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

Rhea-AI Summary

Crinetics Pharmaceuticals, Inc. (Nasdaq: CRNX) announced on April 10, 2022, that its Compensation Committee granted non-qualified stock option awards totaling 502,500 shares to new employees, including 145,000 shares to Chris Robillard, the new Chief Business Officer. These awards were made under the 2021 Employment Inducement Incentive Award Plan, compliant with Nasdaq rules, to incentivize new hires. The options have an exercise price of $23.04 per share and will vest over four years, supporting Crinetics' growth strategy in developing therapeutics for rare endocrine diseases.

Positive

• Granting of 502,500 stock options to incentivize new hires, including a key executive, may enhance talent acquisition.
• The exercise price of $23.04 aligns with the market value, indicating a stable equity structure.

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• None.

SAN DIEGO, April 11, 2022 (GLOBE NEWSWIRE) -- Crinetics Pharmaceuticals, Inc. (Nasdaq: CRNX), a clinical stage pharmaceutical company focused on the discovery, development and commercialization of novel therapeutics for rare endocrine diseases and endocrine-related tumors, today announced that on April 10, 2022, the Compensation Committee of Crinetics’ Board of Directors granted non-qualified stock option awards to purchase an aggregate of 357,500 shares of its common stock to thirteen new non-executive employees under the Crinetics Pharmaceuticals, Inc. 2021 Employment Inducement Incentive Award Plan (the “2021 Inducement Plan”). Also on April 10, 2022, the Compensation Committee of Crinetics’ Board of Directors granted a non-qualified stock option award to purchase an aggregate of 145,000 shares of its common stock to Chris Robillard, Crinetics’ new Chief Business Officer, under 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 $23.04 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. The company’s lead product candidate, paltusotine, is an investigational, oral, selective nonpeptide somatostatin receptor type 2 (SST2) biased agonist for the treatment of acromegaly, an orphan disease affecting more than 26,000 people in the United States. A Phase 3 clinical program in acromegaly with paltusotine is underway. Crinetics is also developing paltusotine for the treatment of carcinoid syndrome associated with neuroendocrine tumors. The company is developing CRN04777, an investigational, oral, nonpeptide somatostatin receptor type 5 (SST5) agonist for congenital and other forms of hyperinsulinism, as well as CRN04894, an investigational, oral, nonpeptide ACTH antagonist for the treatment of diseases of excess ACTH, including congenital adrenal hyperplasia and Cushing’s disease. All of the company’s drug candidates are new chemical entities resulting from in-house drug discovery efforts.

Contacts:
Marc Wilson
Chief Financial Officer
IR@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 stock options were granted by Crinetics Pharmaceuticals on April 10, 2022?

On April 10, 2022, Crinetics Pharmaceuticals granted 502,500 stock options to new employees, including 145,000 to the new Chief Business Officer.

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

The exercise price of the stock options granted by Crinetics is $23.04 per share.

How will the stock options granted by Crinetics Pharmaceuticals vest?

The stock options will vest over four years, with 25% vesting after one year and the remainder vesting in monthly installments.

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

The 2021 Inducement Plan is designed to grant equity awards to new employees as an incentive for joining Crinetics.