PTC Therapeutics Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

PTC Therapeutics, Inc. (NASDAQ: PTCT) announced on January 5, 2023, the approval of non-statutory stock options for 39,585 shares and 13,045 restricted stock units (RSUs) for 33 new employees as a part of their employment compensation. This follows the NASDAQ inducement grant exception guidelines. The stock options have an exercise price of $39.42 per share, vesting over four years, while the RSUs also vest over a four-year period. These grants are designed to attract talent and align new hires’ interests with the company's long-term goals.

Positive

• Inducement grants for new talent may enhance employee retention and motivation.
• Potential for long-term value creation through attracting skilled personnel.

Negative

• Stock options at $39.42 may indicate a high valuation for new hires, raising concerns about share dilution if the stock price does not increase.

SOUTH PLAINFIELD, N.J., Jan. 11, 2023 /PRNewswire/ -- PTC Therapeutics, Inc. (NASDAQ: PTCT) today announced that on Jan. 5, 2023, the company approved non-statutory stock options to purchase an aggregate of 39,585 shares of its common stock and 13,045 restricted stock units ("RSUs"), each representing the right to receive one share of its common stock upon vesting, to 33 new employees. The awards were made pursuant to the NASDAQ inducement grant exception as a component of the new hires' employment compensation.

The inducement grants were approved by PTC's Compensation Committee on Jan. 5, 2023 and are being made as an inducement material to each employee's acceptance of employment with the company in accordance with NASDAQ Listing Rule 5635(c)(4).

All stock option awards have an exercise price of $39.42 per share, the closing price of PTC's common stock on Jan. 5, 2023, the date of the grant. The stock options each have a 10-year term and vest over four years, with 25% of the original number of shares vesting on the first anniversary of the applicable employee's new hire date and 6.25% of the original number of shares vesting at the end of each subsequent three-month period thereafter until fully vested, subject to the employee's continued service with the company through the applicable vesting dates. The RSUs each will vest over four years with 25% of the original number of shares vesting on each annual anniversary of the applicable employee's new hire date until fully vested, subject to the employee's continued service with the company through the applicable vesting dates.

About PTC Therapeutics, Inc.
PTC is a science-driven, global biopharmaceutical company focused on the discovery, development and commercialization of clinically differentiated medicines that provide benefits to patients with rare disorders. PTC's ability to innovate to identify new therapies and to globally commercialize products is the foundation that drives investment in a robust and diversified pipeline of transformative medicines. PTC's mission is to provide access to best-in-class treatments for patients who have little to no treatment options. PTC's strategy is to leverage its strong scientific and clinical expertise and global commercial infrastructure to bring therapies to patients. PTC believes this allows it to maximize value for all its stakeholders. To learn more about PTC, please visit us at www.ptcbio.com and follow us on Instagram, Facebook, Twitter, and LinkedIn. 

For more information, please contact:

Jeanine Clemente
+1 (908) 912-9406
jclemente@ptcbio.com

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SOURCE PTC Therapeutics, Inc.

FAQ

What stock options did PTCT approve for new employees?

PTC approved non-statutory stock options to purchase 39,585 shares and 13,045 restricted stock units (RSUs) for 33 new employees.

When were the inducement grants for PTCT employees approved?

The inducement grants were approved on January 5, 2023.

What is the exercise price for the stock options granted by PTCT?

The exercise price for the stock options is $39.42 per share.

How long is the vesting period for the RSUs at PTCT?

The RSUs vest over four years, with 25% vesting annually.

What is the purpose of the inducement stock option grants at PTCT?

The purpose is to attract and retain talented employees as part of their compensation package.