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ImmunityBio, Inc. (NASDAQ:IBRX), a $2.37 billion biotechnology firm specializing in biological products, has disclosed new compensation arrangements for its top executives, as per a recent 8-K filing with the SEC.
While the company maintains strong liquidity with a current ratio of 2.68, InvestingPro analysis indicates the company is rapidly burning through cash, with negative EBITDA of $341.3 million in the last twelve months.
On February 7, 2025, the company’s Compensation Committee, in consultation with Mercer (NASDAQ:MERC), its independent compensation consultant, approved the payment of cash bonuses and equity awards to its named executive officers (NEOs).
The executives, including Founder and Executive Chairman Dr. Patrick Soon-Shiong, CEO Richard Adcock (JO:AIPJ), and CFO David Sachs, will receive cash bonuses based on 80% of their target amounts under the company’s 2024 Executive Incentive Compensation Plan. These bonuses, amounting to $372,600 for Dr. Soon-Shiong, $477,600 for Adcock, and $230,143 for Sachs, are set to be paid on or about March 14, 2025.
In addition to cash bonuses, the Compensation Committee has also granted option and restricted stock unit (RSU) awards as part of the 2025 Long-Term Incentive Program (LTIP). The equity awards, made under the company’s Amended and Restated 2015 Equity Incentive Plan, include options to purchase common stock and RSUs that will vest over a three-year period, contingent upon continued service with the company.
Dr. Soon-Shiong was awarded 822,368 RSUs and options to purchase 2,812,500 shares at an exercise price of $3.39. Similarly, Adcock received 822,368 RSUs and options for 2,812,500 shares, while Sachs was granted 246,710 RSUs and options for 843,750 shares.
The exercise price for these options matches the closing price of ImmunityBio’s common stock on the grant date. The timing of these awards coincides with the stock’s strong performance, showing a 26.56% year-to-date return according to InvestingPro data, despite the company’s challenging financial position.
Furthermore, the Committee has set new annual base salaries for the NEOs effective March 10, 2025. Dr. Soon-Shiong’s salary will be $652,050, Adcock’s $835,800, and Sachs’s $592,619. These compensation decisions come as InvestingPro analysis shows the company faces profitability challenges, with analysts not expecting profitability this year. Get access to 6 more exclusive ProTips and comprehensive financial analysis by subscribing to InvestingPro.
The disclosure of these compensation details follows ImmunityBio’s commitment to transparency in its executive pay structure and is based on a press release statement. The company, headquartered in San Diego, California, is incorporated in Delaware and operates under the SIC code for Biological Products, excluding diagnostic substances.
In other recent news, ImmunityBio has seen multiple developments. The company announced the resignation of board member John Brennan, who had served since 2021. His departure was not due to disagreements with the company’s operations, policies, or practices.
ImmunityBio is making considerable progress in discussions with the FDA, primarily revolving around its clinical development pipeline in non-muscle invasive bladder cancer (NMIBC) and non-small cell lung cancer (NSCLC). The company is preparing to submit a supplemental Biologics License Application (sBLA) in 2025, which could potentially increase the number of patients benefiting from its therapy.
BTIG has initiated coverage on ImmunityBio with a Buy rating, citing potential in the company’s lead product, ANKTIVA, and its strategic partnership with the Serum Institute of India. ImmunityBio has also been assigned a unique permanent J-code for ANKTIVA by the Centers for Medicare & Medicaid Services, facilitating the billing process for the treatment.
Additionally, ImmunityBio has announced its intention to launch a public offering of its common stock, with funds raised earmarked for the commercialization of ANKTIVA and funding trials in bladder cancer and non-small cell lung cancer.
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