BOTHELL, WA - Cocrystal Pharma, Inc. (NASDAQ:COCP) has announced changes to the compensation packages for its executive officers and non-employee directors, as confirmed by the Board of Directors on Wednesday. The adjustments include salary increases, bonuses, and restricted stock unit (RSU) grants.
Effective August 12, 2024, the base salaries of Co-Chief Executive Officers James Martin and Dr. Sam Lee have been increased from $400,000 to $416,000. Both executives also received a bonus of $200,000 and a grant of 40,000 RSUs.
In addition to executive compensation, the Board approved cash stipends and RSU grants for its non-employee directors. Dr. Roger Kornberg received a $60,500 stipend for his director role, $100,000 for his service on the Scientific Advisory Board, and 28,109 RSUs. Dr. Philip Frost was granted a $44,770 stipend and 27,100 RSUs. Steven Rubin received an $82,280 stipend and 18,957 RSUs. Fred Hassan and Richard Pfenniger each received a $36,300 stipend and 8,067 RSUs, while Dr. Anthony Japour was awarded a $54,450 stipend and 14,924 RSUs.
The RSUs granted to both executives and non-employee directors have specific vesting conditions. Half of the RSUs are vested upon the grant date, with the remaining half set to vest in eight equal quarterly installments starting September 30, 2025. The vesting is contingent upon the recipients' continued service to the company.
In other recent news, Cocrystal Pharma, a clinical-stage biotechnology company, has started the multiple-ascending dose (MAD) phase of their Phase 1 clinical trial for CDI-988, a broad-spectrum oral pan-viral protease inhibitor. This follows a successful single-ascending dose phase completed in 2024, which reported no adverse events among participants. The drug is being developed as a treatment for viral gastroenteritis and COVID-19. Topline results from the MAD portion of the CDI-988 study are expected in late 2024 or early 2025.
Additionally, Cocrystal Pharma has announced a significant change in its capital structure with a reduction in the number of authorized capital stock from 155 million to 101 million shares. On the analyst front, H.C. Wainwright has revised its price target for Cocrystal Pharma to $7.00, maintaining a neutral rating on the stock. Meanwhile, Noble Capital has retained its Outperform rating on the company, anticipating positive outcomes from the CC-42344 Influenza Virus Program.
InvestingPro Insights
As Cocrystal Pharma (NASDAQ:COCP) adjusts its executive compensation, it's crucial to consider the company's financial position. According to InvestingPro data, COCP has a market capitalization of $17.8 million, reflecting its small-cap status. The company's price-to-book ratio stands at 1.02, suggesting that the stock is trading close to its book value.
InvestingPro Tips highlight that COCP holds more cash than debt on its balance sheet, which could provide some financial flexibility as it navigates its current challenges. However, the company is quickly burning through cash, which may be a concern given the recent increases in executive compensation.
It's worth noting that COCP is not currently profitable, with a negative gross profit of $15.72 million over the last twelve months as of Q2 2024. This aligns with another InvestingPro Tip indicating that analysts do not anticipate the company will be profitable this year.
For investors seeking a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide further insights into COCP's financial health and prospects.
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