Kristian Reich
About Kristian Reich
Kristian Reich, 59, is Co‑founder and Chief Scientific Officer (CSO) of MoonLake Immunotherapeutics (MLTX) since April 2022, with >25 years as a global clinical leader in dermatology/immunology and over 300 peer‑reviewed publications. He holds a Dr. med. from Technical University Munich and Venia legendi in Dermatology/Venerology from Georg‑August‑University; prior roles include University Professor/Vice Director at Göttingen and managing partner roles at Dermatologikum clinics in Hamburg/Berlin . MoonLake is pre‑revenue; 2024 net loss was $118.9M, while pay‑versus‑performance TSR shows a $100 initial investment valued at $548 in 2024 (cumulative since 2021 baseline) . Under Reich’s tenure, SLK moved through Phase 2/3 across HS, PsA and additional indications with FDA/EMA end‑of‑Phase 2 alignment and ongoing Phase 3 programs (VELA, IZAR) .
Past Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| Georg‑August‑University Göttingen (Dept. of Dermatology) | University Professor; Vice Director | 1996–2005 | Clinical and teaching leadership in dermatology |
| Dermatologikum Hamburg (private outpatient clinic) | Managing Partner | 2005–2015 | Led clinical operations in dermatology |
| Dermatologikum Berlin (private outpatient clinic) | Self‑employed Partner | 2013–present | Senior clinical practice in dermatology |
| JeruCON Beratungsgesellschaft mbH Hamburg | Independent Medical Director; Founder | Ongoing | Medical consulting and ownership vehicle |
| Guest‑Professor, University Medical Center Hamburg‑Eppendorf | Translational Research in Inflammatory Skin Diseases | Since 2019 | Academic translational research in dermatology |
External Roles
| Organization | Role | Years | Strategic Impact |
|---|---|---|---|
| TFS HealthScience | Medical Advisor | Since 2016 | Clinical research advisory (CRO) |
| Derma2go AG (Zürich) | Board Director | Ongoing | Teledermatology governance |
| Dermagnostix GmbH (Freiburg) | Board Director | Ongoing | Diagnostic device company oversight |
| ProDerma Foundation (Hamburg) | Board Director | Ongoing | Dermatological research foundation |
Fixed Compensation
| Year | Base Salary ($) | Target Bonus (% of Base) | Actual Bonus ($) | Perquisites/Other ($) | Notes |
|---|---|---|---|---|---|
| 2024 | 698,245 | 55% | 574,254 | 30,440 (incl. $25,430 housing; $5,010 pension) | Base increased 5% in July 2024 |
| 2023 | 586,333 | 55% | 589,819 | 54,752 | 150% of target paid |
| 2022 | 460,275 | See below | 632,878 | 109,786 | ESPP share awards granted (see Equity) |
- Annual bonus outcomes: 2024 paid at 150% of target based on goals (company profile, delivering SLK programs in HS/PsA, securing financial stability) .
- 2024: No equity awards granted to NEOs .
Performance Compensation
| Metric | Target | Actual/Outcome | Payout | Weighting | Vesting/Timing |
|---|---|---|---|---|---|
| Build company profile with key stakeholders | Qualitative | Achieved; 150% payout factor | 150% of target bonus | Not disclosed | Annual cash bonus (2024) |
| Deliver SLK global programs in HS and PsA (Phase progress, endpoints, regulatory interactions) | Program milestones | VELA/IZAR patient screening initiated; primary endpoints met in Phase 2 trials; EoP2 alignment with FDA/EMA | 150% of target bonus | Not disclosed | Annual cash bonus |
| Secure financial stability (capital raising, cash runway management) | Capital targets | Raised $52.5M in 2024; extended runway to at least end‑2026 | 150% of target bonus | Not disclosed | Annual cash bonus |
- Equity awards: February 2025 grant of 139,273 stock options at $41.77 exercise price; vests over 4 years in equal annual installments (Reich) .
Equity Ownership & Alignment
| Item | Detail |
|---|---|
| Beneficial Ownership (3/15/2025) | 3,079,503 Class A (4.9%); 84,367 Class C (11.6%); total voting power 4.9% |
| Ownership breakdown | Includes 2,925,573 Class A via JeruCON Beratungsgesellschaft mbH; 153,930 Class A + 84,367 Class C directly held |
| Outstanding unvested stock (12/31/2024) | 91,363 Class A (ESPP‑derived) valued $4,947,306 at $54.15 close |
| ESPP vesting schedule | 25% vested 1/18/2023; 2.08% monthly thereafter until fully vested; subject to repurchase at nominal value if employment ends |
| Option awards (Feb 2025) | 139,273 options at $41.77; 4‑year equal annual vesting |
| Hedging/Pledging | Company policy prohibits hedging and pledging; short sales, options, swaps barred |
| 10b5‑1 Trading Plan | Adopted June 26, 2025: allows sale of up to 300,000 Class A shares through March 31, 2026 (Rule 10b5‑1(c)) |
Employment Terms
| Provision | Terms |
|---|---|
| Employment start date | MoonLake AG May 17, 2021; CSO at MLTX since April 2022 |
| Contract term/notice | Extended for indefinite period; terminable by either party with six months’ notice |
| Non‑compete / non‑solicit | In‑term + six months post‑termination (Reich) |
| Post‑termination payments (if employee terminates) | Monthly payments equal last monthly fixed salary during restrictive covenant period; company may waive covenants (then cease payments) |
| Post‑termination payments (if company terminates) | Monthly fixed salary + one‑twelfth of annual target bonus during restrictive covenant period (payments even if covenants waived) |
| Alternative severance (if covenants unenforceable) | 50% of annual salary (and +50% of annual target bonus if company terminates), payable over six months |
| Change of control | All unvested equity awards vest immediately |
| Potential payouts (illustrative table) | Voluntary termination: base $348,033; bonus $574,254; CoC stock awards value $4,947,306; totals per scenario disclosed |
| Clawback | Incentive compensation clawback compliant with Nasdaq 5608/Rule 10D‑1 for material restatements (prior 3 fiscal years) |
| Insider trading policy | Strict prohibitions; blackout periods; pre‑clearance; Rule 10b5‑1 guidelines; bans short‑term/speculative trading |
Compensation Structure Analysis
- Cash vs equity mix shifted toward cash in 2024 (no equity awards; 5% base increase; 150% bonus), with equity granting resuming in Feb 2025 via options for Reich .
- 2022 equity exposure via ESPP created significant unvested holdings with defined vesting schedule and company repurchase rights, reinforcing retention/alignment .
- Say‑on‑pay support was strong: 99% approval at the 2024 AGM; no program changes were made in response .
- Peer benchmarking: compensation committee used a biopharma peer set (market cap $696M–$2,859M; 36–236 employees) including Immunovant, Bicycle Therapeutics, Acelyrin, Rapt, Dice, Vera, Verona Pharma, Pharvaris, Summit, Aclaris, Protagonist, etc. .
Equity Ownership & Selling Pressure Indicators
- Significant beneficial ownership (≈4.9% of Class A) aligns Reich with shareholders; holdings include personal and JeruCON stakes .
- A Rule 10b5‑1 plan adopted June 26, 2025 authorizes sales up to 300,000 shares through March 31, 2026, indicating potential near‑term supply; plan confers affirmative defense if executed per policy .
- Company policies prohibit hedging/pledging and speculative trading, reducing misalignment risks .
Performance & Track Record
| Indicator | 2024 | 2023 | 2022 |
|---|---|---|---|
| Cumulative TSR (Value of $100) | $548 | $611 | $106 |
| Net Loss | $(118,935,517) | $(36,007,260) | $(49,973,249) |
- Program execution: Positive Phase 2 HS (MIRA) and PsA (ARGO) outcomes; rapid progression to Phase 3 (VELA and IZAR), adolescent HS (VELA‑TEEN) and initiation of PPP and axSpA studies; FDA/EMA alignment on Phase 3 designs .
Stock Ownership/Compliance
- No evidence disclosed of any pledging; hedging and pledging prohibited by company policies .
- Insider trading controls include pre‑clearance, blackout periods, and Rule 10b5‑1 adoption guidelines (cool‑off periods; no overlapping plans) .
Director/Governance (Comp Committee)
- Compensation Committee members: Andrew Phillips (Chair), Catherine Moukheibir, Spike Loy; independent consultant (Deloitte) engaged; clawback policy adopted; say‑on‑pay process annual .
Compensation Details (multi‑year table)
| Component | 2024 | 2023 | 2022 |
|---|---|---|---|
| Salary ($) | 698,245 | 586,333 | 460,275 |
| Bonus ($) | 574,254 | 589,819 | 632,878 |
| Stock Awards ($) | — | — | 3,362,817 |
| All Other Comp ($) | 30,440 | 54,752 | 109,786 |
| Total ($) | 1,302,939 | 1,230,904 | 4,565,756 |
Vesting & Award Mechanics
- ESPP awards (granted 1/18/2022): 25% vested 1/18/2023, then 2.08% monthly; unvested shares subject to repurchase at nominal value upon termination; change‑of‑control vests fully .
- Options (granted Feb 2025): 139,273 options at $41.77 exercise price; 4 equal annual vesting tranches from grant date .
Say‑On‑Pay & Shareholder Feedback
- 2024 say‑on‑pay approval: 99%; Compensation Committee retained program structure (modest base increase, high at‑risk bonus, deferred equity to 2025) .
Compensation Peer Group (2024 cycle)
| Representative Peers (selection) |
|---|
| Immunovant, Bicycle Therapeutics, Acelyrin, Rapt Therapeutics, Dice Therapeutics, Vera Therapeutics, Verona Pharma, Pharvaris, Summit Therapeutics, Aclaris Therapeutics, Protagonist Therapeutics |
Risk Indicators & Red Flags
- Trading plan: potential near‑term selling pressure from 10b5‑1 plan (up to 300,000 shares) through Mar‑2026 .
- Change‑of‑control acceleration: immediate vesting of all unvested equity awards .
- No hedging/pledging permitted; clawback policy in place mitigating pay‑for‑performance risk on restatement .
Investment Implications
- Alignment: Reich’s substantial ownership (~4.9% of Class A; additional Class C) and long‑dated vesting (ESPP/2025 options) support alignment; hedging/pledging prohibitions and clawback further mitigate agency risk .
- Retention vs liquidity: The June 2025 10b5‑1 plan signals potential selling pressure (up to 300k shares by Mar 2026); however, multi‑year vesting and continued program milestones (VELA/IZAR readouts) balance liquidity with retention .
- Pay‑for‑performance: High 2024 cash bonus (150% of target) tied to tangible milestones (phase progression, financing runway), with equity resuming in 2025 via options; strong 2024 say‑on‑pay (99%) reduces compensation overhang .
- Event‑risk: Change‑of‑control accelerates vesting; given sizable unvested holdings, incentives are aligned to value‑creation but imply accelerated dilution on a strategic transaction .
Sources: MLTX DEF 14A (2025/2024/2023) ; MLTX 10‑K FY2024 ; MLTX 10‑Q Q2 2025 Item 5 (Trading Plans) .