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 15 new employees as a material inducement for their employment, as per NASDAQ Listing Rule 5635(c)(4). On March 1, 2022, the employees were granted options to purchase a total of 61,090 shares at an exercise price of $23.99 per share, reflecting the closing price on that date. The options have a 10-year term and a four-year vesting schedule, with 25% vesting on the first anniversary and subsequent vesting every six months.

Positive

• Inducement awards to 15 new employees highlight company growth.
• Employee stock options may attract talent and align interests with shareholders.
• Options granted at market price could reflect confidence in company valuation.

Negative

• Inducement awards may indicate high turnover, necessitating recruitment.

BRIDGEWATER, N.J., March 4, 2022 /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 15 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, 2022 to purchase an aggregate 61,090 shares of Insmed common stock at an exercise price of $23.99 per share, the closing trading price on the Nasdaq Global Select Market on the date of grant.

The options have a 10-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
Executive Director, Corporate Communications
Insmed
(732) 718-3621
amanda.fahey@insmed.com

 

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SOURCE Insmed Incorporated

FAQ

What are the inducement awards granted by Insmed?

Insmed granted inducement awards to 15 new employees as a material inducement for their employment, including options to purchase 61,090 shares at $23.99 each.

When were the options for Insmed's new employees granted?

The options were granted on March 1, 2022.

What is the vesting schedule for the stock options at Insmed?

The options have a four-year vesting schedule with 25% vesting on the first anniversary and 12.5% every six months thereafter.

Who approved the inducement awards at Insmed?

The awards were approved by Insmed's Compensation Committee.

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

This rule allows for the granting of stock options to new employees as incentives for their employment.