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

ORIC Pharmaceuticals (Nasdaq:ORIC) granted inducement equity on May 1, 2026 to four new non-executive employees: 216,000 non-qualified stock options and 35,000 restricted stock units.

Rhea-AI Summary

ORIC Pharmaceuticals (Nasdaq:ORIC) granted inducement equity on May 1, 2026 to four new non-executive employees: 216,000 non-qualified stock options and 35,000 restricted stock units.

Options carry an exercise price equal to the closing price on May 1, 2026. Vesting: 25% after one year, then monthly 1/36th; RSUs vest one-third on each of the first three anniversaries. Grants were approved under Nasdaq Rule 5635(c)(4) and subject to plan terms and continued service.

Argus May 4 session

-1.43% close to close Open Argus

Details

News Market Reaction – ORIC

In the May 4 session, ORIC declined 1.43%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement detailed inducement equity awards under Nasdaq Rule 5635(c)(4), granting 216,000 n...

Analysis

This announcement detailed inducement equity awards under Nasdaq Rule 5635(c)(4), granting 216,000 non-qualified options and 35,000 RSUs to four new non‑executive employees, vesting over several years. It follows a series of clinically focused updates on rinzimetostat and other pipeline assets in early 2026. Investors tracking ORIC may focus more on upcoming clinical and regulatory milestones and the company’s cash runway than on these routine compensation-related grants when assessing longer-term implications.

Key Figures

Inducement stock options: 216,000 options Inducement RSUs: 35,000 RSUs New employees: 4 employees +3 more

Inducement stock options

216,000 options

Granted to four new non-executive employees on May 1, 2026

Inducement RSUs

35,000 RSUs

Granted to four new non-executive employees on May 1, 2026

New employees

4 employees

Recipients of inducement equity awards in April 2026 hires

Initial option vesting

25% of shares

Vests on the one-year anniversary of the Grant Date

Ongoing option vesting

1/36th monthly

Of remaining option shares after first-year cliff

RSU vesting schedule

One-third annually

Each of first three anniversaries of the Grant Date

Historical Context

5 past events · Latest: Apr 17

5 events

1. Apr 17

   Preclinical AACR data

   24h Move

   +1.3%

   Preclinical rinzimetostat data at AACR highlighting activity and improved properties.

2. Apr 03

   Inducement grants

   24h Move

   +0.2%

   Inducement equity awards to a new hire under the 2022 plan.

3. Mar 31

   Phase 3 dose selection

   24h Move

   -41.0%

   Selection of 400 mg rinzimetostat RP3D for global Phase 3 study.

4. Mar 27

   Data call announcement

   24h Move

   -2.6%

   Announcement of upcoming Phase 1b rinzimetostat data presentation.

5. Mar 17

   AACR poster acceptance

   24h Move

   -10.0%

   Acceptance of preclinical rinzimetostat posters for AACR 2026.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-qualified stock options, restricted stock units, equity incentive plan, nasdaq rule 5635(c)(4)

4 terms

non-qualified stock options financial

"granted a total of 216,000 non-qualified stock options and 35,000 restricted"

Non-qualified stock options are a type of employee benefit that gives individuals the right to buy company shares at a set price, usually lower than the market value, within a certain period. Unlike other options that may have special tax advantages, these options are taxed as income when exercised, which can affect how much money the employee or investor ultimately gains. They are important because they can influence company compensation strategies and impact the financial outcomes for employees and investors.

restricted stock units financial

"stock options and 35,000 restricted stock units to four new non-executive"

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.

equity incentive plan financial

"2022 Inducement Equity Incentive Plan, subject to recipient’s continued"

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.

nasdaq rule 5635(c)(4) regulatory

"approved by ORIC’s Compensation Committee of the Board of Directors, as required by Nasdaq Rule 5635(c)(4),"

NASDAQ Rule 5635(c)(4) is a listing standard that requires a company to obtain shareholder approval before issuing a substantial number of new shares or convertible securities in certain financing or insider-related transactions that would materially dilute existing holders. It matters to investors because the vote gives shareholders a check on deals that could significantly change ownership stakes or voting power—like a homeowners’ association approving a major renovation that affects the whole neighborhood’s value.

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

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SOUTH SAN FRANCISCO, Calif. and SAN DIEGO, May 01, 2026 (GLOBE NEWSWIRE) -- ORIC Pharmaceuticals, Inc. (Nasdaq:ORIC), a clinical stage oncology company focused on developing treatments that address mechanisms of therapeutic resistance, today announced that on May 1, 2026 (the “Grant Date”), ORIC granted a total of 216,000 non-qualified stock options and 35,000 restricted stock units to four new non-executive employees who began their employment with ORIC in April 2026.

These inducement grants were granted pursuant to the ORIC Pharmaceuticals, Inc. 2022 Inducement Equity Incentive Plan, subject to recipient’s continued employment or service through each applicable vesting date. The stock options have an exercise price equal to the closing price of ORIC’s common stock on the Grant Date. Twenty-five percent (25%) of the shares subject to the stock options will vest on the one (1) year anniversary of the Grant Date, with one thirty-sixth (1/36^th) of the remaining shares vesting each one-month period thereafter. One-third (1/3^rd) of the restricted stock units will vest on each of the first three anniversaries of the Grant Date. The inducement grants are subject to the terms and conditions of the applicable stock option and restricted stock unit agreements and the ORIC Pharmaceuticals, Inc. 2022 Inducement Equity Incentive Plan.

The inducement grants were approved by ORIC’s Compensation Committee of the Board of Directors, as required by Nasdaq Rule 5635(c)(4), and were granted as a material inducement to employment in accordance with Nasdaq Rule 5635(c)(4).

About ORIC Pharmaceuticals, Inc.

ORIC Pharmaceuticals is a clinical stage biopharmaceutical company dedicated to improving patients’ lives by Overcoming Resistance In Cancer. ORIC’s clinical stage product candidates include (1) rinzimetostat, an allosteric inhibitor of the polycomb repressive complex 2 (PRC2) via the EED subunit, being developed for prostate cancer, and (2) enozertinib, a brain penetrant inhibitor targeting EGFR exon 20 and EGFR PACC mutations, being developed for NSCLC. ORIC has offices in South San Francisco and San Diego, California. For more information, please go to www.oricpharma.com, and follow us on X or LinkedIn.

Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release that are not purely historical are forward-looking statements. Such forward-looking statements include, among other things, statements regarding the vesting of the inducement grants; target indications for ORIC’s product candidates; the potential advantages of ORIC’s product candidates; and plans underlying ORIC’s clinical trials and development. Words such as “believes,” “anticipates,” “plans,” “expects,” “intends,” “will,” “goal,” “potential” and similar expressions are intended to identify forward-looking statements. The forward-looking statements contained herein are based upon ORIC’s current expectations and involve assumptions that may never materialize or may prove to be incorrect. Actual results could differ materially from those projected in any forward-looking statements due to numerous risks and uncertainties, including but not limited to: risks associated with the process of discovering, developing and commercializing drugs that are safe and effective for use as human therapeutics and operating as an early clinical stage company; ORIC’s ability to develop, initiate or complete preclinical studies and clinical trials for, obtain approvals for and commercialize any of its product candidates; changes in ORIC’s plans to develop and commercialize its product candidates; the potential for clinical trials of ORIC’s product candidates to differ from preclinical, initial, interim, preliminary or expected results; negative impacts of health emergencies, economic instability or international conflicts on ORIC’s operations, including clinical trials; the risk of the occurrence of any event, change or other circumstance that could give rise to the termination of ORIC’s license and collaboration agreements; the potential market for our product candidates, and the progress and success of competing therapeutics currently available or in development; ORIC’s ability to raise any additional funding it will need to continue to pursue its business and product development plans; regulatory developments in the United States and foreign countries; ORIC’s reliance on third parties, including contract manufacturers and contract research organizations; ORIC’s ability to obtain and maintain intellectual property protection for its product candidates; the loss of key scientific or management personnel; competition in the industry in which ORIC operates; general economic and market conditions; and other risks. Information regarding the foregoing and additional risks may be found in the section entitled “Risk Factors” in ORIC’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 23, 2026, and ORIC’s future reports to be filed with the SEC. These forward-looking statements are made as of the date of this press release, and ORIC assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as required by law.

Contact:
Dominic Piscitelli, Chief Financial Officer
dominic.piscitelli@oricpharma.com
info@oricpharma.com

FAQ

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

What inducement grants did ORIC (Nasdaq:ORIC) announce on May 1, 2026?

ORIC granted 216,000 non-qualified stock options and 35,000 restricted stock units to four new non-executive employees. According to the company, the grants were made under the 2022 Inducement Equity Incentive Plan and approved by the Compensation Committee.

What is the exercise price for the ORIC stock options granted May 1, 2026 (ORIC)?

The exercise price equals ORIC’s closing common stock price on the Grant Date, May 1, 2026. According to the company, each option’s strike is set at that closing price and is subject to the option agreement terms.

How do the ORIC (ORIC) stock options and RSUs vest after the May 1, 2026 grants?

Options vest 25% after one year, then 1/36th monthly for the remainder; RSUs vest one-third on each of the first three anniversaries. According to the company, vesting is contingent on continued employment through each vesting date.

Were the May 1, 2026 ORIC inducement grants approved under Nasdaq rules for ORIC?

Yes. The grants were approved by ORIC’s Compensation Committee and granted as material inducements under Nasdaq Rule 5635(c)(4). According to the company, the approvals satisfy Nasdaq listing requirements for inducement awards.

Do the May 1, 2026 ORIC grants create immediate dilution for ORIC shareholders (Nasdaq:ORIC)?

The announcement discloses the grant sizes but does not quantify immediate dilution or outstanding share impact. According to the company, grants total 216,000 options and 35,000 RSUs, with actual dilution dependent on exercise and outstanding shares.