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

Rhea-AI Summary

Incyte (Nasdaq: INCY) announced the issuance of restricted stock unit (RSU) awards and stock options to 27 new employees under the 2024 Inducement Stock Incentive Plan. The total RSUs granted represent 14,577 shares, and stock options represent 18,149 shares of the company's common stock. The grants were approved by the compensation committee and set to begin vesting on July 1, 2024. Each RSU will vest 25% annually over four years, contingent on continued employment. The stock options have a $60.87 exercise price, with a ten-year term, and will vest 25% after one year, with the remaining 75% vesting monthly over the next three years.

Positive

• Granted RSUs and stock options signal confidence in attracting and retaining talent.
• Stock options set at $60.87 per share, aligning with the current stock price, showing transparent and fair valuation.

Negative

• Potential shareholder dilution due to issuance of new shares.
• Future financial liabilities due to the vesting of RSUs and exercise of stock options.

WILMINGTON, Del.--(BUSINESS WIRE)-- Incyte (Nasdaq:INCY) today announced that it granted restricted stock unit awards (RSUs) representing an aggregate of 14,577 shares of the Company’s common stock and stock option awards to purchase an aggregate of 18,149 shares of the Company’s common stock to 27 new employees. The awards were made under the Company’s 2024 Inducement Stock Incentive Plan, with a grant date and vesting commencement date of July 1, 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 $60.87 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 is the significance of the RSU and stock option grants by Incyte (INCY)?

The grants are aimed at attracting and retaining new talent, with the RSUs and stock options scheduled to begin vesting on July 1, 2024.

How many RSUs and stock options did Incyte award?

Incyte awarded RSUs representing 14,577 shares and stock options representing 18,149 shares of common stock.

What is the vesting schedule for the RSUs granted by Incyte (INCY)?

The RSUs vest 25% annually over four years from the vesting commencement date of July 1, 2024, subject to continued employment.

At what price are the Incyte stock options exercisable?

The stock options are exercisable at $60.87 per share, the closing price on the grant date.

What is the term and vesting schedule for the stock options issued by Incyte (INCY)?

The stock options have a ten-year term and vest 25% after one year, with the remaining 75% vesting in 36 equal monthly installments.