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Cramer: Stop trading Horizon like a mini-Valeant

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As Wall Street becomes gripped by the drama of Valeant — the drug company that has been under assault from both short sellers and Washington's war on drug prices — Jim Cramer would like to finally acknowledge that not every drug company roll-up is like Valeant.

Horizon Pharma is a $3.5 billion roll-up company. Roll-ups gain most of their growth through making a series of acquisitions. And while the company only has a market cap of $3.5 billion, significantly smaller than Valeant, its stock has been trading like a miniature version of Valeant.

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When Horizon Pharma reported on Friday, it blew away the numbers. The company has seven drugs on the market that target unmet needs in pain, rheumatology and rare orphan diseases. It reported a stellar 34-cent earnings beat from a 40-cent basis, and management provided spectacular full-year guidance.

"Our role is to ensure that the patient gets what the doctor intended" -Timothy Walbert, CEO of Horizon Pharma

Best of all, Horizon was able to generate these numbers without a ridiculous price hike. The main driver was doctors writing more prescriptions for its drugs. Meaning, its growth is organic and seemingly sustainable.

"I wouldn't be at all surprised if this stock has a lot more room to run, because it's been severely underestimated by the market," the "Mad Money" host said.

Cramer spoke with Horizon Pharma CEO Timothy Walbert, who explained that the pharmacies Horizon works with all have one key goal — the doctor writes a prescription for its medicine because it has a clinical benefit, and the pharmacy ensures that the patient gets it. Horizon has cut out the middle men who receive a financial incentive.

"Our role is to ensure that the patient gets what the doctor intended," Walbert said. (Tweet This)

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The CEO also added that if there is commercial coverage, Horizon will work with the copay to ensure that the patient receives medicine for less than $10. Currently, 96 percent of patients are paying less than $10. In the event that a managed care plan rejects the medication, Horizon will provide the medicine for free to the patient.

Going forward, Walbert said that the heat in the pharmaceutical industry will not prevent it from buying additional companies.

"We've got the capacity to finance the transactions; we've guided that we are going to announce at least one to two incremental transactions this year and two to five on an ongoing basis each year from now to 2020, based on our long-range plan," Walbert added.

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