Cramer spec surges 200% in 6 months

(Click for video linked to a searchable transcript of this Mad Money segment)

Sometimes a spec stock turns out to be more right than even Cramer imagined.

That's certainly the case with NPS Pharma, an orphan drug maker, whose stock has exploded.

When Cramer talked with the CEO on Mad Money early in the year he noted the potential. At the time said the stock seemed cheap in light of the promising pipeline. "I think we may be looking a real opportunity," he said on January 7th. (Click here to go to Cramer: Real Opportunity in This Drug Maker)

How right Cramer was.

As it turned out, "NPS had some incredible success with its lead drug, Gattex for short-bowel syndrome, a rare condition where the intestines can't properly absorb nutrients and patients must therefore be fed through a tube, intravenously, for 12 hours a day."

Cramer said the drug has been so effective that some patients who take Gattex can go off the IV all together. This drug allows their bodies to process food once again.

Temnly | E+ | Getty Images

Because the condition is rare, the drug is expensive.

"Gattex costs $295,000 a year for a single patient," Cramer said. And those patients will probably be taking it every year for the rest of their lives."

Largely Gattex is behind the stock's advance. "So far, as of the second quarter, NPS has sold 318 prescriptions," Cramer said.

But that's not the only catalyst going for NPS. Cramer sees more promising therapies in the pipeline.

Specifically, the Mad Money host is watching developments involving Natpara, a treatment for hypo-parathyroidism, a condition in which low levels of calcium in the blood cause severe muscle cramping, twitching and muscular spasms.

"Natpara could potentially receive FDA approval by the middle of next year," Cramer said.

"We believe the opportunity for Natpara could be even greater than Gattex," revealed Dr. Francois Nader, the CEO of NPS Pharma during an exclusive conversation with Jim Cramer on Mad Money. "And we have a pipeline that will follow that."

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All told, it would seem the drug maker's stock should have room to run. However, if you established a position earlier in the year on Cramer's recommendation, the Mad Money host suggests taking some profits.

"After that kind of move, you're being way too greedy if you don't ring the register on at least some of your position, say half or two-thirds. I think you can continue to speculate, just do it with the house's money."

Call Cramer: 1-800-743-CNBC

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