Adaptimmune Therapeutics PLC (NASDAQ:ADAP), a biotechnology firm specializing in T-cell therapy to treat cancer, announced on Monday an update to its executive severance policy. The policy, which was initially established in 2017 and amended on June 11, 2024, has been further revised to reflect new severance terms for its executive officers.
Effective immediately, the amended policy states that if an executive officer's employment is terminated by the company without cause or if the officer resigns for good reason, they will now be entitled to a severance payment equal to their annual base salary for 12 months. Previously, the policy allowed for a nine-month severance period. Additionally, terminated executives will receive 12 months of paid healthcare premiums, or a lump sum payment in lieu if they are based in the U.K.
Furthermore, the updated policy specifies that if an executive officer, excluding the chief executive officer, is terminated without cause or resigns for good reason within 12 months following a change in control, the severance payment will remain at 12 months of the executive's base salary. However, the officer will now receive a lump sum payment equivalent to a 12-month target bonus, rather than the actual bonus, along with accelerated vesting of any unvested share options or other equity awards.
For the chief executive officer, the severance package in the event of a termination following a change in control has been increased to 18 months of the base salary and an 18-month target bonus, up from the previous 12-month base salary and bonus. The CEO will also benefit from accelerated equity award vesting. The board retains discretion to allow vesting of options in the event of a change in control.
These benefits are contingent upon the executive signing a release of claims in favor of Adaptimmune and adhering to certain post-employment covenants. This information is based on a press release statement and the full text of the updated policy is available in the company's recent SEC filing.
In other recent news, biotech company Adaptimmune Therapeutics is anticipating a significant decision from the FDA regarding their first T-cell receptor therapy (TCR-T) product. Barclays (LON:BARC) has maintained an Underweight rating on the company with a steady price target of $1.00. The firm's analysis takes into account the company's upcoming regulatory milestones and financial updates.
Adaptimmune is also preparing for the commercial launch of afami-cel, their T-cell therapy for solid tumors, with a strategy to initiate the launch with 6-10 treatment centers, eventually expanding to about 30. The company has secured significant debt financing and raised funds to support this launch.
Furthermore, full pivotal data for Lete-cel, Adaptimmune's therapy targeting the NY-ESO-1 cancer antigen, is expected to be released in late 2024. The company's cash runway has been reported to last into late 2025, a slight reduction from previous estimates. These recent developments are crucial for investors as they provide a revised timeline for evaluating the company's financial sustainability and capital needs.
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