Crinetics Pharmaceuticals Announces January 2025 Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Crinetics Pharmaceuticals (CRNX) has announced new stock option grants under its 2021 Employment Inducement Incentive Award Plan. The company granted options to purchase 96,100 shares to sixteen new non-executive employees and 100,000 shares to one new executive employee on January 10, 2025.

The options were granted at an exercise price of $40.59 per share, matching Crinetics' closing price on The Nasdaq Global Select Market. The vesting schedule spans four years, with 25% vesting after one year and the remaining shares vesting in 36 equal monthly installments, contingent on continued employment. These grants were made in accordance with Nasdaq Listing Rule 5635(c)(4) as inducement awards for new employees.

Positive

• Expansion of workforce with 17 new employees, including one executive
• Stock options aligned with market price, indicating fair compensation practice

Negative

• Potential future dilution of existing shareholders due to 196,100 new stock options

SAN DIEGO, Jan. 10, 2025 (GLOBE NEWSWIRE) -- Crinetics Pharmaceuticals, Inc. (Nasdaq: CRNX) today announced that on January 10, 2025, the Compensation Committee of the Board of Directors granted non-qualified stock option awards to purchase an aggregate of 96,100 shares of its common stock to sixteen new non-executive employees and 100,000 to one new executive employee under the Crinetics Pharmaceuticals, Inc. 2021 Employment Inducement Incentive Award Plan (the “2021 Inducement Plan”). The stock options were granted as inducements material to the employees entering into employment with Crinetics in accordance with Nasdaq Listing Rule 5635(c)(4).

The 2021 Inducement Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of Crinetics, or following a bona fide period of non-employment, as an inducement material to such individuals’ entering into employment with Crinetics, pursuant to Nasdaq Listing Rule 5635(c)(4). The options have an exercise price of $40.59 per share, which is equal to the closing price of Crinetics’ common stock on The Nasdaq Global Select Market on January 10, 2025. The shares subject to the stock options will vest over four years, with 25% of the shares vesting on the one-year anniversary of the applicable vesting commencement date and the balance of the shares vesting in a series of 36 successive equal monthly installments thereafter, subject to each employee’s continued employment with Crinetics on such vesting dates. The options are subject to the terms and conditions of the 2021 Inducement Plan and the terms and conditions of a stock option agreement covering the grant.

About Crinetics Pharmaceuticals
Crinetics Pharmaceuticals is a clinical stage pharmaceutical company focused on the discovery, development, and commercialization of novel therapeutics for endocrine diseases and endocrine-related tumors. Crinetics’ lead development candidate, paltusotine, is the first investigational once-daily, oral, selective somatostatin receptor type 2 (SST2) nonpeptide agonist that is in clinical development for acromegaly and carcinoid syndrome associated with neuroendocrine tumors. Crinetics is also developing atumelnant, an investigational, first-in-class, oral ACTH antagonist, that is currently completing Phase 2 clinical studies for the treatment of congenital adrenal hyperplasia and Cushing’s disease. All of the company’s drug candidates are orally delivered, small molecule, new chemical entities resulting from in-house drug discovery efforts, including additional discovery programs addressing a variety of endocrine conditions such as hyperparathyroidism, polycystic kidney disease, Graves’ disease (including thyroid eye disease), diabetes, obesity and GPCR-targeted oncology indications. 

Investors:
Gayathri Diwakar
Head of Investor Relations
gdiwakar@crinetics.com
(858) 345-6340

Media:
Natalie Badillo
Head of Corporate Communications
nbadillo@crinetics.com
(858) 450-6464

FAQ

How many shares were granted in CRNX's January 2025 inducement awards?

Crinetics granted options to purchase 196,100 shares total, with 96,100 shares to sixteen non-executive employees and 100,000 shares to one executive employee.

What is the exercise price for CRNX's January 2025 inducement stock options?

The exercise price is $40.59 per share, equal to CRNX's closing price on Nasdaq on January 10, 2025.

What is the vesting schedule for CRNX's January 2025 inducement grants?

The options vest over four years, with 25% vesting after one year and the remainder vesting in 36 equal monthly installments, subject to continued employment.

How many new employees received CRNX stock options in January 2025?

A total of 17 new employees received stock options, consisting of 16 non-executive employees and 1 executive employee.