Deals and IPOs

Why Cramer likes Acorda, Civitas deal

Cramer's Stop Trading: Acorda moves higher
Cramer's Stop Trading: Acorda moves higher

CNBC's Jim Cramer on Wednesday applauded Acorda Therapeutics' $525 million acquisition of privately held Civitas Therapeutics.

Acorda will purchase Civitas with all-cash, giving it the rights to a treatment for certain types of Parkinson's disease now in the late stages of development.

To Cramer, Acorda is a "remarkable company." With this acquisition, though, he thinks it can build an entire franchise around drugs that assist people with motion-related issues.

"The stock is correct in going higher," he said on "Squawk on the Street."

DISCLOSURE: When this story was published, Cramer's charitable trust did not own Acorda Therapeutics or Civitas Therapeutics.