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

Rhea-AI Summary

Cytokinetics (CYTK) has announced new inducement grants for 13 employees who joined the company in March and April 2025. The compensation package includes:

- Stock options to purchase 60,670 shares of common stock at $38.56 per share (closing price on April 15, 2025)

- 40,888 restricted stock units (RSUs)

The RSUs will vest over 3 years (40% in year 1, 40% in year 2, 20% in year 3), while stock options vest over 4 years (25% after first year, remaining monthly over 36 months). The stock options have a 10-year term. These grants were made under Nasdaq Listing Rule 5635(c)(4) as material inducements to employment.

Positive

• Company demonstrates ability to attract new talent with competitive equity compensation packages
• Stock options granted at market price ($38.56) showing fair compensation practices

Negative

• Potential dilution of existing shareholders from new equity grants
• Additional stock-based compensation expense will impact future earnings

SOUTH SAN FRANCISCO, Calif., April 17, 2025 (GLOBE NEWSWIRE) -- Cytokinetics, Incorporated (Nasdaq: CYTK) today announced that on April 15, 2025 it granted stock options to purchase an aggregate of 60,670 shares of common stock and 40,888 restricted stock units (RSUs) that will be settled in shares of common stock upon vesting to 13 employees, whose employment commenced in March and April, 2025, as a material inducement to their employment.

The RSUs will vest over 3 years, with 40% of the RSUs vesting on the first anniversary of the applicable grant date, an additional 40% of the RSUs vesting on the second anniversary of the grant date and the final 20% vesting on the third anniversary of the grant date, in each case, subject to each respective employee’s continued service with the Company. The stock options that were granted are subject to an exercise price of $38.56 per share, which is equal to the closing price of the Company’s common stock on April 15, 2025, and will vest over 4 years, with 1/4^th of the shares underlying the employee’s option vesting on the one-year anniversary of the grant date and the remaining shares thereafter vesting in monthly installments at a rate of 1/48th of the shares underlying such stock options over the subsequent 36 months, subject to each respective employee’s continued service with the Company. The stock options have a 10-year term. These awards are subject to the terms and conditions of the Company's Amended and Restated 2004 Equity Incentive Plan and the applicable award agreements pursuant to which the awards were granted.

The stock options and RSUs were granted as material inducements to employment in accordance with Nasdaq Listing Rule 5635(c)(4).

About Cytokinetics

Cytokinetics is a specialty biopharmaceutical company building on its over 25-years of pioneering scientific innovation with intention to create a muscle biology franchise business focused on medicines designed to optimize muscle performance for patients with cardiac and other diseases of muscle dysfunction. Cytokinetics is readying for potential regulatory approvals and commercialization of aficamten, a cardiac myosin inhibitor following positive results from SEQUOIA-HCM, the pivotal Phase 3 clinical trial in patients with obstructive hypertrophic cardiomyopathy (HCM). Aficamten is also being evaluated in additional clinical trials enrolling patients with obstructive and non-obstructive HCM. Cytokinetics is also developing omecamtiv mecarbil, a cardiac myosin activator, in patients with heart failure with severely reduced ejection fraction (HFrEF), CK-586, a cardiac myosin inhibitor with a mechanism of action distinct from aficamten, for the potential treatment of heart failure with preserved ejection fraction (HFpEF) and CK-089, a fast skeletal muscle troponin activator with potential therapeutic application to a specific type of muscular dystrophy and other conditions of impaired skeletal muscle function.

For additional information about Cytokinetics, visit www.cytokinetics.com and follow us on X, LinkedIn, Facebook and YouTube.

Forward-Looking Statements

This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the "Act"). Cytokinetics disclaims any intent or obligation to update these forward-looking statements and claims the protection of the Act's Safe Harbor for forward-looking statements. Examples of such statements include, but are not limited to, statements relating to Cytokinetics' and its partners' research and development activities of Cytokinetics’ product candidates. Such statements are based on management's current expectations, but actual results may differ materially due to various risks and uncertainties, including, but not limited to the risks related to Cytokinetics' business outlined in Cytokinetics' filings with the Securities and Exchange Commission particularly under the caption “Risk Factors” in Cytokinetics’ latest Annual Report on Form 10-K. Forward-looking statements are not guarantees of future performance, and Cytokinetics' actual results of operations, financial condition and liquidity, and the development of the industry in which it operates, may differ materially from the forward-looking statements contained in this press release. Any forward-looking statements that Cytokinetics makes in this press release speak only as of the date of this press release. Cytokinetics assumes no obligation to update its forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.

CYTOKINETICS® and the CYTOKINETICS and C-shaped logo are registered trademarks of Cytokinetics in the U.S. and certain other countries.

Contact:

Cytokinetics

Diane Weiser

Senior Vice President, Corporate Affairs

(415) 290-7757

FAQ

What are the vesting terms for Cytokinetics (CYTK) new employee stock options granted in April 2025?

The stock options vest over 4 years, with 25% vesting after one year and the remaining vesting monthly over 36 months at 1/48th per month, subject to continued employment.

How many shares were included in CYTK's April 2025 inducement grants?

Cytokinetics granted options to purchase 60,670 shares and 40,888 restricted stock units (RSUs) to 13 new employees.

What is the exercise price for CYTK's April 2025 inducement stock options?

The stock options were granted with an exercise price of $38.56 per share, equal to CYTK's closing price on April 15, 2025.

How do the RSUs vest in CYTK's April 2025 inducement grants?

The RSUs vest over 3 years: 40% after year one, 40% after year two, and 20% after year three, subject to continued employment.