CTI BioPharma Announces Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)

CTI BioPharma Corp. (Nasdaq: CTIC) announced on April 10, 2023, that its Compensation Committee granted equity inducement awards to two new employees.

Rhea-AI Summary

CTI BioPharma Corp. (Nasdaq: CTIC) announced on April 10, 2023, that its Compensation Committee granted equity inducement awards to two new employees. This was done under Nasdaq Listing Rule 5635(c)(4) and outside of the company's Amended and Restated 2017 Equity Incentive Plan.

The awards totaled options for 36,000 shares of CTIC common stock, with an exercise price equal to the closing price on each grant date. The options will vest over four years, contingent on continued employment, and are valid for a ten-year term.

CTI BioPharma focuses on targeted therapies for blood-related cancers and has one FDA-approved product, VONJO (pacritinib), aimed at treating patients with specific myelofibrosis conditions.

Positive

• Grant of equity awards may help attract and retain talent.
• Equity incentives align employee interests with shareholder interests.

Negative

• The inducement grants may lead to shareholder dilution.
• The reliance on equity awards can indicate challenges in recruiting talent.

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SEATTLE, April 10, 2023 /PRNewswire/ -- CTI BioPharma Corp. (Nasdaq: CTIC), a commercial biopharmaceutical company focused on the development and commercialization of novel targeted therapies for blood-related cancers, today announced that an authorized subcommittee of the Compensation Committee of its Board of Directors granted equity awards to two new employees as equity inducement awards outside of the Company's Amended and Restated 2017 Equity Incentive Plan (but under the terms of the Amended and Restated 2017 Equity Incentive Plan) and material to the employees' acceptance of employment with the company. The equity awards were approved on April 10, 2023, in accordance with Nasdaq Listing Rule 5635(c)(4).

The employees received options to purchase an aggregate of 36,000 shares of CTI BioPharma common stock. The options will be issued upon each employee's grant date (the "Grant Date"), and all stock options included within the equity inducement awards will have an exercise price equal to the closing price of CTI BioPharma common stock on each respective Grant Date. One-fourth of the options will vest on each anniversary of the employee's Grant Date, subject to the employee's continued employment with CTI BioPharma on such vesting dates. The options have a ten-year term.

About CTI BioPharma Corp.

CTI BioPharma is a commercial biopharmaceutical company focused on the development and commercialization of novel targeted therapies for blood-related cancers that offer a unique benefit to patients and their healthcare providers. CTI has one FDA-approved product, VONJO® (pacritinib), a JAK2, ACVR1,­­ and IRAK1 inhibitor, that spares JAK1. VONJO is approved for the treatment of adults with intermediate- or high-risk primary or secondary (post-polycythemia vera or post-essential thrombocythemia) myelofibrosis with a platelet count below 50 × 109/L. This indication is approved under FDA accelerated approval based on spleen volume reduction. Continued approval for this indication may be contingent upon verification and description of clinical benefit in a confirmatory trial(s). CTI is conducting the Phase 3 PACIFICA study of VONJO in patients with myelofibrosis and severe thrombocytopenia as a post-marketing requirement. For more information, please visit www.ctibiopharma.com.

VONJO® is a registered trademark of CTI BioPharma Corp.

Investor Relations and Media Contacts:

Remy Bernarda
Jenny Kobin
invest@ctibiopharma.com 

 

 

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SOURCE CTI BioPharma Corp.

FAQ

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What did CTI BioPharma announce on April 10, 2023?

CTI BioPharma announced the granting of equity inducement awards to two new employees.

How many shares were granted as equity inducement awards by CTI BioPharma?

CTI BioPharma granted options for 36,000 shares of common stock.

What is the significance of Nasdaq Listing Rule 5635(c)(4) in CTI BioPharma's announcement?

The rule allows for equity awards to attract new employees outside of existing equity incentive plans.

What is VONJO, the product of CTI BioPharma?

VONJO is an FDA-approved therapy for myelofibrosis with a specific focus on patients with low platelet counts.

What is the term for the stock options granted by CTI BioPharma?

The stock options have a ten-year term.