UroGen Pharma Reports Inducement Grants Under Nasdaq Rule 5635(c)(4)
UroGen Pharma Ltd. (Nasdaq: URGN), a leading biotechnology company focused on developing and commercializing innovative therapies for urothelial and specialty cancers, has announced the issuance of inducement restricted stock units (“RSUs”) to seven newly hired employees. These RSUs were granted as part of an effort to attract top talent to support UroGen’s expanding commercial operations and pipeline development.
Overview of the Inducement Grants
The inducement grants, which consist of RSUs, allow the employees to acquire up to 18,500 ordinary shares of UroGen upon the vesting and settlement of the awards. These RSUs will vest over a three-year period, with one-third of the total shares vesting annually on the anniversary of the vesting date. The vesting is contingent upon each employee’s continued employment with UroGen.
These inducement RSUs were granted under UroGen’s 2019 Inducement Plan, which is specifically designed to offer equity incentives to new hires as an inducement for them to join the company. The RSUs are subject to the terms outlined in the Inducement Plan as well as the specific grant notices and agreements associated with each award.
Compliance with Nasdaq Listing Rules
The issuance of these RSUs aligns with Nasdaq Listing Rule 5635(c)(4), which allows companies to issue equity-based compensation to new employees outside of existing shareholder-approved equity plans. This rule is particularly beneficial for companies like UroGen, enabling them to attract and retain top-tier talent in a highly competitive biotech landscape.
Strengthening UroGen’s Workforce
UroGen has strategically expanded its workforce to support the commercialization of its flagship product, Jelmyto® (mitomycin) for pyelocalyceal solution. Jelmyto is the company’s first FDA-approved treatment, specifically indicated for patients with low-grade upper tract urothelial carcinoma (LG-UTUC). This rare and challenging-to-treat cancer affects the lining of the upper urinary tract, including the renal pelvis and ureter.
With the addition of these new employees, UroGen aims to strengthen its marketing, medical affairs, and sales teams to further drive the commercial success of Jelmyto. The company is actively working to improve market penetration, enhance physician and patient education, and ensure broader access to this innovative treatment.
Advancing the Clinical Pipeline
Beyond Jelmyto, UroGen continues to advance its pipeline of investigational therapies, focusing on sustained-release treatments for urothelial and specialty cancers. The company’s proprietary RTGel® technology plays a critical role in its development strategy by enhancing the delivery and retention of drugs in the urinary tract.
One of UroGen’s most promising candidates is UGN-102 (mitomycin for intravesical solution), which is being evaluated as a potential first-line treatment for low-grade, intermediate-risk non-muscle invasive bladder cancer (NMIBC). If successful, UGN-102 could offer a non-surgical alternative to transurethral resection of bladder tumors (TURBT), the current standard of care for these patients. The company has made significant progress with this program, and additional data from clinical trials are anticipated in the coming months.
Competitive Landscape and Market Impact
UroGen operates in a competitive oncology space where urothelial cancer treatment options remain limited. Traditional treatment modalities, such as surgery and systemic chemotherapy, often come with substantial side effects and recurrence risks. By leveraging localized drug delivery mechanisms, UroGen is positioning itself as a pioneer in a market that demands less invasive, yet effective, treatment options.
Jelmyto has already demonstrated strong commercial potential, and the company remains focused on increasing adoption among urologists and oncologists. In parallel, UroGen’s robust pipeline, including UGN-102 and other investigational candidates, underscores its commitment to providing breakthrough therapies for patients with challenging-to-treat cancers.
Strategic Hiring and Retention
The decision to grant RSUs to new employees underscores it’s long-term vision for growth and talent retention. Equity-based incentives have become a cornerstone of biotech compensation packages, allowing companies to align employee interests with shareholder value creation. By offering these inducement grants, UroGen not only attracts skilled professionals but also encourages a culture of commitment and innovation.
As the company continues to expand, key hires in commercial operations, regulatory affairs, and research & development will play a pivotal role in executing UroGen’s strategic priorities. Given the highly specialized nature of oncology drug development and commercialization, securing top talent is crucial for maintaining the company’s competitive edge.
