When a stock trades within a range for a considerable period of time it may be an indication that a breakout may be imminent and hence, it could be a good move to keep an eye on it. One such company is Intec Pharma Ltd (NASDAQ:NTEC) which has been trading within a range this year.
In recent days, there has not been any news regarding the company but back in March, it had been announced that Intec Pharma inked a definite agreement with regards to a merger with the privately held preclinical stage biotech firm Decoy Biosystems Inc.
At the time it was announced that the combined entity is going to be involved in the development of an immunotherapy platform which is going to be focussed on a range of tumours and viral infections. It should be noted that Decoy is planning to go for an investigational new drug application with the United States Food and Drug Administration at some point in the second half of this year.
This is an important transaction for Intec since it is going to give the company access to an impressive product pipeline. At this point, it might be a good move for investors to keep the stock on their watch lists.
On Friday, NTEC stock went up 2.65% at $3.49 with more than 897k shares, compared to its average volume of 1.27 million shares. The stock had moved within a range of $3.3800 – 3.6500 after opening the trade at $3.46. Over the past 52-week, the stock has been trading within a range of $2.2000 – 15.8200.