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

Rhea-AI Summary

Mirum Pharmaceuticals, Inc. (MIRM) has granted inducement awards to 18 new employees, comprising 178,000 non-qualified stock options and 52,677 restricted stock units (RSUs) as of May 10, 2022. The stock options have an exercise price of $22.55, corresponding to Mirum's closing price on that date, and will vest over four years. The RSUs will vest over three years. These awards are part of Mirum's 2020 Inducement Plan and adhere to Nasdaq Listing Rule 5635(c)(4). Mirum focuses on rare diseases and is advancing its clinical pipeline for liver diseases.

Positive

• Granting of inducement awards may enhance employee retention and attract talent.
• The stock options and RSUs could align employee interests with shareholder value.

Negative

• The exercise price of $22.55 per share may indicate that new hires require significant financial commitment from the company.
• The dilution of shares could be a concern for existing shareholders.

FOSTER CITY, Calif.--(BUSINESS WIRE)-- Mirum Pharmaceuticals, Inc. (Nasdaq: MIRM) today announced that on May 10, 2022, the Compensation Committee of Mirum’s Board of Directors granted inducement awards consisting of non-qualified stock options to purchase 178,000 shares of common stock and 52,677 restricted stock units (“RSUs”) to 18 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 $22.55 per share, Mirum’s closing trading price on May 10, 2022, 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. Mirum’s approved medication is LIVMARLI® (maralixibat) oral solution which is approved in the U.S. for the treatment of cholestatic pruritus in patients with Alagille syndrome one year of age and older. Please view the warnings and precautions available in the Prescribing information or, for more information, visit LIVMARLI.com.

Mirum’s late-stage pipeline includes two investigational treatments for debilitating liver diseases affecting children and adults. Maralixibat (LIVMARLI), an oral ileal bile acid transporter (IBAT) inhibitor, is currently being evaluated in clinical trials for pediatric liver diseases and includes the MARCH Phase 3 study for progressive familial intrahepatic cholestasis (PFIC) and the EMBARK Phase 2b study for patients with biliary atresia. In addition, Mirum has an expanded access program open across multiple countries for eligible patients with ALGS and PFIC.

Mirum has submitted a Marketing Authorization Application to the European Medicines Agency for maralixibat for the treatment of cholestatic liver disease in patients with Alagille syndrome.

Mirum’s second investigational treatment, volixibat, an oral IBAT inhibitor, is being evaluated in three potentially registrational studies including the VISTAS Phase 2b clinical trial for adults with primary sclerosing cholangitis, the OHANA Phase 2b clinical trial for pregnant women with intrahepatic cholestasis of pregnancy, and the VANTAGE Phase 2b clinical trial for adults with primary biliary cholangitis.

Learn more about Mirum by visiting www.mirumpharma.com. Follow Mirum on Twitter, Facebook, LinkedIn and Instagram.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220510006503/en/

Investor Contacts:

Ian Clements, Ph.D.

ir@mirumpharma.com

Sam Martin

Argot Partners

ir@mirumpharma.com

Media Contact:

Erin Murphy

media@mirumpharma.com

Source: Mirum Pharmaceuticals, Inc.

FAQ

What stock options were granted by Mirum Pharmaceuticals on May 10, 2022?

Mirum Pharmaceuticals granted 178,000 non-qualified stock options with an exercise price of $22.55.

How many restricted stock units were awarded to new employees at Mirum?

A total of 52,677 restricted stock units (RSUs) were awarded to 18 new employees.

What is the vesting period for the stock options granted by Mirum?

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

What is the purpose of the inducement awards granted by Mirum?

The inducement awards are intended to attract and retain new employees.