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

Rhea-AI Summary

Acadia Pharmaceuticals (Nasdaq: ACAD) announced that its Compensation Committee granted inducement awards to 23 new employees on November 8, 2024. The awards include 70,571 non-qualified stock options at $17.66 per share and 40,731 restricted stock units (RSUs). The stock options will vest over four years, with 25% vesting after one year and the remainder monthly over 36 months. The RSUs will vest over four years, with 50% vesting after two years and the remaining in two annual installments, all subject to continued employment.

Positive

• Expansion of workforce with 23 new employees indicating company growth
• Implementation of employee retention strategy through equity-based compensation

Negative

• Potential shareholder dilution from new equity grants

SAN DIEGO--(BUSINESS WIRE)-- Acadia Pharmaceuticals Inc. (Nasdaq: ACAD) today announced that on November 8, 2024, the Compensation Committee of Acadia’s Board of Directors (the “Committee”) granted inducement awards consisting of non-qualified stock options to purchase 70,571 shares of common stock and 40,731 restricted stock units (“RSUs”) to twenty-three new employees under Acadia’s 2024 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 $17.66 per share, Acadia’s closing trading price on November 8, 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 2024 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. Since our founding 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 approved drug in the United States and Canada 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 X.

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Investor Contact:

Acadia Pharmaceuticals Inc.

Al Kildani

(858) 261-2872

ir@acadia-pharm.com

Source: Acadia Pharmaceuticals Inc.

FAQ

What inducement grants did ACAD announce on November 8, 2024?

ACAD granted 70,571 non-qualified stock options at $17.66 per share and 40,731 RSUs to 23 new employees.

What is the vesting schedule for ACAD's November 2024 stock option grants?

The stock options vest over 4 years, with 25% vesting after one year and the remainder monthly over 36 months.

How will the RSUs granted by ACAD in November 2024 vest?

The RSUs vest over 4 years, with 50% vesting after two years and the remainder in two equal annual installments.