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

Rhea-AI Summary

Crinetics Pharmaceuticals (CRNX) has announced new equity grants under its 2021 Employment Inducement Incentive Award Plan. The company granted stock options to purchase 95,675 shares to fifteen new non-executive employees and 80,000 shares to one executive employee. Additionally, restricted stock unit (RSU) awards of 40,775 units were granted to sixteen non-executive employees and 52,000 units to one executive employee.

The stock options have an exercise price of $33.75 per share, matching CRNX's closing price on March 10, 2025. Both stock options and RSUs follow a four-year vesting schedule, with stock options vesting 25% after one year and the remainder monthly over 36 months, while RSUs vest in equal annual installments. These grants were made as employment inducements in compliance with Nasdaq Listing Rule 5635(c)(4).

Positive

• Expansion of workforce with 17 new employees including one executive hire
• Competitive equity compensation structure to attract talent

Negative

• Potential dilution of existing shareholders from new equity grants

SAN DIEGO, March 10, 2025 (GLOBE NEWSWIRE) -- Crinetics Pharmaceuticals, Inc. (Nasdaq: CRNX) today announced that on March 10, 2025, the Compensation Committee of the Board of Directors granted non-qualified stock option awards to purchase an aggregate of 95,675 shares of its common stock to fifteen new non-executive employees and 80,000 to one new executive employee; and granted an aggregate of 40,775 restricted stock unit (“RSU”) awards to sixteen new non-executive employees and 52,000 to one new executive employee; in each case, under the Crinetics Pharmaceuticals, Inc. 2021 Employment Inducement Incentive Award Plan (the “2021 Inducement Plan”). The stock options and RSUs 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 granting 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 stock options have an exercise price of $33.75 per share, which is equal to the closing price of Crinetics’ common stock on the Nasdaq Global Select Market on March 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 RSUs will vest over four years in equal annual installments beginning on the one-year anniversary of the applicable vesting commencement date, also subject to each employee’s continued employment with Crinetics on such vesting dates. The stock option and RSU awards are subject to the terms and conditions of the 2021 Inducement Plan and the terms and conditions of an applicable stock option award agreement or RSU award agreement covering the respective 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 in development 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

What is the exercise price for CRNX's newly granted stock options in March 2025?

The stock options were granted at an exercise price of $33.75 per share, equal to CRNX's closing price on March 10, 2025.

How many shares were included in CRNX's March 2025 inducement grants?

CRNX granted options for 175,675 shares total (95,675 to non-executives and 80,000 to one executive) and 92,775 RSUs (40,775 to non-executives and 52,000 to one executive).

What is the vesting schedule for CRNX's March 2025 stock option grants?

The stock options vest over 4 years, with 25% vesting after one year and the remainder vesting monthly over 36 months.

How do the RSUs vest in CRNX's March 2025 inducement grants?

The RSUs vest over four years in equal annual installments, beginning on the one-year anniversary of the vesting commencement date.