GO
Loading...

The Return of Immunogen?

When it comes to biotech stocks, it’s all about the drugs.

Earnings may be the determining buy or sell factor in other sectors, but this group lives and dies according to the next cutting-edge treatment. One such catalyst approaches for Immunogen, and Cramer thinks the stock may be worth the risk.

Immunogen , a once high-flying name during the market’s 2000-era heyday, looks ready to take off again. The company is working along side Roche/Genetech on the breast-cancer drug T-DM1, and Phase II results are due Dec. 12. If the news is good, Cramer said, “Immunogen will be up gigantically.”

Of course, the stock will head lower if the study’s data proves disappointing, but T-DM1 shows real promise. Cramer called it “a better version of Herceptin,” the $4 billion drug from Genetech that’s become the standard of care for treating breast cancer. What’s better, though, is that T-DM1 could work in cases where Herceptin doesn’t, and the former could replace the latter entirely.

If T-DM1 makes it to market, Immunogen would collect royalties worth as much as $350 million, which is almost as much as the company’s $390 million market cap. That’s why Cramer said the stock “could be a fantastic speculation.” To get as much information about IMGN as possible before endorsing the stock, he invited CEO and President Daniel Junius to the show. Watch the video for the full interview.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Mad Money Moments

Cramer's New Book