Cytokinetics granted stock options and RSUs to new employees as employment inducements, effective December 31, 2024.
Quiver AI Summary
Cytokinetics, Incorporated announced the granting of stock options and restricted stock units (RSUs) to nine new employees on December 31, 2024, as part of their employment inducement. The company issued stock options to purchase 52,188 shares, 33,885 RSUs to vest over three years, and 3,189 performance stock units (PSUs) which will vest based on the achievement of specific performance goals. The stock options have an exercise price of $47.04 and will vest over four years, while the RSUs will have a staggered vesting schedule. The PSUs are contingent on meeting two performance milestones. This initiative complies with Nasdaq Listing Rule 5635(c)(4) and aligns with Cytokinetics' focus on developing treatments for cardiovascular diseases, including upcoming products in clinical trials.
Potential Positives
- Cytokinetics is strategically attracting talent by granting stock options, RSUs, and PSUs as inducements for new employees, which may enhance workforce stability and engagement.
- The stock options and RSUs have a structured vesting schedule that could encourage long-term commitment from the new employees.
- The grant of performance stock units (PSUs) aligns employee incentives with company performance goals, potentially driving the company's success and innovation in drug development.
- Cytokinetics is advancing its pipeline with promising drug candidates, including aficamten and omecamtiv mecarbil, strengthening its position in the cardiovascular biopharmaceutical market.
Potential Negatives
- The grants of stock options, RSUs, and PSUs as material inducements to new employees may raise concerns about the company's compensation strategy amidst ongoing financial uncertainty.
- There is a reliance on performance goals for a portion of employee compensation, which may indicate potential volatility in meeting those goals based on the company's future performance.
- The large number of stock options and equity awards granted may dilute existing shareholders' equity if the company's stock price does not perform well in the long term.
FAQ
What stock awards did Cytokinetics grant on December 31, 2024?
Cytokinetics granted stock options for 52,188 shares, 33,885 RSUs, and 3,189 PSUs to 9 employees.
How do RSUs vest at Cytokinetics?
The RSUs vest over 3 years: 40% after one year, 40% after two years, and 20% after three years.
What is the exercise price for the stock options?
The exercise price for the stock options is $47.04 per share, equal to the closing stock price on the grant date.
What is the term for the stock options granted?
The stock options have a term of 10 years from the grant date.
What is Cytokinetics' focus as a biopharmaceutical company?
Cytokinetics focuses on developing drug candidates targeting muscle biology for treatments in cardiovascular diseases.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$CYTK Insider Trading Activity
$CYTK insiders have traded $CYTK stock on the open market 44 times in the past 6 months. Of those trades, 0 have been purchases and 44 have been sales.
Here’s a breakdown of recent trading of $CYTK stock by insiders over the last 6 months:
- WENDALL WIERENGA has traded it 3 times. They made 0 purchases and 3 sales, selling 5,936 shares.
- JOHN T HENDERSON sold 1,780 shares.
- FADY IBRAHAM MALIK (EVP Research & Development) has traded it 24 times. They made 0 purchases and 24 sales, selling 86,726 shares.
- ROBERT I BLUM (President & CEO) has traded it 10 times. They made 0 purchases and 10 sales, selling 69,500 shares.
- B LYNNE PARSHALL has traded it 5 times. They made 0 purchases and 5 sales, selling 25,000 shares.
- ROBERT ARTHUR HARRINGTON sold 253 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$CYTK Hedge Fund Activity
We have seen 186 institutional investors add shares of $CYTK stock to their portfolio, and 135 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- DARWIN GLOBAL MANAGEMENT, LTD. removed 4,575,558 shares (-100.0%) from their portfolio in Q3 2024
- T. ROWE PRICE INVESTMENT MANAGEMENT, INC. added 1,551,310 shares (+19.1%) to their portfolio in Q3 2024
- PRICE T ROWE ASSOCIATES INC /MD/ added 806,602 shares (+34.2%) to their portfolio in Q3 2024
- BLACKROCK, INC. added 580,060 shares (+4.0%) to their portfolio in Q3 2024
- VESTAL POINT CAPITAL, LP removed 575,000 shares (-27.7%) from their portfolio in Q3 2024
- FMR LLC added 571,126 shares (+5.0%) to their portfolio in Q3 2024
- VOLORIDGE INVESTMENT MANAGEMENT, LLC removed 542,009 shares (-97.6%) from their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
SOUTH SAN FRANCISCO, Calif., Jan. 03, 2025 (GLOBE NEWSWIRE) -- Cytokinetics, Incorporated (Nasdaq: CYTK) today announced that on December 31, 2024 it granted stock options to purchase an aggregate of 52,188 shares of common stock, 33,885 restricted stock units (RSUs) that will be settled in shares of common stock upon vesting and 3,189 performance stock units (PSUs) that, if earned, will be settled in shares of common stock upon vesting to 9 employees, whose employment commenced in December 2024, as a material inducement to their employment.
The RSUs will vest over 3 years, with 40% of the RSUs vesting on the first anniversary of the applicable grant date, an additional 40% of the RSUs vesting on the second anniversary of the grant date and the final 20% vesting on the third anniversary of the grant date, in each case, subject to each respective employee’s continued service with the Company. The stock options that were granted are subject to an exercise price of $47.04 per share, which is equal to the closing price of the Company’s common stock on December 31, 2024, and will vest over 4 years, with 1/4
th
of the shares underlying the employee’s option vesting on the one-year anniversary of the grant date and the remaining shares thereafter vesting in monthly installments at a rate of 1/48th of the shares underlying such stock options over the subsequent 36 months, subject to each respective employee’s continued service with the Company. The stock options have a 10-year term. The PSU award is subject to two performance goals and will be earned as to up to 50% of the number of shares subject to the PSU award upon the certification by Compensation and Talent Committee of the Company’s Board of Directors (Committee) that the Company has achieved the first performance goal and as to up to 50% of the number of shares subject to the PSU award upon the certification by the Committee that the Company has achieved the second performance goal. The earned shares will vest as to 50% of the earned shares on applicable Committee certification date and as to 50% of the earned shares following the one-year anniversary of the applicable Committee certification date, subject to the respective employee’s continued service with the Company. These awards are subject to the terms and conditions of the Company's Amended and Restated 2004 Equity Incentive Plan and the applicable award agreements pursuant to which the awards were granted.
The stock options, RSUs and PSUs were granted as material inducements to employment in accordance with Nasdaq Listing Rule 5635(c)(4).
About Cytokinetics
Cytokinetics is a late-stage, specialty cardiovascular biopharmaceutical company focused on discovering, developing and commercializing muscle biology-directed drug candidates as potential treatments for debilitating diseases in which cardiac muscle performance is compromised. As a leader in muscle biology and the mechanics of muscle performance, the company is developing small molecule drug candidates specifically engineered to impact myocardial muscle function and contractility. Cytokinetics is readying for the potential commercialization of
aficamten,
a next-in-class cardiac myosin inhibitor following positive results from SEQUOIA-HCM, the pivotal Phase 3 clinical trial in patients with obstructive hypertrophic cardiomyopathy (HCM).
Aficamten
is also being evaluated in additional clinical trials enrolling patients with obstructive and non-obstructive HCM. Cytokinetics is also developing
omecamtiv mecarbil
, a cardiac myosin activator, in patients with heart failure with severely reduced ejection fraction (HFrEF), CK-586, a cardiac myosin inhibitor with a mechanism of action distinct from
aficamten,
for the potential treatment of heart failure with preserved ejection fraction (HFpEF) and CK-089, a fast skeletal muscle troponin activator with potential therapeutic application to a specific type of muscular dystrophy and other conditions of impaired skeletal muscle function.
For additional information about Cytokinetics, visit
www.cytokinetics.com
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Forward-Looking Statements
This press release contains forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the "Act"). Cytokinetics disclaims any intent or obligation to update these forward-looking statements and claims the protection of the Act's Safe Harbor for forward-looking statements. Examples of such statements include, but are not limited to, statements relating to Cytokinetics' and its partners' research and development activities of Cytokinetics’ product candidates. Such statements are based on management's current expectations, but actual results may differ materially due to various risks and uncertainties, including, but not limited to the risks related to Cytokinetics' business outlined in Cytokinetics' filings with the Securities and Exchange Commission particularly under the caption “Risk Factors” in Cytokinetics’ latest Annual Report on Form 10-K. Forward-looking statements are not guarantees of future performance, and Cytokinetics' actual results of operations, financial condition and liquidity, and the development of the industry in which it operates, may differ materially from the forward-looking statements contained in this press release. Any forward-looking statements that Cytokinetics makes in this press release speak only as of the date of this press release. Cytokinetics assumes no obligation to update its forward-looking statements whether as a result of new information, future events or otherwise, after the date of this press release.
CYTOKINETICS® and the CYTOKINETICS and C-shaped logo are registered trademarks of Cytokinetics in the U.S. and certain other countries.
Contact:
Cytokinetics
Diane Weiser
Senior Vice President, Corporate Affairs
(415) 290-7757
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
