Karyopharm Therapeutics Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Karyopharm Therapeutics Inc. (Nasdaq: KPTI) has granted stock options for 122,300 shares to 17 new employees, effective September 30, 2020. Each option has an exercise price of $14.60, equal to the stock's closing price on that date. The options will vest over four years, with 25% vesting on the one-year anniversary of employment. Additionally, options will be fully exercisable under certain conditions related to employment termination. Karyopharm is known for its novel cancer therapies and its lead compound, XPOVIO®, has received FDA approvals for multiple indications.

Positive

• Inducement grants of stock options may enhance employee retention and motivation.
• FDA approvals for XPOVIO® bolster Karyopharm's market position and revenue potential.

Negative

• Stock options granted may dilute existing shareholder equity.
• Reliance on a single product, XPOVIO®, increases financial risk if future sales underperform.

NEWTON, Mass., Oct. 1, 2020 /PRNewswire/ -- Karyopharm Therapeutics Inc. (Nasdaq: KPTI), a commercial-stage  pharmaceutical company pioneering novel cancer therapies, today announced that the Compensation Committee of Karyopharm's Board of Directors granted stock options to purchase an aggregate of 122,300 shares of Karyopharm's common stock to 17 newly-hired employees, with a grant date of September 30, 2020.  The stock options were granted as inducements material to the new employees entering into employment with Karyopharm in accordance with Nasdaq Listing Rule 5635(c)(4).

Each of the stock options has an exercise price of $14.60 per share, the closing price of Karyopharm's common stock on September 30, 2020. Each stock option vests over four years, with 25% of the total number of shares underlying the stock option vesting on the one-year anniversary of the applicable employee's employment commencement date and 1/48th of the total number of shares vesting monthly thereafter, subject to the employee's continued service as an employee of, or other service provider to, Karyopharm through the applicable vesting dates. In addition, each stock option will be immediately exercisable in full if, on or prior to the first anniversary of the consummation of a "change in control event," the employee's employment is terminated for "good reason" by the employee or terminated without "cause" by Karyopharm (as such terms are defined in the applicable stock option agreement).

About Karyopharm Therapeutics

Karyopharm Therapeutics Inc. (Nasdaq: KPTI) is a commercial-stage pharmaceutical company pioneering novel cancer therapies and dedicated to the discovery, development, and commercialization of novel first-in-class drugs directed against nuclear export and related targets for the treatment of cancer and other major diseases. Karyopharm's Selective Inhibitor of Nuclear Export (SINE) compounds function by binding with and inhibiting the nuclear export protein XPO1 (or CRM1). Karyopharm's lead compound, XPOVIO® (selinexor), received accelerated approval from the U.S. Food and Drug Administration (FDA) in July 2019 in combination with dexamethasone as a treatment for patients with heavily pretreated multiple myeloma. In June 2020, XPOVIO was approved by the FDA as a treatment for patients with relapsed or refractory diffuse large B-cell lymphoma. A Marketing Authorization Application for selinexor for patients with heavily pretreated multiple myeloma is also currently under review by the European Medicines Agency. In addition to single-agent and combination activity against a variety of human cancers, SINE compounds have also shown biological activity in models of neurodegeneration, inflammation, autoimmune disease, certain viruses and wound-healing. Karyopharm has several investigational programs in clinical or preclinical development. For more information, please visit www.karyopharm.com.

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SOURCE Karyopharm Therapeutics Inc.

FAQ

What is the significance of Karyopharm's stock options grant on October 1, 2020?

The grant of stock options is aimed at attracting and retaining new talent, which can support the company's growth.

What are the terms of the stock options granted by Karyopharm?

The options have an exercise price of $14.60 per share and vest over four years.

How does Karyopharm's FDA approval of XPOVIO® impact its stock?

FDA approvals enhance Karyopharm's credibility and marketability, potentially increasing stock value.

What potential risks are associated with Karyopharm's stock options grant?

The grant can dilute existing shareholder equity and poses risks if the company's performance relies heavily on XPOVIO®.