Ardelyx, Inc. Reports Employment Inducement Grants

Rhea-AI Summary

On January 27, 2023, Ardelyx, Inc. (Nasdaq: ARDX) granted stock options and Restricted Stock Units (RSUs) to 23 new non-executive employees. The total awarded includes 614,064 stock options with an exercise price of $2.85, matching the closing price on the grant date, and 236,333 RSUs. The stock options vest over four years, with 25% vesting on the first anniversary and the rest monthly. The RSUs follow a similar vesting schedule, with 25% vesting on the first quarterly RSU date after the first anniversary. These grants were made as inducements to attract new talent in accordance with Nasdaq rules.

Positive

• The compensation committee's decision to grant stock options and RSUs indicates a commitment to attracting and retaining talent.
• The option price of $2.85 aligns with the market value, which may be perceived positively by investors.

Negative

• None.

WALTHAM, Mass., Feb. 2, 2023 /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 January 27, 2023, the compensation committee of the company's board of directors granted 23 new non-executive employees options to purchase an aggregate of 614,064  shares of the company's common stock, and an aggregate of 236,333 Restricted Stock Units (RSUs).  Each stock option has an exercise price per share equal to $2.85 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 for the management of hyperphosphatemia in adult patients with chronic kidney disease (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. For more information, please visit https://ardelyx.com/ and connect with us on Twitter @Ardelyx, LinkedIn and Facebook.

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SOURCE Ardelyx

FAQ

What was announced by Ardelyx on February 2, 2023?

Ardelyx announced the granting of stock options and Restricted Stock Units to 23 new non-executive employees on January 27, 2023.

How many shares were granted to Ardelyx employees?

Ardelyx granted a total of 614,064 stock options and 236,333 Restricted Stock Units to new employees.

What is the exercise price for Ardelyx stock options?

The exercise price for the stock options granted by Ardelyx is $2.85 per share.

What is the vesting schedule for Ardelyx's stock options?

The stock options vest over four years, with 25% vesting on the first anniversary and the remaining 75% vesting monthly thereafter.

Why were the stock options granted by Ardelyx?

The stock options and RSUs were granted as inducements material to each employee's decision to join Ardelyx.