Madrigal Pharmaceuticals Reports Inducement Grants under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Madrigal Pharmaceuticals, Inc. granted equity awards to its new CFO and 39 other employees under the 2023 Inducement Plan. The awards include options, restricted stock units, and performance stock units, subject to vesting conditions. The CFO received options to purchase 13,353 shares, while other employees received options to purchase 853 shares. All options have an exercise price of $251.63 per share and vest over time.

CONSHOHOCKEN, Pa., March 06, 2024 (GLOBE NEWSWIRE) -- Madrigal Pharmaceuticals, Inc. (NASDAQ:MDGL), a clinical-stage biopharmaceutical company pursuing novel therapeutics for nonalcoholic steatohepatitis (NASH), today announced that the company granted equity awards to (i) Mardi C. Dier, the Company’s new Senior Vice President and Chief Financial Officer, effective March 11, 2024 and (ii) 39 other new employees, in each case with a grant date of March 1, 2024, as equity inducement awards under the terms of the company's 2023 Inducement Plan. The equity awards were approved in accordance with Nasdaq Listing Rule 5635(c)(4).

The equity awards were granted as inducement material to Ms. Dier’s and the other employees’ acceptance of employment with the company. Ms. Dier received options to purchase 13,353 shares of Madrigal’s common stock, 8,875 time-based restricted stock units and 8,875 market-based performance stock units (“MSUs”). The other new employees received, in the aggregate, options to purchase 853 shares of Madrigal’s common stock, and in the aggregate 11,796 time-based restricted stock units. All options granted have an exercise price of $251.63 per share, and vest as follows (i) 25% of the option shares will vest on the first anniversary of the date of grant and (ii) 6.25% of the option shares shall vest on each quarterly anniversary following the first anniversary of the date of grant. All restricted stock units granted vest in a 25% increment on each of the first through fourth anniversaries of the grant date. All MSUs granted vest upon certification concerning Madrigal’s stock price performance measured against biotechnology stock index companies for the entire performance period ending December 31, 2026. The vesting of all awards described above shall be subject to each such employee’s continued employment as of the vesting date.

About Madrigal Pharmaceuticals

Madrigal Pharmaceuticals, Inc. (Nasdaq: MDGL) is a clinical-stage biopharmaceutical company pursuing novel therapeutics for nonalcoholic steatohepatitis (NASH), a liver disease with high unmet medical need. Madrigal’s lead candidate, resmetirom, is a liver-directed THR-β agonist oral therapy that is designed to target key underlying causes of NASH. For more information, visit www.madrigalpharma.com.

Investor Contact
Tina Ventura, Madrigal Pharmaceuticals, Inc., IR@madrigalpharma.com

Media Contact
Christopher Frates, Madrigal Pharmaceuticals, Inc., media@madrigalpharma.com

FAQ

What is the purpose of the equity awards granted by Madrigal Pharmaceuticals, Inc. (MDGL)?

The equity awards were granted to the new CFO and 39 other employees as inducement material for their acceptance of employment with the company.

How many shares of Madrigal's common stock did the CFO receive in the equity awards?

The CFO received options to purchase 13,353 shares of Madrigal's common stock.

What is the exercise price of the options granted by Madrigal Pharmaceuticals, Inc.?

The exercise price of the options is $251.63 per share.

How do the options and restricted stock units vest for the employees?

The options vest 25% on the first anniversary of the grant date and 6.25% quarterly thereafter. The restricted stock units vest in 25% increments on each of the first through fourth anniversaries of the grant date.

What is the vesting condition for the market-based performance stock units (MSUs) granted by Madrigal Pharmaceuticals, Inc.?

The MSUs vest upon certification concerning Madrigal's stock price performance measured against biotechnology stock index companies for the performance period ending December 31, 2026.