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Before Wall Street found out that diagnostics company Theranos was a fraud, PerkinElmer had its own questions about the company, PerkinElmer CEO Robert Friel told CNBC’s Jim Cramer.

“We spent a lot of time, first of all, trying to find any kind of scientific, technical knowledge about the company,” Friel said. “Very hard. We sort of concluded that we didn’t understand it, and since we didn’t understand it, we stayed away fortunately. As we’re finding out now, there wasn’t much substance behind it.”

Its decision to stay away has not hurt the the company, which manufacturers life science and diagnostics equipment. PerkinElmer’s stock is up almost 20 percent year-to-date after reporting strong second-quarter earnings results.

Friel said that its latest results show that its two divisions work well together, even though the market a few years ago thought that the best way to create value was to split up the company.

Watch Friel’s full interview here.

Disclosure: Cramer’s charitable trust owns shares of PepsiCo, Facebook and Nucor.

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