"Drug stocks can rally in any environment, so long as the underlying companies are innovating, creating new medications that can make it through the FDA approval process and make big money once they hit the market," Jim Cramer said Wednesday, pointing to three biotech companies in particular: Isis Pharmaceuticals, Alnylam Pharmaceuticals and Sangamo BioSciences.
Isis Pharmaceuticals has developed Kynamro, a drug for treatment of a rare genetic disorder that causes unusually high cholesterol, which got FDA approval in February. Kynamro could ultimately do $400 million in peak sales, Cramer said. The greenlight also means the FDA is probably more likely to approve other RNA-based therapies, which helps Isis and its more than 20 drug candidates in development.