WARRINGTON, Pa., Feb. 3, 2016 /PRNewswire/ -- Discovery Laboratories, Inc. (NASDAQ: DSCO), a biotechnology company focused on developing aerosolized KL4 surfactant therapies for respiratory diseases, today announced that its Board of Directors has approved an inducement award as a component of employment compensation for Craig Fraser, its newly appointed President and Chief Executive Officer. The award was approved by the Board's Compensation Committee on February 1, 2016 and granted as an inducement material to Mr. Fraser's employment with Discovery Labs in accordance with NASDAQ Listing Rule 5635(c)(4). Discovery Labs announced in a press release on February 1, 2016 and reported in its Current Report on Form 8-K filed today with the Securities and Exchange Commission that Mr. Fraser was appointed President and Chief Executive Officer effective February 1, 2016. This award was made outside of the Company's 2011 Long-Term Incentive Plan ("2011 Plan"), but will be subject to terms and conditions generally consistent with those in the 2011 Plan.
Mr. Fraser received an option to purchase 204,863 shares of Discovery Labs' common stock with a per-share exercise price equal to $2.33, the closing price per share of common stock as reported by Nasdaq on February 2, 2016, the closing price next determined after approval of the grant. Mr. Fraser commenced employment on February 1, 2016. The option is a non-qualified stock option, has a ten year term and will vest and become exercisable ratably over a three year on each of the next three anniversary dates of the grant, assuming Mr. Fraser remains continuously employed by Discovery Labs. In addition, the vesting of the options may be accelerated upon certain terminations of Mr. Fraser's employment, including in connection with a change of control.
Discovery Labs is providing this information in accordance with NASDAQ Listing Rule 5635(c)(4).
About Discovery Labs
Discovery Laboratories, Inc. is a biotechnology company focused on developing aerosolized KL4 surfactant therapies for respiratory diseases. Surfactants are produced naturally in the lung and are essential for normal respiratory function and survival. If surfactant deficiency or degradation occurs, the air sacs in the lungs can collapse, resulting in severe respiratory diseases and disorders. Discovery Labs' technology platform includes a novel synthetic peptide-containing (KL4) surfactant, that is structurally similar to pulmonary surfactant, and proprietary drug delivery technologies being developed to enable efficient delivery of aerosolized KL4 surfactant. Discovery Labs believes that its proprietary technology platform makes it possible, for the first time, to develop a significant pipeline of aerosolized surfactant products to address a variety of respiratory diseases for which there frequently are few or no approved therapies.
For more information, please visit the Company's website at www.Discoverylabs.com.
To the extent that statements in this press release are not strictly historical, all such statements are forward-looking, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the statements made. Examples of such risks and uncertainties, including those affecting Discovery Labs' ability successfully to complete its development programs, secure regulatory approvals for its product candidates in the U.S. and abroad, and realize the potential value and benefits of its RDS product portfolio, are described in Discovery Labs' filings with the Securities and Exchange Commission, including its most recent reports on Forms 10-K, 10-Q and 8-K, and any amendments thereto. Any forward-looking statement in this release speaks only as of the date on which it is made. Discovery Labs assumes no obligation to update or revise any forward-looking statements.
SOURCE Discovery Laboratories, Inc.