Making money from marijuana in the past used to require navigating the red tape of the law. Jim Cramer has had his eye on one stock that is giving him quite a buzz.
GW Pharmaceuticals is a speculative drug company that has a history of volatile trading. However, Cramer wouldn't be surprised if the more than 10 percent jump in the stock on Wednesday is just the start of this stock being... high.
To find out where this stock could be headed, the "Mad Money" host sat down with Justin Gover, the CEO of GW Pharmaceuticals.
Cramer considers GW Pharma to be the one really legitimate play on medicinal marijuana, as it uses marijuana to develop real medicine. Additionally, it is a British company that doesn't need to worry about the U.S. laws that make owning large quantities of pot a felony.
Sativex is one drug that is already on the market in 25 countries outside of the U.S., which is a mouth spray to help with multiple sclerosis spasms. They also have a strong pipeline for a Phase 3 drug called Epidiolex that is for treatment resistant epilepsy and a rare pediatric form of epilepsy called Dravet syndrome.
Cramer speculated that people have not been focused on a medical marijuana stock like GW in fear that someone in Congress could call for an investigation.
"The situation with respect to the legal system is no different in the U.K. It's just that all the work that we do, whether it is in Europe or in the U.S. comes under federal law. We are allowed to do legitimate scientific research into these kind of substances. That is what we have been doing for the last 16 years," Gover said.
So if things are going so well for GW, then why isn't a larger company like Pfizer or Bristol-Myers making a play to also create medical marijuana drugs?
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"The dilemma that the physicians and patients face is that the options that are available right now in certain states doesn't allow for a controlled source with the safeguards that an FDA approval provide. That is the role GW can play," said Gover, " We have the opportunity to develop real medicines with FDA approval that are prescribed, reimbursed and the patients can trust that we know exactly what's in it, and we know what the medicines do."
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