Crinetics Pharmaceuticals Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Crinetics Pharmaceuticals (Nasdaq: CRNX) announced the grant of non-qualified stock options for 107,500 shares to six new non-executive employees on July 12, 2022. These options were awarded under the 2021 Employment Inducement Incentive Award Plan to attract new talent, complying with Nasdaq Listing Rule 5635(c)(4). The exercise price is set at $20.33 per share, reflecting the current market value. The options will vest over four years, contingent upon continued employment. Crinetics focuses on developing therapies for rare endocrine diseases, with ongoing clinical trials for key drug candidates.

Positive

• Grant of 107,500 stock options to attract new talent, potentially enhancing workforce capabilities.
• Stock options priced at $20.33, aligning with fair market value, which may support employee motivation.
• The vesting period of four years encourages long-term employee retention.

Negative

• None.

SAN DIEGO, July 12, 2022 (GLOBE NEWSWIRE) -- Crinetics Pharmaceuticals, Inc. (Nasdaq: CRNX) today announced that on July 12, 2022, the Compensation Committee of Crinetics’ Board of Directors granted non-qualified stock option awards to purchase an aggregate of 107,500 shares of its common stock to six new non-executive employees under the Crinetics Pharmaceuticals, Inc. 2021 Employment Inducement Incentive Award Plan (the “2021 Inducement Plan”). The stock options were granted as inducements material to the employees entering into employment with Crinetics in accordance with Nasdaq Listing Rule 5635(c)(4).

The 2021 Inducement Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of Crinetics, or following a bona fide period of non-employment, as an inducement material to such individuals’ entering into employment with Crinetics, pursuant to Nasdaq Listing Rule 5635(c)(4).

The options have an exercise price of $20.33 per share, which is equal to the fair market value of Crinetics’ common stock on The Nasdaq Global Select Market on the date of grant, as determined under the 2021 Inducement Plan. The shares subject to the stock options will vest over four years, with 25% of the shares vesting on the one-year anniversary of the applicable vesting commencement date and the balance of the shares vesting in a series of 36 successive equal monthly installments thereafter, subject to each employee’s continued employment with Crinetics on such vesting dates. The options are subject to the terms and conditions of the 2021 Inducement Plan and the terms and conditions of a stock option agreement covering the grant.

About Crinetics Pharmaceuticals
Crinetics Pharmaceuticals is a clinical stage pharmaceutical company focused on the discovery, development, and commercialization of novel therapeutics for rare endocrine diseases and endocrine-related tumors. Paltusotine, a somatostatin receptor type 2 (SST2) agonist, is in Phase 3 clinical development for acromegaly and Phase 2 clinical development for carcinoid syndrome associated with neuroendocrine tumors. Crinetics has demonstrated pharmacologic proof-of-concept in Phase 1 clinical studies for CRN04777, a somatostatin receptor type 5 (SST5) agonist for congenital hyperinsulinism, and CRN04894, an ACTH antagonist for the treatment of Cushing’s disease, congenital adrenal hyperplasia, and other diseases of excess ACTH. All of the company’s drug candidates are orally delivered, small molecule new chemical entities resulting from in-house drug discovery efforts.

Contacts: 
Chas Schultz 
VP, IR & Corporate Communications 
cschultz@crinetics.com
(858) 450-6464 

Investors / Media:
Corey Davis
LifeSci Advisors, LLC
cdavis@lifesciadvisors.com
(212) 915-2577

Aline Sherwood
Scienta Communications
asherwood@scientapr.com
(312) 238-8957

FAQ

What was announced by Crinetics Pharmaceuticals on July 12, 2022?

Crinetics Pharmaceuticals announced the grant of non-qualified stock options for 107,500 shares to six new non-executive employees.

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

The exercise price for the stock options granted is $20.33 per share.

How long is the vesting period for the stock options granted by Crinetics?

The stock options will vest over four years, with 25% vesting after the first year.

What is the purpose of the 2021 Employment Inducement Incentive Award Plan?

The plan aims to grant equity awards to attract individuals who were not previously employees of Crinetics.

What focus does Crinetics Pharmaceuticals have in its drug development?

Crinetics focuses on developing novel therapeutics for rare endocrine diseases and related tumors.