Ardelyx, Inc. Reports Employment Inducement Grants

Rhea-AI Summary

On November 2, 2022, Ardelyx, Inc. (Nasdaq: ARDX) announced the granting of options to purchase 127,907 shares of common stock and 31,875 Restricted Stock Units (RSUs) to three new non-executive employees. The exercise price for stock options is set at $1.40, the closing price on the grant date of October 26, 2022. These grants are compliant with Nasdaq Listing Rule 5635(c)(4) and are designed to incentivize new hires. Each stock option and RSU vesting occurs over four years, indicating a long-term commitment to the company's growth.

Positive

• Granting of stock options and RSUs can attract quality talent.
• Compliance with Nasdaq rules enhances company's credibility.

Negative

• None.

WALTHAM, Mass., Nov. 2, 2022 /PRNewswire/ --Ardelyx, Inc. (Nasdaq: ARDX), a biopharmaceutical company founded with a mission to discover, develop and commercialize innovative first-in-class medicines that meet significant unmet medical needs, today announced that on October 26, 2022, the compensation committee of the company's board of directors granted three new non-executive employees options to purchase an aggregate of 127,907 shares of the company's common stock, and an aggregate of 31,875 Restricted Stock Units (RSUs).  Each stock option has an exercise price per share equal to $1.40 per share, which was the closing trading price of the company's common stock on the date of grant. The stock options and RSUs were granted as inducements material to each employee's decision to enter into employment with Ardelyx, in accordance with Nasdaq Listing Rule 5635(c)(4).

Each stock option vests over four years, with 25% of the shares vesting on the first anniversary of the employee's first date of employment, and the remaining 75% of shares vesting monthly thereafter. Each RSU vests over four years, with 25% vesting on the first company designated quarterly RSU vest date following the first anniversary of the employee's first day of employment, and the remaining 75% of shares vesting quarterly thereafter. Each stock option has a 10-year term, and each option and RSU is subject to the terms and conditions of the company's 2016 Employment Commencement Incentive Plan and the award agreement covering the grant.      

About Ardelyx, Inc.

Ardelyx was founded with a mission to discover, develop and commercialize innovative first-in-class medicines that meet significant unmet medical needs. Ardelyx's first approved product, IBSRELA® (tenapanor) is available in the United States and Canada. Ardelyx is developing XPHOZAH® (tenapanor), a novel product candidate to control serum phosphorus in adult patients with CKD on dialysis, which has completed three successful Phase 3 trials. Ardelyx has a Phase 2 potassium lowering compound, RDX013, for the potential treatment of elevated serum potassium, or hyperkalemia, a problem among certain patients with kidney and/or heart disease and an early-stage program in metabolic acidosis, a serious electrolyte disorder in patients with CKD. Ardelyx has established agreements with Kyowa Kirin in Japan, Fosun Pharma in China and Knight Therapeutics in Canada for the development and commercialization of tenapanor in their respective territories.

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SOURCE Ardelyx

FAQ

What did Ardelyx announce on November 2, 2022?

Ardelyx announced the granting of stock options and RSUs to three new non-executive employees.

How many shares were granted as options by Ardelyx?

Ardelyx granted options to purchase 127,907 shares of common stock.

What was the exercise price of the stock options granted by Ardelyx?

The exercise price was $1.40 per share.

What is the duration of the stock options granted by Ardelyx?

The stock options have a 10-year term.

How long does it take for the stock options and RSUs to vest?

Both stock options and RSUs vest over four years.