Biogen resumed testing aducanumab, and results from a larger dataset in late October showed "significant benefits" for patients across multiple measures.
Biogen's stock is trading at a mere nine times next year's earnings, which is "insane," Cramer said during his "Mad Money" show Wednesday.
Street analysts are equally skeptical, with more Hold ratings than Buy ratings for Biogen, the CNBC host said.
This sentiment could shift as the Street becomes "believers" in Biogen, since its resumption of aducanumab was conducted "at the behest of the FDA," he said.
Why It's Important
Alzheimer's is the sixth-leading cause of death in the U.S., and existing treatments only target the symptoms, not the reversal or slowing of the disease, according to CNBC.
Biogen stands out in the crowd, as its recent test showed improvements in "cognition and function such as memory, orientation, and language," Cramer said.
Biogen, valued at around $54 billion, "could be worth twice that if all goes well" with future studies and regulatory approval, he concluded.
The stock was down 1.14% at $296.46 at the time of publication.
Biogen Analysts Debate About-Face On Aducanumab: 'Path To Market An Uphill Battle'
Analysts Digest Biogen's Alzheimer's Disappointment: 'There Isn't Much To Be Excited About'
See more from Benzinga
- 'A Bold Decision': 3 Takes On Twitter's Ban On Political Ads
- Here's How You Can Show Up At Chipotle In A Halloween Costume And Earn Cheap Food, Rewards
- Altria Takes .5B Writedown On Juul Investment
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.