Form 4: ALUMIS CMO Granted 221,450 Stock Options

ALUMIS Inc.'s Chief Medical Officer, Jorn Drappa, was granted 221,450 stock options with an exercise price of $26.31, vesting over four years.

Summary

• Jorn Drappa, Chief Medical Officer of ALUMIS Inc. (ALMS), acquired 221,450 stock options.
• The options have an exercise price of $26.31 per share.
• The earliest transaction date for this grant was January 26, 2026.
• The options begin vesting on January 26, 2027, with 25% vesting on that date.
• The remaining shares will vest in equal monthly installments over the subsequent 36 months.
• The options expire on January 25, 2036.
• Vesting is contingent upon Mr. Drappa's continuous service to ALUMIS Inc., as defined in the company's 2024 Equity Incentive Plan.

Sentiment

Score: 6

Explanation: The grant of stock options to a key executive is generally a positive signal, aligning management's interests with shareholders and incentivizing long-term performance. It is a standard compensation practice.

Positives

• The grant of stock options aligns the Chief Medical Officer's long-term financial interests with those of shareholders, incentivizing performance and company growth.
• The vesting schedule encourages long-term commitment and retention of key executive talent.

Negatives

• Potential for future share dilution if the options are exercised, though this is a standard aspect of equity compensation.

Risks

• The value of the stock options is subject to the future market price of ALUMIS Inc. common stock, which may fluctuate.
• The options' vesting is conditional on the Reporting Person's continuous service, meaning unvested options could be forfeited if employment ceases.
• The exercise price of $26.31 means the options will only have intrinsic value if the stock price rises above this level.

Future Outlook

The vesting schedule for the stock options, extending over four years until January 2030 (25% in Jan 2027, then 36 months), indicates a long-term commitment expected from the Chief Medical Officer and aligns executive incentives with the company's future performance.

Industry Context

The grant of stock options to a Chief Medical Officer is a common practice in the biotechnology and pharmaceutical industries, where attracting and retaining key scientific and medical talent is crucial. Equity compensation is a standard tool to incentivize long-term performance and align executive interests with shareholder value creation in growth-oriented companies like ALUMIS Inc.

Comparison to Industry Standards

• The grant of 221,450 stock options to a Chief Medical Officer is a significant equity award, typical for a senior executive in a publicly traded biotech company.
• A four-year vesting schedule, with a one-year cliff (25% after one year) followed by monthly vesting, is a standard industry practice designed to encourage long-term retention and performance, comparable to compensation structures at companies like Moderna or BioNTech for similar roles.
• The exercise price being set at the market price on the grant date is also standard for incentive stock options, ensuring the executive benefits only if the company's stock price appreciates.

Corporate Governance

Stakeholder Impact

• Shareholders: Potential for long-term value creation through incentivized executive performance; minor potential for future dilution upon exercise of options.
• Employees: Demonstrates the company's commitment to attracting and retaining talent through competitive equity compensation.
• Management: Provides a significant long-term incentive tied to the company's stock performance and continued service.

Next Steps

• Continued service by the Chief Medical Officer to meet vesting conditions.
• Future vesting events for the stock options on a monthly basis after January 26, 2027.

Key Dates

Keywords

ALUMIS Inc., ALMS, stock options, executive compensation, Form 4, insider transaction, Jorn Drappa, Chief Medical Officer, equity incentive plan