MAD MONEY FEATURES
PODCASTSWatch the Lightning Round whenever and wherever you want.
OFFICIAL MAD MONEY WIDGETGrab this all-in-one application and get recaps of the show sent right to your desktop or blog.
CRAMERS SOUNDBOARDAdmit it: You've always wanted to hit the "They
know nothing!" button. Here’s your chance.
CHECK OUT OUR PHOTOSCheck out Cramer on set, back to school, behind the scenes and more.
SHOP FOR MAD MERCHANDISEBuy Cramer books, bobbleheads and other Mad Money merchandise.
RING TONESPick up the phone! It's Cramer! New Mad Money sounds for your cell phone.
TEXT MESSAGE ALERTMad Money's mobile. Get show highlights sent to your phone.
Text Size 
Cramer’s so confident that biotech will work in this environment that he said together even a laggard in the group is worth buying.
And that’s just was Vertex Pharmaceuticals [VRTX
Loading...
()
] is. While the Biotech HOLDRs [BBH
Loading...
()
], the biotech index, is up almost 18% since July first, Vertex dropped 16%. But Cramer defended the stock today, claiming Wall Street misread some recent study data and took VRTX down unnecessarily.
The company’s Teleprevir drug, a treatment for chronic hepatitis C currently in Phase III trials, took a hit when Schering-Plough’s [SGP
Loading...
()
] rival drug, testing in Phase II, reported better results. At least that’s what it seemed like at first.
As Cramer pointed out, the two tests weren’t a true one-to-one comparison. The test designs were different, and Schering had fewer test subjects and lower drop rates. Also, Vertex’s drug seemed to have less severe side effects. And Teleprevir works on patients with treatment-resistant hepatitis C, while Schering’s drug does not. That means Vertex had virtually exclusive access to the 300,000 Americans who fit that description. And, on top of all this, Teleprevir is much closer to market than Schering’s drug. In the U.S. alone, the expected sales top out at $1.2 billion.
Vertex is cheap with a promising outlook, both from its cystic fibrosis pipeline and the hep C drug. This alone should attract most big-money managers. But for the doubters, Cramer mentioned a number of upcoming catalysts – two new studies this quarter and a key conference at the end of October – that should move the stock.
Jim's charitable trust owns Schering-Plough.
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website?
Del.icio.us
Digg It
Data is a real-time snapshot *Data is delayed at least 15 minutes