LB Pharmaceuticals Reports Inducement Grant to New Employee Under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

LB Pharmaceuticals (Nasdaq: LBRX) announced an inducement equity award to its new Chief Commercial Officer, Kaya Pai Panandiker, granted on December 10, 2025 under the Nasdaq Listing Rule 5635(c)(4) exception. The award is an option to purchase 195,000 shares of common stock with a 10-year term and an exercise price of $21.36 per share (closing price on the grant date). The option vests over 4 years: 25% on the first anniversary and the remaining shares in equal monthly installments (1/48th) thereafter, subject to continuous service.

Key Figures

Option exercise price $21.36 per share Inducement option grant to CCO on Dec 10, 2025

Option grant size 195,000 shares Inducement option grant to CCO under Nasdaq Rule 5635(c)(4)

Option term 10 years Term of CCO inducement stock option

Vesting schedule 4 years; 25% at 1 year, then 1/48 monthly Vesting terms for CCO inducement option

Market Reality Check

$21.36 Last Close

Volume Volume 255,240 is 1.48x the 20-day average of 172,095 shares. normal

Technical Price $21.36 is trading above the 200-day MA of $16.29 and 7.73% below the 52-week high of $23.15.

Peers on Argus

Peers in Biotechnology showed mixed moves, with names like ABEO up 4.19%, DRUG up 8.71%, and RCKT up 7.4%, while ASMB and LRMR declined. This mixed action suggests LBRX trading is more stock-specific than broad sector-driven.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 09	Index inclusion news	Positive	-2.3%	Announcement of addition to Russell 2000 and 3000 indices.
Nov 24	Conference presentation	Neutral	+5.3%	Piper Sandler healthcare conference presentation announcement.
Nov 12	Inducement option grant	Neutral	-5.6%	Inducement equity award to new SVP of Regulatory Affairs.
Nov 12	Executive appointment	Positive	-5.6%	Appointment of Kaya Pai Panandiker as Chief Commercial Officer.
Nov 06	Conference presentation	Neutral	-1.0%	Stifel healthcare conference presentation announcement.

Pattern Detected

Recent LBRX news often saw share price declines even around positive or neutral corporate updates, indicating a tendency for price moves to diverge from headline tone.

Recent Company History

Over the past months, LBRX progressed from its September IPO toward index inclusion and commercialization readiness. A Q3 2025 10-Q highlighted a strengthened balance sheet after raising $327.8M gross in the IPO, leaving $314.5M in cash and securities. Subsequent news included conference presentations, Russell index additions effective December 22, 2025, and senior hires such as Chief Commercial Officer Kaya Pai Panandiker. Today’s inducement option grant to the CCO follows through on prior disclosures about equity awards tied to key leadership recruitment.

Market Pulse Summary

This announcement details a standard inducement stock option grant used to recruit a new Chief Commercial Officer. The award covers 195,000 shares at an exercise price of $21.36, with a 10-year term and four-year vesting structure. It follows earlier disclosures about the CCO’s appointment and reflects LBRX’s strategy of tying leadership compensation to long-term equity value. Investors may monitor future filings and updates on LB‑102’s progress to understand how this commercial leadership hire supports upcoming milestones.

Key Terms

nasdaq listing rule 5635(c)(4) regulatory

"pursuant to the “inducement grant” exception provided under Nasdaq Listing Rule 5635(c)(4)"

NASDAQ Listing Rule 5635(c)(4) is a rule that requires a company to get approval from its shareholders before selling a large amount of its shares, usually over 20%. This helps protect investors by making sure the company doesn't flood the market with new shares without their say, which could lower the stock's value.

inducement grant financial

"pursuant to the “inducement grant” exception provided under Nasdaq Listing Rule 5635(c)(4)"

An inducement grant is a stock-based reward given to a new hire—often options or restricted shares—used as a recruiting “signing bonus” to encourage someone to join a company and stay long enough to add value. Investors care because these grants can dilute existing shareholdings, change executive incentives and increase reported compensation costs, so they signal both management priorities and potential impacts on shareholder value.

equity incentive plan financial

"subject to the terms and conditions of, the LB Pharmaceuticals Inc 2025 Equity Incentive Plan"

An equity incentive plan is a program that gives employees, executives or directors the right to receive company stock or options to buy stock as part of their pay. Think of it as offering slices of future company profit to motivate people to boost long‑term performance; for investors it matters because it can align employee goals with shareholder value but also increases the number of shares outstanding, which can dilute existing ownership.

exercise price financial

"an exercise price per share equal to $21.36, which was the closing price"

The exercise price is the fixed amount at which you can buy or sell an asset, like a stock, when using an options contract. It matters because it helps determine whether exercising the option will be profitable or not, depending on the current market price. Think of it as the set price you agree on today to buy or sell later.

AI-generated analysis. Not financial advice.

NEW YORK, Dec. 10, 2025 (GLOBE NEWSWIRE) -- LB Pharmaceuticals Inc (“LB Pharmaceuticals” or the “Company”) (Nasdaq: LBRX) today announced that it has granted to Kaya Pai Panandiker, the new Chief Commercial Officer of LB Pharmaceuticals, an equity award outside of, but subject to the terms and conditions of, the LB Pharmaceuticals Inc 2025 Equity Incentive Plan. The equity award was granted on December 10, 2025, pursuant to the “inducement grant” exception provided under Nasdaq Listing Rule 5635(c)(4) as an inducement material to Ms. Pai Panandiker entering into employment with LB Pharmaceuticals.

Ms. Pai Panandiker received an option to purchase 195,000 shares of LB Pharmaceuticals’ common stock. The option carries a ten-year term and an exercise price per share equal to $21.36, which was the closing price of LB Pharmaceuticals’ common stock on the date of grant, and vests over 4 years, with 25% of the shares underlying the options vesting on the first anniversary of the grant date and an additional 1/48^th of the shares vesting monthly thereafter, subject to continuous service through the applicable vesting dates.

About LB-102

LB-102 is a Phase 3-ready oral, small molecule and a methylated derivative of amisulpride. In early 2025, LB Pharmaceuticals announced positive data from a four-week placebo-controlled, double-blinded, Phase 2 trial in patients with acute schizophrenia. The Phase 2 trial demonstrated statistically significant benefit versus placebo at all doses studied, a potentially class leading safety profile among D2 antagonists and partial agonists, and positive effects on negative symptoms and cognition. LB-102 is advancing into a Phase 3 clinical trial for acute schizophrenia and a Phase 2 clinical trial for bipolar depression. Additional expansion opportunities for LB-102 could include major depressive disorder (MDD), predominantly negative symptoms of schizophrenia, Alzheimer’s disease psychosis and agitation, as well as bipolar mania and cognitive impairment associated with schizophrenia.

About LB Pharmaceuticals

LB Pharmaceuticals is a clinical-stage biopharmaceutical company developing novel therapies for the treatment of schizophrenia, bipolar depression, and other neuropsychiatric diseases. The Company is building a pipeline that leverages the broad therapeutic potential of its lead product candidate, LB-102, which the Company believes has the potential to be the first benzamide antipsychotic drug approved for neuropsychiatric disorders in the United States. LB-102, if approved, has the potential to become a mainstay of psychiatric practice by offering a potentially attractive alternative to branded and generic therapeutics for the treatment of schizophrenia, bipolar depression, and other neuropsychiatric diseases.

Contacts
Media: 
Michael Tattory
LifeSci Communications
Mtattory@lifescicomms.com

Investor Relations: 
Joyce Allaire 
LifeSci Advisors 
JAllaire@LifeSciAdvisors.com

FAQ

Who received the inducement grant from LB Pharmaceuticals (LBRX) on December 10, 2025?

Kaya Pai Panandiker, the company's new Chief Commercial Officer, received the inducement option grant.

How many shares were included in the LBRX inducement option grant and what is the term?

The option covers 195,000 shares and carries a 10-year term from the December 10, 2025 grant date.

What is the exercise price for the LBRX option granted December 10, 2025?

The exercise price is $21.36 per share, equal to the closing price on the grant date.

What is the vesting schedule for the LB Pharmaceuticals (LBRX) inducement option?

The option vests over 4 years: 25% on the first anniversary and then 1/48th of the total shares monthly thereafter, subject to continuous service.

Under which Nasdaq rule was the LB Pharmaceuticals grant made for LBRX?

The award was made pursuant to the inducement grant exception under Nasdaq Listing Rule 5635(c)(4).

Does the LBRX announcement state any cash compensation or other financial terms for the new CCO?

No; the announcement specifies only the equity option grant, exercise price, term, and vesting schedule.