Organovo Holdings, Inc. (NASDAQ:ONVO), a company specializing in biological products, has announced the granting of stock options to Keith Murphy, its Executive Chairman, as per a recent SEC filing. The grant, dated Monday, includes both time-based and performance-based options.
Murphy has been awarded a time-based option to purchase 574,923 shares, which is 4.0% of the company's outstanding common stock as of the grant date. Additionally, he received a performance-based option for 431,193 shares, representing 7.0% of the outstanding shares. These options have an exercise price of $0.5368 per share.
The time-based option will vest over a period of three years, with one-third vesting annually, contingent upon Murphy's continued service to the company. The performance-based option is set to vest upon achieving certain targets related to revenue, market capitalization, stock price, and strategic objectives, again requiring Murphy's ongoing involvement with Organovo.
Furthermore, if Organovo conducts an equity financing before March 31, 2025, and the initial options represent less than 4.0% and 7.0% of the post-financing outstanding shares, Murphy will receive additional options to maintain these percentages. These additional options, termed "True-Up Options," will be subject to the same vesting and terms as the original grant, except the exercise price will be the closing stock price on the financing closing date.
In other recent news, Organovo Holdings, Inc. shared its strategic outlook at the Jones Trading Healthcare Conference. The company's Executive Chairman, Keith Murphy, discussed the operational plans and the potential of their lead drug candidate, FXR314. The drug is currently being advanced through a Phase 2a trial for inflammatory bowel disease (IBD), showing promise in preclinical studies and in 3D human tissue models.
The recent acquisition of Morphic by Lilly for $3.2 billion, following Morphic's successful Phase 2a results, was highlighted as a sign of the robust mergers and acquisitions activity in the IBD space. Organovo's proprietary technology, which involves creating 3D human tissues, has been integral in the development of FXR314.
In addition to IBD, FXR314 also has potential applications in metabolic liver disease and oncology. These are the latest developments in Organovo's strategic operations.
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