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

Rhea-AI Summary

Chinook Therapeutics, Inc. (Nasdaq: KDNY) announced the approval of inducement grants for new employees, including stock options for 85,500 shares and restricted stock units for 44,580 shares, with an exercise price of $23.15, equivalent to the closing price on March 31, 2023. These grants are part of the 2022 Equity Inducement Plan and serve as a significant incentive for 16 new hires. The stock options will vest over four years and are subject to employment conditions, while the restricted stock units will vest annually over three years. This move aligns with Nasdaq listing Rule 5635(c)(4) and reflects Chinook's commitment to attract talent as it develops precision medicines for kidney diseases, including lead candidates in various clinical trials.

Positive

• Inducement grants for 16 new employees reflect growth and talent acquisition strategy.
• Stock options and restricted stock units align employee interests with company performance.
• Chinook's commitment to precision medicine development positions it well in a niche market.

Negative

• No immediate financial metrics or business developments related to revenue growth were provided.

SEATTLE, April 07, 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 85,500 shares of common stock and restricted stock units for 44,580 shares with a grant date of March 31, 2023 (the “Inducement Grants”) for sixteen new employees pursuant to the Company’s 2022 Equity Inducement Plan.

The Inducement Grants have an exercise price per share equal to $23.15, the closing price per share of Chinook’s common stock on March 31, 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 were the employment inducement grants approved by Chinook Therapeutics on April 7, 2023?

Chinook Therapeutics approved stock options for 85,500 shares and restricted stock units for 44,580 shares as inducement grants for 16 new employees.

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

The exercise price for the stock options is $23.15, which is the closing price on March 31, 2023.

How long do the stock options and restricted stock units vest?

The stock options vest over four years, while the restricted stock units vest annually over three years.

How does the inducement grant align with Nasdaq regulations?

The inducement grants comply with Nasdaq listing Rule 5635(c)(4) as a material inducement for new employees.

What is Chinook Therapeutics focused on developing?

Chinook Therapeutics focuses on precision medicines for kidney diseases, with several product candidates under investigation.