Phathom Pharmaceuticals Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Phathom Pharmaceuticals (Nasdaq: PHAT) has announced the approval of inducement awards connected to Steven Basta's appointment as President and CEO. The compensation package includes:

• A non-qualified stock option to purchase 1,085,000 shares, with 25% vesting on April 1, 2026, and the remainder vesting in 36 monthly installments
• 360,000 performance stock units tied to stock price hurdles
• 180,000 performance stock units (with potential 200% target earnings) linked to revenue targets through December 31, 2027

The company, focused on gastrointestinal disease treatments, markets VOQUEZNA® tablets for heartburn and GERD treatment, along with VOQUEZNA® TRIPLE PAK® and VOQUEZNA® DUAL PAK® for H. pylori infection treatment.

Positive

• CEO compensation heavily tied to performance metrics and stock price growth
• Company has multiple commercialized products in the GI treatment market

Negative

• Significant potential shareholder dilution from new equity grants
• Large portion of CEO compensation dependent on future stock price appreciation

FLORHAM PARK, N.J., April 01, 2025 (GLOBE NEWSWIRE) -- Phathom Pharmaceuticals, Inc. (Nasdaq: PHAT), a biopharmaceutical company focused on developing and commercializing novel treatments for gastrointestinal (GI) diseases, today announced that, in connection with the appointment of Steven Basta as President and Chief Executive Officer, the Company’s Board of Directors has approved the grant of inducement awards.

The Board of Directors approved the grant to Mr. Basta of a non-qualified stock option to purchase 1,085,000 shares of Phathom common stock under the Company’s 2025 Employment Inducement Incentive Award Plan (the “Inducement Plan”), 25% of which will vest on April 1, 2026, and the remainder of which will vest in 36 equal monthly installments thereafter. The stock option will be granted on April 3, 2025, and will have an exercise price equal to the closing price of Phathom’s common stock on the Nasdaq Global Select Market on the grant date. In addition, the Board of Directors approved the grant to Mr. Basta of 360,000 performance stock units, the vesting of which is tied to the achievement of specified stock price hurdles and a service-based vesting requirement, and 180,000 performance stock units (at “target” performance levels, with the opportunity to earn up to 200% of the “target” number of units), the vesting of which is tied to the achievement of annual Company revenue targets over a three-year performance period ending December 31, 2027, and a service-based requirement.

The performance stock units will be granted under the Inducement Plan on the date on which the Company files a Form S-8 registration statement with respect to the Inducement Plan. The awards will be subject to the terms and conditions of the Inducement Plan and the applicable award agreements. The awards are being granted as an inducement material to Mr. Basta entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).

About Phathom Pharmaceuticals, Inc.
Phathom Pharmaceuticals is a biopharmaceutical company focused on the development and commercialization of novel treatments for gastrointestinal diseases. Phathom has in-licensed the exclusive rights to vonoprazan, a first-in-class potassium-competitive acid blocker (PCAB) that is currently marketed in the United States as VOQUEZNA® (vonoprazan) tablets for the relief of heartburn associated with Non-Erosive GERD in adults, the healing and maintenance of healing of Erosive GERD in adults and relief of associated heartburn, in addition to VOQUEZNA® TRIPLE PAK® (vonoprazan tablets, amoxicillin capsules, clarithromycin tablets) and VOQUEZNA® DUAL PAK® (vonoprazan tablets, amoxicillin capsules) for the treatment of H. pylori infection in adults. For more information about Phathom, visit the company’s website at www.phathompharma.com follow on LinkedIn and X.

MEDIA CONTACT
Nick Benedetto
1-877-742-8466
media@phathompharma.com

INVESTOR CONTACT
Eric Sciorilli
1-877-742-8466
ir@phathompharma.com

© 2025 Phathom Pharmaceuticals. All rights reserved.
VOQUEZNA, VOQUEZNA DUAL PAK, VOQUEZNA TRIPLE PAK, Phathom Pharmaceuticals, and their respective logos are registered trademarks of Phathom Pharmaceuticals, Inc.

FAQ

What compensation package did Phathom Pharmaceuticals (PHAT) offer to new CEO Steven Basta?

The package includes 1,085,000 stock options, 360,000 performance stock units tied to stock price, and 180,000 performance stock units linked to revenue targets through 2027.

When will Steven Basta's stock options begin vesting at Phathom (PHAT)?

25% of the stock options will vest on April 1, 2026, with the remainder vesting in 36 equal monthly installments thereafter.

What are the performance metrics for PHAT's new CEO compensation plan?

The plan includes units tied to stock price hurdles and revenue targets, with potential to earn up to 200% of target performance units based on revenue achievements through 2027.

What products does Phathom Pharmaceuticals (PHAT) currently market?

PHAT markets VOQUEZNA tablets for heartburn and GERD, VOQUEZNA TRIPLE PAK, and VOQUEZNA DUAL PAK for H. pylori infection treatment.