Cramer named BioMarin one of his growth stocks of the year back in October. That was before the small biotech company gained Food and Drug Administration approval for its flagship drug Kuvan, which used for the treatment of the genetic disorder phenylketonuria, also known as PKU.
But for such a small market of patients, Kuvan is turning into a lucrative drug for BioMarin . CEO Jean-Jacques Bienaime told Cramer on Monday’s Mad Money that’s because it’s the first – and only – treatment for PKU. That allows the company to charge a high price for the drug, he said. Just how high? Kuvan costs an average $57,000 a year.
Fortunately, Bienaime said he expects more insurance companies to cover the drug for use, keeping the cost to patients down substantially. Under most conditions, he said the maximum co-pay should not exceed $50 per month.
With a homerun in Kuvan, Cramer is looking for the next catalyst to drive this stock higher. Bienaime said the active drug in Kuvan is currently being researched for other uses to treat peripheral arterial diseases and sickle cell anemia. Also, the company is looking to develop another drug for PKU that could actually eclipse Kuvan in effectiveness.
What’s that mean for investors? Cramer thinks this stock could have even better days on its horizon. He called BioMarin a great long-term speculative stock that could eventually turn into a great biotech company.
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