Watch out Regeneron, here comes Isis Pharma!

Isis Pharmaceuticals' game-changer drug
Isis Pharmaceuticals' game-changer drug   

Jim Cramer has always said that he loves biotech stocks. It doesn't matter if oil is up or down, this sector can rally even when the rest of the market is down.

That is why the "Mad Money" host is always looking for the next big biotech stock, so that investors can have massive multi-year gains. And boy, does he have a hot one up his sleeve; Isis Pharmaceuticals.

The holy grail of pharma stocks has always been Regeneron. This company was only a little $5 stock with big dreams when Cramer started recommending it nine and a half years ago. Now it is a $42 billion company and has soared 8,340 percent since then. Cramer thinks it still has legs to run.

Cramer thinks that Isis could be the next Regeneron. He spoke with the CEO last week and since then the stock is down $2, which creates an excellent entry point.





Pipette in test tube
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Isis has an amazing pipeline, especially its drug FXI that was created as an antithrombotic to prevent blood clots.

The reason why this drug is revolutionary is because most drugs that prevent blood clots have some serious side effects. One of these is an increased risk of bleeding. So if you were to go in for surgery and you took an anticoagulant, you run a risk of bleeding out during surgery, which is a scary proposition for the surgeon and patient.

"The issue is important to me because my dad, who passed away last month, had a stroke a couple of years ago, and when they did his ablation surgery they have him Coumadin which would have caused him to bleed to death pretty rapidly if he'd been alone," Cramer said.

That is why FXI is a big deal. It has the ability to prevent blood clots while causing much less bleeding. There is no other drug on the market currently that can address both of these issues.

In a six week study of 300 patients who were undergoing knee surgery, patients taking FXI had 2.6 percent occurrence of bleeding, versus the 8.3 percent for patients taking Lovonex. Additionally, the drug reduced the incidence of venous thromboembolisms, or VTE, to 4.2 percent versus 30.4 percent who took Lovenox.

So if this is such a big deal, why did Isis only go up $4 on the news? Because FXI was only done on knee surgery patients, which is a small portion of the market.

"Now that we know their drug works better than the competition, I see no reason why they shouldn't be able to take the anticoagulant market by storm," Cramer said.

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Eventually, FXI has the potential to be a $5 billion drug. That is huge considering that Isis Pharma has an entire market cap under $7 billion.

Also keep in mind that there are other drugs in the pipeline too, including three drugs in phase 3 trials, and an anti-cholesterol drug that could be worth $500 million.

Cramer is salivating over this stock, and thinks investors should be too. Isis has a lot going for it, and he thinks FXI is a real game changer. So while the stock is up 47 percent this year, he thinks it can keep on climbing and bring in the dough for years to come.

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