3 Humongous Health-Care Stocks This Week: Infinity Pharmaceuticals Inc. (INFI)

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Mizuho indicated that it sees less reason to worry about on-going reimbursement of Questcor’s Acthar gel. The firm also notes improving fundamentals with Questcor. The Street Ratings joined in as well, upgrading Questcor from “hold” to “buy” based on several performance metrics.

Some have speculated that insurers would clamp down heavily on reimbursements for Acthar. Fears that this could happen caused Questcor’s shares to plummet last September. The stock has climbed back somewhat but is still more than 80% lower than the high hit in July.

Curb your enthusiasm?
Do investors need to curb their enthusiasm somewhat after a great week? I would say that might be prudent for Infinity. After all, the excitement is over phase 1 results. Plenty could still go wrong for Celldex, too. It’s not that both companies don’t have solid potential. They do. But it’s still early in the game.

What about Questcor? It’s one of the most debated names in biotech. Naysayers think insurance companies will ultimately quit covering the drug. They also point to possible fallout from a government investigation. Others say the stock is way under-priced and could generate fantastic gains for steadfast investors.

The article 3 Humongous 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 recommends Gilead Sciences.

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