TheStreet.com Staff
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Jim Cramer revealed his newest biotech picks at the start of Wednesday's "Mad Money" Main Event, which was taped in front of a studio audience. Last year he offered Genzyme(GENZ Quote - Cramer on GENZ - Stock Picks), Gilead(GILD Quote - Cramer on GILD - Stock Picks), Amgen(AMGN Quote - Cramer on AMGN - Stock Picks), Celgene(CELG Quote - Cramer on CELG - Stock Picks) and Genentech(DNA Quote - Cramer on DNA - Stock Picks), and frankly, he said, "I was dead right about all of those." But now it's time to take some money off the table and put it into the brand-new biotech pantheon: ZymoGenetics(ZGEN Quote - Cramer on ZGEN - Stock Picks) and Myogen(MYOG Quote - Cramer on MYOG - Stock Picks). ZymoGenetics is all about blood, said Cramer. It makes a drug that helps stop bleeding after a surgical incision is made. He anticipates there will be a lot of press coverage for this blood-clotting treatment, which he believes will be approved by 2007. Plus, its main competition, Cramer said, is encumbered with a black box warning, a notice from the Food and Drug Administration concerning potential side effects. Cramer predicts there will be a rapid switchover to ZymoGenetics' product based on safety concerns alone.
Even though Myogen's stock jumped by 30% in 2005, Cramer said, he still wants to anoint Myogen because it's going higher.
The stock is at $33, and he said he thinks it will hit $40 or even $50 if there's a takeover, because it has two drugs that have shown positive results in late-stage trials for hypertension.
Alkermes(ALKS Quote - Cramer on ALKS - Stock Picks), Neurocrine Biosciences(NBIX Quote - Cramer on NBIX - Stock Picks) and Progenics(PGNX Quote - Cramer on PGNX - Stock Picks) were all candidates, but Cramer said that ZymoGenetics and Myogen are the anointed ones.
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