Korro Bio, Inc. (NASDAQ:KRRO), a pharmaceutical company, announced significant changes to its board of directors on Monday, August 26, 2024. David L. Lucchino has stepped down from the board effective immediately, with no disagreements cited regarding company operations or practices. Concurrently, Lucchino has entered into a consulting agreement with Korro Bio, providing strategic advisory services through October 1, 2027, or until earlier termination under specified conditions.
Lucchino will receive quarterly cash compensation, starting at $9,000 until the 2026 annual meeting of stockholders and then $2,000 until the 2027 annual meeting. Additionally, he is set to receive an option grant valued at $150,000 at the 2025 annual meeting, vesting fully by the 2026 meeting. Korro Bio has also agreed to reimburse Lucchino up to $10,000 for expenses related to the negotiation of the agreement.
Following Lucchino's departure, the board, upon the Nominating and Corporate Governance Committee's recommendation, reduced its number from seven to six. Subsequently, the board increased the number to seven and appointed Katharine Knobil, M.D., as a Class III director, effective immediately. Dr. Knobil will serve until the 2025 annual meeting of stockholders and has also joined the Compensation Committee.
Dr. Knobil's compensation aligns with Korro Bio's non-employee director policy, detailed in an SEC filing on November 6, 2023. She has also entered into the company's standard indemnification agreement for directors. There are no reported arrangements or understandings between Dr. Knobil and other parties regarding her appointment, nor does she have any material interests in transactions requiring disclosure.
In other recent news, Korro Bio has made substantial progress with its lead drug candidate, KRRO-110, as highlighted by BMO Capital Markets. The firm maintained its Outperform rating on Korro Bio, noting the steady advancement of the Clinical Trial Application/Investigational New Drug (CTA/IND) filing for KRRO-110, expected in the first half of 2024.
Similarly, Piper Sandler reaffirmed its Overweight rating on Korro Bio, expressing confidence in the company's strong financial position and its upcoming First-in-Human (FIH) study in Alpha-1 Antitrypsin Deficiency (AATD) patients.
In addition, William Blair initiated coverage on Korro Bio, assigning an Outperform rating and setting a fair value of $180 per share. The firm highlighted Korro Bio's innovative approach to RNA editing for genetic disease therapies. RBC Capital also maintained its Outperform rating on Korro Bio, albeit with a reduced price target of $95.
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