This buzzy biotech stock is up 60% this year. Cramer's advice on building a stake
CNBC's Jim Cramer said Tuesday that healthcare company GRAIL's stock can go higher.
TL;DR
- Grail's stock has risen 60% this year, making it a speculative investment.
- The Galleri cancer blood test is nearing a crucial decision from U.S. regulators.
- FDA approval could significantly boost insurance coverage for the test.
- The test is currently available as a lab-developed test, but most users pay out-of-pocket.
- A past study with England's National Health Service missed its primary endpoint, raising questions about effectiveness.
- Grail is a money-losing company with shares trading at a high valuation (nearly 34-times sales).
- Cramer suggests a small initial investment and gradual accumulation on price weakness.