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Cramer Spotlights Avanir (AVNR) on Mad Money CNBC
by: david_rockerfeller
Long-Term Sentiment: Strong Buy 04/12/06 02:19 pm
Msg: 266036 of 266067
Cramer Spotlights Avanir (AVNR) on Mad Money CNBC
'PLAYING IN THE MAJORS'
AVANIR - IT JUST GOT LISTED ON THE NASDAQ TODAY! AND I THINK THAT'S
A GREEN LIGHT FOR YOU TO BUY THE STOCK!
THIS THING WAS KIND OF LOST IN A REGULATORY LIMBO. AVNR IS A
STATELESS CO. THAT JUST GOT ITS PAPERS!
I'M NOT TELLING YOU TO LOOK AT A CO. JUST BECAUSE IT GOT SOME
LEGITIMACY, NOW THAT IT'S OUT OF LIMBO, AND ON THE NASDAQ.
THIS THING IS SEXY. IT HAD CAUGHT MY ATTENTION BEFORE TODAY, BUT I
WASN'T GOING TO TOUCH IT UNTIL IT MADE THE MOVE FROM THE AMEX.
CRAMER BELIEVES IN CAUTION MORE THAN ANYTHING ELSE, EXCEPT FOR
FLEXIBILITY, MAKING MONEY, AND JUSTICE!
NOW, I LIKE AVNR BECAUSE IT'S GOT SOME REALLY COOL DRUG FORMULATIONS
THAT THE FDA HAS GIVEN PRIORITY REVIEW TO. AND, HEY, AS FAR AS I
KNOW, THEY DIDN'T EVEN HAVE TO PULL ANY STRINGS TO GET PRIORITY
STATUS.
THE ONLY THING BETTER THAN PULL INSIDE THE GOVT IS A CO. THAT HAS
PRODUCTS WHICH ARE SO GOOD THEY DON'T NEED THE PULL.
HERE'S THE SKINNY ON AVNR:
NOW, AVNR'S BIG PRODUCT IS CALLED 'NEURODEX'. IT TREATS PSEUDOBULBAR
AFFECT (PBA). NEURODEX WOULD TREAT THE IEED CONDITION, OR
INVOLUNTARY EMOTIONAL EXPRESSION DISORDER, OR UNCONTROLLABLE BURSTS
OF LAUGHING OR CRYING.
THE GUYS AT LEERING-SWAN ESTIMATE THAT 1.3 MILLION PEOPLE IN THE
U.S. HAVE THIS PBA. IF THEY PENETRATE ONLY HALF THAT MARKET,
NEURODEX SHOULD BE ABLE TO DO $250 MILLION IN SALES.
THE FDA GAVE NEURODEX PRIORITY REVIEW STATUS LAST WEEK, WHICH MEANS
IT COULD BE APPROVED BY THE END OF THE THIRD QTR. - IT'S FAST
TRACKED.
PLUS, IF APPROVED, NEURODEX COULD GET 'ORPHAN DRUG' STATUS! WHICH
WOULD GIVE AVNR TAX CREDITS AND A 7-YEAR MONOPOLY ON THE DRUG, IN
ADDITION TO THE PATENT PROTECTION.
NEURODEX COULD ALSO HAVE APPLICATIONS IN MORE THAN JUST M.S. AND LOU
GEHRIG'S DISEASE. THERE'S A CHANCE IT COULD WORK IN STROKE VICTIMS
AND ALZHEIMERS PATIENTS.
THEY'VE ALSO GOT NEURODEX IN A PHASE 3 TEST FOR PATIENTS WITH
CHRONIC DIABETIC NEUROPATHIC PAIN. AND, RIGHT NOW, THERE REALLY
AREN'T ANY DRUGS OUT THERE MEANT SPECIFICALLY FOR THIS PROBLEM. IT
COULD BE ANOTHER HUGE OPPORTUNITY FOR THIS CO.
SO I THINK NEURODEX IS A GREAT OPPORTUNITY TO MAKE MONEY. BUT WHEN
CRAMER BUYS A STOCK, HE WANTS MORE THAN JUST A ONE-TRICK PONY. I'M
BEHIND AVNR NOT JUST FOR NEURODEX, BUT ALSO FOR THE PIPELINE!
THEY JUST SIGNED A DEAL EARLIER THIS MONTH WITH NOVARTIS TO HELP
THEM DEVELOP A BUNCH OF NOT VERY SIGNIFICANT SMALL MOLECULE DRUGS.
THE DRUGS AREN'T SIGNIFICANT, BUT THE DEAL COULD EARN AVNR $200
MILLION IN MILESTONE PAYMENTS.
THEY'VE ALSO GOT A DEAL WITH ASTRA-ZENICA - WE LIKE THOSE GUYS,
DEVELOPING DRUGS FOR CARDIO-VASCULAR DISEASE.
ONE OF THE THINGS I LIKE ABOUT THIS CO. - ITS CEO IS OVER-QUALIFIED,
AND I RARELY SAY THAT. THIS GUY, ERIC BRANDT USED TO BE THE CFO OF
ALLERGAN - A $15 BILLION CO. NOW HE RUNS AVNR, WHICH IS A $400
MILLION CO.
THIS GUY MUST REALLY BELIEVE THAT AVNR IS GOING TO BE GREAT, OR ELSE
HE WOULDN'T HAVE TAKEN THE JOB.
AVNR HAS GOT NO DEBT. PRETTY STRONG INSTITUTIONAL SUPPORT. 11% OF
THE FLOAT IS BEING SHORTED. I GOTTA BELIEVE THAT THE SHORTS WILL GET
CRUSHED HERE.
LEERING-SWAN - THEY'VE GOT A $41-$55 PRICE TARGET ON THE THING. I
MEAN, IT WENT OUT AT $13. HEY I'LL TAKE $22. I'M NOT KIDDING. NOT
BECAUSE I THINK THEY'RE WRONG, BUT BECAUSE CRAMER BE CAUTIOUS, AND
AT $22, YOU WILL STILL HAVE MADE A HUGE AMOUNT OF MONEY!
THE BOTTOM LINE!: AVNR HAS ITS DOCUMENTS! I THINK IT'S TIME FOR YOU
TO DO SOME RESEARCH AND THEN, MAYBE, DO A 'MON-BACK, TAKE SOME DOWN,
AND BUY THE STOCK!
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http://www.avanir.com
http://www.xenerex.com
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Cramer Spotlights Avanir (AVNR) on Mad Money CNBC
