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

Rhea-AI Summary

Cytokinetics (Nasdaq: CYTK) announced on October 3, 2024, that it granted stock options and restricted stock units (RSUs) to 30 new employees who joined in September 2024. The grants include:

- 88,653 stock options to purchase common stock
- 57,558 RSUs to be settled into common stock upon vesting

The RSUs will vest over 3 years: 40% after year 1, 40% after year 2, and 20% after year 3. The stock options have an exercise price of $52.80 per share and will vest over 4 years: 1/4 after year 1, and 1/48 monthly thereafter. Both are subject to continued employment. These grants were made as material inducements to employment in accordance with Nasdaq Listing Rule 5635(c)(4).

Positive

• Cytokinetics is attracting new talent with 30 employees joining in September 2024
• The company is offering competitive compensation packages including stock options and RSUs to new employees
• The stock options' exercise price of $52.80 suggests a potentially favorable stock price

Negative

• The issuance of new stock options and RSUs may lead to potential dilution for existing shareholders

SOUTH SAN FRANCISCO, Calif., Oct. 03, 2024 (GLOBE NEWSWIRE) -- Cytokinetics, Incorporated (Nasdaq: CYTK) today announced that on September 30, 2024 it granted stock options to purchase an aggregate of 88,653 shares of common stock and 57,558 restricted stock units (RSUs) that will be settled into shares of common stock upon vesting to 30 employees, whose employment commenced in September 2024, as a material inducement to their employment.

The RSUs will vest over 3 years, with 40% of the RSUs vesting on the first anniversary of the applicable grant date, an additional 40% of the RSUs vesting on the second anniversary of the grant date and the final 20% vesting on the third anniversary of the grant date, in each case, subject to each respective employee’s continued service with the Company. The stock options that were granted are subject to an exercise price of $52.80 per share, which is equal to the closing price of the Company’s common stock on September 30, 2024, 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 grant date and the remaining shares thereafter vesting in monthly installments at a rate of 1/48th of the shares underlying such stock options over the subsequent 36 months, subject to each respective employee’s continued service with the Company. The stock options have a 10-year term. These awards are subject to the terms and conditions of the Company's Amended and Restated 2004 Equity Incentive Plan and the applicable award agreements pursuant to which the awards were granted.  

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

About Cytokinetics

Cytokinetics is a late-stage, specialty cardiovascular biopharmaceutical company focused on discovering, developing and commercializing muscle biology-directed drug candidates as potential treatments for debilitating diseases in which cardiac muscle performance is compromised. As a leader in muscle biology and the mechanics of muscle performance, the company is developing small molecule drug candidates specifically engineered to impact myocardial muscle function and contractility. Cytokinetics is preparing for regulatory submissions for aficamten, its next-in-class cardiac myosin inhibitor, following positive results from SEQUOIA-HCM, the pivotal Phase 3 clinical trial in obstructive hypertrophic cardiomyopathy which were published in the New England Journal of Medicine. Aficamten is also currently being evaluated in MAPLE-HCM, a Phase 3 clinical trial of aficamten as monotherapy compared to metoprolol as monotherapy in patients with obstructive HCM, ACACIA-HCM, a Phase 3 clinical trial of aficamten in patients with non-obstructive HCM, CEDAR-HCM, a clinical trial of aficamten in a pediatric population with obstructive HCM, and FOREST-HCM, an open-label extension clinical study of aficamten in patients with HCM. Cytokinetics is also developing omecamtiv mecarbil, a cardiac muscle activator, in patients with heart failure. Additionally, Cytokinetics is developing CK-586, a cardiac myosin inhibitor with a mechanism of action distinct from aficamten for the potential treatment of HFpEF.

For additional information about Cytokinetics, visit www.cytokinetics.com and follow us on X, 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 Annual Report on Form 10-K. 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.

CYTOKINETICS® and the CYTOKINETICS and C-shaped logo are registered trademarks of Cytokinetics in the U.S. and certain other countries.

Contact:
Cytokinetics
Diane Weiser
Senior Vice President, Corporate Affairs
(415) 290-7757

FAQ

How many stock options and RSUs did Cytokinetics (CYTK) grant to new employees in September 2024?

Cytokinetics granted 88,653 stock options and 57,558 restricted stock units (RSUs) to 30 new employees who joined in September 2024.

What is the exercise price of the stock options granted by Cytokinetics (CYTK) on September 30, 2024?

The stock options were granted with an exercise price of $52.80 per share, equal to the closing price of Cytokinetics' common stock on September 30, 2024.

How will the RSUs granted by Cytokinetics (CYTK) vest for new employees?

The RSUs will vest over 3 years, with 40% vesting after the first year, 40% after the second year, and the final 20% after the third year, subject to continued employment.

What is the vesting schedule for the stock options granted by Cytokinetics (CYTK) to new employees?

The stock options will vest over 4 years, with 1/4 vesting after the first year and the remaining shares vesting monthly at a rate of 1/48th over the subsequent 36 months, subject to continued employment.