- The Synairgen share price fell 4.71% on the management team’s bonuses.
- The firm awarded its managers options to purchase over 6.4m shares.
- So, what comes next for Synairgen’s shares? Read on to find out.
The Synairgen plc (LON: SNG) share price fell 4.71% after the company’s management team awarded itself options to purchase over 6.4 million new ordinary shares at 1p each. The new share options were issued to the company’s directors and other people with managerial roles.
The biotech company noted that the awards were part of its long-term incentive plan for its management team and that the options are exercisable up to 4 July 2032, that is, ten years from today.
While some might argue that the share options awards come at a difficult time for the company, whose shares have fallen 86.5% this year. Others will justify the award by saying that now more thane ever, the company needs to retain its talented managers and directors, given the recent losses that could lead to an exodus of talented managers.
The share option awards were approved within Synairgen’s 2021 financial report and are subject to the managers meeting specific performance criteria on page 24 of the 2021 annual report.
Looking at Synairgen’s fundamentals, we can see that nothing has changed since we last covered the biotech company. The firm is still committed to repackaging its SNG001 COVID-19 drug candidate as a treatment for patients with pre-existing respiratory conditions.
Initial data indicated that the drug could stop such patients’ progression to severe coronavirus symptoms and even death. However, investors should remember that the total addressable market for such patients is limited compared to the general COVID-19 patient load.
Investors are waiting for further updates from Synairgen regarding any progress towards advancing its SNG001 drug candidate, which can also treat viral lung infections. The company’s proprietary Interferon-beta drug molecule has shown promise in treating viral lung infections via inhalation.
Meanwhile, some investors might wonder whether now is the right time to buy Synairgen shares? Well, the short answer is no. Before buying, we must wait until the company has a clear recovery strategy and its shares have started moving higher.
*This is not investment advice. Always do your due diligence before making investment decisions.
Synairgen share price.
The Synairgen share price fell 4.71% today to trade at 27.54p, falling from Tuesday’s closing price of 28.90p.