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

Rhea-AI Summary

Cytokinetics (CYTK) announced the grant of stock options for 90,000 shares to 9 new employees as an inducement for their employment, effective December 31, 2021. The options have an exercise price of $45.58 per share, matching the closing stock price on the grant date, and will vest over four years with a 10-year term. This move complies with the Nasdaq Listing Rule 5635(c)(4) and aligns with the company’s strategic focus on recruiting talent as it advances its muscle biology therapies, including the cardiac muscle activator omecamtiv mecarbil.

Positive

• Cytokinetics granted stock options to 9 new employees, indicating growth and talent acquisition.
• Stock options are priced at $45.58, reflecting current market value at the time of the grant.
• The company is advancing its drug candidates, which may enhance future profitability.

Negative

• None.

SOUTH SAN FRANCISCO, Calif., Jan. 10, 2022 (GLOBE NEWSWIRE) -- Cytokinetics, Incorporated (Nasdaq: CYTK) today announced that on December 31, 2021 it granted stock options to purchase an aggregate of 90,000 shares of common stock to 9 new employees, whose employment commenced in December 2021, as a material inducement to their employment.

The stock options that were granted are subject to an exercise price of $45.58 per share, which is equal to the closing price of the Company’s common stock on December 31, 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. 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 readying for the potential commercialization 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 results from Cohorts 1 and 2 in REDWOOD-HCM, a Phase 2 clinical trial of aficamten in patients with obstructive HCM. Cytokinetics is conducting start-up activities for SEQUOIA-HCM, the Phase 3 clinical trial of aficamten in patients with obstructive HCM. 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 amyotrophic lateral sclerosis (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.

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

Contact:
Cytokinetics
Joanna Siegall
Senior Manager, Corporate Communications, Investor Relations
(425) 314-1721

FAQ

What stock options did Cytokinetics grant in January 2022?

Cytokinetics granted stock options to purchase 90,000 shares to 9 new employees, with an exercise price of $45.58.

What is the vesting schedule for the stock options granted by Cytokinetics?

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

Why did Cytokinetics grant stock options to new employees?

The stock options were granted as a material inducement for employment in compliance with Nasdaq Listing Rule 5635(c)(4).

What is the significance of the exercise price for the stock options?

The exercise price of $45.58 per share reflects the closing price of Cytokinetics' stock on the grant date.

How does the stock option grant impact Cytokinetics' future?

The option grant aims to attract talent, potentially strengthening the company’s capabilities in drug development.