Progenics third quarter net loss increases to $17.1 million

Progenics Pharmaceuticals, Inc. (Nasdaq: PGNX) today announced its results of operations for the third quarter and nine months ended September 30, 2010.

“The RELISTOR brand lifecycle advanced significantly in the third quarter”

Net loss for the third quarter of 2010 was $17.1 million or $0.52, basic and diluted, per share, compared to $13.0 million or $0.41, basic and diluted, per share in the third quarter of 2009. Net loss for the nine months ended September 30, 2010 was $50.9 million or $1.57, basic and diluted, per share, compared to $30.0 million or $0.97, basic and diluted, per share for the first nine months of 2009.

Progenics ended the third quarter of 2010 with cash, cash equivalents and marketable securities of $62.0 million, reflecting use of cash of $11.6 million in the quarter and $34.2 million for the first nine months of 2010.

Third quarter revenue totaled $2.0 million, compared to $5.4 million for the same period of 2009, reflecting a decrease in research and development revenue from Wyeth, now a Pfizer Inc. (NYSE: PFE) subsidiary, resulting from the wind down of the Progenics-Wyeth RELISTOR^® collaboration. For the first nine months of 2010, Progenics reported revenues of $5.8 million, compared to $31.8 million for the same period in 2009, reflecting decreased research and development revenue and recognition in the first quarter of 2009 of a $15.0 million upfront payment from Ono Pharmaceutical Co., Ltd. (OSE-TYO: 4528), Progenics' collaborator for subcutaneous RELISTOR (methylnaltrexone bromide) in Japan.

Progenics receives royalties from its former collaborator Pfizer on all global net sales of RELISTOR, the Company's drug approved for the treatment of opioid-induced constipation in advanced-illness patients. For the third quarter of 2010, global net sales of RELISTOR were $4.1 million compared to $3.8 million for the previous quarter and $3.3 million for the third quarter of 2009. U.S. net sales were $2.4 million compared to $2.3 million for the previous quarter and $1.8 million for the same period last year. Ex-U.S. RELISTOR net sales were $1.7 million compared to $1.5 million for the previous quarter and $1.5 million for the same period last year.

Global net sales of RELISTOR for the first nine months of 2010 were $12.2 million comprising U.S. and ex-U.S. net sales of $7.2 million and $5.0 million, respectively.

Expenses for the third quarter of 2010 were $19.1 million, $0.5 million more than the $18.6 million for the same period in 2009. The increase resulted from clinical trial expenses incurred in the recently initiated oral methylnaltrexone phase 3 study and an increase in consultants' expenses for subcutaneous RELISTOR. These were partially offset by lower compensation expenses resulting from a decrease in Company-wide average headcount.

For the first nine months of 2010, expenses totaled $56.8 million, a decrease of $6.7 million from $63.5 million for the same period last year. The decrease resulted from lower compensation expenses due to Company-wide decrease in average headcount, reduced manufacturing costs for PSMA ADC and PRO 140, and lower PRO 140 clinical trial and lab expenses. These were partially offset by higher consultants' expenses for subcutaneous RELISTOR, oral methylnaltrexone clinical trial expenses and subcutaneous RELISTOR contract manufacturing costs for the multi-dose pen.

Progenics continues to pursue a range of strategic options for RELISTOR, including licensing, collaboration and/or strategic alliances with worldwide or regional partners, U.S. commercialization of the currently-approved product on its own or with pharmaceutical detailing and sales organizations and/or co-promotion of the franchise with a partner using its own sales force. The Company is also pursuing strategic collaborations with biopharmaceutical companies for development of PSMA ADC.

"The RELISTOR brand lifecycle advanced significantly in the third quarter," said Paul J. Maddon, M.D., Ph.D., Progenics' Founder, Chief Executive and Chief Science Officer. "We completed the open label safety study of RELISTOR in patients with chronic, non-cancer pain, initiated a phase 3 study of oral methylnaltrexone in the same patient population, and received U.S., E.U. and Canadian approvals for ready-to-use RELISTOR pre-filled syringes."