Crinetics Pharmaceuticals Announces September 2024 Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Crinetics Pharmaceuticals (Nasdaq: CRNX) has announced the granting of non-qualified stock options to 15 new non-executive employees on September 10, 2024. The Compensation Committee approved options to purchase a total of 120,200 shares of common stock under the company's 2021 Employment Inducement Incentive Award Plan. These grants comply with Nasdaq Listing Rule 5635(c)(4) as inducements for new hires.

The stock options have an exercise price of $50.40 per share, matching the closing price of Crinetics' stock on the grant date. The options will vest over four years, with 25% vesting after one year and the remainder vesting in 36 monthly installments, contingent on continued employment. This move aims to attract and retain talent in the competitive pharmaceutical industry.

Positive

• Crinetics is expanding its workforce with 15 new non-executive employees
• The company is using stock options as a tool to attract and retain talent
• The stock options' exercise price of $50.40 suggests a relatively high stock valuation

Negative

• The stock option grants may lead to potential dilution for existing shareholders

SAN DIEGO, Sept. 10, 2024 (GLOBE NEWSWIRE) -- Crinetics Pharmaceuticals, Inc. (Nasdaq: CRNX) today announced that on September 10, 2024, the Compensation Committee of Crinetics’ Board of Directors granted non-qualified stock option awards to purchase an aggregate of 120,200 shares of its common stock to fifteen new non-executive employees 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 $50.40 per share, which is equal to the closing price of Crinetics’ common stock on The Nasdaq Global Select Market on September 10, 2024. 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 an investigational, first-in-class, oral, once-daily somatostatin receptor type 2 (SST2) agonist in Phase 3 clinical development for acromegaly and in Phase 2 clinical development for carcinoid syndrome associated with neuroendocrine tumors. Crinetics is also developing atumelnant (CRN04894), 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 new employees received stock options from Crinetics Pharmaceuticals (CRNX) on September 10, 2024?

Crinetics Pharmaceuticals (CRNX) granted stock options to 15 new non-executive employees on September 10, 2024.

What is the exercise price of the stock options granted by Crinetics (CRNX) on September 10, 2024?

The stock options granted by Crinetics (CRNX) on September 10, 2024, have an exercise price of $50.40 per share.

How many shares of Crinetics Pharmaceuticals (CRNX) common stock were granted as options on September 10, 2024?

Crinetics Pharmaceuticals (CRNX) granted options to purchase an aggregate of 120,200 shares of its common stock on September 10, 2024.

What is the vesting schedule for the stock options granted by Crinetics (CRNX) on September 10, 2024?

The stock options granted by Crinetics (CRNX) on September 10, 2024, will vest over four years, with 25% vesting after one year and the remainder vesting in 36 monthly installments.