Madrigal Pharmaceuticals Announces Grants of Inducement Awards under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Madrigal Pharmaceuticals (NASDAQ:MDGL) announced equity inducement awards granted to 36 new non-executive employees on June 15, 2025. The awards, approved under Nasdaq Listing Rule 5635(c)(4) and Madrigal's 2023 Inducement Plan, include options to purchase 2,184 shares at $295.57 per share and 21,125 time-based restricted stock units. The options vest 25% after one year and 6.25% quarterly thereafter, while RSUs vest in four equal annual installments. All awards require continued employment for vesting. The grants serve as inducement for new employees joining the biopharmaceutical company, which focuses on developing treatments for metabolic dysfunction-associated steatohepatitis (MASH).

Positive

• Expansion of workforce with 36 new non-executive employees indicates company growth
• Structured equity compensation plan helps attract and retain talent

Negative

• None.

CONSHOHOCKEN, Pa., June 17, 2025 (GLOBE NEWSWIRE) -- Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL), a biopharmaceutical company focused on delivering novel therapeutics for metabolic dysfunction-associated steatohepatitis (MASH), today announced that it granted equity awards on June 15, 2025 to 36 new non-executive employees as equity inducement awards under the terms of Madrigal’s 2023 Inducement Plan. The equity awards were approved by Madrigal’s independent Compensation Committee in accordance with Nasdaq Listing Rule 5635(c)(4).

The equity awards were granted as inducement material to employees’ acceptance of employment with the company. The new employees received, in the aggregate, options to purchase 2,184 shares of Madrigal’s common stock, and in the aggregate 21,125 time-based restricted stock units. All options granted have an exercise price of $295.57 per share, which is equal to the closing price of the company’s common stock on the grant date, and vest as follows: (i) 25% of the option shares will vest on the first anniversary of the grant date and (ii) 6.25% of the option shares will vest on each quarterly anniversary following the first anniversary of the grant date. All restricted stock units granted vest in four equal installments on each of the first through fourth anniversaries of the grant date. The vesting of all awards described above shall be subject to each such employee’s continued employment as of the applicable vesting date.

About Madrigal Pharmaceuticals

Madrigal Pharmaceuticals, Inc. (Nasdaq: MDGL) is a biopharmaceutical company focused on delivering novel therapeutics for metabolic dysfunction-associated steatohepatitis (MASH), a liver disease with high unmet medical need. Madrigal’s medication, Rezdiffra (resmetirom), is a once-daily, oral, liver-directed THR-β agonist designed to target key underlying causes of MASH. Rezdiffra is the first and only medication approved by the FDA for the treatment of MASH with moderate to advanced fibrosis (consistent with stages F2 to F3). An ongoing Phase 3 outcomes trial is evaluating Rezdiffra for the treatment of compensated MASH cirrhosis (consistent with stage F4c). For more information, visit www.madrigalpharma.com.

Investor Contact
Tina Ventura, IR@madrigalpharma.com

Media Contact
Christopher Frates, media@madrigalpharma.com

FAQ

What equity awards did Madrigal Pharmaceuticals (MDGL) grant to new employees in June 2025?

Madrigal granted 2,184 stock options at $295.57 per share and 21,125 restricted stock units to 36 new non-executive employees.

How do the vesting terms work for Madrigal's June 2025 equity inducement awards?

Stock options vest 25% after one year and 6.25% quarterly thereafter, while restricted stock units vest in four equal annual installments.

Why did Madrigal Pharmaceuticals issue these equity inducement awards?

The awards were granted as inducement material to attract new employees to the company, supporting their expansion in developing treatments for MASH.

What is the exercise price for the MDGL stock options granted in June 2025?

The stock options were granted with an exercise price of $295.57 per share, equal to the closing price on the grant date of June 15, 2025.