Form 4: Amphastar Pharmaceuticals Executives Receive Stock Options and Restricted Stock Units

Amphastar Pharmaceuticals' CEO Jack Y. Zhang and COO Mary Z. Luo receive stock options and restricted stock units (RSUs) as part of their compensation.

Summary

• Jack Y. Zhang, CEO and Chief Scientific Officer of Amphastar Pharmaceuticals, and Mary Z. Luo, COO, Chief Scientist, and Chairman, reported changes in their beneficial ownership of the company's securities.
• On March 10, 2025, Zhang acquired 116,226 shares of common stock and options for 246,821 shares, while Luo acquired 48,996 shares of common stock and options for 104,052 shares.
• The shares were acquired through restricted stock units (RSUs) and employee stock options.
• The RSUs vest in four equal annual installments beginning on March 10, 2026.
• The shares subject to the options also vest in four equal annual installments beginning on March 10, 2026.
• Zhang directly owns 2,609,382 shares and indirectly owns 1,148,257 shares through Mary Z. Luo and 6,827,679 shares through Applied Physics and Chemistry Laboratories, Inc.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. The granting of stock options and RSUs is a common practice and generally viewed as a positive sign of aligning management interests with shareholders. There are no explicitly negative aspects presented in the document.

Positives

• The granting of RSUs and stock options to key executives aligns their interests with those of the shareholders.
• The vesting schedule encourages long-term commitment from the executives.

Industry Context

Stock options and RSUs are common forms of executive compensation in the pharmaceutical industry, used to incentivize performance and retain key personnel.

Comparison to Industry Standards

• Executive compensation packages, including stock options and RSUs, are standard practice among publicly traded pharmaceutical companies like Teva Pharmaceuticals, Mylan (now Viatris), and Pfizer.
• The vesting schedules, typically spanning several years, are also consistent with industry norms to ensure long-term commitment and alignment with shareholder value creation.

Stakeholder Impact

• Shareholders may view the granting of stock options and RSUs as a positive sign, aligning management's interests with the company's long-term success.
• Employees may be motivated by the fact that executives are incentivized to improve the company's performance.

Key Dates