On CNBC’s "Cramer’s Mad Dash" segment, TheStreet’s Jim Cramer, co-manager of the Action Alerts PLUS portfolio, reminded investors that Federal Reserve chair Janet Yellen recent called small-cap and mid-cap biotech stocks overvalued.
However, Intercept appears to have a cure for nonalcoholic steatohepatitis, a form of liver disease.The preliminary results are better than many had expected, Cramer said. “When you have a great orphan drug that does do something special, you can have this kind of move,” he added, referring to the jump in the stock price. Large-cap pharmaceutical companies aren't the ones generating growth; biotech companies are. The Federal Reserve was "misplaced" calling the industry overvalued, Cramer concluded. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell Read More: Kinder Morgan Consolidation: What It Means for MLPs