Cramer, co-manager of the Action Alerts PLUS portfolio, said Tuesday during CNBC's "Stop Trading" segment, one of the company's pain formulations will not make it past Phase I testing.
Still, this is a company that beat fourth-quarter expectations on earnings and revenue, he said. Plus, Alkermes has many more irons in the fire, including drugs for schizophrenia, multiple sclerosis and depression. So investors should take advantage and start buying -- starting Wednesday.
He explained that because a downgrade may now be looming in the very near term, those looking to buy should wait until Wednesday. Alkermes "has been a total home run," he concluded.
Investors should focus on Alkermes' pipeline and results from these treatments, Cramer said. In fact, instead of selling, investors should "use the weakness" to buy more shares. But not right now.
-- Written by Bret Kenwell
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.