Cramer: Allergan's Latest FDA Victory

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Investors obliterated shares of Allergan earlier in the week, sending the stock down more than 10% in a single session. Was the stock oversold?

Jim Cramer can't help but wonder.

In a market moving interview with David Pyott, the chairman and CEO of Allergan, Cramer was first to learn that the FDA voted in favor of the company's new volumizing filler called Voluma, an anti-aging treatment that recontours the face to restore volume to the chin, cheeks, cheekbones, and temples.

Pyott told Cramer that in other areas of the world where the drug has already been introduced it was received with great enthusiasm. Familiar with the research, Cramer agreed that, "It has the potential to be a meaningful treatment."

And as a long time fan of the stock, the Mad Money host added that, "I think this confirms that Allergan is a great company with terrific management."

The late breaking development came just hours after the company released disappointing data on two other drugs, "one for for macular degeneration and a second for baldness," Cramer explained.

Adam Jeffery | CNBC

Because pipeline is critically important to Wall Street, at that time, investors went running for the exits.

However, Cramer thinks the Street's knee-jerk reaction was more of an overreaction, especially in light of the news Pyott broke on Mad Money.

It appears market pros share Cramer's view. After the Voluma news broke on Mad Money, Allergan stock popped 3% in extended trade.

However, Cramer doesn't want you to feel like you missed it. He also sees plenty of other catalysts. He reminded that "Allergan throws off a lot of cash and it still has consistent earnings per share growth in the mid-teens."

And in the past Cramer has cited a slew of other positive catalysts ranging from the company's clear growth path and international expansion plans to its strong balance sheet and shareholder friendly initiatives.

And there's also the company's best known product, Botox.

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"Botox doesn't just give you wrinkle-free skin. Allergan's been coming up with more and more ways to use this product—now it's a migraine treatment, and crecently the FDA approved Botox for idiopathic overactive bladder. And there are many more indications down the road, to the point where Allergan's Botox sales could double by 2020."

All told Cramer believes there's every reason to remain bullish on the company's prospects. Back in February Cramer called Allergan 'one of my absolute favorite growth pharma names.' That hasn't changed.

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