Madrigal Pharmaceuticals Announces Grants of Inducement Awards under Nasdaq Listing Rule 5635(c)(4)

The employee awards vest over four years, with each installment conditional on continued employment.

Rhea-AI Summary

Madrigal Pharmaceuticals (MDGL) granted equity inducement awards to 26 new non-executive employees on October 1 and October 14, 2026. The awards total 9,642 time-based restricted stock units under its 2025 Inducement Plan. Approved by the independent Compensation Committee, they vest in four equal installments on the first through fourth grant-date anniversaries, subject to continued employment at each vesting date.

Positive

• None.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.9,642 restricted stock units granted to new employees represent potential dilution as they vest.

Key Figures

New employees receiving awards: 26 employees Restricted stock units: 9,642 units Vesting schedule: Four equal installments

New employees receiving awards

26 employees

Inducement awards

Restricted stock units

9,642 units

Granted in aggregate to the new employees

Vesting schedule

Four equal installments

On the first through fourth anniversaries of the grant date

Key Terms

restricted stock units, nasdaq listing rule 5635(c)(4)

2 terms

restricted stock units financial

"The new employees received, in the aggregate, 9,642 time-based restricted stock units."

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

nasdaq listing rule 5635(c)(4) regulatory

"approved by Madrigal’s independent Compensation Committee in accordance with 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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CONSHOHOCKEN, Pa., Oct. 15, 2026 (GLOBE NEWSWIRE) -- Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL), a biopharmaceutical company focused on delivering novel therapeutics for metabolic dysfunction-associated steatohepatitis (MASH), today announced that it granted equity awards on October 1, 2026 and October 14, 2026 to a total of 26 new non-executive employees as equity inducement awards under the terms of Madrigal’s 2025 Inducement Plan. The equity awards were approved by Madrigal’s independent Compensation Committee in accordance with Nasdaq Listing Rule 5635(c)(4).

The equity awards were granted as an inducement material to employees’ acceptance of employment with the company. The new employees received, in the aggregate, 9,642 time-based restricted stock units. All restricted stock units granted vest in four equal installments on each of the first through fourth anniversaries of the grant date. The vesting of all awards described above shall be subject to each such employee’s continued employment as of the applicable vesting date.

About Madrigal Pharmaceuticals

Madrigal Pharmaceuticals, Inc. (Nasdaq: MDGL) is a biopharmaceutical company focused on delivering novel therapeutics for metabolic dysfunction-associated steatohepatitis (MASH), a liver disease with high unmet medical need. Madrigal’s medication, Rezdiffra (resmetirom), is a once-daily, oral, liver-directed THR-β agonist designed to target key underlying causes of MASH. Rezdiffra was the first medication approved by both the FDA and European Commission for the treatment of MASH with moderate to advanced fibrosis (F2 to F3). An ongoing Phase 3 outcomes trial is evaluating Rezdiffra for the treatment of compensated MASH cirrhosis (F4c). For more information, visit www.madrigalpharma.com.

Investor Contact
Tina Ventura, IR@madrigalpharma.com

Media Contact
Christopher Frates, media@madrigalpharma.com

FAQ

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

How many inducement awards did Madrigal Pharmaceuticals grant to new employees?

Madrigal granted a total of 9,642 time-based restricted stock units to 26 new non-executive employees. The grants were made on October 1 and October 14, 2026, under the 2025 Inducement Plan.

When do Madrigal Pharmaceuticals' October 2026 inducement awards vest?

The restricted stock units vest in four equal installments on the first through fourth anniversaries of each grant date. Each installment requires the employee to remain employed as of the applicable vesting date.