Fulcrum Therapeutics Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Fulcrum Therapeutics, Inc. (Nasdaq: FULC) announced the grant of non-statutory stock options to new employees as an inducement for their employment. Under the 2022 Inducement Stock Incentive Plan, the company allocated options for a total of 29,100 shares at an exercise price of $2.77 each, reflecting the closing price on the effective date of April 3, 2023. These options have a ten-year term and will vest over four years, with 25% vesting on the first anniversary and the remainder vesting quarterly thereafter, contingent upon continued service. Fulcrum Therapeutics specializes in addressing genetically defined rare diseases, with notable clinical programs including losmapimod for facioscapulohumeral muscular dystrophy and FTX-6058 for sickle cell disease, although the latter is currently under FDA clinical hold.

Positive

• Grant of stock options may attract and retain talent, potentially enhancing team capabilities.
• Focused on addressing high unmet medical needs in genetically defined rare diseases, positioning the company strategically within a niche market.

Negative

• The clinical hold on FTX-6058 by the FDA raises concerns regarding the progress and viability of this treatment program.
• Limited number of shares granted (29,100) may not significantly impact employee motivation or long-term performance.

CAMBRIDGE, Mass., April 07, 2023 (GLOBE NEWSWIRE) -- Fulcrum Therapeutics, Inc.® (Nasdaq: FULC), a clinical-stage biopharmaceutical company focused on improving the lives of patients with genetically defined rare diseases, today announced that the Company granted non-statutory stock options to new employees.

Fulcrum granted stock options to purchase shares of the Company’s common stock, pursuant to the Company’s 2022 Inducement Stock Incentive Plan, each as an inducement material to the new employees entering into employment with the Fulcrum Therapeutics in accordance with Nasdaq Listing Rule 5635(c)(4).

Fulcrum granted options to purchase an aggregate of 29,100 shares of the Company’s common stock to three employees at an exercise price of $2.77 per share, the closing price per share of the Company’s common stock as reported by Nasdaq on the grants’ effective date, April 3, 2023. Each option has a ten-year term and vests over four years, with 25% of the original number of shares vesting on the first anniversary of the applicable employee’s start date and an additional 6.25% of the shares vesting in equal quarterly installments over the twelve successive quarters following the first anniversary, subject to such employee’s continued service with the Company through the applicable vesting dates.

About Fulcrum Therapeutics

Fulcrum Therapeutics is a clinical-stage biopharmaceutical company focused on improving the lives of patients with genetically defined rare diseases in areas of high unmet medical need. Fulcrum’s two lead programs in clinical development are losmapimod, a small molecule which is currently being evaluated for the treatment of facioscapulohumeral muscular dystrophy (FSHD) in the Phase 3 REACH clinical trial, and FTX-6058, a small molecule designed to increase expression of fetal hemoglobin for the treatment of sickle cell disease and other hemoglobinopathies, which is currently under a clinical hold issued by the U.S. Food and Drug Administration (FDA). The company’s proprietary product engine, FulcrumSeek™, identifies drug targets that can modulate gene expression to treat the known root cause of gene mis-expression.

Contact:

Dee Smith
Executive Director, Corporate Communications
Fulcrum Therapeutics, Inc.
(202) 746-1324

FAQ

What stock options were granted by Fulcrum Therapeutics?

Fulcrum Therapeutics granted non-statutory stock options to purchase an aggregate of 29,100 shares at an exercise price of $2.77 each.

When were the stock options granted by Fulcrum Therapeutics?

The stock options were granted on April 3, 2023.

What is the vesting schedule for the stock options granted by Fulcrum Therapeutics?

The options vest over four years, with 25% vesting after the first year and the remaining 75% vesting quarterly thereafter.

What are the lead programs in clinical development at Fulcrum Therapeutics?

Fulcrum's lead programs include losmapimod for facioscapulohumeral muscular dystrophy and FTX-6058 for sickle cell disease.

Is there any regulatory issue with any of Fulcrum's drug candidates?

Yes, FTX-6058 is currently under a clinical hold issued by the FDA.