Cytokinetics Announces Inducement Grants Under Nasdaq Rule 5635(c)(4)

SOUTH SAN FRANCISCO, Calif., June 4, 2024 — Cytokinetics, Incorporated (Nasdaq: CYTK), a biopharmaceutical company specializing in cardiovascular treatments, revealed that it has granted stock options and other equity awards to its new Chief Financial Officer (CFO) and several recently employed staff members. The announcement was made following the grants on May 31, 2024.

On May 31, 2024, Cytokinetics awarded stock options encompassing 53,417 shares of common stock to Sung H. Lee, the company's new Executive Vice President and CFO, who started his role on May 8, 2024. Additionally, Lee received 34,684 restricted stock units (RSUs) and 34,426 performance stock units (PSUs). The RSUs will convert into common stock upon vesting, while the PSUs, contingent upon achieving specific performance goals, will also be settled in common stock upon vesting.

Furthermore, Cytokinetics allocated stock options for 93,525 shares of common stock, 60,724 RSUs, and 40,610 PSUs to 12 other new employees who joined the company in May 2024. These equity awards were provided as an inducement for their employment.

The RSUs awarded will vest over a span of three years. Specifically, 40% of the RSUs will vest on the first anniversary of the grant date, another 40% on the second anniversary, and the remaining 20% will vest on the third anniversary. This vesting is subject to the employees’ continued service with Cytokinetics.

The stock options come with an exercise price set at $48.51 per share, which aligns with the closing price of Cytokinetics' common stock on May 31, 2024. These options will vest over a four-year period. One-fourth of the shares will vest on the first anniversary of the grant date, and the remaining shares will vest in monthly installments over the next 36 months. The term for these stock options is 10 years.

The PSUs are tied to the achievement of dual performance goals. If the company hits the first performance target, 50% of the PSUs will vest upon certification by the Compensation and Talent Committee of Cytokinetics' Board of Directors. The remaining 50% will vest upon reaching the second performance goal, again subject to certification by the Committee. The vested shares will then be disbursed 50% on the certification date and 50% one year later, provided the employee remains with the company.

These stock options, RSUs, and PSUs are governed by the terms of Cytokinetics' Amended and Restated 2004 Equity Incentive Plan and the respective award agreements. The issuance of these grants complies with Nasdaq Listing Rule 5635(c)(4).

Cytokinetics is a leader in the biopharmaceutical industry, focusing on developing groundbreaking muscle activators and inhibitors for cardiovascular diseases. The company is gearing up for regulatory submissions for aficamten, a cardiac myosin inhibitor, following positive Phase 3 trial results. Aficamten is also being tested in multiple clinical trials for different types of hypertrophic cardiomyopathy (HCM). Additionally, Cytokinetics is developing several other drug candidates, including omecamtiv mecarbil and CK-586, targeting various heart failure conditions.

The company remains committed to advancing its pipeline and delivering novel therapies for cardiac muscle performance and contractility disorders.

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