MALVERN, Pa., March 26, 2012 /PRNewswire/ -- Auxilium Pharmaceuticals, Inc. (NASDAQ: AUXL), a specialty biopharmaceutical company, today reported a clarification regarding the classification under the NASDAQ Listing Rules of an option to purchase shares of Auxilium common stock previously granted to Auxilium's Chief Executive Officer and President, Adrian Adams.
On December 8, 2011, Auxilium announced the hiring of Mr. Adams and the award to Mr. Adams of an option to purchase 550,000 shares of Auxilium's common stock (the "Adams Grant"). Today, the Company clarified the classification of the Adams Grant under the NASDAQ Listing Rules. 500,000 shares (the "Plan Shares") underlying the Adams Grant were granted under Auxilium's 2004 Equity Compensation Plan, as amended and restated (the "Plan") and 50,000 shares (the "Inducement Shares") underlying the Adams Grant were granted outside of the Plan. Auxilium granted the Inducement Shares as an inducement material to Mr. Adams' entering into employment with Auxilium, pursuant to NASDAQ Listing Rule 5635(c)(4).
Although the portion of the Adams Grant that consists of the Inducement Shares was granted outside of the Plan, the terms of the Adams Grant previously reported apply equally to the Plan Shares and the Inducement Shares. Specifically, the Adams Grant features an option exercise price per share equal to the last reported sale price of a share of Auxilium's common stock on the NASDAQ Global Select Market on Mr. Adams' first day of employment at Auxilium, December 7, 2011, and is subject to the terms of the Plan and the standard form of non-qualified stock option agreement used by Auxilium for its senior level executives. In addition, with respect to both the Plan Shares and the Inducement Shares, the Adams Grant vests 25% on December 7, 2012 (one year after the date of grant) with the balance vesting in three equal annual installments thereafter.
Auxilium Pharmaceuticals, Inc. is a specialty biopharmaceutical company with a focus on developing and marketing products to predominantly specialist audiences. Auxilium markets XIAFLEX® (collagenase clostridium histolyticum) for the treatment of adult Dupuytren's contracture patients with a palpable cord and Testim® 1%, a testosterone gel, for the topical treatment of hypogonadism in the U.S. Pfizer has marketing rights for XIAPEX® (the EU tradename for collagenase clostridium histolyticum) in Europe, Asahi Kasei Pharma Corporation has development and commercial rights for XIAFLEX in Japan, and Actelion Pharmaceuticals Ltd. has development and commercial rights for XIAFLEX in Australia, Brazil, Canada and Mexico. Ferring International Center S.A. markets Testim in the EU and Paladin Labs Inc. markets Testim in Canada. Auxilium has three projects in clinical development. XIAFLEX is in phase III of development for the treatment of Peyronie's disease, in phase IIa of development for the treatment of Frozen Shoulder syndrome (Adhesive Capsulitis) and in phase Ib of development for the treatment of cellulite (edematous fibrosclerotic panniculopathy). Auxilium also has rights to pursue additional indications for XIAFLEX. For additional information, visit http://www.auxilium.com.