Protagonist Therapeutics Reports Granting of Inducement Awards

Rhea-AI Summary

Protagonist Therapeutics (Nasdaq: PTGX) announced on April 18, 2022, the issuance of inducement awards to three new employees, including Executive Vice President and CFO Asif Ali. The awards consist of options to purchase 82,500 shares and RSUs for 13,750 shares, with an exercise price of $19.19. These awards fall under the Amended and Restated Inducement Plan approved by the Board. Protagonist is advancing its clinical pipeline, including rusfertide, currently in multiple Phase 2 and Phase 3 trials for conditions like polycythemia vera and ulcerative colitis.

Positive

• Issuance of options and RSUs to key employees may improve employee retention and motivation.
• Protagonist has multiple clinical trials underway, including Phase 2 and Phase 3 studies, indicating active progression in drug development.

Negative

• The stock options and RSUs could dilute existing shareholder equity if exercised.

NEWARK, Calif., April 19, 2022 /PRNewswire/ -- Protagonist Therapeutics, Inc. (Nasdaq: PTGX) today reported that on April 18, 2022, it issued inducement awards to three recently hired employees in accordance with the terms of their employment offer letters. The awards were granted under the Protagonist Therapeutics Amended and Restated Inducement Plan, which was adopted May 29, 2018, and amended February 18, 2020 and February 15, 2022.

Asif Ali, Executive Vice President and Chief Financial Officer, received options to purchase 82,500 shares and restricted stock units (RSUs) to acquire 13,750 shares, respectively, of Protagonist Therapeutics common stock. Two additional new employees received, in the aggregate, options to purchase 75,000 shares of Protagonist Therapeutics common stock.

The exercise price of the options is $19.19, which was the per-share closing price of Protagonist Therapeutics common stock on the Nasdaq Global Market on April 18, 2022. The shares subject to the option vest over a four-year period, with 25 percent of the shares subject to the option vesting on the first anniversary of the employees' date of hire and the remainder vesting in equal monthly installments over three years thereafter. One-fourth of the shares underlying the RSUs will vest annually over a four-year period. The awards were approved by the compensation committee of the Company's board of directors and were granted as a material inducement to entering into employment with the Company in accordance with Nasdaq Marketplace Rule 5635(c)(4).

About Protagonist Therapeutics

Protagonist Therapeutics is a biopharmaceutical company with multiple peptide-based new chemical entities in different stages of clinical development, all derived from the Company's proprietary technology platform.

Protagonist's pipeline includes rusfertide, an investigational, injectable hepcidin mimetic currently in the REVIVE Phase 2 proof-of-concept clinical trial for polycythemia vera (PV), the PACIFIC Phase 2 study in PV subjects with high hematocrit levels, and a recently completed Phase 2a study for hereditary hemochromatosis. The Company has opened sites and initiated patient screening for VERIFY, a single, global Phase 3 randomized, placebo-controlled trial evaluating the efficacy and safety of a once weekly, subcutaneously self-administered dose of rusfertide.

The Company is also evaluating an orally delivered, gut-restricted alpha-4-beta-7 integrin specific antagonist peptide (PN-943), currently in the IDEAL Phase 2 study in adults with moderate to severe active ulcerative colitis. The Company is targeting ulcerative colitis as the initial indication. Data readout from the Phase 2 study is expected in the second quarter of 2022.

Protagonist has granted Janssen an exclusive worldwide license to research, develop and commercialize oral IL-23 receptor antagonists based on the Company's intellectual property. Current development efforts are centered on PN-235, discovered by Protagonist and further developed in collaboration with Janssen. FRONTIER 1, a Phase 2b multicenter, randomized, placebo controlled, dose-ranging study to evaluate the safety and efficacy of PN-235 for the treatment of moderate-to-severe plaque psoriasis, commenced in early 2022.

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SOURCE Protagonist Therapeutics, Inc.

FAQ

What inducement awards were issued by Protagonist Therapeutics (PTGX) on April 18, 2022?

Protagonist Therapeutics issued inducement awards to three employees, including options for 82,500 shares and RSUs for 13,750 shares.

What is the significance of the exercise price of $19.19 for PTGX options?

The exercise price of $19.19 is based on the closing stock price of Protagonist on the issuance date, impacting potential shareholder dilution.

What clinical trials are currently being conducted by Protagonist Therapeutics?

Protagonist is conducting trials for rusfertide in polycythemia vera and a Phase 2 study for ulcerative colitis.

How might the inducement awards impact Protagonist Therapeutics' stock?

Inducement awards might improve retention of key personnel but could also lead to shareholder dilution when exercised.