Cramer: Investing in Future of Cancer Drugs

Onyx Pharmaceuticals

Jim Cramer said that Onyx is known for the drug Nexavar, which is used to treat liver and kidney cancer. "It is a remarkable drug because these cancers have stymied doctors for years," he said.

In addition to the drug's current success, it may have other uses too. "It's also being studied for thyroid cancer and breast cancer," said Cramer. To provide perspective on the total profit potential, it's already doing a billion dollars in sales globally, Cramer said.

"And in September the FDA approved Stivarga, a colorectal cancer drug that Onyx developed in partnership with Bayerthis could be a billion dollar drug, and Onyx gets a 20% royalty," said Cramer.

Also the Mad Money host said to keep an eye on an Onyx treatment for multiple myeloma. "The FDA approved it last July and it could potentially be worth $2.3 billion in sales by 2018," he said.

In addition, Cramer said they're developing a breast cancer drug with Pfizer that's in phase 3 trials. "This could ultimately generate peak sales of $5 billion, and Onyx gets an 8% cut, which comes to $400 million."

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Cramer: Investing in Future of Cancer Drugs