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

Rhea-AI Summary

Cytokinetics announced the grant of stock options for 206,300 shares to 14 new employees as a material inducement for their employment, effective September 30, 2021. The options have an exercise price of $35.74, which equals the closing price of the common stock on that date, and will vest over four years. This grant was made in accordance with Nasdaq Listing Rule 5635(c)(4). The company is actively pursuing several clinical trials for its muscle-related drug candidates, including omecamtiv mecarbil and aficamten.

Positive

• Granting of stock options may enhance employee retention.
• The exercise price aligns with the current market price, indicating a fair valuation.

Negative

• Stock options dilute existing shareholder equity.
• Employee stock compensation indicates reliance on new hires to drive growth amid existing operational challenges.

SOUTH SAN FRANCISCO, Calif., Oct. 01, 2021 (GLOBE NEWSWIRE) -- Cytokinetics, Incorporated (Nasdaq: CYTK) today announced that on September 30, 2021 it granted stock options to purchase an aggregate of 206,300 shares of common stock to 14 new employees, whose employment commenced in September 2021, as a material inducement to their employment.

The stock options that were granted are subject to an exercise price of $ 35.74 per share, which is equal to the closing price of the Company’s common stock on September 30, 2021, and will vest over 4 years, with 1/4^th of the shares underlying the employee’s option vesting on the one-year anniversary of the applicable vesting commencement date and the remaining shares thereafter vesting monthly at a rate of 1/48^th of the shares underlying each employee’s option over the subsequent 36 months, subject to the new employee’s continued service with the Company. Each stock option has a 10-year term and is subject to the terms and conditions of the Company's Amended and Restated 2004 Equity Incentive Plan and the stock option agreement pursuant to which the option was granted.  

The options were granted as material inducements to employment in accordance with Nasdaq Listing Rule 5635(c)(4).

About Cytokinetics

Cytokinetics is a late-stage biopharmaceutical company focused on discovering, developing and commercializing first-in-class muscle activators and next-in-class muscle inhibitors as potential treatments for debilitating diseases in which muscle performance is compromised and/or declining. As a leader in muscle biology and the mechanics of muscle performance, the company is developing small molecule drug candidates specifically engineered to impact muscle function and contractility. Cytokinetics is preparing a U.S. NDA submission of omecamtiv mecarbil, its novel cardiac muscle activator, following positive results from GALACTIC-HF, a large, international Phase 3 clinical trial in patients with heart failure. Cytokinetics is conducting METEORIC-HF, a second Phase 3 clinical trial of omecamtiv mecarbil. Cytokinetics is also developing aficamten, a next-generation cardiac myosin inhibitor, for the potential treatment of hypertrophic cardiomyopathies (HCM). The company has announced positive topline results from Cohorts 1 and 2 in REDWOOD-HCM, a Phase 2 clinical trial of aficamten in patients with obstructive HCM. Cytokinetics expects to start a Phase 3 clinical trial of aficamten in patients with obstructive HCM in Q4 2021. Cytokinetics is also developing reldesemtiv, a fast skeletal muscle troponin activator, currently the subject of COURAGE-ALS, a Phase 3 clinical trial in patients with ALS. Cytokinetics continues its over 20-year history of pioneering innovation in muscle biology and related pharmacology focused to diseases of muscle dysfunction and conditions of muscle weakness.

For additional information about Cytokinetics, visit www.cytokinetics.com and follow us on Twitter, LinkedIn, Facebook and YouTube.

Forward-Looking Statements

This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the "Act"). Cytokinetics disclaims any intent or obligation to update these forward-looking statements and claims the protection of the Act's Safe Harbor for forward-looking statements. Examples of such statements include, but are not limited to, statements relating to Cytokinetics' and its partners' research and development activities of Cytokinetics’ product candidates. Such statements are based on management's current expectations, but actual results may differ materially due to various risks and uncertainties, including, but not limited to the risks related to Cytokinetics' business outlined in Cytokinetics' filings with the Securities and Exchange Commission particularly under the caption “Risk Factors” in Cytokinetics’ latest Quarterly Report on Form 10-Q. Forward-looking statements are not guarantees of future performance, and Cytokinetics' actual results of operations, financial condition and liquidity, and the development of the industry in which it operates, may differ materially from the forward-looking statements contained in this press release. Any forward-looking statements that Cytokinetics makes in this press release speak only as of the date of this press release. Cytokinetics assumes no obligation to update its forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.

Contact:
Diane Weiser
Senior Vice President, Corporate Communications, Investor Relations
(415) 290-7757

FAQ

What stock options were granted by Cytokinetics on September 30, 2021?

Cytokinetics granted stock options to purchase an aggregate of 206,300 shares to 14 new employees.

What was the exercise price for the stock options granted by CYTK?

The exercise price was set at $35.74 per share, equal to the closing price on September 30, 2021.

What are the vesting terms for the stock options granted by Cytokinetics?

The stock options will vest over four years, with 1/4 vesting on the one-year anniversary and the remainder vesting monthly thereafter.

What is the significance of the stock options grant for CYTK?

The stock options are a material inducement for new employees and are intended to enhance retention and incentivize performance.

What is Cytokinetics currently developing?

Cytokinetics is developing muscle activators and inhibitors, including products for heart failure and hypertrophic cardiomyopathy.