Achieve Life Sciences, Inc. (NASDAQ:ACHV), a company specializing in in vitro and in vivo diagnostic substances with a market capitalization of $157 million, announced today the appointment of Mark K. Oki as the new Chief Financial Officer, effective last Thursday. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 6.78x, though it faces challenges with rapid cash burn. Mr. Oki brings extensive experience from his previous roles in the pharmaceutical and life sciences sectors.
Prior to this appointment, Mr. Oki served as the CFO of Aytu Biopharma, Inc. from January 2022 until November 2024. His career also includes a tenure as the CFO of Vivus LLC and senior financial positions at Alexza Pharmaceuticals, Inc., Pharmacyclics, Inc., and Incyte (NASDAQ:INCY) Genomics, Inc. He is a Certified Public Accountant and holds a degree in Business Administration – Accounting from San Jose State University.
The terms of Mr. Oki's employment agreement with Achieve Life Sciences include an initial annual base salary of $450,000 and the potential for an annual discretionary bonus of up to 40% of his base salary. He will also be granted an option to purchase 72,000 shares of the company's common stock and 168,000 performance-based restricted stock units, subject to vesting conditions. Based on InvestingPro's Fair Value analysis, the stock appears to be trading near its fair value, with analysts setting price targets ranging from $10 to $30.
In the event of a termination of employment without cause or resignation for good reason, Mr. Oki is entitled to severance benefits, including up to 24 months of his base salary and average monthly bonus earnings, continued healthcare coverage, and accelerated vesting of equity grants, especially in the context of a change in control.
The formal details of Mr. Oki's employment agreement will be included in Achieve Life Sciences' Annual Report on Form 10-K for the fiscal year ending December 31, 2024. There are no reported familial relationships between Mr. Oki and any of the company's directors or executive officers, nor does he have any material interest in any transaction that would require disclosure.
In other recent news, Achieve Life Sciences has seen a positive response from the FDA meeting, boosting its efforts against nicotine addiction. The company's strategic shift from clinical development to a commercial approach with its smoking cessation drug, cytisinicline, has been a significant development. A New Drug Application (NDA) for cytisinicline is anticipated in Q2 2025, potentially marking the first new prescription smoking cessation aid in nearly two decades.
Rodman & Renshaw recently initiated coverage on Achieve Life Sciences with a Buy rating, underlining the company's commitment to this global health crisis. They also noted the company's exploration of further indications for cytisinicline, including its use for e-cigarette and vaping cessation. However, it's worth noting that four analysts have recently revised their earnings expectations downward for the upcoming period.
The company reported a net loss of $12.5 million for Q3 2024 but managed to refinance $20 million in debt. Plans for a Phase 3 trial for vaping cessation in Q3 2025 and exploration of non-dilutive funding options for future studies were also disclosed.
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