Progenics Receives $40-Million Milestone

Progenics Pharmaceuticals, Inc. recently announced it received a $40-million milestone payment from its worldwide collaboration partner, Salix Pharmaceuticals, Ltd. upon the US FDA’s recent approval of RELISTOR Subcutaneous Injection for opioid-induced constipation in patients with chronic non-cancer pain. Progenics also provided additional information on its commercial arrangements with Salix for the expanded indication.

“This new indication approval is a significant milestone for Progenics, creating the potential for additional revenue for the company. While future commercial activity and development efforts are never guaranteed, this milestone payment immediately strengthens our balance sheet, and the expanded indication could ultimately result in larger royalty and milestone revenues in the future,” said Mark Baker, Chief Executive Officer of Progenics. “We will continue to work with Salix to advance regulatory efforts for RELISTOR in Europe, as well as to seek regulatory approval of an oral formulation of the drug, which has already completed a successful Phase III clinical trial. And our ultimate company-wide goal is to leverage RELISTOR success to build shareholder value, both through the efficient development of a high-value, oncology-focused pipeline and in exploring unique strategic opportunities, such as our acquisition of Molecular Insight last year.”

Under the 2011 Salix-Progenics collaboration, Progenics is also entitled to up to $50 million upon approval of an oral RELISTOR product in the US. Salix is also obligated to pay commercialization milestones of up to $200 million. The commercialization milestone payments range from $10 million when calendar-year US net sales first exceed $100 million, to $75 million when such sales first exceed $1 billion. One or more, or all, commercialization milestones could become payable within the same calendar year if the specified sales levels are met. Progenics also receives royalties from Salix and its affiliates based on the following royalty scale: 15% on calendar-year worldwide net sales by Salix and its affiliates up to $100 million, 17% on the next $400 million of such sales, and 19% on such sales over $500 million. Progenics is also entitled to receive 60% of revenues received by Salix from ex-US sublicensees of RELISTOR.

Progenics Pharmaceuticals, Inc. is developing innovative medicines for oncology, with a pipeline that includes several product candidates in later-stage clinical development. Progenics’ first-in-class PSMA targeted technology platform for prostate cancer includes an antibody drug conjugate therapeutic in a two-cohort Phase II clinical trial and a small molecule imaging agent that has completed patient dosing in a Phase II trial. Among other assets in its pipeline of targeted radiotherapy and molecular imaging compounds is Azedra, an ultra-orphan radiotherapy candidate also in a Phase II study under an SPA. For additional information, please visit www.progenics.com.