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

Rhea-AI Summary

Chinook Therapeutics (Nasdaq: KDNY) announced an employment inducement grant of stock options for 150,000 shares to a new hire. The options have an exercise price of $12.90, equivalent to the stock's closing price on January 31, 2022. Vesting occurs over four years, with 25% on the start date and the remainder monthly. This grant adheres to Nasdaq's listing Rule 5635(c)(4). Chinook specializes in precision medicines for kidney diseases, with its lead program, atrasentan, currently in Phase 3 trials for IgA nephropathy.

Positive

• Inducement grant of stock options for 150,000 shares could attract skilled talent.
• Exercise price linked to the recent stock closing price indicates a fair valuation.

Negative

• None.

SEATTLE, Feb. 04, 2022 (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 a new employment inducement grant of stock options to purchase 150,000 shares of common stock with a grant date of January 31, 2022 (the “Inducement Grant”) to one new employee.

The stock options approved under the Inducement Grant were issued on terms substantially similar to Chinook’s 2015 Equity Incentive Plan and have an exercise price per share equal to $12.90, the closing price per share of Chinook’s common stock on the grant date. The stock options vest over four years, with 25% vesting on the employee’s start date and 1/36^th of the remaining shares vesting monthly thereafter, subject to the 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 Company granted the stock options as a material inducement to this employee 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 other proteinuric glomerular diseases. BION-1301, an anti-APRIL monoclonal antibody is being evaluated in a phase 1/2 trial for IgA nephropathy. In addition, Chinook is advancing CHK-336, an oral small molecule LDHA inhibitor for the treatment of primary hyperoxaluria, as well as research programs for other rare, severe chronic kidney diseases. Chinook is building its pipeline by leveraging insights in kidney single cell RNA sequencing, human-derived organoids and new translational models, to discover and develop therapeutics with differentiating mechanisms of action against key kidney disease pathways. To learn more, visit www.chinooktx.com.

FAQ

What is the stock symbol for Chinook Therapeutics?

The stock symbol for Chinook Therapeutics is KDNY.

What was the exercise price of the stock options granted to the new employee?

The exercise price of the stock options was $12.90.

What are the vesting terms of the stock options for the new hire?

The stock options vest over four years, with 25% vesting on the start date and the remaining shares vesting monthly.

What does Chinook Therapeutics focus on?

Chinook Therapeutics focuses on developing precision medicines for kidney diseases.