Cramer: New Cancer Fighting Biotech

(Click for video linked to a searchable transcript of this Mad Money segment)

"I want to tell you about a new cancer fighting biotech name that's probably not on your radar screen," said Cramer. "The company is Celldex Therapeutics, a $13 stock with a $1 billion market cap."

Although the stock is already up 90% since the beginning of the year, Cramer thinks the stock has more room to run.

The reason?

"Celldex is doing ground breaking work in one of the hottest parts of the oncology universe, what's known as cancer immunotherapy," Cramer explained. "These are drugs that use the body's natural defenses, the immune system, to target and destroy cancer cells."

This form of therapy is expected to be a big theme going forward in cancer treatment.

Currently conventional treatments such as chemotherapy are broad based – that is, they destroy both cancerous tissue as well as healthy tissue and come with very serious side effects.

Celldex's technology however is different – it's targeted.

"It's engineered to make the cells in your immune system go on a search and destroy mission, looking for specific tumors. And from the data we've seen so far, the company's approach works really well without causing harmful side effects," Cramer said.

Jayson Punwani | E+ | Images

Specifically, a drug called CDX-011 appears to be effective in the fight against some types of breast cancer and another drug called Rindopepimut or Rindo appears to be effective in the fight against some types of brain cancer.

If approved these two drugs could extend people's lives, significantly.

Looking at the impact on share price, results could be significant, as well.

"If the drugs are approved, Street analysis suggests they could generate $300 million in sales. On that amount of revenue, they think Celldex could earn $1.60 per share. With that level of earnings, I could easily see this $13 stock going to $20, a 53% gain," Cramer said

However, Cramer thinks the Street may be conservative.

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"I think the drugs could send revenue in 2017 to a billion dollars," Cramer said. "If that happens, then the stock should be worth a heck of lot more than it is now, given that, at the moment, Celldex's entire market cap is worth just a billion dollars."

Of course, as is the case with many biotech stocks, Cramer sees Celldex as a spec play. "It's inherently risky," Cramer said. The fortunes of the company are tethered to FDA approval and if results turn negative, shares could turn negative too.

Call Cramer: 1-800-743-CNBC

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