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

Rhea-AI Summary

Insmed Incorporated (Nasdaq: INSM) has granted inducement awards to 11 new employees, in compliance with NASDAQ Listing Rule 5635(c)(4). These awards, approved by the Compensation Committee, consist of options to purchase a total of 76,960 shares of Insmed common stock at an exercise price of $27.15 per share, based on the closing price on August 3, 2020. The options are valid for a ten-year term and will vest over four years, promoting employee retention and commitment to the company.

Positive

• Inducement grants may enhance employee retention and commitment.
• The option exercise price of $27.15 aligns with the market value, indicating fair compensation.

Negative

• None.

BRIDGEWATER, N.J., Aug. 7, 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 11 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 August 3, 2020 to purchase an aggregate 76,960 shares of Insmed common stock at an exercise price of $27.15 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, ARIKAYCE® (amikacin liposome inhalation suspension), is the first and only therapy approved in the United States for the treatment of refractory Mycobacterium avium complex (MAC) lung disease as part of a combination antibacterial drug regimen for adult patients with limited or no alternative treatment options. MAC lung disease is a chronic, debilitating condition that can cause severe and permanent lung damage. Insmed is also advancing brensocatib, a novel oral reversible inhibitor of dipeptidyl peptidase 1 with therapeutic potential in bronchiectasis and other inflammatory diseases, and treprostinil palmitil, an inhaled formulation of a treprostinil prodrug that may offer a differentiated product profile for rare pulmonary disorders, including pulmonary arterial hypertension. 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 are the inducement awards announced by Insmed on August 7, 2020?

Insmed announced inducement awards to 11 new employees, including options to purchase 76,960 shares at $27.15 each.

How long do the stock options granted by Insmed last?

The stock options have a ten-year term.

What is the vesting schedule for the stock options awarded to Insmed employees?

The options vest over four years, with 25% vesting after the first year and 12.5% every six months thereafter.

What regulatory rule did Insmed comply with for the inducement awards?

Insmed complied with NASDAQ Listing Rule 5635(c)(4) for the inducement awards.