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Jim Cramer told viewers of his "Mad Money" TV show Monday that he has done an about-face on NitroMed (NTMD) and is now bullish.
NitroMed, which Cramer recommended selling into hype this summer after BiDil, the company's treatment for congestive heart failure in African-Americans was approved by the FDA, is now too disliked, he said.About one-third of the company's float has been sold short, which is "staggering," said Cramer. The stock has dropped from about $24 in July to $16.76 as of Monday's close. The bears are now being piggish, said Cramer. Wall Street is expecting $200 million to $250 million in revenue from BiDil in 2008. But a survey released Monday evening finds BiDil is likely to have revenue of $637 million. That's a huge difference, said Cramer. Also, the drug, which had been getting about 50 to 70 prescriptions a day, is now seeing 300 to 400 prescriptions a day, according to the latest data. "BiDil doesn't need to do well for NitroMed to make you a lot of money," said Cramer. "It just needs to do better, and that's exactly what I see happening."