Ardelyx, Inc. Reports Employment Inducement Grants

Rhea-AI Summary

On April 5, 2022, Ardelyx, Inc. (Nasdaq: ARDX) announced the grant of stock options and Restricted Stock Units (RSUs) to five non-executive employees as an employment inducement. A total of 68,797 stock options and 33,450 RSUs were awarded, with an exercise price of $1.11 per share, equal to the closing trading price on the grant date. Vesting occurs over four years, with 25% vesting annually and the remainder monthly for stock options, while RSUs vest quarterly. This grant aligns with Nasdaq rules and is aimed at incentivizing employee commitment.

Positive

• Inducement grants of stock options and RSUs may enhance employee retention.
• Stock options priced at $1.11, reflecting the company's market value, could motivate employees to align with shareholder interests.

Negative

• The reliance on stock options as incentives may dilute existing shareholder equity.

WALTHAM, Mass., April 12, 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 April 5, 2022, the compensation committee of the company's board of directors granted five new non-executive employees options to purchase an aggregate of 68,797 shares of the company's common stock, and an aggregate of 33,450 Restricted Stock Units (RSUs). Each stock option has an exercise price per share equal to $1.11 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.  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 is also advancing RDX013, a potassium secretagogue, for the potential treatment of elevated serum potassium, or hyperkalemia, a problem among certain patients with kidney and/or heart disease and has 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 employment inducement grants did Ardelyx announce on April 5, 2022?

Ardelyx announced the grant of stock options and Restricted Stock Units (RSUs) to five non-executive employees.

How many stock options were granted to employees by Ardelyx?

A total of 68,797 stock options were granted.

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

The exercise price for the stock options is $1.11 per share.

Over what period do the stock options and RSUs vest?

Both stock options and RSUs vest over four years.

What is the significance of the Nasdaq Listing Rule 5635(c)(4) in Ardelyx's announcement?

The grant of stock options and RSUs was made in compliance with Nasdaq Listing Rule 5635(c)(4) as an inducement for employment.