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

Rhea-AI Summary

Cytokinetics announced the granting of stock options for 163,700 shares to three new employees as an inducement for their employment. This includes 150,000 shares to the new chief commercial officer, Andrew Callos. The options were granted at an exercise price of $23.26, the closing price on March 31, 2021. Vesting will occur over four years, starting with 1/4 of the shares after one year. The options are part of the company's 2004 Equity Incentive Plan and comply with Nasdaq Listing Rule 5635(c)(4).

Positive

• Grant of stock options to attract key talent, including 150,000 shares for new chief commercial officer.
• Stock options align employee incentives with company performance.

Negative

• None.

SOUTH SAN FRANCISCO, Calif., April 01, 2021 (GLOBE NEWSWIRE) -- Cytokinetics, Incorporated (Nasdaq: CYTK) today announced that on March 31, 2021 it granted stock options to purchase an aggregate of 163,700 shares of common stock to three new employees, whose employment commenced in March 2021, as a material inducement to their employment. These grants include the grant of stock options to purchase 150,000 shares of common stock to the Company’s new chief commercial officer, Andrew Callos. The grant was previously approved by the Compensation and Talent Committee of Cytokinetics’ Board of Directors under the company’s Amended and Restated 2004 Equity Incentive Plan.

The stock options that were granted, including the stock options granted to Mr. Callos, are subject to an exercise price of $23.26 per share, which is equal to the closing price of the Company’s common stock on March 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 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 for regulatory interactions for 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 CK-274, a next-generation cardiac myosin inhibitor, for the potential treatment of hypertrophic cardiomyopathies (HCM). Cytokinetics is conducting REDWOOD-HCM, a Phase 2 clinical trial of CK-274 in patients with obstructive HCM. Cytokinetics is also developing reldesemtiv, a fast skeletal muscle troponin activator for the potential treatment of ALS and other neuromuscular indications following conduct of FORTITUDE-ALS and other Phase 2 clinical trials. The company is preparing for the potential advancement of reldesemtiv to a Phase 3 clinical trial in 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. 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:
Cytokinetics
Diane Weiser
Senior Vice President, Corporate Communications, Investor Relations
(415) 290-7757

FAQ

What recent stock option grants occurred for CYTK?

Cytokinetics granted stock options for 163,700 shares to three new employees, including 150,000 shares to chief commercial officer Andrew Callos.

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

The exercise price for the stock options is $23.26 per share, equal to the closing stock price on March 31, 2021.

What is the vesting schedule for the stock options at CYTK?

The stock options will vest over four years, with 1/4 vesting after one year and the remainder vesting monthly over the next 36 months.

Which Nasdaq rule applies to the stock option grants by CYTK?

The grants comply with Nasdaq Listing Rule 5635(c)(4), which allows for inducement grants.