Retrophin, Inc. Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Retrophin announced on October 10, 2020, the granting of inducement equity grants totaling 58,750 shares to four new employees. This includes stock options for 37,500 shares and restricted stock units (RSUs) for 21,250 shares, granted outside of the 2018 Equity Incentive Plan. The stock options, priced at $20.68 per share, have a 10-year term and vest over four years, with 25% vesting after one year. The RSUs also vest over four years in a similar manner. This initiative is part of Retrophin's strategy to attract talent in the biopharmaceutical sector.

Positive

• Inducement grants may help attract skilled talent to Retrophin.
• Stock options and RSUs align employee interests with company performance.

Negative

• Inducement grants may dilute existing shareholders' equity.

SAN DIEGO, Oct. 14, 2020 (GLOBE NEWSWIRE) -- Retrophin, Inc. (Nasdaq: RTRX) today announced that on October 10, 2020, the Compensation Committee of its Board of Directors granted inducement equity grants covering an aggregate of 58,750 shares of its common stock to four new employees, consisting of inducement stock options to purchase an aggregate of 37,500 shares of common stock and inducement restricted stock units, or RSUs, covering an aggregate of 21,250 shares of its common stock. These inducement stock options and inducement RSUs are subject to the terms of Retrophin’s 2018 Equity Incentive Plan (“2018 Plan”), but were granted outside of the 2018 Plan and were granted as inducements material to the new employees entering into employment with Retrophin in accordance with Nasdaq Listing Rule 5635(c)(4).

The stock options have an exercise price of $20.68 per share, the closing price of Retrophin’s common stock on the next trading day following the date of grant, are non-qualified stock options, have a 10-year term and vest over four years, with 25% of the shares vesting on the one-year anniversary of the grant date and the remaining 75% of the shares vesting in equal monthly installments over the following 36 months, subject to the new employee’s continued service relationship with Retrophin through the applicable vesting dates.

The RSUs vest over four years, with 25% of the shares vesting on each anniversary of the grant date, subject to the new employee’s continued service relationship with Retrophin through the applicable vesting dates.

About Retrophin

Retrophin is a biopharmaceutical company specializing in identifying, developing and delivering life-changing therapies to people living with rare disease. The Company’s approach centers on its pipeline featuring sparsentan, a product candidate in late-stage development for focal segmental glomerulosclerosis (FSGS) and IgA nephropathy (IgAN), rare disorders characterized by progressive scarring of the kidney often leading to end-stage renal disease. Research in additional rare diseases is also underway, including partnerships with leaders in patient advocacy and government research to identify potential therapeutics for NGLY1 deficiency and Alagille syndrome, conditions with no approved treatment options. Retrophin’s R&D efforts are supported by revenues from the Company’s commercial products Chenodal^®, Cholbam^®, Thiola^® and Thiola EC^®.

Retrophin.com

Contact:

Chris Cline, CFA
Senior Vice President, Investor Relations & Corporate Communications
888-969-7879
IR@retrophin.com 

FAQ

What inducement equity grants were announced by Retrophin on October 10, 2020?

Retrophin announced inducement equity grants totaling 58,750 shares to new employees, including stock options and RSUs.

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

The exercise price for the stock options is $20.68 per share.

How long is the vesting period for the stock options granted by Retrophin?

The stock options have a vesting period of four years, with 25% vesting after one year.

What are the terms of the RSUs granted by Retrophin?

The RSUs vest over four years, with 25% vesting on each anniversary of the grant date.

What is the significance of Retrophin's inducement equity grants for investors?

The grants may indicate Retrophin's efforts to enhance its workforce, but could dilute existing shareholders' equity.