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

Rhea-AI Summary

LB Pharmaceuticals (Nasdaq: LBRX) granted inducement equity awards to two new senior hires on January 9, 2026 under the Nasdaq Listing Rule 5635(c)(4). The company awarded Ellen Rose options to purchase 100,000 shares and Lindsay Beaupre options to purchase 75,000 shares.

The options have a 10-year term, an exercise price of $20.73 per share 4 years with 25% vesting after one year and the remainder vesting monthly in 1/48th increments, subject to continuous service.

News Market Reaction

+3.99%

6 alerts

+3.99% News Effect

-3.2% Trough in 23 min

+$15M Valuation Impact

$384M Market Cap

0.1x Rel. Volume

On the day this news was published, LBRX gained 3.99%, reflecting a moderate positive market reaction. Argus tracked a trough of -3.2% from its starting point during tracking. Our momentum scanner triggered 6 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $15M to the company's valuation, bringing the market cap to $384M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Option grant shares: 100,000 shares Option grant shares: 75,000 shares Option term: 10 years +4 more

7 metrics

Option grant shares 100,000 shares Options to new SVP, Corporate Affairs

Option grant shares 75,000 shares Options to new SVP, People and Culture

Option term 10 years Term of inducement stock options

Exercise price $20.73 per share Closing price on Jan 9, 2026 grant date

Vesting period 4 years Inducement option vesting schedule

Initial vesting 25% of shares Vest on first anniversary of grant date

Ongoing vesting 1/48th monthly Remaining options vest monthly after first year

Market Reality Check

Price: $19.36 Vol: Volume 222,216 is at 0.44...

low vol

$19.36 Last Close

Volume Volume 222,216 is at 0.44x the 20-day average 509,912, indicating lighter trading ahead of this filing. low

Technical Shares at $20.73 are trading above the 200-day MA of $17.42, closer to the 52-week high of $23.15 than the 52-week low of $13.36.

Peers on Argus

LBRX was down 0.34% ahead of this HR-related inducement grant. Among close biote...

LBRX was down 0.34% ahead of this HR-related inducement grant. Among close biotech peers, three (DRUG -3.74%, LRMR -2.06%, RCKT -4.36%) were lower while two (ABEO +1.76%, ASMB +0.25%) were higher, showing mixed but generally negative sector tone aligned with LBRX’s slight decline.

Historical Context

5 past events · Latest: Jan 06 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 06	Leadership appointments	Positive	-3.3%	Added senior leaders in Corporate Affairs and People & Culture roles.
Dec 10	Inducement grant CCO	Neutral	-2.8%	Option grant to new Chief Commercial Officer under inducement exception.
Dec 09	Index inclusion	Positive	-2.3%	Addition to Russell 2000 and 3000 following recent IPO.
Nov 24	Conference presentation	Positive	+5.3%	CEO presentation at Piper Sandler healthcare conference.
Nov 12	Inducement grant SVP	Neutral	-5.6%	Option grant to new SVP of Regulatory Affairs as inducement.

Pattern Detected

Recent LBRX news—index inclusion and leadership hires—has often been followed by short-term share price declines, while a conference appearance saw a positive reaction. Prior inducement grants also coincided with modest pullbacks.

Recent Company History

Over the past few months, LBRX has executed several corporate milestones. On Nov 12, 2025, it reported an inducement grant to a new SVP of Regulatory Affairs. This followed conference participation announced on Nov 24, 2025 and index inclusion into the Russell 2000 and 3000 on Dec 22, 2025. Further leadership expansion came with a Chief Commercial Officer inducement grant on Dec 10, 2025, and additional senior hires on Jan 6, 2026. Today’s inducement options for two new SVPs continue this pattern of equity-based hiring.

Market Pulse Summary

This announcement documents inducement stock options for two newly appointed senior vice presidents,...

Analysis

This announcement documents inducement stock options for two newly appointed senior vice presidents, granting 100,000 and 75,000 options at an exercise price of $20.73 with a 4-year vesting schedule. It follows earlier inducement awards for other executives in November and December 2025, reinforcing a consistent equity-based hiring approach. Investors may focus on how this strengthened leadership supports advancement of LB‑102 and execution of the company’s post‑IPO strategy.

Key Terms

nasdaq listing rule 5635(c)(4), inducement grant, equity awards, equity incentive plan, +2 more

6 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 awards financial

"it has granted to Ellen Rose ... equity awards outside of, but subject to the terms"

Equity awards are payments to employees or directors made in the form of company stock or rights to buy stock later, serving as a way to share ownership rather than cash. For investors, they matter because they align staff incentives with company performance, can increase the number of shares outstanding over time (which can reduce each share’s claim on profits), and create compensation costs that affect reported earnings.

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

"The options carry a ten-year term and an exercise price per share equal to $20.73"

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.

vesting financial

"and vests over 4 years, with 25% of the shares underlying the options vesting"

Vesting is the process by which you earn full ownership of something, like company stock or a retirement benefit, over time. It’s like earning the right to keep a gift piece by piece the longer you stay with a company, making sure employees stay committed before they receive all the benefits.

AI-generated analysis. Not financial advice.

NEW YORK, Jan. 12, 2026 (GLOBE NEWSWIRE) -- LB Pharmaceuticals Inc (“LB Pharmaceuticals” or the “Company”) (Nasdaq: LBRX) today announced that it has granted to Ellen Rose, the new Senior Vice President, Corporate Affairs and Lindsay Beaupre, the new Senior Vice President of People and Culture of LB Pharmaceuticals, equity awards outside of, but subject to the terms and conditions of, the LB Pharmaceuticals Inc 2025 Equity Incentive Plan. The equity award was granted on January 9, 2026, pursuant to the “inducement grant” exception provided under Nasdaq Listing Rule 5635(c)(4) as an inducement material to Ms. Rose and Ms. Beaupre entering into employment with LB Pharmaceuticals.

Ms. Rose and Ms. Beaupre received options to purchase 100,000 and 75,000 shares of LB Pharmaceuticals’ common stock, respectively. The options carry a ten-year term and an exercise price per share equal to $20.73, 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.

Media and Investor Contact
Ellen Rose
erose@lbpharma.us

FAQ

What equity awards did LB Pharmaceuticals (LBRX) grant on January 9, 2026?

LB Pharmaceuticals granted options to purchase 100,000 shares to Ellen Rose and 75,000 shares to Lindsay Beaupre on January 9, 2026.

What is the exercise price and term of the LBRX inducement options?

The options carry a 10-year term with an exercise price of $20.73 per share, equal to the closing price on the grant date.

How do the LB Pharmaceuticals (LBRX) options vest for the new hires?

The options vest over 4 years: 25% vests on the first anniversary and the remaining shares vest monthly at 1/48th per month thereafter, subject to continuous service.

Under what Nasdaq rule were the LB Pharmaceuticals inducement grants made?

The awards were granted pursuant to the inducement grant exception under Nasdaq Listing Rule 5635(c)(4).

Who received inducement grants from LB Pharmaceuticals (LBRX)?

The grants were made to Ellen Rose, Senior Vice President, Corporate Affairs, and Lindsay Beaupre, Senior Vice President of People and Culture.

Are the LBRX inducement awards subject to any plan or conditions?

The awards were granted outside of, but subject to the terms of, the LB Pharmaceuticals 2025 Equity Incentive Plan and are subject to vesting and continuous service conditions.