Kala Pharmaceuticals Reports Inducement Grant Under NASDAQ Listing Rule 5635(c)(4)

Rhea-AI Summary

Kala Pharmaceuticals (NASDAQ:KALA) announced the grant of non-statutory stock options to two new employees as inducement awards outside its 2017 Equity Incentive Plan, in compliance with NASDAQ Listing Rule 5635(c)(4). A total of 50,000 shares were granted on June 15, 2022, at an exercise price of $0.39 per share. The options have a ten-year term and vest over four years. The company is focused on innovative therapies for eye diseases and is expected to finalize the sale of its commercial portfolio to Alcon Inc. in Q3 2022, pending regulatory approvals.

Positive

• Grant of 50,000 stock options to new employees supports talent acquisition.
• The stock options have a long vesting period of four years, aligning employee interests with company performance.
• The pending sale of the commercial portfolio to Alcon Inc. indicates strategic realignment and potential for future investment in development programs.

Negative

• Exercise price of stock options at $0.39 may suggest lower market confidence.
• -

ARLINGTON, Mass., June 17, 2022 (GLOBE NEWSWIRE) -- Kala Pharmaceuticals, Inc. (NASDAQ:KALA), today announced that the Company granted non-statutory stock options to new employees as inducement awards outside the Company’s 2017 Equity Incentive Plan in accordance with NASDAQ Listing Rule 5635(c)(4).

The Company granted stock options to purchase up to an aggregate of 50,000 shares of Kala Pharmaceuticals common stock to two new employees. The stock options were granted on June 15, 2022. The grants were approved by the Compensation Committee and were made as an inducement material to each employee entering into employment with Kala Pharmaceuticals in accordance with NASDAQ Listing Rule 5635(c)(4). The option awards have an exercise price of $0.39 per share, the closing price of Kala Pharmaceuticals’ common stock on June 15, 2022. The options have a ten-year term and vest over four years, with 25% of the original number of shares vesting on the first anniversary of the applicable employee’s new hire date and the remainder vesting in equal monthly installments over the following three years. Vesting of each option is subject to such employee’s continued service with Kala Pharmaceuticals through the applicable vesting dates.

About Kala Pharmaceuticals
Kala is a commercial-stage biopharmaceutical company focused on the discovery, development, and commercialization of innovative therapies for diseases of the eye. Kala has applied its AMPPLIFY^® mucus-penetrating particle (MPP) Drug Delivery Technology to two ocular therapies, EYSUVIS^® (loteprednol etabonate ophthalmic suspension) 0.25% and INVELTYS^® (loteprednol etabonate ophthalmic suspension) 1%. On May 23, 2022, the Company announced that it entered into a definitive agreement to sell its commercial portfolio and related intellectual property assets to Alcon Inc. The Company anticipates the transaction will close in the third quarter of 2022, subject to certain conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. The Company also has a pipeline of development programs including a clinical-stage secretome product candidate, KPI-012, initially targeting persistent corneal epithelial defects (PCED) and multiple proprietary new chemical entity (NCE) preclinical development programs targeted to address unmet medical needs, including both front and back of the eye diseases. For more information on Kala, please visit www.kalarx.com.

Investor Contacts:
Jill Steier
jill.steier@kalarx.com
781-810-4086

Hannah Deresiewicz
hannah.deresiewicz@sternir.com
212-362-1200

FAQ

What recent stock option grants did Kala Pharmaceuticals announce?

Kala Pharmaceuticals granted 50,000 non-statutory stock options to two new employees on June 15, 2022.

What is the exercise price of the stock options granted by Kala Pharmaceuticals?

The exercise price of the stock options is $0.39 per share.

What is the significance of the stock options granted by Kala Pharmaceuticals?

These options serve as inducement awards to attract new talent and align their interests with the company's performance.

What strategic move is Kala Pharmaceuticals planning regarding its commercial portfolio?

Kala Pharmaceuticals plans to sell its commercial portfolio and related intellectual property assets to Alcon Inc., expected to close in Q3 2022.

How do the stock options vest for Kala Pharmaceuticals' new employees?

The options vest over four years, with 25% vesting on the first anniversary of the hire date and the remainder vesting monthly thereafter.