Radius Health Inc (NASDAQ:RDUS), a science-driven biopharmaceutical company, announced that the compensation committee of its Board of Directors had come up with 11 new non-executive purchase options for employees.
As part of this scheme, employees could purchase 117,300 shares of Radius’ common stock at $33.49 per share. It’s the closing price of company’s common stock on the date of the announcement.
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As per the arrangement, 25% of the option is to be paid on employee’s first anniversary from the hiring date, whereas the remaining 75% to vest in the equal monthly installments over a period of three years after the first anniversary. The total term of this offer is pre-determined at 10 years. The new stock options were announced after the Rule 5635(c)(4) of the NASDAQ Listing Rules was made mandatory for all the companies to follow. According to these new rules, it’s necessary for the companies to induce all of its new employees with new equity grants to confirm their employment.
Before this, Radius Health announced financial results for the December quarter and full 2015 year. Uncertainty in the market and below average performance led the company to a loss making the situation. As per the reports, the company reported a net loss of $33.2 million in the December quarter as compared to the net loss of $18 million in December 2014 quarter. An increment in the general & administrative costs, as well as R&D expenses, contributed to the increased loss figure in the 4Q2015.
When it comes to the full year 2015, the net loss amounted to $101.5 million as compared to the net loss of $62.5 million in the year 2014. Radius seeks to achieve profitability as soon as possible and is willing to take new initiatives for the same. It will announce details of such initiatives in the near future.