Zentalis Pharma Announces Inducement Grants Under Nasdaq Rule 5635(c)(4)

Zentalis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company based in San Diego, announced the granting of non-qualified stock options to five newly hired employees as of July 1, 2024. The options, totaling 40,875 shares of common stock, were granted under the company's 2022 Employment Inducement Incentive Award Plan. This plan is specifically designed to offer equity awards to new employees who have not previously worked for the company or are rejoining after a significant period of non-employment. The inducement aligns with Nasdaq Listing Rule 5635(c)(4), which allows such grants as an incentive for new employment.

The stock options granted have an exercise price of $4.19 per share, which corresponds to the closing price of Zentalis' common stock on the Nasdaq Global Market on the grant date. These options come with a 10-year term and will vest over four years. Specifically, 25% of the options will vest on the first anniversary of the vesting commencement date, with the remaining 75% vesting in equal monthly installments over the subsequent three years. Importantly, the vesting schedule is contingent upon the continued service of the employees to Zentalis on each vesting date.

Zentalis Pharmaceuticals is focused on the discovery and development of small molecule therapeutics that target critical biological pathways in cancer. The company's leading product candidate, azenosertib (ZN-c3), is positioned as a potentially first-in-class and best-in-class inhibitor of the WEE1 protein, which is implicated in the regulation of cell division. Azenosertib is being tested both as a monotherapy and in combination with other treatments in various clinical trials, showing promise for treating advanced solid tumors and hematologic malignancies.

In clinical evaluations, azenosertib has shown good tolerance and notable anti-tumor activity across different types of tumors, both as a standalone treatment and in conjunction with other chemotherapy regimens. Zentalis is also investigating strategies to enrich its clinical programs by targeting tumors characterized by high genomic instability, such as Cyclin E1 positive tumors, homologous recombination deficient tumors, and those with oncogenic driver mutations.

Beyond azenosertib, Zentalis is leveraging its expertise in cancer biology and medicinal chemistry to advance its research on protein degraders, which represent another promising therapeutic avenue. The company operates facilities in San Diego, where it continues to push the boundaries in cancer treatment research.

Zentalis' work in developing these innovative treatments underscores its commitment to improving therapeutic options for cancer patients. The company's approach in offering stock options to new employees demonstrates its strategy to attract and retain top talent, essential for sustaining its research and development momentum.