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

Rhea-AI Summary

On September 3, 2021, Insmed announced the granting of inducement awards to 18 new employees under NASDAQ Listing Rule 5635(c)(4). Each employee received options to purchase a total of 394,730 shares at an exercise price of $29.13 per share, matching the closing price on September 1, 2021. The options come with a ten-year term and a four-year vesting schedule, with 25% vesting after the first year. Insmed focuses on treating serious and rare diseases with a robust therapy pipeline alongside its first-in-disease product approved in multiple regions.

Positive

• Attracting talent through stock options can enhance company performance.
• The options granted align employee interests with shareholder value.

Negative

• None.

BRIDGEWATER, N.J., Sept. 3, 2021 /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 18 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 September 1, 2021 to purchase an aggregate 394,730 shares of Insmed common stock at an exercise price of $29.13 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, Europe, and Japan 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:

Eleanor Barisser
Associate Director, Investor Relations
Insmed
(718) 594-5332
eleanor.barisser@insmed.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 details of the inducement awards granted by Insmed on September 3, 2021?

Insmed granted inducement awards to 18 new employees, totaling 394,730 stock options at an exercise price of $29.13, with a four-year vesting schedule.

How does the vesting schedule for Insmed's stock options work?

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

What is the purpose of the inducement awards given to new employees at Insmed?

The awards serve as a material inducement for new hires, aligning their interests with the company's performance.

What is the significance of NASDAQ Listing Rule 5635(c)(4) in relation to Insmed's press release?

This rule allows companies to grant inducement awards to attract talent without shareholder approval, enhancing recruitment efforts.

How does Insmed's stock option program impact its investors?

The stock option program can potentially align employee incentives with shareholder value, supporting company growth.