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

Rhea-AI Summary

Cytokinetics (Nasdaq: CYTK) announced inducement grants to new employees on August 30, 2024. The grants include:

1. For Brett Pletcher, Executive VP and Chief Legal Officer:
- 51,039 stock options
- 33,140 restricted stock units (RSUs)
- 14,603 performance stock units (PSUs)

2. For 18 additional employees:
- 59,429 stock options
- 38,586 RSUs

The stock options have an exercise price of $57.08 per share. RSUs vest over 3 years, while stock options vest over 4 years. PSUs are subject to performance goals. These grants were made as material inducements to employment in accordance with Nasdaq Listing Rule 5635(c)(4).

Positive

• Cytokinetics is attracting and retaining top talent with competitive equity compensation packages
• The company is expanding its workforce, potentially indicating growth
• The use of performance-based stock units (PSUs) aligns executive compensation with company performance

Negative

• The issuance of new equity grants may lead to dilution for existing shareholders

SOUTH SAN FRANCISCO, Calif., Sept. 04, 2024 (GLOBE NEWSWIRE) -- Cytokinetics, Incorporated (Nasdaq: CYTK) today announced that on August 30, 2024 it granted stock options to purchase an aggregate of 51,039 shares of common stock, 33,140 restricted stock units (RSUs) that will be settled in shares of common stock upon vesting and 14,603 performance stock units (PSUs) that, if earned, will be settled in shares of common stock upon vesting to Brett Pletcher, the Company’s Executive Vice President, Chief Legal Officer, whose employment commenced on August 19, 2024, as a material inducement to his employment.

The Company also granted stock options to purchase an aggregate of 59,429 shares of common stock and 38,586 RSUs that will be settled in shares of common stock upon vesting to an additional 18 employees, whose employment commenced in August 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 $57.08 per share, which is equal to the closing price of the Company’s common stock on August 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. The PSU award is subject to two performance goals and will be earned as to up to 50% of the number of shares subject to the PSU award upon the certification by Compensation and Talent Committee of the Company’s Board of Directors (Committee) that the Company has achieved the first performance goal and as to up to 50% of the number of shares subject to the PSU award upon the certification by the Committee that the Company has achieved the second performance goal. The earned shares will vest as to 50% of the earned shares on applicable Committee certification date and as to 50% of the earned shares following the one-year anniversary of the applicable Committee certification date, subject to the respective employee’s continued service with the Company. 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, RSUs and PSUs 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

What type of inducement grants did Cytokinetics (CYTK) announce on August 30, 2024?

Cytokinetics announced stock options, restricted stock units (RSUs), and performance stock units (PSUs) as inducement grants to new employees.

How many stock options and RSUs were granted to Brett Pletcher by Cytokinetics (CYTK)?

Brett Pletcher was granted 51,039 stock options and 33,140 restricted stock units (RSUs) by Cytokinetics.

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

The stock options granted by Cytokinetics on August 30, 2024, have an exercise price of $57.08 per share.

How do the RSUs granted by Cytokinetics (CYTK) vest?

The RSUs granted by Cytokinetics vest over 3 years, with 40% vesting on the first anniversary, 40% on the second anniversary, and 20% on the third anniversary of the grant date.