Daniel Lorrain
About Daniel Lorrain
Daniel S. Lorrain, Ph.D. is Contineum Therapeutics’ Chief Scientific Officer and a founding executive, serving in the role since March 2018; he is 56 years old and holds a B.S. in Psychology and a Ph.D. in Behavioral Neuroscience from SUNY Buffalo, with a postdoctoral fellowship at the University of Chicago . His track record includes leading biology and non‑clinical pharmacology at Inception Therapeutics (Roche’s acquisition of the remyelination program “Inception 5”) and driving LPA1R program efforts at Amira Pharmaceuticals that were acquired by Bristol‑Myers Squibb, highlighting repeated value creation from derisked external validation and strategic transactions .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Inception Therapeutics (Versant discovery engine) | Executive Director; VP Biology | 2011–2018 | Led biology and non‑clinical pharmacology; guided remyelination program “Inception 5” acquired by Roche |
| Amira Pharmaceuticals | Senior Director, Pharmacology | 2005–2010 | Led LPA1R program efforts; program acquired by Bristol‑Myers Squibb |
| Merck & Co. | Research Fellow | 1999–2005 | Early CNS drug discovery contributions |
External Roles
No public company directorships or external board roles disclosed for Dr. Lorrain in the company’s executive biographies reviewed .
Fixed Compensation
- Dr. Lorrain was not a named executive officer in 2024; his specific base salary and cash bonus were not disclosed in the proxy. The company’s framework provides executives with base salaries reviewed periodically and annual incentive opportunities tied to corporate and individual goals .
Performance Compensation
- Annual incentives: Company program bases payouts on corporate milestones (e.g., product development and clinical progress) and individual performance; targets and realized payouts for Dr. Lorrain were not disclosed as he was not an NEO .
- Equity incentives: Company grants stock options with four‑year vesting (25% on the first anniversary; remaining monthly over 36 months) at fair market value. This is the primary long‑term incentive modality for executives, aligning value with share price appreciation .
Recent option grants to Dr. Lorrain
| Grant date | Instrument | Size (shares) | Exercise price | Vesting | Expiration |
|---|---|---|---|---|---|
| 2025‑01‑31 | Stock option | 110,000 | $9.79 | 25% vests 2026‑01‑01; then monthly over 36 months | 2035‑01‑30 |
| 2025‑01‑31 (spouse) | Stock option (indirect) | 3,700 | $9.79 | 25% vests 2026‑01‑01; then monthly over 36 months | 2035‑01‑30 |
Equity Ownership & Alignment
- Beneficial holdings (Form 3 at IPO; options represent underlying Class A shares):
| As of | Instrument | Underlying shares | Exercise price | Status per filing | Expiration |
|---|---|---|---|---|---|
| 2024‑04‑04 | Stock option | 75,930 | $1.01 | Fully vested | 2030‑02‑24 |
| 2024‑04‑04 | Stock option | 258,700 | $8.45 | 25% vested 2022‑03‑11; remainder monthly | 2031‑03‑15 |
| 2024‑04‑04 | Stock option | 142,928 | $10.80 | 25% vested 2024‑09‑27; remainder monthly | 2033‑10‑08 |
| 2024‑04‑04 (spouse) | Stock options (indirect) | 4,773 / 893 / 5,359 / 2,947 | $1.26 / $1.01 / $8.45 / $10.80 | Per spousal grants | 2029‑02‑12 / 2030‑02‑24 / 2031‑03‑15 / 2033‑10‑08 |
- ESPP participation: Form 4 footnote indicates 325 shares purchased through the company’s Employee Stock Purchase Plan (ESPP) as of November 2024 .
- Insider transactions: A Form 4 filed 2024‑11‑20 reported an open‑market sale; third‑party trackers show a sale of 1,010 shares at ~$16.02 on 2024‑11‑25 (reference only; official Form 4 link provided) .
- Hedging/pledging: Company policy prohibits hedging and short sales and prohibits pledging or margin accounts without approval, supporting alignment. Rule 10b5‑1 plans are permitted under policy .
Employment Terms
- Executive Severance Plan participation: On May 28, 2024, Dr. Lorrain entered the company’s Executive Severance Plan as a Tier 2 participant .
- Termination without Change in Control (CIC): Lump sum cash equal to 12 months base salary plus pro‑rated target bonus, and up to 12 months of health/welfare benefits continuation, subject to a release .
- CIC termination (double‑trigger; within 90 days prior to or 18 months post‑CIC): Lump sum cash equal to 100% of base salary + 100% of target bonus; full vesting of time‑based equity; performance awards vest at target (unless award terms specify otherwise); options remain exercisable for full term; up to 12 months health/welfare continuation, subject to a release .
- Definitions of “Cause,” “Good Reason,” and CIC window are specified in the plan; “Good Reason” includes material reduction in authority/comp, or relocation >35 miles (with notice and cure) .
- Clawback: Nasdaq/SEC‑compliant clawback policy adopted at IPO (April 2024) covering incentive‑based compensation for the prior three fiscal years if a financial restatement is required .
Related Party Transactions
- The company disclosed that Kym Lorrain, Dr. Lorrain’s spouse, is employed as an Assistant Director. Her compensation and benefits are comparable to similarly situated employees and were approved by the independent compensation committee under the company’s related‑party policy .
Board Governance Context (Compensation Committee)
- Compensation Committee members in 2024: Todd Brady (Chair), Evert Schimmelpennink, and Olivia Ware; the committee retained Alpine Rewards as independent compensation consultant in September 2024 .
Investment Implications
- Alignment and incentives: Heavy use of multi‑year stock options with standardized 4‑year vesting and a policy prohibiting hedging/pledging drives equity‑beta exposure and reduces misalignment risk; CIC benefits are double‑trigger (termination required) with full acceleration, which avoids single‑trigger windfalls but still creates meaningful retention value through the CIC window .
- Vesting and potential selling pressure: Multiple option grants (2019, 2021, 2023, 2025) include monthly vesting streams, which can create a steady cadence of potential liquidity events; however, reported insider activity shows only modest selling (1,010 shares in Nov 2024) and ESPP participation, a neutral‑to‑supportive signal on near‑term selling pressure .
- Retention risk and severance economics: Tier 2 severance (1x base + 1x target in CIC termination; 12 months base + pro‑rated bonus in non‑CIC termination) is market‑standard and supports retention without excessive golden parachutes; double‑trigger equity acceleration protects employee equity in change‑of‑control scenarios .
- Governance/related‑party optics: Spousal employment is disclosed and committee‑approved with market‑comparable pay, reducing conflict risk, but remains a governance point to monitor in future proxies and say‑on‑pay cycles .