Cramer has a speculative little drug stock that keeps getting thrown to him in the Lightning Round: Acadia Pharmaceuticals (ACAD). Cramer thinks now is the time that you can buy Acadia. It trades entirely on expectations and hopes that one of the drugs will pan out. There is some conviction here, after it has pulled back from its highs. It has 3 drugs in the pipeline for the treatment of Schizophrenia and Parkinson’s. None of the drugs can come to market until 2009. It only has two large brokerage firms, one from Lehman and one from B of A. It has data on the way and could move this quarter; you can’t wait for the data to come. Phase II results in the schizophrenia cocktail treatment should be this quarter or next and it could draw a partner. The parkinsons drug is theirs alone and could have lots of promise. ACP-104 going to phase IIb that is also going to be indicated for a standalone schizophrenia drug rather than a cocktail. Cramer said he isn’t waiting for these to get approved, he’s waiting to take profits as positive data. They had a broken secondary offering that caused shareholder pain from April.
Jon C. Ogg
June 5, 2007
Jon ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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