Mad Money

No Product Revenues, Plenty of Risk: Buy Exelixis?

At first glance, Exelixisdoesn’t look like a worthwhile investment. The company isn’t profitable, it earns no revenues from product sales, and the stock has hovered at or below $10 for about seven years.

Battling Cancer

But – Exelixis is working with a number of the pharmaceutical industry’s biggest names, such as Bristol-Myers Squibb , GlaxoSmithKline , Roche/Genentech and Sanofi-Aventis . It’s not uncommon for larger companies to buy their smaller partners, and that’s a big reason why Cramer was willing to speculate on the stock.

That and XL184, a drug to block tumor growth that Exelixis is developing with Bristol-Myers. Exelixis’ plan to find as many indications as possible, and a number of trials are underway to test XL184’s ability to treat medullary thyroid cancer, non-small-cell lung cancer, breast cancer and prostate cancer, among others.

This stock is only for those with a healthy appetite for risk, Cramer said, adding that it should not be a part of anyone’s retirement portfolio. He invited Exelixis CEO and President Dr. George Scangos, Ph.D. onto the show to help give viewers as much information about the company as possible, just in case they want to buy some shares. Watch the video for the full interview.

Cramer's charitable trust owns Bristol-Myers Squibb.

Call Cramer: 1-800-743-CNBC

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?