Thursday Night's Show Highlights:
This company could double in size in two years given its positive MS drug potential... Consider buying Biogen Idec - BIIB!
Thursday, January 26, 2012

Cramer's comments: (prev. night's show posted each business morning before the market open)

Jim: If you're looking for stocks with a lot of catalysts, there's nothing better than high-quality drug companies. Hence, why I've been highlighting medical breakthrough stocks all week. These companies have been able to turn themselves around, despite a massive wave of patent expirations, in part because they've got so many new medications in the pipeline. Drugs which offer tons of catalysts going forward, as we get more clinical trial data, as well as new approvals from the FDA.

 

And tonight, I've got another one for you... a drug company that should have a breakout year in 2012 thanks to a bunch of pipeline-related catalysts which I think could be much bigger than Wall Street thinks. I'm talking about Biogen Idec...

I have not talked about this one. I should have. BIIB, a global biotech firm with a number of products on the market. But more importantly, again, I'm focused on this excellent pipeline... the future. This is big biotech, not some tiny, speculative one-drug wonder. Biogen's main focus though, and it's main opportunity, is in treating multiple sclerosis, or MS, a horrible, chronic disease that attacks your central nervous system, your brain, your spinal cord, your optic nerves... and can lead to anything from numbness and coordination problems, to symptoms as severe as paralysis or loss of vision. This is a real tough disease to treat and, at the moment, there is no cure. However, MS is a chronic condition, meaning it waxes and wanes, and there are a bunch of drugs out there aimed to prevent relapses and keep the disease in remission. The market for MS drugs is pretty lucrative, and it's also a real battlefield. Now Biogen currently has two blockbuster MS drugs on the market and, together, they represent about 60% of the business. More importantly, though, the company is developing a new orally-delivered therapy for multiple sclerosis that, based on the latest data, it looks like it could be the most effective treatment on the horizon. It looks like a real breakthrough, and one that has the potential to make Biogen a fortune. The drug is called BG12, and so far it seems to be more effective than the leading injectable MS medications, with less severe side effects.

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