Jim Cramer Recently Put These 18 Stocks Under a Microscope

11. Aquestive Therapeutics, Inc. (NASDAQ:AQST)

Number of Hedge Fund Holders: 18

Aquestive Therapeutics, Inc. (NASDAQ:AQST) is one of the stocks Jim Cramer recently put under a microscope. When a caller asked about the stock, Cramer stated:

“We know the problem. Let’s not look at that. We look at the pipeline and we know that… I’m in favor of investing in a spec of any company involving nervous system, okay? Any company involving the brain and they’re there, and I think it’s a very interesting spec.”

Aquestive Therapeutics, Inc. (NASDAQ:AQST) develops therapies for neurological, psychiatric, and allergy-related conditions. Its main products include Libervant, Suboxone, Sympazan, and Azstarys. Cramer advised a little caution when he discussed the stock during the September 18 episode, as he commented:

“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.”