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

Rhea-AI Summary

Incyte (Nasdaq: INCY) announced the grant of restricted stock unit awards (RSUs) and stock options to 17 new employees under its 2024 Inducement Stock Incentive Plan. The awards include 14,090 RSUs and options to purchase 9,238 shares, with a grant date and vesting commencement date of June 3, 2024. Each RSU vests 25% annually over four years, while the stock options have an exercise price of $58.80 per share, a ten-year term, and vest 25% after one year with the remainder vesting in 36 equal monthly installments. These inducements were approved by Incyte's compensation committee under Nasdaq Listing Rule 5635(c)(4).

Positive

• Incyte granted 14,090 RSUs and stock options for 9,238 shares to 17 new employees, indicating potential growth and talent acquisition.
• The stock options have a long ten-year term, suggesting a commitment to retaining talent for the long term.
• The exercise price of $58.80 per share aligns with the current market value, ensuring fair compensation.

Negative

• The vesting schedule's dependency on continued service may lead to potential turnover risks.
• The issuance of new shares could result in shareholder dilution, affecting stock value.
• The compensation relies heavily on future stock performance, which can be volatile.

WILMINGTON, Del.--(BUSINESS WIRE)-- Incyte (Nasdaq:INCY) today announced that it granted restricted stock unit awards (RSUs) representing an aggregate of 14,090 shares of the Company’s common stock and stock option awards to purchase an aggregate of 9,238 shares of the Company’s common stock to 17 new employees. The awards were made under the Company’s 2024 Inducement Stock Incentive Plan, with a grant date and vesting commencement date of June 3, 2024, and were approved by the compensation committee of the Company’s board of directors as an inducement material to the new employees entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).

Each RSU vests as to 25% of the shares subject to the RSU on each of the first four anniversaries of the vesting commencement date, subject to the employee's continued service with the Company on each such date. The stock options have an exercise price of $58.80 per share, which is equal to the closing price of the Company’s common stock on the grant date. Each stock option has a ten-year term and vests as to 25% of the original number of shares subject to the stock option on the one-year anniversary of the vesting commencement date with the remainder vesting in 36 successive equal monthly installments, subject to the employee’s continued service with the Company on each such date.

About Incyte

A global biopharmaceutical company on a mission to Solve On., Incyte follows the science to find solutions for patients with unmet medical needs. Through the discovery, development and commercialization of proprietary therapeutics, Incyte has established a portfolio of first-in-class medicines for patients and a strong pipeline of products in Oncology and Inflammation & Autoimmunity. Headquartered in Wilmington, Delaware, Incyte has operations in North America, Europe and Asia.

For additional information on Incyte, please visit Incyte.com or follow us on social media: LinkedIn, X, Instagram, Facebook, YouTube.

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Media

media@incyte.com

Investors

ir@incyte.com

Source: Incyte

FAQ

What are the details of Incyte's new stock awards under Nasdaq Rule 5635(c)(4)?

Incyte granted 14,090 RSUs and options to purchase 9,238 shares to 17 new employees under its 2024 Inducement Stock Incentive Plan, with a grant date of June 3, 2024.

When do Incyte's new stock awards begin vesting?

The RSUs and stock options start vesting on June 3, 2024, with RSUs vesting 25% annually over four years, and stock options vesting 25% after one year and the remainder in 36 equal monthly installments.

What is the exercise price of Incyte's new stock options?

The exercise price of Incyte's new stock options is $58.80 per share, matching the closing price on the grant date.

How long is the term for Incyte's new stock options?

Incyte's new stock options have a ten-year term.

What is Incyte's plan for retaining new employees?

Incyte's new stock awards under the 2024 Inducement Stock Incentive Plan are designed to retain new employees by providing long-term vesting incentives.