EyePoint Pharmaceuticals Reports Inducement Grants Under NASDAQ Listing Rule 5635(c)(4)

Rhea-AI Summary

EyePoint Pharmaceuticals (NASDAQ: EYPT) announced the issuance of non-statutory stock options to five new employees as inducement awards under NASDAQ Listing Rule 5635(c)(4).

The grants, approved by the Compensation Committee, were made outside the 2023 Long-Term Incentive Plan.

A total of 25,000 shares of common stock were granted, with an exercise price of $9.38 per share, the closing price on June 14, 2024, the date of the grant.

The options vest over four years, with 25% vesting on the first anniversary of the grant date, and the remainder vesting monthly over the next three years, contingent on continued employment.

Positive

• Stock options granted to new employees as inducement awards, potentially improving employee retention.
• Grants approved by the Compensation Committee, ensuring formal oversight.
• Exercise price set at the closing price on the date of grant, aligning employee and shareholder interests.
• Vesting schedule designed to incentivize continued service, potentially enhancing company stability.

Negative

• Inducement grants could lead to potential shareholder dilution over time.
• Dependency on continued employment for vesting may not fully guarantee long-term retention.
• The issuance of options outside the Long-Term Incentive Plan may raise concerns about equity management practices.

WATERTOWN, Mass., June 17, 2024 (GLOBE NEWSWIRE) -- EyePoint Pharmaceuticals, Inc. (NASDAQ: EYPT), a company committed to developing and commercializing therapeutics to help improve the lives of patients with serious retinal diseases, today announced that the Company granted non-statutory stock options to new employees as inducement awards outside the Company’s 2023 Long-Term Incentive Plan in accordance with NASDAQ Listing Rule 5635(c)(4).

The Company granted stock options to purchase up to an aggregate of 25,000 shares of EyePoint Pharmaceuticals common stock to five new employees. The stock options were granted on June 14, 2024. The grants were approved by the Compensation Committee and made as an inducement material to each employee entering into employment with EyePoint Pharmaceuticals in accordance with NASDAQ Listing Rule 5635(c)(4). The option awards have an exercise price of $9.38 per share, the closing price of EyePoint Pharmaceuticals’ common stock on June 14, 2024. The options have a ten-year term and vest over four years, with 25% of the original number of shares vesting on the first anniversary of the applicable employee’s date of grant and the remainder vesting in equal monthly installments over the following three years. Vesting of the options is subject to the employee’s continued service with EyePoint Pharmaceuticals through the applicable vesting dates.

About EyePoint Pharmaceuticals

EyePoint Pharmaceuticals (Nasdaq: EYPT) is a clinical-stage biopharmaceutical company committed to developing and commercializing therapeutics to help improve the lives of patients with serious retinal diseases. The Company's pipeline leverages its proprietary bioerodible Durasert E™ technology for sustained intraocular drug delivery. The Company’s lead product candidate, DURAVYU (previously known as EYP-1901), is an investigational sustained delivery treatment for VEGF-mediated retinal diseases combining vorolanib, a selective and patent-protected tyrosine kinase inhibitor with Durasert E™. Pipeline programs include EYP-2301, a promising TIE-2 agonist, razuprotafib, formulated in Durasert E™ to potentially improve outcomes in serious retinal diseases. The proven Durasert^® drug delivery technology has been safely administered to thousands of patient eyes across four U.S. FDA approved products. EyePoint Pharmaceuticals is headquartered in Watertown, Massachusetts.

Vorolanib is licensed to EyePoint exclusively by Equinox Sciences, a Betta Pharmaceuticals affiliate, for the localized treatment of all ophthalmic diseases outside of China, Macao, Hong Kong and Taiwan.

DURAVYU™ has been conditionally accepted by the FDA as the proprietary name for EYP-1901. DURAVYU is an investigational product; it has not been approved by the FDA. FDA approval and the timeline for potential approval is uncertain.

For EyePoint Pharmaceuticals:

Investors:
Christina Tartaglia
Precision AQ (formerly Stern IR)
Direct: 212-698-8700
christina.tartaglia@sternir.com

Media Contact:
Amy Phillips
Green Room Communications
Direct: 412-327-9499
aphillips@greenroompr.com

FAQ

What is the exercise price for the stock options granted by EyePoint Pharmaceuticals on June 14, 2024?

The exercise price for the stock options granted by EyePoint Pharmaceuticals on June 14, 2024, is $9.38 per share.

How many shares were granted as stock options by EyePoint Pharmaceuticals in June 2024?

EyePoint Pharmaceuticals granted stock options for up to 25,000 shares in June 2024.

When do the newly granted stock options by EyePoint Pharmaceuticals vest?

The stock options vest over four years, with 25% vesting on the first anniversary of the grant date, and the remainder vesting in equal monthly installments over the next three years.

Under which NASDAQ Listing Rule were the stock options granted by EyePoint Pharmaceuticals?

The stock options were granted under NASDAQ Listing Rule 5635(c)(4).

What is the term length of the stock options granted by EyePoint Pharmaceuticals on June 14, 2024?

The stock options granted have a ten-year term.