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WESTLAKE VILLAGE, CA – Genelux Corporation (NASDAQ:GNLX), a clinical-stage pharmaceutical company with a market capitalization of $134.7 million, announced significant changes in its executive team.
According to InvestingPro data, the company maintains a Fair Value above its current trading price despite showing mixed financial health indicators. Lourie Zak stepped down as Chief Financial Officer effective January 29, 2025, and Matt Pulisic has been appointed as the new CFO starting January 30, 2025.
Zak’s departure was followed by a separation agreement entitling her to serve as a non-employee advisor until August 29, 2025, receive six months of her base salary totaling approximately $180,000 in biweekly installments, up to 12 months of COBRA health insurance continuation, and her annual bonus for 2024. Her vested stock options remain exercisable for up to 12 months post-advisory period or until their original expiration date.
Pulisic, 41, brings extensive experience from his previous role as Vice President of Finance at Arrowhead Pharmaceuticals (NASDAQ:ARWR) and has held various finance positions at HARMAN International and Amgen (NASDAQ:AMGN). His new role at Genelux includes a base salary of $410,000 with eligibility for an annual discretionary bonus up to 40% of his base salary.
He was also granted an option to purchase 275,000 shares of Genelux stock at $3.95 per share, vesting over four years, with full vesting upon a change in control of the company. Notably, analyst targets range from $8 to $30 per share, suggesting significant upside potential. InvestingPro subscribers have access to 13 additional key insights about Genelux’s valuation and growth prospects.
If Pulisic faces involuntary termination, he will receive severance benefits, including six months of his base salary and up to 12 months of COBRA continuation, or 12 months of salary plus his full target bonus and COBRA continuation if terminated within a change in control period. These benefits are contingent upon signing and not revoking a separation agreement and release of claims within 60 days of termination.
The leadership transition aligns with Genelux’s strategy to strengthen its executive team as it navigates the competitive pharmaceutical industry. While the company maintains a strong current ratio of 6.47 and holds more cash than debt, InvestingPro data indicates rapid cash burn requires attention. The company has filed the relevant documents with the SEC, and further details will be available in their upcoming quarterly report, scheduled for April 7, 2025.
This report is based on a press release statement from Genelux Corporation.
In other recent news, Genelux has seen a flurry of activity with its third quarter earnings and ongoing clinical trials. H.C. Wainwright maintained a Buy rating on Genelux shares, but adjusted the price target down to $30 from $32 following the earnings report. The company is currently working with Newsoara Biopharma on a Phase 1b/2 trial for recurrent Small Cell Lung Cancer (SCLC), with interim data expected by the end of 2024.
Another major development is the initiation of a Phase 2 trial for Olvi-Vec targeting non-small cell lung cancer patients, with interim data expected by mid-2025. Meanwhile, Guggenheim initiated coverage on Genelux with a Buy rating and an $8 price target, while Roth/MKM and Benchmark also provided their perspectives.
Genelux has also raised $27.5 million through an equity offering of 6.875 million shares. The company, however, did announce the resignation of Caroline Jewett, Vice President and Head of Quality.
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