Ardelyx, Inc. Reports Employment Inducement Grants

Rhea-AI Summary

Ardelyx, a biopharmaceutical company, announced on May 6, 2024, the granting of stock options and Restricted Stock Units (RSUs) to new non-executive employees. The compensation committee approved options for 26 employees, totaling 511,500 shares, and RSUs for 32 employees, totaling 425,050 shares. The stock options have an exercise price of $9.15 per share, the closing price on the grant date, and vest over four years. RSUs also vest over four years, with specific quarterly vesting schedules. These inducements align with Nasdaq Listing Rule 5635(c)(4) and are part of Ardelyx's 2016 Employment Commencement Incentive Plan.

Positive

• Granted 511,500 stock options and 425,050 RSUs to new non-executive employees, fostering employee commitment.
• Stock options priced at $9.15 per share, potentially attractive if the stock price rises.
• Vesting schedules designed to retain employees long-term (four years).
• Compliance with Nasdaq Listing Rule 5635(c)(4), ensuring regulatory adherence.

Negative

• Potential shareholder dilution due to the issuance of 511,500 new stock options and 425,050 RSUs.
• Stock options have a long vesting period (10 years), potentially delaying shareholder value realization.

WALTHAM, Mass., May 14, 2024 (GLOBE NEWSWIRE) -- 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 May 6, 2024, the compensation committee of the company’s board of directors granted 26 new non-executive employees options to purchase an aggregate of 511,500 shares of the company’s common stock, and granted 32 new non-executive employees an aggregate of 425,050 Restricted Stock Units (RSUs). Each stock option has an exercise price equal to $9.15 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 has two commercial products approved in the United States, IBSRELA^® (tenapanor) and XPHOZAH^® (tenapanor). Ardelyx has agreements for the development and commercialization of tenapanor outside of the U.S. Kyowa Kirin commercializes PHOZEVEL^® (tenapanor) for hyperphosphatemia in Japan. A New Drug Application for tenapanor for hyperphosphatemia has been submitted in China with Fosun Pharma. Knight Therapeutics commercializes IBSRELA in Canada. For more information, please visit https://ardelyx.com/ and connect with us on X (formerly known as Twitter), LinkedIn and Facebook.

Investor and Media Contacts:
Caitlin Lowie
clowie@ardelyx.com

FAQ

What did Ardelyx announce on May 6, 2024?

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

How many stock options did Ardelyx grant?

Ardelyx granted 511,500 stock options to 26 new non-executive employees.

What is the exercise price for the stock options granted by Ardelyx?

The exercise price for the stock options is $9.15 per share.

How many RSUs did Ardelyx grant and to how many employees?

Ardelyx granted 425,050 RSUs to 32 new non-executive employees.

Over what period do the stock options and RSUs vest?

Both the stock options and RSUs vest over four years.

What rule does Ardelyx’s inducement grant comply with?

The inducement grant complies with Nasdaq Listing Rule 5635(c)(4).