Progenics, an Undervalued Biotech
For viewers who want a biotech stock that can be bought simply because it's extremely undervalued, Cramer suggested Progenics Pharmaceuticals (PGNX:Nasdaq - commentary - research - Cramer's Take).
"I think we're all a little sick of speculating on overvalued biotech plays," he said, adding that Progenics is cheap even though it's trading just below its 52-week high.
The company is working on a drug to combat the negative side effects of painkillers like morphine.
If a doctor hands out this drug every time he hands out painkillers, that could be huge, Cramer said. That's why Wyeth (WYE:NYSE - commentary - research - Cramer's Take) cut a deal with Progenics worth $416 million.
The stock traded near $23 before the deal was announced, and is still under $27, a jump Cramer said does not reflect the value of the deal.
He said that the company's market cap is only $660 million. If you subtract the $120 million it has in cash and the cash from the Wyeth deal, the company is valued at $105 million, a price he called "insanely cheap."
