Chinook Therapeutics Announces New Employment Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Chinook Therapeutics (Nasdaq: KDNY) announced the approval of employment inducement grants totaling 202,290 stock options and 61,145 restricted stock units for nine new hires, including significant grants for Chief Commercial Officer Andrew Oxtoby. The options have an exercise price of $21.82, aligning with the closing stock price on February 28, 2023. Vesting occurs over four years for options and three years for restricted units, contingent on ongoing employment. This initiative aligns with Nasdaq Rule 5635(c)(4) and aims to attract top talent to advance Chinook's precision medicines targeting rare kidney diseases.

Positive

• Approval of employment inducement grants for nine new hires indicates company growth potential.
• Significant stock options and restricted stock units granted to Chief Commercial Officer highlight commitment to leadership.

Negative

• None.

SEATTLE, March 03, 2023 (GLOBE NEWSWIRE) -- Chinook Therapeutics, Inc. (Nasdaq: KDNY), a biopharmaceutical company focused on the discovery, development and commercialization of precision medicines for kidney diseases, today announced that the Compensation Committee of the Company’s Board of Directors approved new employment inducement grants of stock options to purchase a total of 202,290 shares of common stock and restricted stock units for 61,145 shares with a grant date of January 31, 2023 (the “Inducement Grants”) for nine new employees, including a grant of options to purchase 160,000 shares of common stock and 40,000 restricted stock units to our Chief Commercial Officer, Andrew Oxtoby, pursuant to the Company’s 2022 Equity Inducement Plan.

The Inducement Grants have an exercise price per share equal to $21.82, the closing price per share of Chinook’s common stock on February 28, 2023. The stock options vest over four years, with 25% vesting on the one year anniversary of each employee’s start date and 1/36^th of the shares vesting monthly thereafter, subject to each employee’s continued employment on each such date. The stock options have a 10-year term and are subject to the terms and conditions of the stock option agreement. The restricted stock units vest annually over three years beginning on the anniversary of the grant date for such awards.

The Company granted the stock options and restricted stock units as a material inducement to these employees for entering into employment with Chinook Therapeutics, Inc. in accordance with Nasdaq listing Rule 5635(c)(4).

About Chinook Therapeutics, Inc.
Chinook Therapeutics, Inc. is a clinical-stage biopharmaceutical company developing precision medicines for kidney diseases. Chinook’s product candidates are being investigated in rare, severe chronic kidney disorders with opportunities for well-defined clinical pathways. Chinook’s lead program is atrasentan, a phase 3 endothelin receptor antagonist for the treatment of IgA nephropathy and proteinuric glomerular diseases. BION-1301, an anti-APRIL monoclonal antibody, is being evaluated in a phase 1/2 trial for IgA nephropathy. CHK-336, an oral small molecule LDHA inhibitor for the treatment of hyperoxalurias, is being evaluated in a phase 1 clinical trial in healthy volunteers. In addition, Chinook’s research and discovery efforts are focused on building a pipeline of precision medicines for rare, severe chronic kidney diseases with defined genetic and molecular drivers. Chinook is leveraging insights from kidney single cell RNA sequencing and large CKD patient cohorts that have been comprehensively panomically phenotyped, with retained biosamples and prospective clinical follow-up, to discover and develop therapeutic candidates with mechanisms of action targeted against key kidney disease pathways. To learn more, visit www.chinooktx.com.

FAQ

What are the new employment inducement grants announced by Chinook Therapeutics (KDNY)?

Chinook announced inducement grants of 202,290 stock options and 61,145 restricted stock units for nine new employees.

What is the exercise price for the stock options granted by Chinook Therapeutics?

The exercise price for the stock options is $21.82, based on the closing price of shares on February 28, 2023.

How long do the stock options granted by Chinook Therapeutics vest?

The stock options vest over four years, with 25% vesting on the one-year anniversary of employment and the remainder vesting monthly.

What is the significance of the employment inducement grants for Chinook Therapeutics?

The grants are designed to attract talent as part of the strategy to advance Chinook's precision medicines for kidney diseases.