OnKure Cuts Strike Price On 1.7 Million Options To $4.14, Down From $10.00 Or More
The biotech repriced options held by its named executives in August and granted 759,175 performance units, while reporting $163.3 million in cash.
OnKure Therapeutics, a clinical-stage drug developer, repriced about 1.7 million stock options on August 7, cutting their exercise price from $10.00 or higher to $4.14, according to its 10-Q filed Wednesday. The repricing covers each of its named executive officers.
How the repricing works
The new strike of $4.14 was the stock's closing price on the day of the repricing. The options were granted before 2025 and carried exercise prices of $10.00 or more.
Holders must stay on through a retention period: 18 months for senior management, including the named executives, and one year for other employees and service providers. A holder who exercises early pays the original, higher price. The requirement is waived if the company changes control or the holder dies or becomes disabled.
Term, vesting and share count were left unchanged. The repricing carries $1.6 million of incremental cost, recognized over the retention period, and $0.2 million of that was booked in the third quarter. The prior quarterly filing carried no repricing disclosure.
Performance units with no expense yet
In August the company also granted 759,175 performance-based restricted stock units at $4.14. They vest in four tranches, tied to internal research, clinical and financial goals over periods running through December 31, 2028, plus a service requirement.
Management judged vesting of each tranche not probable as of September 30, so no expense has been recognized. About $3.1 million remains unrecognized. The weighted average exercise price of options outstanding fell to $9.79 at September 30 from $15.54 at December 31, 2025, after new grants and the repricing.
Cash and the placement price
OnKure develops small-molecule drugs aimed at mutated forms of a cancer-driving protein, PI3Kα. Its lead programs are OKI-345 in breast cancer and OKI-355 in vascular anomalies, with FDA applications to start human trials planned for the first half of 2027.
It held $163.3 million in cash and marketable securities at September 30, which the company expects to provide runway into 2029. The third-quarter net loss was $17.8 million, or $0.36 per share.
The company closed a roughly $150.0 million private placement on March 31 at $4.15 a share. At the end of 2025 it had flagged substantial doubt about its ability to keep operating; management now says that doubt has been alleviated. The stock closed at $2.59 on Wednesday, below both the placement price and the new strike, and the company's market value was about $101 million.
The senior-management retention window runs 18 months from August 7, 2026, and the performance units' goals run through December 31, 2028.
