Jim Cramer on Aquestive Therapeutics: “I think it’s Worth Taking a Chance On”

Aquestive Therapeutics, Inc. (NASDAQ:AQST) is one of the stocks Jim Cramer recently gave takes on. Cramer said that the stock “has found new life” over the past few years and remarked:

“For the past few years, this stock has found new life, climbing back to the mid single digits, mostly thanks to the growing excitement about their EpiPen replacement that can be taken by mouth for emergency allergy treatments… I think people are right to be excited. If this drug can be approved, I think it could be huge. That’s right, huge… The real question here is whether it still makes sense to buy the stock at these levels. You need to understand that this is a totally binary situation. If Anaphylm gets FDA approval in the next few months, Aquestive stock will soar…

If the drug is rejected by the FDA… then the stock’s going to plummet. If you can’t stomach that range of outcomes, please don’t get involved. But man, I am inclined to bet on this story. I think Aquestive works as a speculative biotech pick because I believe the FDA will give this EpiPen replacement its blessing. And if that happens, you need to understand that you definitely haven’t missed the move here. Aquestive is currently valued just under $600 million, but management believes that their EpiPen replacement could do over a billion in annual revenue if it’s approved. I’m not quite sure how aggressive that projection is, as the current epinephrine market is just $800 million in the United States, but Aquestive believes it can grow to $2 billion by 2031 simply because of the increasing prevalence of allergies…

The bottom line: Aquestive Therapeutics is the kind of speculation that I can really get behind as long as you understand the risks that come with binary situations where the stock’s fate is totally in the hands of the FDA… I think it’s worth taking a chance on, but only with money that you can afford to lose.”

Photo by Adam Nowakowski on Unsplash

Aquestive Therapeutics, Inc. (NASDAQ:AQST) develops and commercializes oral and sublingual film-based medicines for conditions such as epilepsy, opioid dependence, Parkinson’s disease, ADHD, and severe allergic reactions. Additionally, the company advances proprietary drug delivery platforms for central nervous system and emergency treatments.

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Disclosure: None. This article is originally published at Insider Monkey.