Rallybio Corporation (NASDAQ:RLYB), a biopharmaceutical company, disclosed today that Dr. Martin Mackay will resign from his Executive Chairman role and terminate his employment with the company effective December 31, 2024. However, Dr. Mackay will continue to serve on Rallybio's Board of Directors and will assume the role of Chairman of the Board following his resignation.
The company stated that no severance payment will be made to Dr. Mackay upon his departure from his executive position. Instead, Rallybio has outlined a plan to engage Dr. Mackay as a consultant starting January 1, 2025, for a one-year period, with the possibility of extension by mutual agreement. The consulting agreement allows for termination by either party with a 60-day notice.
As a consultant, Dr. Mackay will earn a monthly fee of $18,750, payable in arrears. Additionally, his existing equity awards will continue to vest during his tenure as a director. The agreement also includes a provision that in the event of a change of control at Rallybio, any outstanding equity awards held by Dr. Mackay as of December 31, 2024, will become fully vested.
The terms of the consulting agreement will be finalized and executed on January 1, 2025. The details of this agreement were included as part of Rallybio's recent filing with the Securities and Exchange Commission (SEC) and are subject to the finalized consulting agreement text.
This announcement comes as part of an 8-K filing, which is a report of unscheduled material events or corporate changes at a company that could be of importance to the shareholders or the SEC. Rallybio is a pharmaceutical company based in New Haven, Connecticut, and operates under the industrial classification of pharmaceutical preparations.
In other recent news, Rallybio Corp. has experienced several noteworthy developments. Jones Trading maintained its Buy rating for Rallybio Corp, with a price target of $20, following Rallybio's announcement of an epidemiology analysis of Fetal and Neonatal Alloimmune Thrombocytopenia (FNAIT). This analysis suggests the condition may be more prevalent in at-risk pregnancies than previously understood. Rallybio is preparing for a Phase 2 trial of its prime asset, RLYB212, aimed at treating FNAIT, with full epidemiology data slated for presentation in 2024.
In addition, Rallybio has secured a strategic equity investment from Johnson & Johnson (NYSE:JNJ), which will support Rallybio's Phase 3 trial of nipocalimab for FNAIT treatment. However, JPMorgan (NYSE:JPM) has downgraded Rallybio's stock from Overweight to Neutral, citing a lack of near-term catalysts in 2024, but acknowledges the long-term value of Rallybio's RLYB212.
Rallybio has also announced a partnership with Johnson & Johnson to advance FNAIT treatments, involving a $6.6 million equity investment from Johnson & Johnson Innovation – JJDC, Inc. These developments highlight the ongoing efforts of Rallybio to further its research and development in the field of rare diseases.
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