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NEW YORK ( TheStreet) -- "Today we got a glimpse of what could happen if the European mess ever gets resolved," Jim Cramer told "Mad Money" viewers Tuesday, which ended with the major indices up for the day. "We saw how the market could easily rally to all-time highs on even a whiff of worldwide growth." The focus is usually on what could go wrong in Europe, but today the market was focused on Greece's "vote for pain," which Cramer said would reward the country with easier credit terms. Greece sent a message to other struggling European countries that "if you do what's right for the European Union, the Union will do right for you," said Cramer. The optimism is beyond Europe, too, with housing inflation in China "crashing down," and hopes the Federal Reserve "might have something up its sleeve to improve the U.S. economy" Wednesday, he said. Cramer pointed to several specific examples of the effects of hope, or "hopium," as he called it." FedEx ( FDX) reported an "okay number" and cut its forecast but rallied $2.50 today, and despite a number of downgrades in the industrials, stocks such as Cummins ( CMI) were also higher. In addition, Cramer said, a restoration of global growth can give us "what looks to be a bottom in the price of crude oil," sending everything from independent natural gas companies to the big oil service companies higher. In aerospace, Honeywell ( HON), Boeing ( BA) and United Technologies ( UTX) were all up Tuesday, and auto makers General Motors ( GM) and Ford Motor ( F) also rose on "hope that Europe favors growth," said Cramer. Cramer had a word of caution for viewers, saying that without more evidence that Europe will support growth, it's likely that stock prices have risen higher than they deserve to. "Cold, hard facts don't support this run in stocks," he said, "but cold, hard facts dissolve in the face of a future that looks better."
In the Sweet SpotCramer encouraged viewers to retain focus on the European mess while also seeking out opportunities at home in the U.S., including speculative ideas such as BioMarin Pharmaceuticals> ( BMRN), which he said was in the "sweet spot of the orphan drug business." Cramer has liked the stock since October 2010, and it's seen a 70% gain since then.
The government gives orphan drug producers special incentives, such as enhanced patent protection and marketing rights. Because BioMarin's enzyme replacement therapies are the only products on the market for the rare genetic diseases that they treat, Cramer said, the company can charge "a great deal of money." The company has three drugs on the U.S. market and a fourth in Europe, but Cramer said the reason to own the stock is for its pipeline, which includes three major catalysts coming in the second half of the year. Cramer welcomed BioMarin CEO Jean-Jacques Bienaime to "Mad Money," calling the company one of the "single most exciting biotech companies I've ever had on the show." Bienaime described BioMarin's business model as the "opposite of bit pharma," in a sense, because it seeks a "very significant efficacy or safety improvement in a very small patient population." He agreed with Cramer that because BioMarin's therapies are so effective, otherwise "stingy" health companies are willing to pay up for them. At the same time, said Bienaime, BioMarin's leading drug treats only 1,200 patients worldwide, "so it's never going to have a significant impact" on health companies' budgets. Because BioMarin's patient populations are so desperate for treatment, its development times are much shorter than the industry average. "Because patient population is so limited, regulatory authorities cannot ask us for a very large clinical trial size," Bienaime explained. Cramer told Bienaime that he's been "in awe" of BioMarin for a long time, calling it the son of Genzyme ( GENZ), which Cramer said was "one of the biggest hits I have ever seen." BioMarin doesn't "need a takeover to make a lot of money," he said, "but I can't believe that one of these major pharmaceutical companies is going to let this company stay independent forever."