Contact:
            Investors:
              Progenics
      Pharmaceuticals, Inc.
              
              Richard
      W. Krawiec, Ph.D.
              Vice
      President, Corporate Affairs
              (914)
      789-2814
              rkrawiec@progenics.com
              
              Dory
      A. Lombardo
              Senior
      Manager, Corporate Affairs
              (914)
      789-2818
              dlombardo@progenics.com
            Media:
              WeissComm
      Partners
              
              Aline
      Schimmel
              (312)
      646-6295
              aschimmel@wcpglobal.com




PROGENICS
REPORTS THIRD QUARTER 2008 FINANCIAL RESULTS AND CORPORATE UPDATES





Tarrytown, NY, November 10,
2008 – Progenics Pharmaceuticals, Inc. (Nasdaq: PGNX) today announced its
results of operations for the third quarter and nine months ended September 30,
2008.





Revenues
for the third quarter totaled $17.5 million, compared to $17.0 million for the
same period of 2007. For the nine months ended September 30, 2008, the Company
reported revenues of $60.8 million compared to $60.1 million for the comparable
period of 2007. Revenues for the three-month and nine-month periods ended
September 30, 2008 and 2007 reflect the following:





·
            Reimbursement from Wyeth
      Pharmaceuticals, a division of Wyeth (NYSE: WYE), of development work
      performed by Progenics under their RELISTOR®collaboration:  Reimbursement was recognized in the
      amounts of $3.9 million and $11.3 million for the third quarters of 2008
      and 2007, respectively. For the nine months ended September 30, 2008 and
      2007, $21.8 million and $30.8 million was recognized,
      respectively.





·
            Amortization of the upfront
      payment from Wyeth under the RELISTOR collaboration:  Of
      the $60.0 million upfront payment received from Wyeth in December 2005,
      $2.1 million and $3.2 million was recognized in the third quarters of 2008
      and 2007, respectively. For the nine months ended September 30, 2008 and
      2007, $8.1 million and $13.1 million was recognized,
      respectively.





·
            Milestone payments from
      Wyeth:  Milestone payments related to the European and U.S.
      approvals of subcutaneous RELISTOR totaled $10.0 million in the
      third quarter of 2008 and $25.0 million in the nine months ended September
      30, 2008. Milestone payments of $9.0 millionwerereceived duringthe nine months ended September 30, 2007.





·
            Royalty
      income payments from Wyeth: Royalty incomebased on net sales of subcutaneous RELISTOR was recordedin the amounts of $44,000 for the third quarter of 2008 and $86,000
      for the nine months ended September 30, 2008. Cumulative royalties of
      $352,000 were deferred at September 30, 2008 and are expected to be
      recognized as royalty income over the period of our development
      obligations relating to RELISTOR.











·
            Funding
      from government grants and contract:  These
      revenues,related to the Company’s proprietary programs in virology
      and oncology, totaled $1.4 million and $2.5 million in the third quarters
      of 2008 and 2007, respectively. For the nine months ended September 30,
      2008 and 2007, $5.7 million and $7.1 million were earned,
      respectively.





“We have
been able to maintain a healthy balance sheet while advancing our product
pipeline because of the continued funding by Wyeth of our lead program,
RELISTOR, together with payments for achieving milestones and royalties on
commercial sales,” said Paul J. Maddon, M.D., Ph.D., Founder, Chief Executive
Officer and Chief Science Officer, Progenics Pharmaceuticals, Inc. “This quarter
we achieved another development milestone as PSMA ADC, our prostate cancer
therapy, entered phase 1 testing. Going forward, we will look to leverage the
extensive drug development expertise we have gained from the RELISTOR program to
develop our virology and oncology pipeline.”





Expenses
for the third quarter of 2008 were $31.2 million, compared to $34.4 million for
the third quarter of 2007. For the nine months ended September 30, 2008,
expenses totaled $95.9 million, compared to $93.9 million for the same period of
2007. Research and development expenses, including license fees and royalty
expense, decreased $2.5 million in the third quarter of 2008, compared to the
third quarter of 2007, and were at approximately the same levels for the nine
months ended September 30, 2008 and 2007. The decrease in the third quarter
Research and development expenses resulted primarily from a decrease in RELISTOR
clinical trial activity, partially offset by an increase in headcount. General and administrative
expenses decreased for the three months but increased for the nine months ended
September 30, 2008, compared to the same periods of 2007. The third quarter
decrease in General and administrative expenses was primarily due to a decrease
in share-based compensation expense while the year-to-date increase was
primarily due to an increase in headcount and consulting and professional
fees.





Third
quarter 2008 net loss was $12.2 million, compared to $15.6 million for the same
period of 2007. Net loss per share was ($0.41), basic and diluted, for the third
quarter of 2008, compared to a net loss per share of ($0.58), basic and diluted,
for the same period of 2007. The net loss for the first nine months of 2008 was
$30.1 million, compared to a $28.4 million net loss for the same period of 2007.
Net loss per share for the first nine months of 2008 was ($1.02), basic and
diluted, compared to a net loss per share of ($1.07), basic and diluted, for the
same period of 2007.





In April
2008, Progenics’ Board of Directors approved a share repurchase program to
acquire up to $15.0 million of the Company’s outstanding common shares, funding
for which came from a $15.0 million milestone payment from Wyeth for the receipt
of marketing approval of the subcutaneous form of RELISTOR in the
U.S.Progenics
repurchased 200,000 shares during the three months ended September 30, 2008 for
a total purchase price of $2.7 million. The Company has $12.3 million remaining
available for purchases under the program. Purchases under the program may be
discontinued at any time.





Progenics
ended the third quarter of 2008 with cash, cash equivalents and marketable
securities of $134.6 million, compared to $170.4 million
at December 31, 2007.







Third
Quarter 2008 Highlights




·
            In
      September, Progenics’ wholly owned subsidiary, PSMA Development Company
      (PDC), initiated a phase 1 dose-escalation clinical study of its
      prostate-specific membrane antigen (PSMA) antibody-drug conjugate
      (ADC). PSMA ADC is an investigational therapy that combines
      a fully human monoclonal antibody with a derivative of auristatin, a
      chemotherapeutic agent. Unlike traditional chemotherapy, PSMA ADC is
      designed to deliver the drug selectively to prostate cancer cells by
      targeting PSMA, a protein abundantly expressed on the surface of prostate
      cancer cells as well as on the neovasculature of many types of solid
      tumors. The study is designed to assess the safety, tolerability and
      initial clinical activity of PSMA ADC during an initial 12-week treatment
      period, followed by the option to continue therapy for a total of 12
      months.




·
            Also
      in the third quarter, enrollment was completed in a phase 3 clinical study
      of the subcutaneous form of RELISTOR for the treatment of opioid-induced
      constipation in patients with chronic pain not related to cancer, such as
      chronic severe back pain.




Recent
Highlights




·
            In
      October, Progenics entered into an exclusive license agreement with Ono
      Pharmaceutical Co., Ltd., under which Ono acquired the rights to the
      subcutaneous form of RELISTOR in Japan, where it plans to develop and
      commercialize this drug for the treatment of opioid-induced
      constipation. Under the collaboration terms, Progenics is entitled to
      receive a $15.0 million upfront payment, development and commercialization
      milestone payments and royalties on net
sales.




·
            In
      October, Progenics announced the completion of enrollment in two phase 2
      studies of subcutaneous and intravenous PRO 140, an HIV entry inhibitor
      and humanized monoclonal antibody targeting the entry co-receptor CCR5.
      Interim data from these two studies showed that both forms of PRO 140
      exhibited potent and prolonged activity and were generally well tolerated.
      Interim data from the study of intravenous PRO 140 were presented in a
      “late-breaker” session at the 2008 joint meeting of the Interscience
      Conference on Antimicrobial Agents and Chemotherapy (ICAAC) and the
      Infectious Diseases Society of America
(IDSA).




·
            In
      November, Progenics also announced the selection of a proprietary
      small-molecule drug candidate, designated PRO 206, a novel HCV entry
      inhibitor for clinical development as a treatment of hepatitis C virus
      (HCV) infection. Pre-clinical results supporting the development of PRO
      206 were presented at the annual meeting of the American Association for
      the Study of Liver Diseases (AASLD) in San Francisco. PRO 206 is an orally
      available viral-entry inhibitor designed to prevent HCV from entering and
      infecting healthy liver cells.   PRO 206 represents an
      innovative approach to HCV therapy as it specifically blocks the hepatitis
      C virus. HCV currently is treated with interferon in combination with
      ribavirin, non-specific antiviral agents that are associated with
      significant side effects and failure rates. Targeted antiviral agents are
      widely viewed as a promising approach to improving treatment of HCV
      infection.







·
            Also
      in November, Progenics’ wholly owned subsidiary, PDC, plans to initiate a
      29-week, phase 1, multi-dose, dose-escalation study of a therapeutic
      vaccine for prostate cancer, PSMA-VRP. PSMA-VRP is designed to induce both
      antibodies and killer T-cells that can recognize and potentially eliminate
      PSMA-positive prostate cancer cells in a vaccinated patient. The phase 1
      clinical study will assess the safety, tolerability, initial
      immunogenicity and clinical activity of PSMA-VRP in patients with
      progressive, castrated, metastatic prostate cancer. The PSMA-VRP vaccine
      is based on the platform alphavirus replicon vector technology system (a
      non-replicating viral vector system), and was developed under license from
      AlphaVax, Inc., located in Research Triangle Park,
  NC.








Executive
Management Promotions





Progenics
also announced five recent executive promotions in Corporate Strategy, Research
and Development, Manufacturing, Quality and Regulatory Affairs.





“In
recent years, Progenics has benefited from the collective knowledge and
experience of its management team, resulting in our first commercial product
approved earlier this year,” said Dr. Maddon. “Beyond our RELISTOR
franchise, these five members of executive management will be instrumental in
developing the significant potential in our pipeline.”





Mark R. Baker, J.D., Executive Vice
President – Corporate





Mr. Baker
joined the Company in 2005 as Senior Vice President, General Counsel and
Secretary, and leads the Company’s efforts in the areas of business and
commercial development, strategy, intellectual property and law. In his expanded
role, Mr. Baker plans to build value for the Company through innovative
licensing, development and commercialization activities, and enhance shareholder
value by in- and/or out-licensing clinical candidates that fit Progenics’
strategy of becoming a profitable biopharmaceutical company.





William
C. Olson, Ph.D., Senior Vice President, Research and Development





Dr. Olson
joined the Company in 1994 as an investigator and oversees research and
development, including discovery efforts to identify novel small-molecule and
biologic drugs in oncology and infectious diseases. Dr. Olson’s team also
performs translational research studies, designed to accelerate drug
development.   Dr. Olson will assume increased responsibility for
expanding Progenics’ product pipeline with innovative drug candidates that
address significant unmet medical needs.





Nitya
G. Ray, Ph.D., Senior Vice President, Manufacturing





Dr. Ray
joined Progenics in 2001 as a Senior Director, Manufacturing. He is
responsible for overseeing drug supply for all clinical efforts related to the
Company’s HIV and prostate cancer programs. In his new role, Dr. Ray will
supervise the advancement of these manufacturing programs toward
commercialization. His goals include using advanced technology to increase
productivity, and coordinating in-house manufacturing activity with contracted
or commercial manufacturing partnerships to supply investigational and
commercial drugs cost-effectively.








Benedict Osorio, M.S., M.B.A., Senior
Vice President, Quality





Mr. Osorio joined
Progenics in 2005 as Vice President, Quality.Mr. Osorio will maintain a
quality program that supports the development of products that are compliant
with the requirements of worldwide regulatory agencies. As Senior Vice
President, Mr. Osorio will expand the quality program to include the Company’s
development and commercial partners.   Quality assurance and
quality control/analytical development will continue to play a key role in
product evaluation and the continuous improvement of Progenics’ facilities,
processes and operations, helping to assure the timely availability of drug
products for further clinical development.





Ann Marie Assumma, M.S., Vice
President, Regulatory Affairs





Ms.
Assumma joined Progenics in 2004 as Senior Director, Regulatory Affairs –
Biologics. She provides regulatory leadership, direction, strategic focus
and advocacy for ensuring that overall operations of the regulatory affairs
group are compliant with federal guidelines and consistent with the Company’s
business strategy. As Vice President, Ms. Assumma will also guide the transition
to electronic records management of regulatory communications and submissions to
create a streamlined process that reduces costs, expedites submissions and
approval times, and creates greater transparency.





(PGNX-F)





About
the Company





Progenics Pharmaceuticals,
Inc., of Tarrytown, NY, is a biopharmaceutical company focusing on the
development and commercialization of innovative therapeutic products to treat
the unmet medical needs of patients with debilitating conditions and
life-threatening diseases. Principal programs are directed toward
gastroenterology, virology—including human immunodeficiency virus (HIV) and
hepatitis C virus (HCV) infections—and oncology. Progenics, in collaboration
with Wyeth, is developing RELISTOR®
(methylnaltrexone bromide) for the treatment of opioid-induced side effects.
Wyeth has worldwide rights to develop and commercialize all forms of RELISTOR,
except in Japan where Progenics has granted Ono Pharmaceutical Co., Ltd. an
exclusive license to the subcutaneous form of RELISTOR for development and
commercialization in that country. In the U.S., RELISTOR (methylnaltrexone
bromide) subcutaneous injection is indicated for the treatment of opioid-induced
constipation (OIC) in patients with advanced illness who are receiving
palliative care, when response to laxative therapy has not been sufficient. In
Canada, RELISTOR (methylnaltrexone bromide injection) for subcutaneous use is
indicated for the treatment of OIC in patients with advanced illness receiving
palliative care. In European member states and Iceland, Norway and
Liechtenstein, RELISTOR (methylnaltrexone bromide) subcutaneous injection is
indicated for the treatment of OIC in patients with advanced illness who are
receiving palliative care, when response to the usual laxative therapy has not
been sufficient. Marketing applications are pending for RELISTOR in Australia
and other countries. In the area of virology, Progenics is developing the HIV
entry inhibitor PRO 140, a humanized monoclonal antibody targeting the entry
co-receptor CCR5, which is in phase 2 clinical testing. A novel HCV entry
inhibitor, PRO 206, has been selected for clinical development and is currently
undergoing IND-enabling studies. In the area of oncology, the Company is
conducting a phase 1 clinical trial of a human monoclonal antibody-drug
conjugate (ADC) for the treatment of prostate cancer—a selectively targeted
cytotoxin-linked antibody directed against prostate-specific membrane antigen
(PSMA). PSMA is a protein found on the surface of prostate cancer cells as well
as in blood vessels supplying other solid tumors. Progenics is also developing
vaccines designed to treat prostate cancer by stimulating an immune response to
PSMA.

















PROGENICS
      PHARMACEUTICALS, INC.
              CONDENSED
      CONSOLIDATED STATEMENTS OF OPERATIONS
              (unaudited)
              (in
      thousands, except net loss per share)For
      the Three Months Ended
              September
      30,
            
            
            For
      the Nine Months Ended
              September
      30,2008
            
            
            2007
            
            
            2008
            
            
            2007Revenues:Research
      and development from collaborator
            
            $
            16,015
            
            
            $
            14,540
            
            
            $
            54,896
            
            
            $
            52,987Royalty
      income
            
            
            44
            
            
            
            -
            
            
            
            86
            
            
            
            -Research
      grants and contract
            
            
            1,377
            
            
            
            2,471
            
            
            
            5,689
            
            
            
            7,077Other
      revenues
            
            
            61
            
            
            
            7
            
            
            
            172
            
            
            
            48Total
      revenues
            
            
            17,497
            
            
            
            17,018
            
            
            
            60,843
            
            
            
            60,112Expenses:Research
      and development
            
            
            21,478
            
            
            
            24,263
            
            
            
            68,191
            
            
            
            69,166License
      fees – research and development
            
            
            305
            
            
            
            (16
            )
            
            
            1,788
            
            
            
            833General
      and administrative
            
            
            8,265
            
            
            
            9,275
            
            
            
            22,530
            
            
            
            21,746Royalty
      expense
            
            
            5
            
            
            
            -
            
            
            
            9
            
            
            
            -Depreciation
      and amortization
            
            
            1,166
            
            
            
            845
            
            
            
            3,427
            
            
            
            2,144Total
      expenses
            
            
            31,219
            
            
            
            34,367
            
            
            
            95,945
            
            
            
            93,889Operating
      loss
            
            
            (13,722
            )
            
            
            (17,349
            )
            
            
            (35,102
            )
            
            
            (33,777
            )Interest
      income
            
            
            1,502
            
            
            
            1,749
            
            
            
            5,028
            
            
            
            5,361Net
      loss
            
            $
            (12,220
            )
            
            $
            (15,600
            )
            
            $
            (30,074
            )
            
            $
            (28,416
            )Net
      loss per share; basic and diluted
            
            $
            (0.41
            )
            
            $
            (0.58
            )
            
            $
            (1.02
            )
            
            $
            (1.07
            )Weighted
      average shares outstanding; basic and diluted
            
            
            29,820
            
            
            
            26,976
            
            
            
            29,553
            
            
            
            26,639





CONDENSED
      CONSOLIDATED BALANCE SHEETS
              (unaudited)
              (in
      thousands)September
      30, 2008
            
            
            December
      31, 2007Cash,
      cash equivalents and marketable securities
            
            $
            134,594
            
            
            $
            170,370Accounts
      receivable
            
            
            6,832
            
            
            
            1,995Fixed
      assets, net
            
            
            12,104
            
            
            
            13,511Other
      assets
            
            
            3,315
            
            
            
            3,663Total
      assets
            
            $
            156,845
            
            
            $
            189,539Liabilities
            
            $
            28,773
            
            
            $
            42,040Stockholders’
      equity
            
            
            128,072
            
            
            
            147,499Total
      liabilities and stockholders’ equity
            
            $
            156,845
            
            
            $
            189,539











DISCLOSURE
NOTICE:





This
document contains statements that do not relate strictly to historical fact, any
of which may be forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. When we use the words “anticipates,”
“plans,” “expects” and similar expressions, we are identifying forward-looking
statements. Forward-looking statements involve known and unknown risks and
uncertainties which may cause our actual results, performance or achievements to
be materially different from those expressed or implied by forward-looking
statements. While it is impossible to identify or predict all such matters, this
may result from, among other things, the inherent uncertainty of the timing and
success of, and expense associated with, research, development, regulatory
approval and commercialization of our products and product candidates, including
the risks that clinical trials will not commence or proceed as planned; products
appearing promising in early trials will not demonstrate efficacy or safety in
larger-scale trials; clinical trial data on our products and product candidates
will be unfavorable; our products will not receive marketing approval from
regulators or, if approved, do not gain sufficient market acceptance to justify
development and commercialization costs; we, our collaborators or others might
identify side effects after the product is on the market; or efficacy or safety
concerns regarding marketed products, whether or not originating from subsequent
testing or other activities by us, governmental regulators, other entities or
organizations or otherwise, and whether or not scientifically justified, may
lead to product recalls, withdrawals of marketing approval, reformulation of the
product, additional pre-clinical testing or clinical trials, changes in labeling
of the product, the need for additional marketing applications, declining sales
or other adverse events.





We
are also subject to risks and uncertainties associated with the actions of our
corporate, academic and other collaborators and government regulatory agencies;
potential product liability; intellectual property, litigation, environmental
and other risks; the risk that licenses to intellectual property may be
terminated for our failure to satisfy performance milestones; the risk of
difficulties in, and regulatory compliance relating to, manufacturing products;
and the uncertainty of our future profitability.





Risks
and uncertainties also include general economic conditions, including interest
and currency exchange rate fluctuations and the availability of capital; changes
in generally accepted accounting principles; the impact of legislation and
regulatory compliance; the highly regulated nature of our business, including
government cost-containment initiatives and restrictions on third-party payments
for our products; trade buying patterns; the competitive climate of our
industry; and other factors set forth in our Annual Report on Form 10-K and
other reports filed with the U.S. Securities and Exchange Commission. In
particular, we cannot assure you that our lead product, RELISTOR®, will be
commercially successful or be approved in the future in other formulations,
indications or jurisdictions, or that any of our other programs will result in a
commercial product.





We
do not have a policy of updating or revising forward-looking statements and
assume no obligation to update any statements as a result of new information or
future events or developments. Thus, it should not be assumed that our silence
over time means that actual events are bearing out as expressed or implied in
forward-looking statements.




Editors
Note:




For more
information about Progenics Pharmaceuticals, Inc., please visit www.progenics.com.