Zevra Therapeutics Announces Inducement Grants under Nasdaq Listing Rule 5635(c)(4)

Rhea-AI Summary

Zevra Therapeutics (Nasdaq: ZVRA) announced on Dec 12, 2025 that it granted options to purchase an aggregate of 53,000 shares of common stock as inducement awards to three new employees under its 2023 Employment Inducement Award Plan. Each award vests over four years with 25% vesting on the first anniversary of employment and the remainder in three equal annual installments, subject to continued employment.

Each award was granted as an inducement material to the individual entering employment in accordance with Nasdaq Rule 5635(c)(4). The Inducement Award Plan is reserved for individuals not previously employed or returning after a bona fide non-employment period.

Key Figures

Inducement options granted 53,000 shares Options to purchase common stock granted to three new employees

Vesting period 4 years Each inducement award vests over four years

Initial vesting tranche 25% Vests on first anniversary of employee’s start date

Remaining vesting schedule 3 annual installments Remainder vests in three equal annual installments thereafter

Market Reality Check

$8.33 Last Close

Volume Volume 622,456 is 50% of the 20-day average 1,241,784, indicating lighter-than-normal trading before this filing. low

Technical Shares at $8.33 are trading below the 200-day MA of $9.11 and about 36.7% under the 52-week high.

Peers on Argus

Peers in Biotechnology show mixed moves, with PRTA, ATXS, and LXRX down while ERAS and ATYR are up. No clear sector-wide pattern aligns with ZVRA’s slight -0.71% move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 02	Board change	Neutral	-2.0%	Board refresh with new director and retirement of long-serving member.
Nov 20	CFO transition	Negative	-6.5%	CFO resignation announcement and initiation of search for successor.
Nov 05	Earnings report	Positive	+2.9%	Stronger Q3 revenue and sharply reduced net loss versus prior year.
Oct 29	Conference participation	Neutral	-8.7%	Announcement of participation in Guggenheim healthcare innovation conference.
Oct 27	Earnings call setup	Neutral	+4.4%	Scheduling details for upcoming Q3 2025 results call and webcast.

Pattern Detected

Recent news has often seen price moves align with the apparent tone: positive earnings and leadership updates drew gains, while management changes and neutral events sometimes coincided with selloffs.

Recent Company History

Over the last few months, Zevra reported stronger fundamentals, including Q3 2025 net revenue of $26.1M and a sharply reduced net loss, alongside expanded rare-disease commercialization efforts. Management and board changes, such as the CFO transition announced on Nov 20, 2025 and a new director appointment on Dec 2, 2025, have been key governance themes. Conference participation and earnings communications on Oct 27 and Oct 29, 2025 underscored active investor engagement. Today’s small inducement grants fit within this pattern of incremental corporate updates rather than major strategic shifts.

Market Pulse Summary

This announcement details routine inducement grants of 53,000 stock options to three new employees under Nasdaq Rule 5635(c)(4), reinforcing Zevra’s use of equity for talent recruitment. Placed alongside recent Q3 2025 revenue of $26.1M and governance changes such as the CFO transition and new director appointment, it reflects incremental corporate housekeeping rather than a major strategic shift. Investors may watch future filings, hiring trends, and upcoming earnings updates for more material catalysts.

Key Terms

Nasdaq Rule 5635(c)(4) regulatory

"Each Inducement Award was granted as an inducement ... in accordance with 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.

common stock financial

"options to purchase an aggregate of 53,000 shares of the Company’s common stock"

Common stock represents ownership shares in a company, giving investors a stake in its success and a say in important decisions through voting rights. It is the most common type of stock traded on markets and can provide income through dividends, as well as potential for value growth. For investors, holding common stock means sharing in the company’s profits and risks.

equity awards financial

"used exclusively for the grant of equity awards to individuals who were not previously employees"

Equity awards are payments to employees or directors made in the form of company stock or rights to buy stock later, serving as a way to share ownership rather than cash. For investors, they matter because they align staff incentives with company performance, can increase the number of shares outstanding over time (which can reduce each share’s claim on profits), and create compensation costs that affect reported earnings.

Inducement Award Plan financial

"pursuant to the Company’s 2023 Employment Inducement Award Plan"

An inducement award plan is a package of pay, often including stock options or restricted shares, granted to a new employee or executive to attract them to join a company — think of it like a signing bonus paid partly in company stock. Investors care because these awards increase compensation expense and can dilute existing shareholders’ ownership, affecting earnings per share and incentives that shape company strategy.

AI-generated analysis. Not financial advice.

CELEBRATION, Fla., Dec. 12, 2025 (GLOBE NEWSWIRE) -- Zevra Therapeutics, Inc. (NasdaqGS: ZVRA) (Zevra, or the Company), a commercial-stage company focused on providing therapies for people living with rare disease, today announced that the Company has granted options to purchase an aggregate of 53,000 shares of the Company’s common stock (the “Inducement Awards”) to three new employees pursuant to the Company’s 2023 Employment Inducement Award Plan (as amended and/or restated, the “Inducement Award Plan”). Each Inducement Award vests over four years, with 25% vesting on the first anniversary of the employee’s start date, and the remainder vesting in three equal annual installments thereafter (subject to each such employee’s continued employment on each vesting date).

Each Inducement Award was granted as an inducement material to the individual entering into employment with Zevra, in accordance with Nasdaq Rule 5635(c)(4). The Inducement Award Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of Zevra, or following a bona fide period of non-employment, as an inducement material to such individuals entering into employment with Zevra.

About Zevra Therapeutics, Inc.

Zevra Therapeutics, Inc. is a commercial-stage company focused on addressing unmet needs for the treatment of rare diseases. Our mission is to bring life-changing therapeutics to people living with rare diseases. With unique, data-driven development and commercialization strategies, the Company is overcoming complex drug development challenges to make new therapies available to the rare disease community.

Expanded access programs are made available by Zevra Therapeutics, Inc. and its affiliates and are subject to the Company's Expanded Access Program (EAP) policy, as published on its website. Participation in these programs is subject to the laws and regulations of each jurisdiction under which each respective program is operated. Eligibility for participation in any such program is at the treating physician's discretion.

Cautionary Note Concerning Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Company’s expanded access program. Forward-looking statements are based on information currently available to Zevra and its current plans or expectations. They are subject to several known and unknown uncertainties, risks, and other important factors that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These and other important factors are described in detail in the "Risk Factors" section of Zevra’s Annual Report on Form 10-K for the year ended December 31, 2024, filed on March 12, 2025, Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2025, filed on November 5, 2025, as well as Zevra’s other filings with the Securities and Exchange Commission. While we may elect to update such forward-looking statements at some point in the future, except as required by law, we disclaim any obligation to do so, even if subsequent events cause our views to change. Although we believe the expectations reflected in such forward-looking statements are reasonable, we cannot assure that such expectations will prove correct. These forward-looking statements should not be relied upon as representing our views as of any date after the date of this press release.

Zevra Contact

Nichol Ochsner 
+1 (732) 754-2545 
nochsner@zevra.com

FAQ

How many shares did Zevra Therapeutics (ZVRA) grant in inducement awards on December 12, 2025?

Zevra granted options to purchase an aggregate of 53,000 shares of common stock as inducement awards.

Who received the ZVRA inducement awards granted on December 12, 2025?

The awards were granted to three new employees as inducements to enter into employment with Zevra.

What is the vesting schedule for ZVRA's 53,000 inducement awards?

Each award vests over four years: 25% on the first anniversary of start date and the remainder in three equal annual installments thereafter.

Under what plan were Zevra's inducement awards granted and who is eligible?

Awards were granted under the 2023 Employment Inducement Award Plan, which is used only for individuals not previously employed or returning after a bona fide non-employment period.

Why did Zevra cite Nasdaq Rule 5635(c)(4) for the inducement awards?

The company said each award was granted as an inducement material to the individual entering employment, consistent with Nasdaq Rule 5635(c)(4).