Alnylam Reports on Nasdaq Matter
Friday June 29, 5:00 pm ET
CAMBRIDGE, Mass.--(BUSINESS WIRE)--Alnylam Pharmaceuticals, Inc. (Nasdaq: ALNY - News) announced today that, in response to a letter from the company to the Nasdaq Stock Market reporting an inadvertent stock option grant to a member of its audit committee, Nasdaq notified the company on June 26, 2007 that it had been temporarily out of compliance with the audit committee independence listing requirement set forth in Nasdaq Marketplace Rule 4350(d)(2). The notice from Nasdaq also stated that the company had since regained compliance with Marketplace Rule 4350(d)(2) and did not require the company to make any changes to its audit committee composition.
On June 12, 2007, the company sent a letter to Nasdaq indicating that in September 2006 the company had granted to a member of the audit committee of the company's Board of Directors, an option to purchase 5,000 shares of common stock in consideration for his service on the company's scientific advisory board. The company also stated in its letter to Nasdaq that, upon discovery of this grant, the company took proactive steps to cancel the stock option before any shares were vested thereby, the company believed, securing the director's independence as an audit committee member.
Rule 10A-3 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), prohibits, among other things, the receipt by an audit committee member of any consulting, advisory or other compensatory fees from the company, other than in such member's capacity as a member of the company's audit committee, board of directors or other board committees. To continue to be eligible for listing of its securities on the Nasdaq Global Market, the company is required, under Marketplace Rule 4350(d)(2), to have an audit committee consisting of at least three directors, all of whom are independent under Nasdaq Marketplace Rule 4200 and the more stringent independence tests of Rule 10A-3 under the Exchange Act.
The notification from Nasdaq stated that, as a result of the stock option grant, the company had been out of compliance with Nasdaq Marketplace Rule 4350(d)(2), but that it had taken appropriate measures to regain compliance through the cancellation of the option.
About Alnylam
Alnylam is a biopharmaceutical company developing novel therapeutics based on RNA interference, or RNAi. The company is applying its therapeutic expertise in RNAi to address significant medical needs, many of which cannot effectively be addressed with small molecules or antibodies, the current major classes of drugs. Alnylam is building a pipeline of RNAi therapeutics; its lead program is in Phase II human clinical trials for the treatment of respiratory syncytial virus (RSV) infection. RSV infects nearly every child at least once by the age of two and accounts for more than 125,000 hospitalizations annually in the U.S. pediatric population. RSV infection also poses a great risk to the elderly and other adults with compromised immune systems. The company's leadership position in fundamental patents, technology, and know-how relating to RNAi has enabled it to form major alliances with leading companies including Merck, Medtronic, Novartis, and Biogen Idec. The company, founded in 2002, maintains global headquarters in Cambridge, Massachusetts, and has an additional operating unit in Kulmbach, Germany. For more information, visit www.alnylam.com.
Contact:
Alnylam Pharmaceuticals, Inc.
Cynthia Clayton, 617-551-8207
Investors
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KMorrisPR
Kathryn Morris, 845-635-9828
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Source: Alnylam Pharmaceuticals, Inc. |
