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CUPERTINO, CA – Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH), a clinical-stage pharmaceutical company with a market capitalization of $85.33 million, announced significant changes to its executive compensation structure, as per a recent SEC filing. According to InvestingPro analysis, while the company has shown strong momentum with a 179.5% price return over the past six months, it currently operates with negative profitability metrics. The adjustments include base salary increases, 2024 bonus payouts, and new stock option grants for its top executives.
On February 13, 2025, the Compensation Committee of Reviva Pharmaceuticals approved an increase in the base salaries of its named executive officers. Dr. Laxminarayan Bhat, President and CEO, will now receive a base salary of $565,000. Narayan Prabhu, CFO, will see his base salary rise to $330,000, and Ms. Seema Bhat, Vice President for Program & Portfolio Management and spouse of Dr. Bhat, will have her base salary adjusted to $340,000. These increases were effective retroactively from January 1, 2025.
Alongside the salary adjustments, the Committee also determined cash bonuses for the fiscal year 2024. Dr. Bhat was awarded a $157,500 bonus, Mr. Prabhu received $79,950, and Ms. Bhat was given a $77,500 bonus.
Looking forward, the Compensation Committee set target levels for discretionary bonuses for the fiscal year 2025. Dr. Bhat’s target level is set at 50% of his base salary, Mr. Prabhu at 41%, and Ms. Bhat at 32%, contingent upon meeting certain performance criteria.
Furthermore, the executives were granted stock options under the company’s 2020 Equity Incentive Plan. Dr. Bhat received an option to purchase 519,000 shares, Mr. Prabhu 194,250 shares, and Ms. Bhat 181,500 shares, each with an exercise price of $1.80 per share—the closing price on The Nasdaq Capital Market on the grant date. With the current stock price at $1.84, these options are slightly in-the-money, though analysts maintain optimistic price targets ranging from $7 to $17 per share. InvestingPro subscribers can access 8 additional key insights about RVPH’s financial health and market position. Approximately 42% of these options vested immediately on the grant date, with the remainder scheduled to vest monthly from March 2025 through December 2027.
These decisions reflect the company’s efforts to align executive compensation with its performance and strategic objectives, though InvestingPro data indicates the company faces some financial challenges with a current ratio of 0.39, suggesting short-term obligations exceed liquid assets. The information provided is based on a press release statement filed with the SEC and enhanced with real-time financial metrics available through InvestingPro’s comprehensive analysis platform.
In other recent news, Reviva Pharmaceuticals has been making significant strides in its clinical trials and financial standing. The company’s investigational treatment for schizophrenia, brilaroxazine, has shown promising preliminary data from the open-label extension (OLE) study, according to Maxim Group analyst Jason McCarthy. This positive development anticipates the complete data expected in the first quarter of 2025. Furthermore, Reviva has secured $18 million in funding, boosting its financial standing and supporting the progression of its second Phase 3 study.
Additionally, both Maxim Group and Roth/MKM have upgraded Reviva’s stock rating to Buy, setting a new price target of $7.00. This upgrade reflects confidence in brilaroxazine’s market potential, backed by promising Phase 3 clinical trial results.
In the RECOVER-1 study, brilaroxazine demonstrated effectiveness in treating symptoms in schizophrenia patients, surpassing the effect size of several existing antipsychotics. Despite concerns about potential near-term dilution, the anticipated New Drug Application (NDA) filing for brilaroxazine in mid-2026 is viewed as a significant milestone. These are the recent developments surrounding Reviva Pharmaceuticals.
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