CONSHOHOCKEN, PA — Madrigal Pharmaceuticals, Inc. (NASDAQ: MDGL), a clinical-stage biopharmaceutical company, announced this week the granting of equity awards to 46 new employees as part of its 2023 Inducement Plan. This move underscores the firm’s commitment to incentivizing and retaining talent in a highly competitive biopharmaceutical industry.
The equity inducement awards were granted on February 15, 2024, in accordance with Nasdaq Listing Rule 5635(c)(4) which allows for such grants as an inducement material to new employees accepting employment. The new hires received options to purchase a total of 1,091 shares of Madrigal’s common stock and 11,712 time-based restricted stock units.
All options granted have an exercise price of $222.22 per share. The vesting schedule is structured such that 25% of the option shares will vest on the first anniversary of the date of grant, with an additional 6.25% of the option shares vesting on each quarterly anniversary thereafter. Similarly, all restricted stock units granted will vest in 25% increments on each of the first through fourth anniversaries of the grant date. The vesting of all awards is contingent upon each employee’s continued employment as of the vesting date.
This strategic move by Madrigal signifies the company’s recognition of its employees as vital stakeholders in its future success. Equity inducement awards are a common tool used by companies to attract and retain top talent, particularly in industries like biopharmaceuticals where competition for skilled employees is fierce.
At its core, an equity inducement award is a form of compensation that gives employees the right to buy shares of the company’s stock at a set price, typically lower than market value. These awards not only provide financial benefits but also align the interests of employees and shareholders by incentivizing performance that can boost the company’s stock price.
Madrigal Pharmaceuticals, known for its novel therapeutics for nonalcoholic steatohepatitis (NASH) – a liver disease with high unmet medical needs, is taking a proactive approach to workforce investment. NASH, a significant health concern globally, has limited treatment options. Madrigal’s lead candidate, resmetirom, is a liver-directed THR-β agonist oral therapy designed to target key underlying causes of NASH.
The granting of these equity awards is not just about employee compensation; it’s also a strategic business move. By offering a share in the company’s potential success, Madrigal is investing in its future, fostering employee commitment, and aiming to drive innovation in its pursuit of life-changing treatments for NASH patients.
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