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

Rhea-AI Summary

On April 10, 2023, Crinetics Pharmaceuticals (Nasdaq: CRNX) announced the grant of non-qualified stock options to 15 new non-executive employees, totaling 311,700 shares under the 2021 Employment Inducement Incentive Award Plan. These options, aimed at attracting new talent, have an exercise price of $16.02 per share, equivalent to the closing stock price on the grant date. The options will vest over four years, incentivizing continued employment. Crinetics focuses on developing innovative therapeutics for rare endocrine diseases and related tumors, with ongoing clinical trials for its drug candidates, including Paltusotine for acromegaly. The company aims to address significant unmet medical needs in this niche area.

Positive

• Granting of 311,700 stock options to attract new talent.
• Equity awards are tied to the successful retention of new employees.
• Paltusotine is in Phase 3 trials for acromegaly, indicating advanced development of a lead product.

Negative

• None.

SAN DIEGO, April 10, 2023 (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, 2023, the Compensation Committee of Crinetics’ Board of Directors granted non-qualified stock option awards to purchase an aggregate of 311,700 shares of its common stock to 15 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 $16.02 per share, which is equal to the closing price of Crinetics’ common stock on The Nasdaq Global Select Market on April 10, 2023. 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, an investigational, oral 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, an investigational, oral somatostatin receptor type 5 (SST5) agonist in development for congenital hyperinsulinism, and for CRN04894, an investigational, oral ACTH antagonist in development 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
Vice President of IR and 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 is the significance of Crinetics Pharmaceuticals' stock option grant on April 10, 2023?

The stock option grant is intended to attract and retain new employees, aligning their interests with shareholders and fostering company growth.

How many stock options did Crinetics Pharmaceuticals grant on April 10, 2023?

Crinetics Pharmaceuticals granted a total of 311,700 stock options to 15 new non-executive employees.

What is the exercise price of the stock options granted by Crinetics Pharmaceuticals?

The exercise price of the stock options is $16.02 per share, equal to the closing price of the stock on the grant date.

What is the vesting schedule for the stock options granted by Crinetics Pharmaceuticals?

The stock options will vest over four years, with 25% vesting after one year and the remaining shares vesting monthly thereafter.