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Huge opportunity on a new angle on women's health

Most of the small speculative biotech stocks were slammed last week hard, but now that the economy has slowed down a bit in the second quarter, Jim Cramer took the time to circle back to an interesting pharma company that could present a new angle on women's health.

TherapeuticsMD is a pharmaceutical company geared towards specialization of hormone replacement therapies. And while it does also have a sideline business in prenatal vitamins, its main focus is to create formulations that deal with complications of menopause.

Since 1990 there have not been any new lower effective doses or new natural estrogen available for women. TherapeuticsMD is looking to change that, and Cramer considers the potential that could come from its pipeline to be huge.

In fact, he considers this $6 stock with a one billion market cap to be pretty cheap. So while the biotech sector has been very volatile recently, the "Mad Money" host was still intrigued by this company.

Could this angle on women's health bring in major bucks for investors? To find out, Cramer sat down with TherapeuticsMD co-founder and CEO Robert Finizio.

Robert Finizio, CEO of TherapeuticsMD
Scott Mlyn | CNBC
Robert Finizio, CEO of TherapeuticsMD

The CEO explained that during menopause, women's ovaries stop producing both estrogen and progesterone. The reduction in estrogen can cause effects for women, such as hot flashes. Currently the only FDA approved products available are synthetic.

A large study recently conducted on women showed that synthetic hormones are linked to an increase risk of cancer, especially breast cancer.

"The problem that we look to solve is that there is no FDA approved natural hormone combination. We are the first people to put that into phase one, phase two and phase three," Finizio said.

And while the need for natural hormone replacements is great, TherapeuticsMD also presents potential to tap into major monetary benefits.

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"There are currently 30 million prescriptions a year. At a branded price, that is a $6 billion market opportunity filled exclusively by compounding pharmacies," Finizio added.

So if there is such a large need for these therapies, Cramer asked why aren't the large pharma companies like Pfizer jumping all over this?

Finizio responded, stating "All of large pharma abandoned women's health research with hormones."

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