Amit D. Munshi became president, CEO and interim principal financial officer of Arena Pharmaceuticals Inc. effective May 11. Munshi joined Arena’s board of directors following the company’s June 2016 annual stockholders’ meeting.

With the appointment, Munshi brings to Arena more than 25 years of global biopharmaceutical industry experience in executive management, business development, product development, and portfolio management.

“I am honored to have the opportunity to lead Arena at this point in the company’s evolution,” Munshi says. “With a strong research platform, a marketed drug and three compounds currently in Phase II development, I believe Arena has the potential to deliver significant value while positively impacting the lives of patients. I look forward to working with Arena’s executive team and board to advance the company.”

Munshi replaces Harry F. Hixson Jr., Ph.D., who served as Arena’s interim CEO and interim principal financial officer since October 2015 and as a director since 2004. Dr. Hixson will remain on Arena’s board of directors.

“Amit is a seasoned biopharmaceutical executive with the diverse experience and skill set necessary to lead Arena to its next phase of growth,” says Tina S. Nova, Ph.D., Arena’s lead independent director and chair of its CEO search committee. “As a company, we have made progress in aligning our focus with our core strengths over the past several months, and the board looks forward to Amit’s leadership as we advance our therapeutic pipeline and drive toward important milestones.

“Additionally, on behalf of the board of directors, I would like to thank Dr. Hixson for his leadership of the company during this transitional phase.”

Munshi, age 48, served as president, CEO and a director of Epirus Biopharmaceutical Inc., a publicly traded biopharmaceutical company, from May 2012 to May 2016. Prior to Epirus, Munshi served as president and CEO of Percivia LLC, a biotechnology company, from 2011 to 2012, was a co-founder and served as chief  business officer of Kythera Biopharmaceuticals Inc. from 2005 to 2010, and held multiple leadership positions at Amgen Inc. from 1997 to 2005, including general manager, Nephrology Europe.

Munshi serves on the boards of Oxeia Biopharmaceuticals Inc. and Cytrellis Biosystems Inc., both privately held companies. He holds a B.S. in economics and a B.A. in history from the University of California, Riverside, and an MBA from the Peter F. Drucker Graduate School of Management at Claremont Graduate University.

In connection with the hiring of Munshi, the Compensation Committee of Arena’s board of directors approved an inducement stock option grant to Munshi to purchase 3,800,000 shares of Arena common stock. The option grant was effective May 11, 2016, and will have an exercise price per share equal to the closing price of Arena’s common stock on that date. The non-qualified stock option will have a 7-year term and will vest over four years, with 25 percent of the shares subject to the option vesting one year after the commencement of Munshi’s employment and the remainder of the shares vesting quarterly over the following three years in equal installments, subject to Munshi’s continued service with Arena through the applicable vesting dates. The vesting of the option is subject to acceleration in certain circumstances as provided in Munshi’s employment and severance agreements. The stock option grant is subject to the terms and conditions of Arena’s 2013 Long-Term Incentive Plan, as amended, and the stock option agreement pursuant to which the option is granted.

The stock option is granted as an inducement material to Munshi entering into employment with Arena in accordance with NASDAQ listing Rule 5635(c)(4).