Cramer Says Eli Lilly (LLY) Stock Has Already Bottomed

Jim Cramer highlighted Eli Lilly (NYSE: LLY) on last night's Mad Money, calling it a stock that will help investors sleep at night given its 5.2% dividend yield. Interestingly, Cramer said he believes that Eli Lilly's stock has just recently bottomed.

Cramer pointed out that many investors have been concerned with Eli Lilly's patent expirations as it has more than $10.5 billion in annual sales coming off patent in the next several years. However, with shares of Eli Lilly down about 28.5% year-to-date, Cramer believes that most of this information has already been priced into the stock. Cramer said he also likes the company's recent acquisition of Imclone.

Cramer also mentioned Eli Lilly's new drug pipeline, which is expected to produce one major new drug offering a year until 2012. The Mad Money host said he is most excited about Lilly's once-a-week injection for diabetes.

Finally, Cramer noted Lilly's large cash position -- $3.4 billion -- and its lack of long-term debt coming due before 2012.

Shares of Eli Lilly are up about 2%, or $0.80, to $38.14 today.

Eli Lilly and Company engages in the discovery, development, manufacture, and sale of pharmaceutical products worldwide.

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