Mad Money

Despite sector woes, this biotech surging


Although biotech has broadly fallen out of favor, there's a one stock in the sector trading at a 52-week high. The price action has captured the attention of Jim Cramer.

The company is InterMune, an orphan drug developer that helps treat rare diseases.

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"InterMune's big drug is called Esbriet, for idiopathic pulmonary fibrosis, an irreversible, progressive and fatal lung disease," Cramer said. "This drug has already been approved in Canada and the European Union, but it's still waiting on FDA approval here in the United States, although I think approval is very likely as the data here has been very positive, showing that this drug helps patients stay alive significantly longer."

InterMune's leaders explained the drug's promise on "Mad Money" Thursday.

"Doctors who treat this disease are very excited about the data," said InterMune CEO Daniel Welch. "We're hoping the FDA approves the drug so we can launch the product as early as first quarter next year."

And the drug may have more uses. "It could be a portfolio within a product," Welch added. "There's another disease called scleroderma for which it could be used, pending necessary studies."

Cramer says the fact that is trading so well when so many other biotechs are struggling speaks volumes. "The market is speaking loudly that this is going to be a huge drug," he said.

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Looking at InterMune as an investment, "You know I love the stocks of orphan drug makers," Cramer said. However, shares have gained 168 percent year to date, so I wouldn't want to chase."

Instead, Cramer says do research and learn more about this company. If you like what you see, put it on a shopping list. "As with all biotechs you need to have conviction. Then, when the stock comes down you can decide if you want to buy."

Call Cramer: 1-800-743-CNBC

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