Mirum Pharmaceuticals Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Mirum Pharmaceuticals (NASDAQ: MIRM) has announced the grant of inducement awards to 14 new employees under its 2020 Inducement Plan. On June 10, 2024, the Compensation Committee of Mirum’s Board of Directors approved stock options for 56,600 shares and 28,300 restricted stock units (RSUs). The stock options have an exercise price of $25.55 per share and will vest over four years, with 25% vesting after one year and the remainder vesting monthly over the next three years. The RSUs will vest over three years, with 33% vesting annually. These awards are in accordance with Nasdaq Listing Rule 5635(c)(4).

Positive

• Granted inducement awards to 14 new employees, potentially boosting morale and retention.
• Stock options priced at $25.55 per share, aligned with current market value, potentially attractive to employees.
• Vesting schedules (four years for stock options and three years for RSUs) promote long-term commitment from employees.

Negative

• The issuance of 56,600 shares and 28,300 RSUs could lead to shareholder dilution.
• The new awards may increase operational expenses in the form of salaries and benefits.

FOSTER CITY, Calif.--(BUSINESS WIRE)-- Mirum Pharmaceuticals, Inc. (NASDAQ: MIRM) today announced that on June 10, 2024, the Compensation Committee of Mirum’s Board of Directors granted inducement awards consisting of non-qualified stock options to purchase 56,600 shares of common stock and 28,300 restricted stock units (“RSUs”) to 14 new employees under Mirum’s 2020 Inducement Plan. The Compensation Committee of Mirum’s Board of Directors approved the awards as an inducement material to the new employees’ employment in accordance with Nasdaq Listing Rule 5635(c)(4).

Each stock option has an exercise price per share equal to $25.55 per share, Mirum’s closing trading price on June 10, 2024, and will vest over four years, with 25% of the underlying shares vesting on the one-year anniversary of the applicable vesting commencement date and the balance of the underlying shares vesting monthly thereafter over 36 months, subject to the new employees’ continued service relationship with Mirum through the applicable vesting dates. The RSUs will vest over three years, with 33% of the underlying shares vesting on each anniversary of the applicable vesting commencement date, subject to the new employees’ continued service relationship with Mirum through the applicable vesting dates. The awards are subject to the terms and conditions of Mirum’s 2020 Inducement Plan and the terms and conditions of an applicable award agreement covering the grant.

About Mirum Pharmaceuticals, Inc.

Mirum Pharmaceuticals, Inc. is a biopharmaceutical company dedicated to transforming the treatment of rare diseases affecting children and adults. Mirum has three available medications: LIVMARLI® (maralixibat) oral solution, Cholbam® (cholic acid) capsules, and Chenodal® (chenodiol) tablets.

LIVMARLI, an IBAT inhibitor, is approved for the treatment of two rare liver diseases affecting children and adults. It is approved for the treatment of cholestatic pruritus in patients with Alagille syndrome in the U.S. (three months and older), in Europe (two months and older), and in other regions globally. It is also approved in the U.S. in cholestatic pruritus in PFIC patients five years of age and older. Mirum has submitted for approval in Europe for the treatment of PFIC in patients two months of age and older. CHOLBAM is FDA-approved for the treatment of bile acid synthesis disorders due to single enzyme deficiencies and adjunctive treatment of peroxisomal disorders in patients who show signs or symptoms or liver disease. CHENODAL has received medical necessity recognition by the FDA to treat patients with cerebrotendinous xanthomatosis (CTX).

Mirum’s late-stage pipeline includes two investigational treatments for debilitating liver diseases. Volixibat, an IBAT inhibitor, is being evaluated in two potentially registrational studies including the Phase 2b VISTAS study for primary sclerosing cholangitis and Phase 2b VANTAGE study for primary biliary cholangitis. Lastly, CHENODAL has been evaluated in a Phase 3 clinical study, RESTORE, to treat patients with CTX, with positive topline results reported in 2023.

To learn more about Mirum, visit mirumpharma.com and follow Mirum on Facebook, LinkedIn, Instagram and Twitter.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240610978749/en/

Investor Contact:

Andrew McKibben

ir@mirumpharma.com

Media Contact:

Erin Murphy

media@mirumpharma.com

Source: Mirum Pharmaceuticals, Inc.

FAQ

What did Mirum Pharmaceuticals announce on June 10, 2024?

Mirum Pharmaceuticals announced the grant of inducement awards to 14 new employees under its 2020 Inducement Plan.

How many stock options did Mirum Pharmaceuticals grant on June 10, 2024?

Mirum Pharmaceuticals granted stock options to purchase 56,600 shares of common stock.

What is the exercise price for the stock options granted by Mirum Pharmaceuticals?

The exercise price for the stock options is $25.55 per share.

How many restricted stock units (RSUs) were granted by Mirum Pharmaceuticals?

Mirum Pharmaceuticals granted 28,300 restricted stock units (RSUs).

What is the vesting schedule for the stock options granted by Mirum Pharmaceuticals?

The stock options will vest over four years, with 25% vesting after one year and the remaining vesting monthly over the next 36 months.

What is the vesting schedule for the RSUs granted by Mirum Pharmaceuticals?

The RSUs will vest over three years, with 33% vesting on each anniversary of the vesting commencement date.