CTI BioPharma Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

On March 20, 2023, CTI BioPharma Corp. (Nasdaq: CTIC) announced the granting of equity inducement awards to four new employees as part of its recruitment strategy. These awards outside of the company's Amended and Restated 2017 Equity Incentive Plan comprise options to purchase 124,000 shares of common stock. The options will have an exercise price based on the closing price on each grant date, vesting one-fourth annually contingent on continued employment. CTI BioPharma focuses on targeted therapies for blood-related cancers and has one FDA-approved product, VONJO® (pacritinib), currently undergoing a Phase 3 confirmatory study.

Positive

• Equity inducement awards may enhance employee motivation and retention.
• Continued focus on blood-related cancers positions CTI favorably in a niche market.

Negative

• Dependence on the FDA's confirmation of clinical benefits for VONJO may pose risks.

SEATTLE, March 20, 2023 /PRNewswire/ -- CTI BioPharma Corp. (Nasdaq: CTIC), a commercial biopharmaceutical company focused on the development and commercialization of novel targeted therapies for blood-related cancers, today announced that an authorized subcommittee of the Compensation Committee of its Board of Directors granted equity awards to four new employees as equity inducement awards outside of the Company's Amended and Restated 2017 Equity Incentive Plan (but under the terms of the Amended and Restated 2017 Equity Incentive Plan) and material to the employees' acceptance of employment with the company. The equity awards were approved on March 20, 2023, in accordance with Nasdaq Listing Rule 5635(c)(4).

The employees received options to purchase an aggregate of 124,000 shares of CTI BioPharma common stock. The options will be issued upon each employee's grant date (the "Grant Date"), and all stock options included within the equity inducement awards will have an exercise price equal to the closing price of CTI BioPharma common stock on each respective Grant Date. One-fourth of the options will vest on each anniversary of the employee's Grant Date, subject to the employee's continued employment with CTI BioPharma on such vesting dates. The options have a ten-year term.

About CTI BioPharma Corp.

CTI BioPharma is a commercial biopharmaceutical company focused on the development and commercialization of novel targeted therapies for blood-related cancers that offer a unique benefit to patients and their healthcare providers. CTI has one FDA-approved product, VONJO^® (pacritinib), a JAK2, ACVR1,­­ and IRAK1 inhibitor, that spares JAK1. VONJO is approved for the treatment of adults with intermediate- or high-risk primary or secondary (post-polycythemia vera or post-essential thrombocythemia) myelofibrosis with a platelet count below 50 × 109/L. This indication is approved under FDA accelerated approval based on spleen volume reduction. Continued approval for this indication may be contingent upon verification and description of clinical benefit in a confirmatory trial(s). CTI is conducting the Phase 3 PACIFICA study of VONJO in patients with myelofibrosis and severe thrombocytopenia as a post-marketing requirement. For more information, please visit www.ctibiopharma.com.

VONJO^® is a registered trademark of CTI BioPharma Corp.

Investor Relations and Media Contacts:

Remy Bernarda 
Jenny Kobin 
invest@ctibiopharma.com 

SOURCE: CTI BioPharma Corp.

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SOURCE CTI BioPharma Corp.

FAQ

What is the equity inducement grant announced by CTI BioPharma on March 20, 2023?

CTI BioPharma announced equity inducement awards for four new employees, granting options to purchase 124,000 shares of common stock.

How many shares were granted in the recent equity inducement award by CTIC?

A total of 124,000 shares of common stock were granted as part of the equity inducement awards.

What is VONJO and how is it relevant to CTI BioPharma?

VONJO® (pacritinib) is CTI BioPharma's FDA-approved product for treating certain blood-related cancers.

What are the conditions for the vesting of stock options granted by CTI BioPharma?

The stock options will vest one-fourth annually, dependent on the employee's continued employment.