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

Rhea-AI Summary

Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM) announced on April 8, 2022, that its Compensation Committee granted inducement awards of stock options and restricted stock units to five new employees. The awards comprise 25,500 stock options priced at $27.46 each and 12,650 RSUs. The options will vest over four years, while the RSUs will vest over three years. Mirum focuses on developing treatments for rare diseases, with its marketed drug LIVMARLI® approved for cholestatic pruritus in Alagille syndrome patients. The company also has ongoing clinical trials for additional treatments.

Positive

• Inducement awards accepted by new employees could enhance retention and motivation.
• The successful grant of stock options at a market price can be seen as a confidence booster for future performance.

Negative

• The awards may dilute existing shareholders' equity if there are significant stock options exercised in the future.

FOSTER CITY, Calif.--(BUSINESS WIRE)-- Mirum Pharmaceuticals, Inc. (Nasdaq: MIRM) today announced that on April 8, 2022, the Compensation Committee of Mirum’s Board of Directors granted inducement awards consisting of non-qualified stock options to purchase 25,500 shares of common stock and 12,650 restricted stock units (“RSUs”) to five 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 $27.46 per share, Mirum’s closing trading price on April 8, 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/20220408005600/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 are the details of the stock options granted by Mirum Pharmaceuticals on April 8, 2022?

Mirum Pharmaceuticals granted 25,500 stock options to new employees, with an exercise price of $27.46, vesting over four years.

What is the significance of the RSUs awarded by Mirum Pharmaceuticals?

12,650 restricted stock units (RSUs) were awarded, vesting over three years, which can help retain talent.

How might the stock options affect Mirum Pharmaceuticals' existing shareholders?

The exercise of stock options may lead to shareholder dilution, impacting existing equity.

What is Mirum Pharmaceuticals' focus in the biopharmaceutical sector?

Mirum focuses on developing treatments for rare diseases, particularly in pediatric liver diseases.