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 James Rawls upon his hiring as Senior Vice President of Regulatory Affairs.

On November 10, 2025 the company granted Mr. Rawls an option to purchase 90,000 shares of common stock under the Nasdaq Listing Rule 5635(c)(4) inducement exception. The option has a 10-year term, an exercise price of $14.61 per share (the closing price on the grant date), and vests over 4 years with 25% vesting on the first anniversary and the remainder vesting monthly at 1/48th, subject to continued service.

NEW YORK, Nov. 12, 2025 (GLOBE NEWSWIRE) -- LB Pharmaceuticals Inc (“LB Pharmaceuticals” or the “Company”) (Nasdaq: LBRX) today announced that it has granted to James Rawls, the new Senior Vice President of Regulatory Affairs 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 November 10, 2025, pursuant to the “inducement grant” exception provided under Nasdaq Listing Rule 5635(c)(4) as an inducement material to Mr. Rawls entering into employment with LB Pharmaceuticals.

Mr. Rawls received an option to purchase 90,000 shares of LB Pharmaceuticals’ common stock. The option carries a ten-year term and an exercise price per share equal to $14.61, 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

What did LB Pharmaceuticals (LBRX) grant James Rawls on November 10, 2025?

LB Pharmaceuticals granted James Rawls an option to purchase 90,000 shares with a 10-year term and an exercise price of $14.61 per share.

Why was the equity award to James Rawls given under Nasdaq Listing Rule 5635(c)(4)?

The award was issued as an inducement grant under Nasdaq Rule 5635(c)(4) to attract Mr. Rawls to join the company.

How does the 4-year vesting schedule for LBRX's option to James Rawls work?

The option vests 25% on the first anniversary of the grant and then 1/48th monthly thereafter, subject to continuous service.

What is the exercise price and why is it set at $14.61 for LBRX's grant?

The exercise price of $14.61 equals LB Pharmaceuticals' closing common stock price on the grant date, per the award terms.

When does the option granted to James Rawls expire?

The option carries a ten-year term from the grant date, expiring ten years after November 10, 2025.

Does the inducement award to James Rawls require shareholder approval for LBRX?

The award was granted under the Nasdaq inducement exception (Rule 5635(c)(4)), which permits such grants without shareholder approval when conditions are met.