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

Rhea-AI Summary

Insmed Incorporated (Nasdaq: INSM) announced on December 4, 2020, the granting of inducement awards to seven new employees as part of NASDAQ Listing Rule 5635(c)(4). Each employee received options to purchase a total of 13,560 shares at an exercise price of $39.14, reflecting the closing price on December 1, 2020. The options have a ten-year term and a four-year vesting schedule, with 25% vesting after one year and 12.5% every six months thereafter, contingent on continued employment.

Positive

• Inducement awards granted to new employees may enhance talent acquisition.
• Options priced at $39.14 align with recent market value.

Negative

• None.

BRIDGEWATER, N.J., Dec. 4, 2020 /PRNewswire/ -- Insmed Incorporated (Nasdaq: INSM), a global biopharmaceutical company on a mission to transform the lives of patients with serious and rare diseases, today announced the granting of inducement awards to seven new employees. In accordance with NASDAQ Listing Rule 5635(c)(4), the awards were approved by Insmed's Compensation Committee and made as a material inducement to each employee's entry into employment with the Company.

In connection with the commencement of their employment, the employees received options on December 1, 2020 to purchase an aggregate 13,560 shares of Insmed common stock at an exercise price of $39.14 per share, the closing trading price on the Nasdaq Global Select Market on the date of grant.

The options have a ten-year term and a four-year vesting schedule, with 25% of the shares subject to the option vesting on the first anniversary of the relevant grant date and 12.5% of the shares subject to the option vesting every six months thereafter through the fourth anniversary of the relevant grant date, subject to the relevant employee's continued service with Insmed on the applicable vesting date.

About Insmed

Insmed Incorporated is a global biopharmaceutical company on a mission to transform the lives of patients with serious and rare diseases. Insmed's first commercial product is a first-in-disease therapy approved in the United States and the European Union to treat a chronic, debilitating lung disease. The Company is also progressing a robust pipeline of investigational therapies targeting areas of serious unmet need, including neutrophil-mediated inflammatory diseases and rare pulmonary disorders. Insmed is headquartered in Bridgewater, New Jersey, with a growing footprint across Europe and in Japan. For more information, visit www.insmed.com.

Contact:

Investors:

Argot Partners
Laura Perry or Heather Savelle
(212) 600-1902
insmed@argotpartners.com 

Media:

Mandy Fahey
Senior Director, Corporate Communications
Insmed
(732) 718-3621
amanda.fahey@insmed.com

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SOURCE Insmed Incorporated

FAQ

What is the significance of the inducement awards by Insmed on December 4, 2020?

Insmed granted inducement awards to seven new employees to attract talent, in line with NASDAQ regulations.

How many shares were awarded and what was their exercise price?

Insmed awarded options to purchase an aggregate of 13,560 shares at an exercise price of $39.14.

What is the vesting schedule for the options granted by Insmed?

The options have a four-year vesting schedule, with 25% vesting after one year and 12.5% every six months thereafter.

What does NASDAQ Listing Rule 5635(c)(4) entail?

This rule allows companies to grant inducement awards to new employees as part of their employment agreements.

What impact could the inducement awards have on Insmed's stock?

These awards may positively influence recruitment and retention, potentially enhancing company performance.