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

Each executive’s options vest over four years, with continued service required through the applicable vesting dates.

Rhea-AI Summary

LB Pharmaceuticals (LBRX) granted stock options to its new chief medical officer and chief financial officer as employment inducements.

Dr. Susan G. Kozauer and Joseph Miller each received options to purchase 200,000 common shares at $37.22 per share, the closing stock price on the October 9, 2026 grant date. The options have a ten-year term and vest over four years: 25% on the first grant anniversary, followed by 1/48th monthly, subject to continuous service through each vesting date. The awards were granted outside the 2025 Equity Incentive Plan, but remain subject to its terms, under Nasdaq Listing Rule 5635(c)(4).

Positive

• None.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.Options for 200,000 shares each granted to Kozauer and Miller at $37.22 create potential shareholder dilution.

Key Figures

Option award: 200,000 shares each Exercise price: $37.22 per share Option term: 10 years +3 more

Option award

200,000 shares each

Options granted to each of the two new executives

Exercise price

$37.22 per share

Equal to the closing price on the grant date

Option term

10 years

Term of each option

Vesting period

4 years

Options vest subject to continuous service

Initial vesting

25%

Vests on the first anniversary of the grant date

Subsequent vesting

1/48 of underlying shares monthly

Additional vesting after the first anniversary

Key Terms

inducement grant, nasdaq listing rule 5635(c)(4)

2 terms

inducement grant regulatory

"pursuant to the “inducement grant” exception"

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.

nasdaq listing rule 5635(c)(4) regulatory

"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.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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NEW YORK, Oct. 09, 2026 (GLOBE NEWSWIRE) -- LB Pharmaceuticals Inc (“LB Pharmaceuticals” or the “Company”) (Nasdaq: LBRX), a neuromedicines company dedicated to developing and commercializing high-impact therapies that address the multiple dimensions of underserved brain disorders, today announced that it has granted to Dr. Susan G. Kozauer, the new Chief Medical Officer and Joseph Miller, the new Chief Financial Officer 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 awards were granted on October 9, 2026, pursuant to the “inducement grant” exception provided under Nasdaq Listing Rule 5635(c)(4) as an inducement material to Dr. Kozauer and Mr. Miller entering into employment with LB Pharmaceuticals.

Dr. Kozauer and Mr. Miller each received an option to purchase 200,000 shares of LB Pharmaceuticals’ common stock. The options carry a ten-year term and an exercise price per share equal to $37.22, 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 1/48th of the shares vesting monthly thereafter, subject to continuous service through the applicable vesting dates.

About LB Pharmaceuticals

LB Pharmaceuticals is a neuromedicines company dedicated to developing and commercializing high-impact therapies that address the multiple dimensions of underserved brain disorders. 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 opportunity 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 balanced clinical activity and tolerability profile that provides a potentially attractive alternative to branded and generic therapeutics for the treatment of a broad range of neuropsychiatric diseases.

Media and Investor Contact: 

Ellen Rose
erose@lbpharma.us

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What stock options did LB Pharmaceuticals grant its new executives?

New Chief Medical Officer Dr. Susan G. Kozauer and new Chief Financial Officer Joseph Miller each received options to purchase 200,000 common shares at $37.22 per share. The options were granted on October 9, 2026, have a ten-year term, and were employment inducement awards under Nasdaq Listing Rule 5635(c)(4).

When do the LB Pharmaceuticals executive inducement options vest?

The options vest over four years, with 25% vesting on the first anniversary of the grant date and an additional 1/48th vesting monthly thereafter. Vesting requires continuous service through the applicable vesting dates.