3 Horrendous Health-Care Stocks This Week: Humana Inc. (HUM) and More

Shares falling by 13% in one week isn’t good news for shareholders, but it could have been worse. Achillion will issue 15 million new shares — nearly 19% of the company’s outstanding shares. The stock dropping less than it could have with this amount of dilution could reflect investors’ overall bullish sentiment.

Achillion has two drugs in phase 2 trials for treating hepatitis C virus, or HCV. Sovaprevir is a protease inhibitor that can be taken once per day. ACH-3102 is an NS5A protein inhibitor. Both drugs appear to hold promise at this point.

Weathering the storm
Which of these three horrendous stocks is most likely to bounce back after weathering a stormy patch this week? That’s a tough question, but I’d go with Achillion. Continued success with its HCV programs could place the company in the cross-hairs for being acquired by a larger player. If sovaprevir or ACH-3102 advance to phase 3 studies and do well, shareholders could be singing in the rain.

The article 3 Horrendous Health-Care Stocks This Week originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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