Ocular Therapeutix® Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Ocular Therapeutix (NASDAQ:OCUL), a biopharmaceutical company focused on eye diseases, announced inducement grants for its new Chief Medical Officer, Dr. Nadia K. Waheed, and six other new hires. Dr. Waheed received a non-statutory stock option for 425,000 shares and a restricted stock unit (RSU) award for 141,666 shares, effective June 1, 2024. These options vest over four years and RSUs over three years. Six additional employees received combined stock options for 36,000 shares and RSUs for 12,001 shares, effective June 3, 2024, under the same vesting schedule. The grants are part of Ocular’s 2019 Inducement Stock Incentive Plan, following Nasdaq Listing Rule 5635(c)(4).

Positive

• Dr. Nadia K. Waheed's appointment as Chief Medical Officer may enhance the company's leadership in eye disease therapies.
• Inducement stock options and RSUs for new hires could help attract and retain talent.
• Stock option grants vest over four years, ensuring long-term commitment from employees.
• Restricted stock unit awards vest over three years, aligning employee interests with company performance.

Negative

• Inducement grants could lead to shareholder dilution with the issuance of additional shares.
• The long vesting period may not immediately impact company performance.

BEDFORD, Mass., June 04, 2024 (GLOBE NEWSWIRE) -- Ocular Therapeutix, Inc. (NASDAQ:OCUL) (“Ocular”), a biopharmaceutical company committed to enhancing people’s vision and quality of life through the development and commercialization of innovative therapies for wet age-related macular degeneration (wet AMD), diabetic retinopathy, and other diseases and conditions of the eye, today announced that it has agreed to grant inducement awards to (i) its newly appointed Chief Medical Officer, Nadia K. Waheed, MD, MPH, and (ii) six other newly hired employees. The awards were made as inducements material to each individual’s acceptance of employment with Ocular under Ocular’s 2019 Inducement Stock Incentive Plan in accordance with Nasdaq Listing Rule 5635(c)(4).

Dr. Waheed’s inducement awards were granted effective as of June 1, 2024. Dr. Waheed’s inducement awards consist of (i) a non-statutory stock option to purchase up to 425,000 shares of the Ocular’s common stock at a per share exercise price equal to the closing price of Ocular’s common stock on The Nasdaq Global Market on May 31, 2024, and (ii) a restricted stock unit award representing the right to receive 141,666 shares of Ocular’s common stock. The stock option has a ten-year term and is scheduled to vest over four years, with 25% of the original number of shares vesting on the one-year anniversary of the recipient’s employment commencement date and the remainder vesting in equal monthly installments over the three years thereafter, subject to Dr. Waheed’s continued service to Ocular through the applicable vesting dates. The restricted stock unit award is scheduled to vest over three years, in equal annual installments, beginning on the recipient’s employment commencement date and subject to her continued service to Ocular through the applicable vesting dates.

The inducement equity awards to the six other newly hired employees were granted effective as of June 3, 2024 and consist of (i) non-statutory stock options to purchase up to an aggregate of 36,000 shares of the Ocular’s common stock at a per share exercise price equal to the closing price of Ocular’s common stock on The Nasdaq Global Market on the effective date of grant and (ii) restricted stock unit awards representing the right to receive an aggregate of 12,001 shares of Ocular’s common stock. Each stock option has a ten-year term and is scheduled to vest over four years, with 25% of the original number of shares vesting on the one-year anniversary of the recipient’s employment commencement date and the remainder vesting in equal monthly installments over the three years thereafter, subject to such individual’s continued service to Ocular through the applicable vesting dates. Each restricted stock unit award is scheduled to vest over three years, in equal annual installments, beginning on June 3, 2024, and subject to the recipient’s continued service to Ocular through the applicable vesting dates.

The inducement equity awards are subject to the terms and conditions of the award agreements covering the grants and Ocular’s 2019 Inducement Stock Incentive Plan.

About Ocular Therapeutix, Inc.

Ocular Therapeutix, Inc. is a biopharmaceutical company committed to enhancing people’s vision and quality of life through the development and commercialization of innovative therapies for wet age-related macular degeneration (wet AMD), diabetic retinopathy (DR), and other diseases and conditions of the eye. AXPAXLI™ (axitinib intravitreal implant, also known as OTX-TKI), Ocular’s product candidate for retinal disease, is based on its ELUTYX™ proprietary bioresorbable hydrogel-based formulation technology. AXPAXLI is currently in a Phase 3 clinical trial for wet AMD. The clinical portfolio also includes PAXTRAVA™ (travoprost intracameral implant, also known as OTX-TIC), currently in a Phase 2 clinical trial for the treatment of open-angle glaucoma or ocular hypertension.

Ocular’s expertise in the formulation, development and commercialization of innovative therapies of the eye and the ELUTYX platform supported the development and launch of its first commercial drug product, DEXTENZA^®, an FDA-approved corticosteroid for the treatment of ocular inflammation and pain following ophthalmic surgery and ocular itching associated with allergic conjunctivitis. ELUTYX is also the foundation for two other clinical-stage assets, OTX-CSI (cyclosporine intracanalicular insert) for the chronic treatment of dry eye disease and OTX-DED (dexamethasone intracanalicular insert) for the short-term treatment of the signs and symptoms of dry eye disease, as well as several preclinical programs.

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DEXTENZA^® and Ocular Therapeutix^® are registered trademarks of Ocular Therapeutix, Inc. AXPAXLI™, PAXTRAVA™, and ELUTYX™ are trademarks of Ocular Therapeutix, Inc.

Investors & Media
Ocular Therapeutix, Inc.
Bill Slattery
Vice President, Investor Relations
bslattery@ocutx.com

FAQ

What is the significance of the inducement grants by Ocular Therapeutix on June 4, 2024?

Ocular Therapeutix announced inducement grants to attract its new Chief Medical Officer and six other new employees, offering stock options and restricted stock units.

How many shares were granted to Dr. Nadia K. Waheed in Ocular Therapeutix’s inducement awards?

Dr. Waheed received stock options for 425,000 shares and restricted stock units for 141,666 shares.

What is the vesting period for the stock options granted by Ocular Therapeutix?

The stock options vest over four years, with 25% vesting after one year and the remainder vesting monthly over the next three years.

When did the inducement equity awards for the new hires by Ocular Therapeutix become effective?

The inducement awards for Dr. Waheed became effective on June 1, 2024, and for the other six employees on June 3, 2024.

What is the purpose of Ocular Therapeutix’s 2019 Inducement Stock Incentive Plan?

The 2019 Inducement Stock Incentive Plan aims to attract and retain talent by offering stock options and restricted stock units to new employees.