Cramer Smells Opportunity in Biopharma

"If you're going to speculate on pharma stocks, ideally you don't just want a company that's a one drug wonder," said Jim Cramer, you want a company with multiple shots on goal."

That's why Cramer like Alkermes (TICKER:ALKS), a biopharma play that specializes in taking existing drugs, and creating long-acting formulations that are easier for patients to take.

Following are a few of their drugs:

- Bydureon: a diabetes drug that only needs to be injected once a week.

- Vivitrol: a once-monthly injection that helps treat alcoholism and opioid addiction.

- Risperdal Consta: an anti-psychotic franchise in partnership with Johnson & Johnson, that helps treat people with severe mental illnesses like schizophrenia.

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And Cramer sees more reason to like this stock.

Alkermes is currently working on a new extended release version of Abilify, the incredibly popular $7 billion anti-psychotic drug from Bristol-Myers.

"The Alkermes version would only have to be injected once a month, rather than making people remember to swallow a pill once or twice a day. We should get phase 3 results on this one later this year," he said.

It's worth noting that rival Otsuka is working on a once-a-month injectable form of the very same drug, and they could get FDA approval as soon as this week.

"Although I'm worried about the potential for competition here, there's another school of thought that says Otsuka getting FDA approval would validate Alkermes' approach," Cramer explained .

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Looking at the price action, Cramer sees another reason to feel bullish.

"Alkermes has had a nice run. That said, the company reported a fabulous quarter at the end of January where they raised guidance for the third time in a row, and after initially spiking up to $23, the stock is now trading below where it was when that earnings report came out,' Cramer said.

The diagnosis?

When you take the current pipeline, the new drug potential and the price action Cramer said "It smells like an opportunity to me."

Call Cramer: 1-800-743-CNBC

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