After doing some homework on the "roller-coaster" stock of Acadia Pharmaceuticals, CNBC's Jim Cramer came back with a surprisingly positive take on the pharma play.
"A lot of people don't like roller-coasters, so even if you like what I'm about to say about the stock, it may not suit you. That said, I think that Acadia's got enough going for it that this stock is indeed worth speculating on, meaning you can invest a small portion of your discretionary mad money portfolio in Acadia," the "Mad Money" host said. "Not for your retirement money, but I like this one."
Acadia is a biotechnology company that develops treatments to central nervous system disorders, particularly mental illnesses and symptoms associated with Parkinson's disease.
Sadly, the markets for Acadia's drugs are huge: 8 million people in the United States suffer from dementia-related psychosis, 1 million from Parkinson's and 3 million from schizophrenia.
Acadia's aim for its treatments — some of which are the only ones of their kind on the market and some of which are in clinical trials — is to reduce the severe side effects that come with treating serious psychosis.
And even though its stock has been whipped around in the last few years, Cramer thinks the company has the makings of a good story.
"As far as I'm concerned, the bullish story is intact, it's just that this stock goes through periods of being overly liked followed by periods of excessive hatred. Frankly, this was, I would say, the most volatile stock that I've ever done the work on," he said. "Bottom line? Acadia's been a real wild trader, but it's got a very impressive anti-psychotic drug that could have many different indications, so I think the stock is absolutely worth speculating the next time it pulls back."