Albireo Reports Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Albireo Pharma, Inc. (Nasdaq: ALBO) announced the grant of inducement stock options for 18,500 shares at $37.22 per share, reflecting the January 11, 2021 closing price. These options, linked to new employee hires, vest over four years with a 10-year term. Albireo specializes in developing bile acid modulators for rare liver diseases, with its lead candidate, odevixibat, advancing through Phase 3 trials for conditions such as PFIC. The company, spun out from AstraZeneca, is headquartered in Boston, MA.

Positive

• Grant of inducement stock options may enhance employee motivation and retention.
• Albireo's lead candidate odevixibat is progressing in Phase 3 trials, indicating potential for market approval.

Negative

• The stock options are only valuable if the company's stock price rises, which may pose a risk if market conditions are unfavorable.

BOSTON, Jan. 14, 2021 (GLOBE NEWSWIRE) -- Albireo Pharma, Inc. (Nasdaq: ALBO), a clinical-stage rare liver disease company developing novel bile acid modulators, today announced the grant of inducement stock options exercisable for an aggregate of 18,500 shares of Albireo’s common stock. The stock options are exercisable at a price of $37.22 per share, the closing price of Albireo’s common stock on January 11, 2021, the grant date, and were granted as inducements material to the employee’s acceptance of employment with Albireo in accordance with Nasdaq Listing Rule 5635(c)(4). Each stock option has a 10-year term and vests over a four-year period, subject to the employee’s continued service with Albireo through the applicable vesting dates. The vesting schedule for each stock option is 25 percent on the one-year anniversary of the employee’s start date with Albireo and 75 percent in 12 equal quarterly installments thereafter. The stock options are subject to the terms and conditions of Albireo’s 2020 Inducement Equity Incentive Plan.

About Albireo
Albireo Pharma is a clinical-stage biopharmaceutical company focused on the development of novel bile acid modulators to treat rare pediatric and adult liver diseases and disorders. Albireo’s lead product candidate, odevixibat, is being developed to treat rare pediatric cholestatic liver diseases with Phase 3 pivotal trials in PFIC, Alagille syndrome and biliary atresia. The Company completed IND-enabling studies for new preclinical candidate A3907 this year and plans to advance development in adult liver disease. Albireo was spun out from AstraZeneca in 2008 and is headquartered
in Boston, Massachusetts, with its key operating subsidiary in Gothenburg, Sweden.

Media & Investor contacts:
Colleen Alabiso, 857-356-3905, colleen.alabiso@albireopharma.com 
Hans Vitzthum, LifeSci Advisors, LLC., 617-430-7578

FAQ

What is the significance of Albireo Pharma's recent stock options grant?

Albireo Pharma granted inducement stock options for 18,500 shares to attract and retain employees, aligning their interests with company performance.

What is the exercise price of the stock options granted by Albireo Pharma?

The stock options are exercisable at $37.22 per share, which was the closing price on January 11, 2021.

How long do the stock options granted by Albireo Pharma last?

Each stock option has a 10-year term and vests over a four-year period.

What is Albireo Pharma's lead product candidate?

Albireo's lead product candidate is odevixibat, designed to treat rare pediatric cholestatic liver diseases.

When did Albireo Pharma complete IND-enabling studies for A3907?

Albireo Pharma completed IND-enabling studies for preclinical candidate A3907 in 2021.