Synergy Pharmaceuticals Inc. (NASDAQ:SGYP) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

On May 24, 2017, Synergy Pharmaceuticals Inc. (the “Company”) entered into a Separation and Release Agreement (the “Agreement”) with Kunwar Shailubhai, the Company’s Chief Scientific Officer, to which Dr. Shailubhai’s status as an employee of the Company ended effective May 23, 2017. to the Agreement, the Company will pay Dr. Shailubhai a lump sum cash payment of $596,250 with $198,750 to be paid on the first payroll date after July 1, 2017 and $397,500 to be paid upon the earlier of (i) November 25, 2017 and (ii) the date of Dr. Shailubhai’s death. In addition, all of Dr. Shailubhai’s stock options shall fully vest and be exercisable until the ten year anniversary of the date of grant. Further, the Company will pay Dr. Shailubhai’s and his dependents’ COBRA cost until the earlier of the conclusion of the 12 month period following May 23, 2017 or the date Dr. Shailubhai is no longer entitled to coverage under COBRA.

to the Agreement, Dr. Shailubhai has agreed to comply with the confidential information and non-competition and non-solicitation provisions in the Third Amended and Restated Executive Employment Agreement dated January 7, 2015, as amended on January 18, 2016 and November 30, 2016 between Dr. Shailubhai and the Company (the “Employment Agreement”) and the terms of the Nondisclosure, Noncompete, Nonsolicitation and Assignment of Inventions Agreement executed by Dr. Shailubhai on January 6, 2014 provided, however that Dr. Shailubhai agrees that the Non-Competition; Non-Solicitation provisions in the Employment Agreement shall continue to apply until May 23, 2019. In addition, Dr. Shailubhai’s realization bonus as set forth in the Employment Agreement and as modified in the Agreement was extended for a period of 30 years from the effective date of the Agreement.

The foregoing description of the Separation and Release Agreement is only a summary, does not purport to be complete and is qualified in its entirety by reference to the Separation and Release Agreement, which is filed as Exhibit 10.1 hereto and incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

10.1 Separation and Release Agreement between Synergy Pharmaceuticals Inc. and Kunwar Shailubhai dated May 24, 2017.

About Synergy Pharmaceuticals Inc. (NASDAQ:SGYP)

Synergy Pharmaceuticals Inc. (Synergy) is a biopharmaceutical company focused on the development and commercialization of gastrointestinal (GI) therapies. The Company’s GI platform includes two lead product candidates: plecanatide and dolcanatide. It is engaged in the discovery, research and development involving uroguanylin analogs for the treatment of functional GI disorders and inflammatory bowel disease. Plecanatide is the Company’s uroguanylin analog being evaluated for use as a once-daily tablet for two functional GI disorders, chronic idiopathic constipation (CIC) and irritable bowel syndrome with constipation (IBS-C). Plecanatide is a 16-amino acid peptide that is structurally identical to uroguanylin with the exception of a single amino acid change. Dolcanatide is also its uroguanylin analog being explored for inflammatory bowel disease (IBD). Dolcanatide is designed to be an analog of uroguanylin with resistance to standard digestive breakdown by proteases in the intestine.

Synergy Pharmaceuticals Inc. (NASDAQ:SGYP) Recent Trading Information

Synergy Pharmaceuticals Inc. (NASDAQ:SGYP) closed its last trading session down -0.21 at 3.48 with 7,672,095 shares trading hands.