Acadia Pharmaceuticals Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Acadia Pharmaceuticals announced that on May 15, 2024, its Compensation Committee granted inducement awards under the 2023 Inducement Plan. The awards include non-qualified stock options to purchase 57,252 shares of common stock and 33,675 restricted stock units (RSUs) to twenty-two new employees. The stock options have an exercise price of $15.12 per share, Acadia's closing trading price on the grant date, and will vest over four years. The RSUs will also vest over four years, with specific vesting schedules. These awards were granted as an inducement material in line with Nasdaq Listing Rule 5635(c)(4).

Positive

• Inducement grants aim to attract and retain new talent.
• Stock options granted are priced at the current market value ($15.12), aligning employee incentives with shareholder interests.
• Vesting schedules encourage long-term employee retention and alignment with company goals.

Negative

• Issuing new shares may dilute existing shareholders' equity.
• Dependence on share price performance for stock options may have variable impacts based on market conditions.
• Long vesting periods (four years) may delay immediate benefits for new employees.

SAN DIEGO--(BUSINESS WIRE)-- Acadia Pharmaceuticals Inc. (Nasdaq: ACAD) today announced that on May 15, 2024, the Compensation Committee of Acadia’s Board of Directors (the “Committee”) granted inducement awards consisting of non-qualified stock options to purchase 57,252 shares of common stock and 33,675 restricted stock units (“RSUs”) to twenty-two new employees under Acadia’s 2023 Inducement Plan. The Compensation Committee approved the awards as an inducement material to the new employees’ employment in accordance with Nasdaq Listing Rule 5635(c)(4).

Each stock option has an exercise price per share equal to $15.12 per share, Acadia’s closing trading price on May 15, 2024, and will vest over four years, with 25% of the underlying shares vesting on the one-year anniversary of the grant date and the balance of the underlying shares vesting monthly thereafter over 36 months, subject to the new employees’ continued service relationship with Acadia through the applicable vesting dates. The RSUs will vest over four years, with 50% of the underlying shares vesting on the second anniversary of the grant date, and the balance of the underlying shares vesting in two equal annual installments measured from the second anniversary of the grant date, subject to the new employees’ continued service relationship with Acadia through the applicable vesting dates. The awards are subject to the terms and conditions of Acadia’s 2023 Inducement Plan and the terms and conditions of an applicable award agreement covering the grant.

About Acadia Pharmaceuticals

Acadia is advancing breakthroughs in neuroscience to elevate life. For 30 years we have been working at the forefront of healthcare to bring vital solutions to people who need them most. We developed and commercialized the first and only FDA-approved drug to treat hallucinations and delusions associated with Parkinson’s disease psychosis and the first and only FDA-approved drug for the treatment of Rett syndrome. Our clinical-stage development efforts are focused on Prader-Willi syndrome, Alzheimer’s disease psychosis and multiple other programs targeting neuropsychiatric symptoms in central nervous system disorders. For more information, visit us at Acadia.com and follow us on LinkedIn and Twitter.

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Investor Contact:

Acadia Pharmaceuticals Inc.

Al Kildani

(858) 261-2872

ir@acadia-pharm.com

Acadia Pharmaceuticals Inc.

Jessica Tieszen

(858) 261-2950

ir@acadia-pharm.com

Source: Acadia Pharmaceuticals Inc.

FAQ

What are the details of the inducement grants announced by Acadia Pharmaceuticals on May 15, 2024?

Acadia Pharmaceuticals granted non-qualified stock options for 57,252 shares and 33,675 restricted stock units to twenty-two new employees under its 2023 Inducement Plan.

What is the exercise price for Acadia Pharmaceuticals' stock options granted on May 15, 2024?

The exercise price for the stock options is $15.12 per share, based on Acadia's closing trading price on May 15, 2024.

How will the stock options granted by Acadia Pharmaceuticals vest?

The stock options will vest over four years, with 25% vesting on the one-year anniversary of the grant date and the remaining shares vesting monthly over the next 36 months.

What is the vesting schedule for the restricted stock units (RSUs) granted by Acadia Pharmaceuticals?

The RSUs will vest over four years, with 50% vesting on the second anniversary of the grant date and the remaining 50% vesting in two equal annual installments thereafter.

How do the inducement grants of Acadia Pharmaceuticals affect new employees?

The inducement grants are intended to attract and retain new employees by offering stock options and RSUs that vest over time, aligning their interests with the company's long-term goals.