Form 4: Longboard Pharmaceuticals Director Disposes of Stock Options Following Merger

A Longboard Pharmaceuticals director, Corinne Le Goff, disposed of multiple employee stock options as a result of the company's merger with a subsidiary of H. Lundbeck A/S.

Summary

• Corinne Le Goff, a director at Longboard Pharmaceuticals, disposed of several employee stock options on December 2, 2024.
• This action occurred due to the completion of a merger between Longboard Pharmaceuticals and a subsidiary of H. Lundbeck A/S.
• The merger resulted in the cancellation of outstanding vested stock options, which were converted into a cash payment.
• The cash payment was calculated as the difference between $60 per share and the exercise price of each option, multiplied by the number of shares covered by the option.
• The options were fully vested and exercisable due to the merger agreement.

Sentiment

Score: 7

Explanation: The document reflects a standard transaction following a merger, with no indication of negative sentiment. The conversion of options to cash is a neutral event from an investment perspective.

Future Outlook

The document does not contain any forward-looking statements or guidance.

Industry Context

This is a standard transaction following a merger where stock options are converted to cash, which is common in the pharmaceutical industry.

Comparison to Industry Standards

• The treatment of stock options in this merger is consistent with standard practices in mergers and acquisitions, particularly in the pharmaceutical sector.
• Similar transactions in the industry often involve the acceleration of vesting and conversion of options to cash based on the merger price.
• For example, in the acquisition of a biotech company by a larger pharmaceutical firm, stock options are typically handled in a similar manner to ensure fair compensation for employees and directors.

Stakeholder Impact

• Shareholders received $60 per share as part of the merger.
• Option holders received cash payments for their vested options based on the difference between $60 and the exercise price.

Key Dates

Keywords

Merger, Stock Options, Director, Longboard Pharmaceuticals, H. Lundbeck A/S, Acquisition, Cash Payment, Vesting