NEW YORK (TheStreet) -- It's a good day to be an investor in biotechGilead Sciences (GILD) - Get Report. Shares are up over 4% Wednesday, a day after the company topped earnings per share and revenue estimates and raised its full-year revenue guidance. 

It was a "fabulous quarter," said TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, during CNBC's "Mad Dash" segment. 

Gilead Sciences GILD data by YCharts

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Gilead's Hepatitis C treatment has done incredibly well and Gilead's pricing power is very strong because the drug is so superior to its competition. Gilead is fulfilling an unmet need with it, Cramer explained. 

In addition, Gilead has the balance sheet to make a major acquisition thanks to its debt capacity, the most of any biotech company, Cramer said. In other words, the company's balance sheet can take on the most debt compared to its peers in order to finance a takeover, should management choose to do so. 

Even without taking on debt, Gilead has plenty of cash it can use for acquisitions, and management has said it doesn't see other biotech companies as being that much overvalued, Cramer said.

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.