In closing, Cramer said the worst case is 2011, not 2009, and stocks could fall another 10% to 12% from current levels, but there's no chance we'll see a 50% decline any time soon.
In the "Executive Decision" segment, Cramer spoke with Daniel Junius, chairman and CEO of ImmunoGen (IMGN - Get Report), a biotech stock that's soared 79% since Cramer first recommended the company in November 2009 and 27% since Cramer last spoke with Junius on Sept. 26.
Junius provided Cramer with an update on the company's new drug, presently named TDM-1, a treatment for breast cancer. According to data just released at the American Society of Clinical Oncology conference, the Phase 2 studies of TDM-1 have shown the drug works better than present treatments and has a third fewer side effects for patients.
ImmunoGen is now seeking priority review for TDM-1 at the U.S. Food and Drug Administration as oncologists are very enthusiastic to begin using it.When asked about the potential revenue stream for TDM-1, Junius confirmed that ImmunoGen did enter a joint partnership in 2000 that limits the royalties his company can receive, but even with smaller royalties the potential for TDM-1 is enormous for the company. Junius said the company had no idea back in 2000 that TDM-1 would see such great successes. Given the potential for TDM-1, as well as for the many other drugs in the ImmunoGen pipeline, Cramer continued his recommendation of the company.