Sierra Oncology Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Sierra Oncology (SRRA) announced the granting of stock options to two new employees as part of its 2018 Equity Inducement Plan. The options total 100,000 shares at an exercise price of $10.91, equal to the stock's closing price on the grant date. Vesting occurs 25% after one year, then 75% over three years. Sierra is focused on developing momelotinib for myelofibrosis, with over 1,200 subjects treated since 2009 and a Phase 3 clinical trial, MOMENTUM, currently underway.

Positive

• Grant of stock options may attract and retain talent.
• Momelotinib is in Phase 3 trials, enhancing potential market presence.
• FDA Fast Track designation for momelotinib may accelerate approval.

Negative

• Reliance on successful clinical trials for growth.
• Risks of insufficient cash resources for operational plans.
• Potential delays in clinical development due to COVID-19.

VANCOUVER, BC, Oct. 2, 2020 /PRNewswire/ - Sierra Oncology, Inc. (SRRA), a late-stage drug development company focused on the registration and commercialization of momelotinib, a JAK1, JAK2 & ACVR1 inhibitor for the treatment of myelofibrosis, granted stock options to two new employees, as approved by the Compensation Committee of the Company's Board of Directors, under Sierra Oncology's 2018 Equity Inducement Plan.

The 2018 Equity Inducement Plan is used exclusively for the grant of equity awards to individuals as an inducement material to such individual's entering into employment with Sierra, pursuant to Rule 5635(c)(4) of the NASDAQ Listing Rules.

The employees received, in the aggregate, options to purchase 100,000 shares of Sierra's common stock. The options have an exercise price of $10.91 per share, which is equal to the closing price of Sierra's common stock on the date of grant. Each option will vest and become exercisable as to 25% of the shares on the first anniversary of the recipient's start date, and then will vest and become exercisable as to the remaining 75% of the shares in 36 equal monthly installments following the first anniversary, in each case, subject to each such employee's continued employment with Sierra on such vesting dates. The options are subject to the terms and conditions of Sierra's 2018 Equity Inducement Plan, and the terms and conditions of the stock option agreement covering the grant.

About Sierra Oncology

Sierra Oncology is a late stage drug development company focused on achieving the successful registration and commercialization of momelotinib, a selective and orally-bioavailable JAK1, JAK2 & ACVR1 inhibitor with a differentiated mechanism of action that enables it to potentially address all three key drivers of myelofibrosis: anemia, constitutional symptoms and enlarged spleen. More than 1,200 subjects have received momelotinib since clinical studies began in 2009, including more than 820 patients treated for myelofibrosis.

Sierra has launched MOMENTUM, a randomized double-blind Phase 3 clinical trial designed to enroll 180 myelofibrosis patients who are symptomatic and anemic, and who have been treated previously with a JAK inhibitor. The U.S. Food and Drug Administration has granted Fast Track designation to momelotinib.

For more information, please visit www.sierraoncology.com.

Cautionary Note on Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding Sierra Oncology's expectations from current data, anticipated clinical development activities, expected timing and success of enrollment of MOMENTUM and  potential benefits of momelotinib. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those described in the forward-looking statements. Such forward-looking statements are subject to risks and uncertainties, including, among others, the risk that Sierra Oncology's cash resources may be insufficient to fund its current operating plans and it may be unable to raise additional capital when needed, the risk that disruptions and impacts of COVID-19 will be significant and lengthy, Sierra Oncology may be unable to successfully develop and commercialize momelotinib, momelotinib may not demonstrate safety and efficacy or otherwise produce positive results, Sierra Oncology may experience delays in the clinical development of momelotinib, Sierra Oncology may be unable to acquire additional assets to build a pipeline of additional product candidates, Sierra Oncology's third-party manufacturers may cause its supply of materials to become limited or interrupted or fail to be of satisfactory quantity or quality, Sierra Oncology may be unable to obtain and enforce intellectual property protection for its technologies and momelotinib and the other factors described under the heading "Risk Factors" set forth in Sierra Oncology's filings with the Securities and Exchange Commission from time to time. Sierra Oncology undertakes no obligation to update the forward-looking statements contained herein or to reflect events or circumstances occurring after the date hereof, other than as may be required by applicable law.

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SOURCE Sierra Oncology

FAQ

What stock options were granted by Sierra Oncology (SRRA) on October 2, 2020?

Sierra Oncology granted a total of 100,000 stock options to two new employees at an exercise price of $10.91 per share.

What is the purpose of Sierra Oncology's 2018 Equity Inducement Plan?

The plan is used to grant equity awards to individuals as an inducement for their employment with Sierra.

What is momelotinib and why is it important to Sierra Oncology (SRRA)?

Momelotinib is a JAK1, JAK2 & ACVR1 inhibitor being developed for the treatment of myelofibrosis, with ongoing Phase 3 trials.

What designation has the FDA granted to momelotinib?

The FDA has granted Fast Track designation to momelotinib to expedite its development process.