Investors in Achillion Pharmaceuticals (NASDAQ:ACHN) got a double-whammy of good news over the last two days, with Merck's (NYSE:MRK) purchase of fellow hepatitis c biotech Idenix pumping shares up over 40%. And Achillion is up over 50% today on further good news -- the FDA removed an almost year-long clinical hold on its drug sovaprevir, allowing its phase 2 drug trial to continue.

Good news -- but good enough to buy Achillion? What about competitors, like Gilead's (NASDAQ:GILD) Sovaldi and incoming drugs from AbbVie (NYSE:ABBV), Merck, and Bristol-Myers Squibb? In the video below, health care analyst Michael Douglass lays out his thoughts on why investors would be better served staying on the sidelines.

Matt Trogdon has no position in any stocks mentioned. Michael Douglass owns shares of Apple. The Motley Fool recommends Gilead Sciences, Apple, and Johnson & Johnson. The Motley Fool owns shares of Gilead Sciences, Apple, and Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.