Even in the most hideous market, there are winners out there despite the turmoil. So in order help homegamers spot the winners and avoid the losers, the “Mad Money” host took a look at the attributes of the best performing stocks of the past five years.
Questcor Pharmaceuticals is third on his list up 1,576 percent in the last five years. This “tiny orphan drug company” produces an expensive medication for multiple sclerosis. The drug is a necessity for the few who use it, and therefore it is covered by insurance.
“That is exactly what we like to look for when we speculate in biotech stocks,” Cramer said. “You have to keep these orphan drug names on your radar screen, companies with treatments for extremely rare conditions.” Read more –
The global market is expected to grow 5.7% to reach $112.1B by 2014.
There is still massive opportunity out there waiting to be discovered. Not even a tenth of the rare diseases out there have been researched. The industry is still wrought with a very small and dispersed patient population that makes clinical trials very expensive and time consuming. The lack of endpoints and the uncertainty of reimbursement could keep industry cautious and deliberate from going into other rare disease studies that are wanting.
The 2nd Annual World Orphan Drug Congress USA in DC will bring together industry with government, payers and patient groups to discuss strategies to overcome these challenges even a step at a time. Together they seek to join efforts and fast track orphan drugs to patients.