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

Rhea-AI Summary

Insmed Incorporated (Nasdaq: INSM) announced the granting of inducement awards to seven new employees to enhance recruitment efforts. On March 1, 2021, these employees received options to purchase 27,770 shares of common stock at $37.73 per share, based on the Nasdaq closing price. This follows a previous grant on February 5, 2021, where options for 65,980 shares were incorrectly reported and later corrected to 60,020 shares at an exercise price of $37.44. The awards align with NASDAQ Listing Rule 5635(c)(4).

Positive

• Attracts talent through inducement awards.
• Options granted at competitive market prices ($37.73 and $37.44).

Negative

• Correction of previously reported option grants may indicate internal discrepancies.
• No immediate financial metrics provided to assess overall impact.

BRIDGEWATER, N.J., March 5, 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 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 March 1, 2021 to purchase an aggregate 27,770 shares of Insmed common stock at an exercise price of $37.73 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.

On February 5, 2021, the Company reported the granting of options to purchase an aggregate of 65,980 shares of Insmed common stock at an exercise price of $37.44 per share, as inducement awards to 14 new employees. The aggregate number of shares of common stock underlying the options granted to the 14 employees and reported on such date was incorrectly reported and, as such, the number of shares of common stock underlying such options will be reduced to 60,020. These options will be exercisable at a price of $37.44 per share.   

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 Europe 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.barriser@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 recent inducement awards did Insmed grant to new employees?

Insmed granted options to purchase 27,770 shares at $37.73 per share to seven new employees as inducement awards.

What was the purpose of the inducement awards granted by Insmed?

The inducement awards were granted to enhance recruitment efforts under NASDAQ Listing Rule 5635(c)(4).

How many shares were incorrectly reported by Insmed in a previous award?

Insmed initially reported 65,980 shares but corrected the number to 60,020 shares.

When did Insmed grant the recent options to new employees?

The options were granted on March 1, 2021.

What was the exercise price for the recent share options granted by Insmed?

The exercise price for the recent share options was $37.73 per share.