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

Rhea-AI Summary

Baudax Bio (NASDAQ:BXRX) announced the approval of stock options and restricted stock units for 22 new employees. A total of 242,688 stock options and 79,385 restricted units were granted on September 30, 2021, as part of their employment compensation. The options have an exercise price of $0.56 per share and vest over four years. This grant complies with Nasdaq’s Rule 5635(c)(4) regarding inducement grants. Baudax Bio specializes in innovative products for acute care settings, notably the intravenous NSAID ANJESO.

Positive

• Inducement grants of stock options and restricted units may enhance employee retention and morale.
• The exercise price of $0.56 aligns with the market price, providing a potential incentive for new hires.

Negative

• Reliance on stock options could dilute existing shareholder value if the company grows.
• Forward-looking statements indicate potential risks related to product commercialization and regulatory challenges.

MALVERN, Pa., Oct. 01, 2021 (GLOBE NEWSWIRE) -- Baudax Bio, Inc. (NASDAQ:BXRX), a pharmaceutical company focused on commercializing and developing innovative products for acute care settings, today announced that the Compensation Committee of Baudax Bio’s Board of Directors approved inducement grants of stock options to purchase an aggregate of 242,688 shares of Baudax Bio’s common stock and restricted stock units covering 79,385 shares of Baudax Bio’s common stock to 22 newly-hired employees, with a grant date of September 30, 2021. The equity awards were granted pursuant to the Nasdaq Rule 5635(c)(4) inducement grant exception as a component of each individual’s employment compensation and were granted as an inducement material to his or her acceptance of employment with Baudax Bio.

The options have an exercise price equal to $0.56 per share, the closing price of Baudax Bio’s common stock as reported by Nasdaq on September 30, 2021. The options have a ten-year term and vest over four years, with 25% of the number of shares underlying the stock option vesting on one-year anniversary of the applicable vesting commencement date (based on the quarter in which the applicable employee’s employment commenced) and the remaining shares vesting monthly over 36 months thereafter. The restricted stock units vest annually over four years. The equity awards are subject to each individual’s continued service with Baudax Bio through the applicable vesting dates.

About Baudax Bio

Baudax Bio is a pharmaceutical company focused on commercializing and developing innovative products for acute care settings. ANJESO is the first and only 24-hour, intravenous (IV) COX-2 preferential non-steroidal anti-inflammatory (NSAID) for the management of moderate to severe pain. In addition to ANJESO, Baudax Bio has a pipeline of other innovative pharmaceutical assets including two novel neuromuscular blocking agents (NMBAs) and a proprietary chemical reversal agent specific to these NMBAs. For more information, please visit www.baudaxbio.com.

Forward Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. Such forward-looking statements reflect Baudax Bio’s expectations about its future performance and opportunities that involve substantial risks and uncertainties. When used herein, the words “anticipate,” “believe,” “estimate,” “may,” “upcoming,” “plan,” “target,” “goal,” “intend,” and “expect,” and similar expressions, as they relate to Baudax Bio or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information available to Baudax Bio as of the date of publication on this internet site and are subject to a number of risks, uncertainties, and other factors that could cause Baudax Bio’s performance to differ materially from those expressed in, or implied by, these forward-looking statements. These risks and uncertainties include, among other things, risks related to the ongoing economic and social consequences of the COVID-19 pandemic, including any adverse impact on the commercial launch of ANJESO® or disruption in supply chain, Baudax Bio’s ability to maintain regulatory approval for ANJESO, Baudax Bio’s ability to successfully commercialize ANJESO; the acceptance of ANJESO by the medical community, including physicians, patients, health care providers and hospital formularies; Baudax Bio’s ability and that of Baudax Bio’s third party manufacturers to successfully scale-up the commercial manufacturing process for ANJESO, Baudax Bio’s ability to produce commercial supply in quantities and quality sufficient to satisfy market demand for ANJESO, Baudax Bio’s ability to raise future financing for continued product development, payment of milestones and ANJESO commercialization, Baudax Bio’s ability to pay its debt and satisfy conditions necessary to access future tranches of debt, Baudax Bio’s ability to comply with the financial and other covenants under its credit facility, Baudax Bio’s ability to manage costs and execute on its operational and budget plans, the accuracy of Baudax Bio’s estimates of the potential market for ANJESO, Baudax Bio’s ability to achieve its financial goals; and Baudax Bio’s ability to obtain, maintain and successfully enforce adequate patent and other intellectual property protection. These forward-looking statements should be considered together with the risks and uncertainties that may affect Baudax Bio’s business and future results included in Baudax Bio’s filings with the Securities and Exchange Commission at www.sec.gov. These forward-looking statements are based on information currently available to Baudax Bio, and Baudax Bio assumes no obligation to update any forward-looking statements except as required by applicable law.

CONTACTS:

Investor Relations Contact:
Argot Partners
Sam Martin / Claudia Styslinger
(212) 600-1902
baudaxbio@argotpartners.com

Media Contact:
Argot Partners
David Rosen
(212) 600-1902
david.rosen@argotpartners.com

FAQ

What are the details of the stock options granted by Baudax Bio (BXRX)?

Baudax Bio approved stock options for 22 new employees, totaling 242,688 options at an exercise price of $0.56, vesting over four years.

How might Baudax Bio's recent stock option grants affect shareholders?

The grant of stock options could lead to dilution of shares, impacting existing shareholders' value.

What is the purpose of the stock option grants at Baudax Bio (BXRX)?

The stock option grants aim to incentivize employees as part of their employment compensation package.

When were the stock options granted by Baudax Bio (BXRX)?

The stock options were granted on September 30, 2021.