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

Rhea-AI Summary

Karyopharm Therapeutics (Nasdaq: KPTI) announced that it granted stock options to newly hired employees, including 125,000 shares to Ms. Sohanya Cheng, Senior VP, Sales and Commercial Operations, as an inducement for joining the company. The options have an exercise price of $10.32 per share, matching the closing price on June 30, 2021. Options vest over four years and may vest earlier upon termination without cause or a change in control event. This move aligns with Nasdaq Listing Rule 5635(c)(4) on compensatory stock option grants.

Positive

• Inducement stock options granted to new employees enhance recruitment efforts.
• Stock options for Ms. Cheng and others may align employee interests with company performance.

Negative

• None.

NEWTON, Mass., July 1, 2021  /PRNewswire/ -- Karyopharm Therapeutics Inc. (Nasdaq: KPTI), a commercial-stage pharmaceutical company pioneering novel cancer therapies, today announced that in connection with the hiring of Ms. Sohanya Cheng, Senior Vice President, Sales and Commercial Operations, the Compensation Committee of Karyopharm's Board of Directors granted a stock option to purchase 125,000 shares of Karyopharm's common stock to Ms. Cheng, with a grant date of June 30, 2021. The stock option was granted as an inducement material to Ms. Cheng's entering into employment with Karyopharm in accordance with Nasdaq Listing Rule 5635(c)(4).  In the event that the services of Ms. Cheng are terminated by Karyopharm without cause prior to the first vesting of the stock option granted to Ms. Cheng, then the number of shares underlying the stock option that is scheduled to vest on the first anniversary of Ms. Cheng's employment commencement date will vest upon her termination date.

The Compensation Committee also granted stock options to purchase an aggregate of 50,700 shares of Karyopharm's common stock to 10 additional newly-hired employees, with a grant date of June 30, 2021. 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 $10.32 per share, the closing price of Karyopharm's common stock on June 30, 2021. 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 first-in-class drugs directed against nuclear export for the treatment of cancer and other 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), is approved in the U.S. in multiple hematologic malignancy indications, including in combination with Velcade^® (bortezomib) and dexamethasone for the treatment of adult patients with multiple myeloma after at least one prior therapy, in combination with dexamethasone for the treatment of adult patients with heavily pretreated multiple myeloma and as a monotherapy for the treatment of adult patients with relapsed or refractory diffuse large B-cell lymphoma. NEXPOVIO^® (selinexor) has also been granted conditional marketing authorization in combination with dexamethasone for adult patients with heavily pretreated multiple myeloma by the European Commission. 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.

XPOVIO^® and NEXPOVIO^® are registered trademarks of Karyopharm Therapeutics Inc. Any other trademarks referred to in this release are the property of their respective owners.

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SOURCE Karyopharm Therapeutics Inc.

FAQ

What stock options were granted to Karyopharm's new employees?

Karyopharm granted stock options to purchase 125,000 shares to Sohanya Cheng and an aggregate of 50,700 shares to 10 additional new hires.

What is the exercise price for Karyopharm's stock options?

The exercise price for the stock options is $10.32 per share.

What is the vesting schedule for Karyopharm's stock options?

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

Why were the stock options granted to Sohanya Cheng?

The stock options were granted as an inducement for Ms. Cheng's employment with Karyopharm, in accordance with Nasdaq Listing Rule 5635(c)(4).