Lawrence Blatt
Aligos TherapeuticsAbout Lawrence Blatt
Lawrence M. Blatt, Ph.D., M.B.A., is Chair, President, and Chief Executive Officer of Aligos Therapeutics, serving as CEO and director since February 2018 and as President since March 2024; age 63 as of April 28, 2025 . He previously led Infectious Diseases and Vaccines at Janssen (2014–2018) and co-founded Alios BioPharma (CEO/President/Director, 2009–2014), acquired by Johnson & Johnson in 2014, and was Chief Scientific Officer at InterMune (2002–2008) . Aligos is an emerging growth company and does not hold advisory say‑on‑pay votes; formal TSR/financial performance metric disclosure is limited in proxies . Operationally, management highlighted progress in HBV and metabolic programs in Q3 2025, including the Phase 2 B‑SUPREME study initiation and expected interim data in 2026, signaling ongoing execution in pipeline development .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Janssen Pharmaceutical Companies of Johnson & Johnson | Global Head, Infectious Diseases & Vaccines | 2014–2018 | Led global infectious diseases portfolio and vaccines strategy . |
| Alios BioPharma, Inc. | Co‑founder; CEO/President/Director | 2009–2014 | Built antiviral platform; company acquired by J&J in 2014 . |
| InterMune, Inc. | Chief Scientific Officer | 2002–2008 | Guided scientific programs in respiratory/antiviral areas . |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| ReViral Ltd. | Director | Prior service (not current) | Oversight at antiviral developer (historical) . |
| Alveo Technologies, Inc. | Co‑founder; Director | Since 2014 (historical) | Helped establish diagnostics company (historical) . |
| Meissa Vaccines, Inc. | Director | Prior service (not current) | Board role in vaccine development (historical) . |
Fixed Compensation
| Metric (USD) | FY 2023 | FY 2024 |
|---|---|---|
| Base Salary | $587,495 | $626,652 |
| All Other Compensation | $52,094 | $17,690 |
| Total Cash (Salary + Other) | $639,589 | $644,342 |
Notes:
- Emerging growth company; reduced executive compensation disclosure (no CD&A, no say‑on‑pay) .
Performance Compensation
| Component | Target | Actual/Payout | Metric/Weighting | Vesting |
|---|---|---|---|---|
| Annual Cash Bonus (2024) | 55% of base salary | Corporate goals achieved at 105% of target; payout $361,892 | Corporate operational/performance goals (weights not detailed for CEO) | Cash; paid early 2025 |
| Stock Options (Annual 2024 grant) | n/a | 38,616 options @ $28.25 (Mar 2024) | Service‑based; 1/48 monthly vest | 1/48 monthly vest, subject to service |
| Stock Options (2024 exchange) | n/a | Exchanged 34,167 options (> $52.50 strike) for 16,841 options @ $24.00 (Feb 28, 2024) | Service‑based; vest on later of 1‑year from exchange or original schedule | As specified; monthly schedule with later-of rule |
Notes:
- Equity repricing/exchange conducted in Feb 2024; plan permits repricing without stockholder approval (red flag for governance risk) .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Total Beneficial Ownership | 181,346 shares (3.4% of voting common outstanding as of Mar 6, 2025) |
| Breakdown | Direct: 73,902; Living Trust: 4,536; IRA: 4,904; two irrevocable trusts: 740 each; Common warrant: 12,206; Options exercisable within 60 days: 96,524 |
| Pledging/Hedging | Prohibited for insiders (no margin purchases or pledging; no hedging) |
| Ownership Guidelines | Not disclosed in proxy |
| Burn Rate (2024) | 7.18% excluding, 3.46% including pre-funded warrants |
| Overhang (Mar 31, 2025) | 41.87% excluding, 24.78% including pre-funded warrants |
Outstanding Equity Awards (as of Dec 31, 2024)
| Vest Start Date | Exercisable | Unexercisable | Exercise Price | Expiration |
|---|---|---|---|---|
| 09/04/2024 | 2,120 | 31,800 | $11.74 | 09/04/2034 |
| 03/01/2024 | 7,240 | 31,376 | $28.25 | 03/01/2034 |
| 03/15/2023 | 4,243 | 5,456 | $33.50 | 03/15/2033 |
| 09/08/2023 | 2,124 | 3,875 | $21.00 | 09/08/2033 |
| 07/07/2022 | 3,907 | 2,560 | $35.25 | 07/07/2032 |
| 02/28/2024 | — | 5,293 | $24.00 | 02/28/2034 |
| 02/28/2024 | — | 9,239 | $24.00 | 02/28/2034 |
| 02/28/2024 | — | 2,309 | $24.00 | 02/28/2034 |
| 02/20/2020 | 8,428 | — | $86.25 | 02/20/2030 |
| 02/20/2020 | 25,907 | — | $86.25 | 02/20/2030 |
Vesting: Options typically vest 1/48 monthly over four years from vest start date, subject to continued service .
Pricing context: On March 31, 2025, ALGS closing price was $8.25, implying most options were out-of-the-money at that date, which can reduce near‑term exercise-driven selling pressure .
Employment Terms
| Provision | Base Case (No Change in Control) | Change in Control (Double Trigger) |
|---|---|---|
| Base Salary/Bonus Target | Base salary initially $548,654; bonus target 55% of base (agreement baseline) | Same bonus target; triggers enhanced severance upon qualifying termination |
| Cash Severance | 1× base salary + prior year’s earned bonus (paid in installments) | 1.5× (base salary + target bonus) lump sum |
| COBRA | 12 months reimbursement | 18 months reimbursement |
| Equity Acceleration | Accelerate what would vest within 12 months post‑termination (performance awards per award terms) | Full acceleration; performance awards deemed earned at greater of target or actual (if measurable) |
| Option Exercise Window | Vested options remain exercisable up to 12 months post‑termination | Same 12‑month post‑termination exercise window |
| Triggers/Conditions | Termination without cause or resignation for good reason; release of claims; compliance with restrictive covenants required | Termination without cause or resignation for good reason within 12 months commencing a change in control; release and covenants required |
Clawback: Company policy to recover erroneously awarded incentive compensation per SEC/Nasdaq standards .
Board Governance (dual‑role implications)
- Blatt serves as both Chair and CEO; Board mitigates with a Lead Independent Director (Carole Nuechterlein), independent committees, and regular executive sessions of independent directors .
- Independence: All directors other than Blatt are independent under Nasdaq rules .
- Committees and roles:
- Audit: Scopa (Chair), Hirth, Chavez .
- Compensation: Nuechterlein (Chair), Hirth, Martell .
- Nominating & Governance: Preston (Chair), Nuechterlein .
- Attendance: Board met 6 times in 2024; all directors attended ≥75% of Board/committee meetings; Audit met 4x; Compensation 7x; Nominating 1x .
Related Party and Capital Structure Considerations
- Blatt participated in the October 2023 PIPE, purchasing 24,411 shares and 12,205 common warrants for ~$500,000; his warrants are subject to a 19.99% beneficial ownership cap .
- February 2025 PIPE established Baker Brothers’ board nomination rights (up to two designees depending on ownership thresholds), potentially influencing governance dynamics .
- Plan governance: Amended 2020 Plan allows option/SAR repricing without stockholder approval (a shareholder‑unfriendly feature) .
- Authorized shares increase proposals (Voting to 100,000,000; Non‑Voting to 15,800,000) highlight capital‑raising flexibility and dilution risks; overhang and burn rates are elevated for a small‑cap biotech .
Multi‑Year Compensation Summary (CEO)
| Metric (USD) | FY 2023 | FY 2024 |
|---|---|---|
| Salary | $587,495 | $626,652 |
| Option Awards (grant‑date fair value) | $311,690 | $1,129,049 |
| Non‑Equity Incentive (Cash Bonus) | $393,179 | $361,892 |
| All Other Compensation | $52,094 | $17,690 |
| Total Compensation | $1,344,458 | $2,135,283 |
Director Service and Compensation (context for dual role)
- Blatt receives no additional director compensation as CEO; non‑employee director program includes cash retainers and annual initial/recurring option grants, amended in April 2025 to increase grant sizes (Initial: 11,720 options; Annual: 5,860 options) .
Performance & Track Record Highlights
- Pipeline execution: Phase 2 B‑SUPREME (pevy) initiated; multiple abstracts accepted; interim data expected 1H/2H 2026, topline 2027; ongoing partnering discussions for ALG‑055009 in obesity/MASH .
- SOX certifications: Blatt signed Section 302/906 certifications for 10‑Q filings, indicating responsibility over controls and reporting quality .
Risk Indicators & Red Flags
- Equity repricing authority and 2024 option exchange (governance risk) .
- High overhang and ongoing share authorization increases (dilution risk) .
- Concentrated investor influence via nomination rights (Baker Brothers) .
- Mitigants: Prohibitions on hedging/pledging for insiders ; clawback policy aligned with SEC/Nasdaq ; independent committees .
Investment Implications
- Alignment: Blatt’s 3.4% beneficial ownership and PIPE participation demonstrate skin‑in‑the‑game; prohibitions on pledging/hedging support alignment, while most options were OTM at $8.25 close on Mar 31, 2025, limiting near‑term selling pressure from exercises .
- Pay‑for‑performance: 2024 bonus paid at 105% of target for corporate goals suggests above‑target operational execution; equity is primarily service‑vested, with a noteworthy 2024 option exchange and plan‑level repricing discretion—watch for future modifications and dilution .
- Retention/CoC economics: Cash severance (1× base + prior bonus) and double‑trigger CoC (1.5× base + target, full acceleration) are moderate‑to‑typical for biotech; acceleration of performance awards at greater of target/actual can be shareholder‑sensitive in change‑of‑control scenarios .
- Governance: Dual Chair/CEO structure is mitigated by a Lead Independent Director and fully independent committees; however, investor nomination rights and capital structure changes increase governance complexity that investors should monitor .
- Execution risk: Clinical timelines and partnering outcomes remain key levers; upcoming HBV and metabolic readouts are catalysts under Blatt’s leadership .