In a recent shakeup at Achieve Life Sciences, Inc. (NASDAQ: NASDAQ:ACHV), a clinical-stage pharmaceutical company with a current market capitalization of $121 million, Dr. Vaughn Himes has stepped down from his role on the company's board of directors as of January 6, 2025. According to InvestingPro data, the company currently maintains a 'Fair' financial health score, though analysts have recently revised their earnings expectations downward.
The departure of Dr. Himes, who will continue to provide consulting services to the company, was not due to any disagreements regarding operations, policies, or practices, according to a filing with the Securities and Exchange Commission. This leadership change comes at a crucial time for the company, which InvestingPro analysis shows is experiencing rapid cash burn, with a negative EBITDA of $31 million in the last twelve months.
Simultaneously, the board welcomed Nancy R. Phelan and Kristen B. Slaoui, Ph.D., as new directors, effective the same day. The appointments come with a compensation package consistent with the company's non-employee director program. Each will receive a $40,000 annual retainer for their service for the fiscal year ending December 31, 2025.
Additionally, both incoming directors were granted stock options to purchase 47,250 shares of Achieve Life Sciences' common stock at the closing sale price on January 13, 2025, the grant date. These options will vest over three years, contingent upon ongoing service to the company. They are also slated to receive annual equity compensation in line with current non-employee director provisions, which currently include a stock option to purchase 31,500 shares of common stock.
Achieve Life Sciences has also entered into a standard indemnification agreement with each new director, a form of which will be included in the company's annual report for the fiscal year ended December 31, 2024.
The company, listed on the NASDAQ under the symbol ACHV, has not reported any material interest in transactions involving the new directors that would require disclosure under SEC regulations. The stock currently trades near its 52-week low of $3.42, with analysts maintaining a strong buy consensus and setting price targets significantly above current levels.
For deeper insights into ACHV's financial health and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers 12 additional key insights about the company's performance and outlook.
This news is based on Achieve Life Sciences' latest 8-K filing, which provides a snapshot of the company's executive changes.
In other recent news, Achieve Life Sciences has made significant strides in nicotine addiction treatment, with its smoking cessation drug, cytisinicline, meeting a key FDA requirement for a New Drug Application (NDA) submission. The ORCA-OL clinical trial has documented over 300 participants completing six months of treatment with cytisinicline, fulfilling the FDA's long-term exposure requirement. Furthermore, the company plans to initiate a Phase 3 clinical study in vaping cessation later in 2025.
On the financial front, Achieve Life Sciences reported a net loss of $12.5 million for Q3 2024 but managed to refinance $20 million in debt. The appointment of Mark K. Oki as the new Chief Financial Officer is another recent development, bringing extensive experience from his previous roles in the pharmaceutical and life sciences sectors.
Analysts have expressed optimism about Achieve Life Sciences, with Rodman & Renshaw initiating coverage on the company with a Buy rating. However, it's worth noting that four analysts have recently revised their earnings expectations downward for the upcoming period. These are the latest developments for Achieve Life Sciences, indicating a promising outlook for its endeavors in nicotine addiction treatment.
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