biotechnology company that focuses on respiratory diseases. Its shares rocketed by 20.6% in July after pharma giant Merck announced that it would buy the firm for a $10 billion price tag. However, even before the acquisition, Verona Pharma plc (NASDAQ:VRNA)’s shares were up by a strong 80%. The stock has been helped by improving revenue and shrinking losses, which are good performance indicators for upstart biotechnology and pharmaceutical companies. Cramer’s comments about Verona Pharma plc (NASDAQ:VRNA) covered Merck’s acquisition:

“Yeah, I talked to Rob this morning, really liked this. He thinks he’s got about 50 billion dollars worth of new drugs, which would therefore make it so you should stop worrying about the Keytruda patent expiration in 2028. I am with Rob. I think this COPD is a really important, another important franchise for them the alternative use steroids. And we’ve all be discovering that if you have trouble using steroids, one it becomes less effective over time, and two, the side effects are much worse than people realize. So I think this is a first in class, novel, compound that will make it so. . .I like this acquisition very much.”

A patient in a clinic, taking a medication dose from a nebulizer to treat a respiratory disease.

Earlier, the CNBC host had dubbed Verona Pharma plc (NASDAQ:VRNA)’s shares as speculative:

“That stock is a rocket ship. Again, very very speculative, because it loses a lot of money. Does have a couple things in the pipe that people like, but also has a huge amount of insider selling, frankly.”

While we acknowledge the risk and potential of VRNA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VRNA and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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

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Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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