Neuren Pharmaceuticals (ASX:NEU) has approved the issue of new 2.16 million share options as a long-term incentive at an exercise price of AU$12.91, according to a Friday Australian bourse filing.

The issue follows its meeting with the US Food and Drug Administration for Phelan-McDermid syndrome, a neurodevelopmental disorder for which it's developing its drug candidate NNZ-2591.

The exercise price is equal to the volume-weighted average price of trading during the five days before the issue, and the options expire five years after the issue.

Out of the total, 360,000 options for Chief Executive Officer Jon Pilcher will be subject to shareholder approval and will not be issued before receiving said approval at a future meeting.

The company will vest one-third of the options upon each of the following milestones: completion of last patient dosing in a Phase 3 trial, acceptance for filing of a marketing application or completion of a major partnership deal, and first patient dosing in a pivotal trial for a second indication.