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.