----

----

**UNITED      STATES **

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      DC 20549**

**SCHEDULE      14A**

**o      Confidential, for Use      of the Commission Only (as permitted by Rule 14a-6(e)(2))**

**PROGENICS      PHARMACEUTICALS, INC.**

| Payment                of Filing Fee (Check the appropriate box): |
|-------------------------------------------------------------------|
|  x                                                      |  No                fee required. |
|  o                                                           |  Fee                computed on table below per Exchange Act Rules 14a-6(i)(2) and                0-11. |
|                                                              |   |   |
|                                                              | (1) | Title                of each class of securities to which transaction                applies: |
|                                                              |   |   |
|                                                              | (2) | Aggregate                number of securities to which transaction applies: |
|                                                              |   |   |
|                                                              | (3) | Per                unit price or other underlying value of transaction computed pursuant                to                Exchange Act |
|                                                              |   | Rule                0-11 (set forth the amount on which the filing fee is calculated                and state                how it was determined): |
|                                                              |   |   |
|                                                              | (4) | Proposed                maximum aggregate value of transaction: |
|                                                              |   |   |
|                                                              | (5) | Total                fee paid: |
|                                                              |   |   |
|  o                                                           |  Fee                paid previously with preliminary materials. |
|                                                              |   |   |
|  o                                                           | Check                box if any part of the fee is offset as provided by Exchange Act                Rule                0-11(a)(2) and identify the filing for which the offsetting fee was                paid                previously. Identify the previous filing by registration statement                number,                or the Form or Schedule and the date of its filing. |
|                                                         | (1) | Amount                Previously Paid: |
|                                                              |   |   |
|                                                              | (2) | Form,                Schedule or Registration Statement No.: |
|                                                              |   |   |
|                                                              | (3) | Filing                Party: |
|                                                              |   |   |
|                                                              | (4) | Date                Filed: |

----

----

----

Table            of Contents

**KURT      W. BRINER**

*Co-Chairman      of the Board of Directors*

**PAUL      F. JACOBSON**

*Co-Chairman      of the Board of Directors*

|                                       |
|--------------------------------------------|
| 777                Old Saw Mill River Road | Tarrytown,                New York 10591 | 914-789-2800 | www.progenics.com |

----

Table            of Contents

**Table      of Contents**

General      Information About the Meeting and      Voting

Proposal      I: Election of Directors

Proposal      II: Amendment of the Company’s 1998 Employee Stock      Purchase Plan and 1998 Non-Qualified

Employee      Stock Purchase Plan

Proposal      III: Amendment of the Company’s 2005 Stock Incentive      Plan

Proposal      IV: Ratification of Selection of Independent Registered      Public Accounting Firm

Executive      Officers of the Company

Executive      Compensation

Compensation      Discussion and Analysis

Summary      Compensation Table

Grants      of Plan-Based Awards for Fiscal Year      2006

Narrative      for Summary Compensation Table and Grants of      Plan-Based Awards Table

Outstanding      Equity Awards at Fiscal Year-End

Option      Exercises and Stock Vested in Fiscal Year      2006

Director      Compensation in Fiscal Year 2006

Narrative      for Director Compensation Table

Potential      Payments Upon Termination or Change in      Control

Narrative      for Potential Payments Upon Termination or Change in      Control Table

Security      Ownership of Certain Beneficial Owners and      Management

Corporate      Governance

Compensation      Committee Report

Compensation      Committee Interlocks and Insider      Participation

Report      of the Audit Committee of the Board of      Directors

Certain      Relationships and Related Transactions

Section      16(a) Beneficial Ownership Reporting and      Compliance

Sales      of Stock by Insiders

Form      10-K

Stockholder      Proposals

Householding

Other      Business

Proxy      Card

----

Table            of Contents

**NOTICE      OF ANNUAL MEETING OF STOCKHOLDERS**

**To      be held June 11, 2007**

**Please      note that in order to record your vote, you must either return the accompanying      form of proxy by mail or transmit your voting instructions telephonically or      by      the Internet.**

**R**
**OBERT      **
**A.      McK**
**INNEY**

*Chief      Financial Officer *

*Senior      Vice President, Finance &Operations*

*and      Treasurer*

| 777                Old Saw Mill River Road | Tarrytown,                New York 10591 | 914-789-2800 | www.progenics.com |
|--------------------------------------------|------------------------------------------|--------------|-------------------|

----

Table            of Contents

**PROGENICS      PHARMACEUTICALS, INC.**

**777      Old Saw Mill River Road**

**Tarrytown,      New York 10591**

**April      27, 2007**

|                                                                                                                                                                                                                                           |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **P**  **R**  **O**  **X**  **Y**    **S**  **T**  **A**  **T**  **E**  **M**  **E**  **N**  **T** |

**FOR**
**FOR**
**FOR**
**FOR**
**FOR**

**VOTING**

----

Table            of Contents

**PROPOSAL      I: ELECTION OF DIRECTORS**

| **Information                Concerning Director Nominees**    The                persons                nominated as our directors (all of whom are currently our directors),                their respective ages, the year in which each first became our director                and their principal occupations or employment during the past five                years                are as follows:  |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Name**                                                                                                                                                                                                                                                                                                                                                                                                                              | **Age** | **Year****First                Elected Director** | **Position                with Progenics** |
| Kurt                W. Briner (1)(2)                                                                                                                                                                                                                                                                                                                                                                                                  | 62 | 1998 | Co-Chairman,                Director |
| Paul                F. Jacobson (1)(2)(3)(4)                                                                                                                                                                                                                                                                                                                                                                                          | 53 | 1990 | Co-Chairman,                Director |
| Paul                J. Maddon, M.D., Ph.D. (4)                                                                                                                                                                                                                                                                                                                                                                                        | 47 | 1986 | Chief                Executive Officer, Chief Science Officer and Director |
| Charles                A. Baker (1)(2)(3)(4)                                                                                                                                                                                                                                                                                                                                                                                          | 74 | 1994 | Director |
| Mark                F. Dalton (2)(3)(4)                                                                                                                                                                                                                                                                                                                                                                                               | 56 | 1990 | Director |
| Stephen                P. Goff, Ph.D. (2)                                                                                                                                                                                                                                                                                                                                                                                             | 55 | 1993 | Director |
| David                A. Scheinberg, M.D., Ph.D.                                                                                                                                                                                                                                                                                                                                                                                       | 51 | 1996 | Director |
| Nicole                S. Williams (1)                                                                                                                                                                                                                                                                                                                                                                                                 | 62 | 2007 | Director |

***Kurt      W. Briner***

***Paul      F. Jacobson***

***Paul      J. Maddon, M.D., Ph.D.***

----

Table            of Contents

***Charles      A. Baker***is      a      business advisor to biotechnology companies. He is the former Chairman,      President and Chief Executive Officer of The Liposome Company, Inc., a      biotechnology company located in Princeton, New Jersey, a position he held      from      1989 until the sale of the company in 2000. Mr. Baker is currently a director      of      Regeneron Pharmaceuticals, Inc., a biotechnology company. Mr. Baker has 44      years      of pharmaceutical industry experience and has held senior management positions      at Pfizer, Abbott Laboratories and Squibb Corporation. Mr. Baker received a      B.A.      from Swarthmore College and a J.D. from Columbia University.

***Mark      F. Dalton***

***Stephen      P. Goff, Ph.D.***

***David      A. Scheinberg, M.D., Ph.D.***

***Nicole      S. Williams, M.B.A.***

**VOTING**

**Our      Board of Directors deems the election of the eight nominees listed above as      directors to be in our and our stockholders’ best interests and recommends a      vote “FOR” their election.**

----

Table            of Contents

**PROPOSAL      II:**

**AMENDMENT      OF THE COMPANY’S 1998 EMPLOYEE STOCK PURCHASE PLAN AND**

**1998      NON-QUALIFIED EMPLOYEE STOCK PURCHASE PLAN**

| **Summary                of the Plans** |
|-----------------------------------------|

| **Purpose** |
|-------------|

| **Eligible                Employees** |
|---------------------------------------|

| **Options                under the Plans** |
|--------------------------------------------|

----

Table            of Contents

| **Administration** |
|--------------------|

| **Maximum                Shares to be Awarded** |
|-------------------------------------------------|

| **Exercise                Price of Options** |
|----------------------------------------------|

| **Restrictions                on Transfer** |
|---------------------------------------------|

| **Federal                Income Tax Consequences** |
|----------------------------------------------------|

| **Amendment** |
|---------------|

|                                 |
|--------------------------------------|
| **Grant                Information** |

----

Table            of Contents

|                                                                                                                                                  |   | **Share                Value of Grants**                                                                                                                      |   |                                                                                                                                                               |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                  |   |                                                                                                                                                          |   |                                                                                                                                                               |   |   |
| **Name                and Position**                                                                                                                  |   | **ESPP                (1)**                                                                                                                                   |   | **Non-Qualified                ESPP (1)**                                                                                                                          |   | **Number                of Shares** |
| Paul                J. Maddon, M.D., Ph.D.                                                                                                            |   |                                  $     —       |   | $                15,854                                                                                                                                            |   | 642 |
|                   Chief Executive Officer, Chief Science Officer and Director                (2)                                       |   |                                                                                                                                                          |   |                                                                                                                                                               |   |   |
| Robert                A. McKinney                                                                                                                     |   | $                4,770                                                                                                                                        |   |                   $                8,241                                 |   | 530 |
|                   Chief                Financial Officer, Senior Vice President Finance & Operations and                Treasurer  |   |                                                                                                                                                          |   |                                                                                                                                                               |   |   |
| Mark                R. Baker, J.D.                                                                                                                    |   | $                4,770                                                                                                                                        |   | $                11,057                                                                                                                                            |   | 645 |
|                   Senior Vice President & General Counsel                                                                          |   |                                                                                                                                                          |   |                                                                                                                                                               |   |   |
| Thomas                A. Boyd                                                                                                                         |   | $                4,770                                                                                                                                        |   |                   $                7,486                                 |   | 499 |
|                   Senior Vice President, Product Development                                                                           |   |                                                                                                                                                          |   |                                                                                                                                                               |   |   |
| Alton                B. Kremer                                                                                                                        |   | $                4,770                                                                                                                                        |   | $                10,131                                                                                                                                            |   | 606 |
|                   Vice President, Clinical Research                                                                                    |   |                                                                                                                                                          |   |                                                                                                                                                               |   |   |
|  All                current executive officers as a group                                                                                        |   |   $                23,850                                                                                                                           |   | $                62,582                                                                                                                                            |   | 3,515 |
|  All                current directors who are not executive officers as a group                (3)                                               |   |                                  $      — |   |                   $                     — |   | — |
|  All                employees, including all current officers who are not executive officers,                as a group                          |   |                   $3,055,623                                        |   | $616,864                                                                                                                                                           |   | 149,447 |
|                                                                                                                                                  |

|       |
|------------|
| **Voting** |

**Our      Board of Directors deems the adoption of the amendment of our 1998 Employee      Stock Purchase Plan and of the 1998 Non-Qualified Employee Stock Purchase Plan      to be in our and our stockholders’ best interest and recommends that holders of      common stock vote FOR Proposal II.**

----

Table            of Contents

**PROPOSAL      III: AMENDMENT OF THE COMPANY’S 2005 STOCK INCENTIVE      PLAN**

| **Description                of the Stock Incentive                Plan** |
|---------------------------------------------------------------------------|

*Purpose.*

*Reservation      of Shares.*

----

Table            of Contents

*Adjustments.*

*Administration.      *
Stock      Incentive Plan, the Compensation Committee has the authority to determine the      persons to whom awards are to be granted, the types of awards to be granted,      the      time at which awards will be granted, the number of shares of common stock,      units or other rights subject to each award, the exercise, base or purchase      price of an award, the time or times at which the award will become vested,      exercisable or payable, the performance criteria, performance goals and other      conditions of an award, and the duration of the award. Subject to the terms      of      the Stock Incentive Plan, the Compensation Committee has the authority to amend      the terms of an award in any manner that is permitted by the Stock Incentive      Plan for the grant of an award, provided that no such action adversely effects      the rights of a participant with respect to an outstanding award without the      participant’s consent. The Compensation Committee has the right, from time to      time, to delegate to one or more of our officers the authority of the      Compensation Committee to grant and determine the terms and conditions of      awards, subject to certain limitations. Any awards under the Stock Incentive      Plan made to non-employee members of the Board must be approved by the      Board.

*Eligibility.*

*Stock      Options. *

----

Table            of Contents

*Stock      Appreciation Rights.*

*Restricted      Stock Awards*

*Stock      Units.*

*Stock      Awards.*

----

Table            of Contents

*Performance      Awards.*

*Section      162(m) Awards.*

*Effect      of Change in Control.*

*Term;      Amendment and Termination.*

----

Table            of Contents

| **Stock                Incentive Plan Benefits** |
|--------------------------------------------------|

| **U.S.                Federal Income Tax                Consequences** |
|------------------------------------------------------------------------|

*Stock      Options.*

*Other      Awards.*

----

Table            of Contents

*Section      162(m). *

|                                                                   |
|------------------------------------------------------------------------|
| **Equity                Compensation Plan                Information** |

| **Cate**                                                                            |   | **(a)****Number                of shares****to                be issued upon****exercise                of****outstanding                options,****warrants                and rights** |   | **(b)****Weighted                average****exercise                price of****outstanding                options,****warrants                and rights** |   | **(c)****Number                of shares****remaining                available****for                future issuance****(excluding                securities****reflected                in 1st column)** |   |
|-------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|  **Category**                                                                  |   |                                                                                                                                                                                      |   |                                                                                                                                                        |   |                                                                                                                                                                                                      |   |
|    Equity                compensation plans approved by stockholders |   |                              4,360,086 (1)                                                                               |   | $17.37                                                                                                                                                      |   |                  904,574                (2)                                                                          |   |
| Equity                compensation plans not approved by stockholders(3)            |   | 366,018                                                                                                                                                                                   |   |                     3.91                                                                                                                |   | —                                                                                                                                                                                                   |   |
|                                                                                |   |                                                                                                                                                                                      |   |                                                                                                                                                        |   |                                                                                                                                                                                                      |   |
|                         Total               |   | 4,726,104                                                                                                                                                                                 |   | $16.33                                                                                                                                                      |   | 904,574                                                                                                                                                                                                   |   |

| (1) | Does                not include options issued under the Employee Stock Purchase Plan                or the                Non-Qualified Employee Stock Purchase                Plan. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Includes                52,803 shares available for issuance under the Employee Stock Purchase                Plan and 166,342 shares available for issuance under the Non-Qualified                Employee Stock Purchase Plan. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Consists                of our 1989 Non-Qualified Stock Option Plan, the 1993 Stock Option                Plan,                as amended, and the 1993 Executive Stock Option Plan. See the Notes                to the                Financial Statements included in our Annual Report on Form 10-K for                the                year ended December 31, 2006. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**VOTING**

**Our      Board of Directors deems the amendment to the 2005 Stock Incentive Plan to      be in      our and our stockholders’ best interests and recommends that holders of common      stock vote FOR Proposal III.**

----

Table            of Contents

**PROPOSAL      IV: RATIFICATION OF SELECTION OF**

**INDEPENDENT      REGISTERED PUBLIC ACCOUNTING FIRM**

**Fees      Billed for Services Rendered by our Independent Registered Public Accounting      Firm**

| **Type                of Fee**        |   | **2006** |    | **2005** |   |
|---------------------------------------|--------|----------|---------|----------|--------|
| Audit                Fees (1)         |   | $        | 656,447 |     | $      | 753,350 |   |
| Audit                Related Fees (2) |   |     | 39,000  |     |   | 15,000 |   |
| Tax                Fees(3)            |   |     | 144,000 |     |   | 50,600 |   |
| All                Other Fees(4)      |   |     | 1,611   |     |   | 1,611 |   |

**Pre-approval      of Audit and Non-Audit Services by the Audit Committee**

----

Table            of Contents

**VOTING**

**Our      Board of Directors deems the ratification of the selection of      PricewaterhouseCoopers LLP as our independent registered public accounting      firm      to be in our and our stockholders’ best interests and recommends that holders of      common stock vote FOR Proposal IV.**

----

Table            of Contents

**EXECUTIVE      OFFICERS OF THE COMPANY**

| **Name**                                    | **Age** | **Position**                                                                                                         |
|---------------------------------------------|---------|----------------------------------------------------------------------------------------------------------------------|
| Paul                J. Maddon, M.D., Ph.D.  | 47      | Chief                Executive Officer, Chief Science Officer and Director                                           |
| Robert                A. McKinney, CPA      | 50      | Chief                Financial Officer, Senior Vice President, Finance & Operations and                Treasurer |
| Mark                R. Baker, J.D.          | 52      | Senior                Vice President & General Counsel and Secretary                                             |
| Thomas                A. Boyd, Ph.D.        | 55      | Senior                Vice President, Product Development                                                            |
| Robert                J. Israel, M.D.       | 50      | Senior                Vice President, Medical Affairs                                                                |
| Lynn                M. Bodarky, M.B.A.      | 41      | Vice                President, Marketing, Methylnaltrexone Brand Team                                                |
| Walter                M. Capone, M.B.A.     | 42      | Vice                President, Commercial Development and Operations                                                 |
| Richard                W. Krawiec, Ph.D.    | 59      | Vice                President, Corporate Affairs                                                                     |
| Alton                B. Kremer, M.D., Ph.D. | 54      | Vice                President, Clinical Research                                                                     |
| William                C. Olson, Ph.D.      | 44      | Vice                President, Research & Development                                                            |
| Benedict                Osorio, M.B.A.      | 50      | Vice                President, Quality                                                                               |
| Nitya                G. Ray, Ph.D.          | 54      | Vice                President, Manufacturing                                                                         |

***Paul      J. Maddon, M.D., Ph.D.***

***Robert      A. McKinney, CPA***

***Mark      R. Baker, J.D.***
** **

***Thomas      A. Boyd, Ph.D.***

----

Table            of Contents

***Robert      J. Israel, M.D.***

***Lynn      M. Bodarky, M.B.A.***

***Walter      M. Capone. M.B.A.***

***Richard      W. Krawiec, Ph.D.***
*Biotechnology      Week *
*Biotechnology      Newswatch*

***Alton      B. Kremer, M.D., Ph.D.***

***William      C. Olson, Ph.D.***

***Benedict      Osorio, M.B.A.***

----

Table            of Contents

***Nitya      G. Ray, Ph.D.***

**Scientific      Advisory Boards and Consultants**

| ***Cancer                Scientific Advisory Board***   |                                                                                                                                                                                                                                                      |
|---------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Alan                N. Houghton, M.D. (Chairman)        | Chairman,                Immunology Program, Sloan-Kettering and Professor, Weill/Cornell                Medical                college (WCMC”)                                                                                                     |
| David                B. Agus, M.D.                      | Research                Director, Prostate Cancer Institute, Cedars-Sinai Medical                Center                                                                                                                                                   |
| Samuel                J. Danishefsky, Ph.D.             | Kettering                Professor and Head, Bioorganic Chemistry, Sloan-Kettering Institute                and                Professor of Chemistry, Columbia University                                                                                |
| Warren                D. W. Heston, Ph.D.               | Director,                Research Program in Prostate Cancer; Staff. Dept. of Cancer Biology,                Lerner Research Institute; Staff, Urological Institute, Cleveland                Clinic                Hospital, Cleveland Clinic Foundation |
| Philip                O. Livingston, M.D.               | Member,                Sloan-Kettering and Professor, WCMC                                                                                                                                                                                                |
| John                Mendelsohn, M.D.                    | President,                The University of Texas M. D. Anderson Cancer Center                                                                                                                                                                            |
| David                A. Scheinberg, M.D., Ph.D. (1)     | Vincent                Astor Chair and Chairman, Molecular Pharmacology and Chemistry Program,                Sloan-Kettering and Professor, WCMC                                                                                                         |
| ***Virology                Scientific Advisory Board*** |                                                                                                                                                                                                                                                      |
| Stephen                P. Goff, Ph.D. (Chairman) (1)    | Professor                of Biochemistry, Columbia University                                                                                                                                                                                             |
| Dennis                R. Burton, Ph.D.                  | Professor,                The Scripps Research Institute                                                                                                                                                                                                  |
| Lawrence                A. Chasin, Ph.D.                | Professor                of Biological Sciences, Columbia University                                                                                                                                                                                      |
| Leonard                Chess, M.D.                      | Professor                of Medicine, Columbia University                                                                                                                                                                                                 |
| Wayne                A. Hendrickson, Ph.D.              | Professor                of Biochemistry, Columbia University                                                                                                                                                                                             |
| Sherie                L. Morrison, Ph.D.                | Professor                of Microbiology, UCLA                                                                                                                                                                                                            |
| Robin                A. Weiss, Ph.D.                    | Professor                and Director of Research, ICR, Royal Cancer Hospital,                London                                                                                                                                                      |
| ***Other                Scientific Consultants***       |                                                                                                                                                                                                                                                      |
| Jonathan                Moss, M.D., Ph.D.               | Professor,                Department of Anesthesia and Critical Care, and Vice Chairman for                Research, University of Chicago Medical Center                                                                                                 |
| Thomas                P. Sakmar, M.D.                   | Professor,                The Rockefeller University                                                                                                                                                                                                      |
| Scott                M. Hammer, M.D.                    | Chief,                Division of Infectious Diseases, Professor of Medicine, Columbia                University                                                                                                                                          |

----

Table            of Contents

**EXECUTIVE      COMPENSATION**

**Compensation      Discussion and Analysis**

**Overview**

**Compensation      Objectives**

| ·   | Attract                and retain those executives critical to the overall success of                Progenics; |
|--------------------|-----------------------------------------------------------------------------------------------------------------|

| ·   | Reward                executives for their contributions to the achievement of Company                strategic                goals which we believe will enhance stockholder                value; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Maintain                and continue to foster a culture of ownership, creativity and innovation                throughout Progenics; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Motivate                our NEO’s to achieve the critical financial, product and development                milestones (both long- and short-term) set by management and the                Board of                Directors. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**General      Compensation Process**

----

Table            of Contents

**.**

** **

----

Table            of Contents

**,      **

**Elements      of Compensation**

** **

| ·   | base                salary; |
|--------------------|-----------------------------|

| ·   | annual                bonus; |
|--------------------|------------------------------|

| ·   | long-term                incentives, and; |
|--------------------|-------------------------------------------|

| ·   | retirement                and severance benefits. |
|--------------------|---------------------------------------------------|

*Base      Salary*

*Annual      Bonus*

** **

----

Table            of Contents

*Long-Term      Incentives*

----

Table            of Contents

*Retirement,      Welfare Benefits *

** **

**Employment      Agreements**

*The      Maddon Employment Agreement *

| §   | upon                termination by us for cause (as defined, see *Potential                Payments Upon Termination of Change in Control,*                below) or voluntary termination or retirement by Dr. Maddon in the                normal course of business, all stock options that are not vested                on the date of termination will be forfeited and Dr. Maddon will                have the                right to exercise the remaining outstanding vested options; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | if                such circumstances of termination occur following a change of control                (“CIC”), all unvested stock options will immediately vest; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | in                the event of Dr. Maddon’s death or disability, we will pay Dr. Maddon, a                pro-rated amount of bonus from the beginning of the year of termination                to                the date of termination, we will continue for two years to provide                Dr.                Maddon health and welfare benefits, all stock options that are not                vested                on the date of termination (except those performance-based options                that                vest within one year of the date of death or disability) will be                forfeited                and Dr. Maddon will have the right to exercise the remaining outstanding                vested options; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | upon                termination by us without cause (as defined, see *Potential                Payments Upon Termination of Change in Control,*                below)) or by Dr. Maddon for good reason (as defined, see *Potential                Payments Upon Termination of Change in Control,*                below), we will pay to Dr. Maddon a lump sum equal to twice the sum                of his                annual salary for the year of termination and average bonus (defined                as                the average of the annual bonuses paid to him in the three years                preceding                the year of termination) and, in addition, a pro-rated amount of                bonus                from the beginning of the year of termination to the date of termination,                we will continue for two years to provide Dr. Maddon health and welfare                benefits and all unvested stock options and restricted stock will                become                fully vested and exercisable; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | upon                termination by us without cause or by Dr. Maddon for good reason                within                two years following a change in control (as defined, see *Potential                Payments Upon Termination of Change in Control,*                below), or upon termination by us without cause within three months                preceding a change in control, we will pay to Dr. Maddon a lump sum                equal                to three times the sum of his salary and average bonus, we will continue                for three years to provide Dr. Maddon health and welfare benefits                and all                unvested stock options and restricted stock will become fully vested                and                exercisable; and |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | in                the event that any payment under the Employment Agreement constitutes                an                excess parachute payment (which triggers an excise tax under Internal                Revenue Code sections 280G and 4999), Dr. Maddon will be entitled                to                additional gross-up payments, as described, see *Potential                Payments Upon Termination of Change in Control,*                below. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table            of Contents

*The      Israel Employment Agreement*

**Tax      and Accounting Considerations**

**Equity      Ownership by Executives**

----

Table            of Contents

**Summary      Compensation Table**

| Name                and Principal Position                                                                                                                        | Year                                   | Salary($) | Bonus($)                 | Stock                Awards1($) | Option                Awards1($) | All                Other Compensation                2($) | Total                ($) |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|-----------|--------------------------|---------------------------------|----------------------------------|-----------------------------------------------------------|--------------------------|
|                                                                                                                                                              |                                   |      |                     |                            |                             |                                                      |                     |
| Paul                J. Maddon, M.D., Ph.D.Chief                Executive Officer                                                                             |                    2006 | 565,000   | 401,577                3 | 785,883                         | 2,835,272                        | 16,306                                                    | 4,604,038                |
| Robert                A. McKinney, CPAChief                Financial Officer, Senior                Vice President, Finance                & Operations  | 2006                                   | 250,000   | 100,000                  | 80,607                          | 318,469                          | 25,423                                                    | 774,499                  |
| Mark                R. Baker, J.D.Senior                Vice President & General                Counsel                                                  | 2006                                   | 300,000   | 200,000                  | 24,949                          | 504,011                          | 20,000                                                    | 1,048,960                |
| Thomas                A. Boyd, Ph.D.Senior                Vice President, Product                Development                                                 | 2006                                   | 250,000   | 125,000                  | 165,817                         | 476,864                          | 25,516                                                    | 1,043,197                |
| Alton                B. Kremer, M.D., Ph.D.Vice                President, Clinical                Research                                                   | 2006                                   | 340,000   | 125,000                  | 112,833                         | 280,894                          | 26,257                                                    | 884,984                  |

**Footnotes**

| 1   | These                columns present the portions of the grant date fair values of restricted                stock and stock options which vested in 2006. The grant date fair                values                of restricted stock were based on the closing price of our common                stock on                the dates of grant. The grant date fair values of stock options were                determined using the Black-Scholes option pricing model with assumptions                disclosed in our Annual Report on Form 10-K for the year ended December                31, 2006. |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2   | All                Other Compensation includes the amount of matching contribution under                our                401(k) Plan and reimbursement of premiums for enhanced life and disability                insurance that we made to or on behalf of our named executive officers. |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3   | On                March 3, 2006, the Compensation Committee of the Board of Directors                approved an award for Dr. Maddon comprised of 18,080 shares of restricted                common stock with a fair value of approximately $524,862, of which                $401,577 was recognized as compensation expense in our financial                statements during 2006 and the remainder will be recognized as                compensation expense in 2007 as the restrictions lapse. See Grants                of                Plan-Based Awards for Fiscal Year 2006, below. In recognition of                the                reduced liquidity of the restricted stock as compared to cash and                the                market risk that our CEO assumed during the restriction period, the                Committee increased the number of shares granted to him by 50% for                those                shares that were not vested on the grant date as compared to the                $350,000                amount that he would have received were he paid in                cash. |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table            of Contents

**Grants      of Plan-Based Awards For Fiscal Year      2006**

| Name                                                    | Grant                      Date     | Estimated                      Future Payouts Under                      Equity Incentive                      Plan                      Awards | All                      Other Stock Awards: Number of Shares of Stock or Units(#)        | All                      Other Option Awards: Number of Securities Underlying Options(#) | Exercise                      or Base Price of Option Awards ($/Share) | Grant                      Date Fair Value of Stock and Option Awards ($) |
|---------------------------------------------------------|-------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------------------------------------------------------|--------------------------------------------------------------------------------|
| Target                      (#)                         |
| Paul                      J. Maddon, M.D., Ph.D.        | 3/3/067/3/067/3/06                  | --145,000                      3                                                                                                                     |      18,080                      148,336                      2- |                                                                                     | --24.26                                                                | 524,8621,172,6312,729,002                                                      |
| Robert                      A. McKinney, CPA            | 7/3/067/3/06                        |                                                                                                                                                 | 8,000                      2-                                                             | -25,000                      4                                                           | -24.26                                                                 | 194,080470,518                                                                 |
| Mark                      R. Baker, J.D.                | 2/21/067/3/067/3/06                 |                                                                                                                                                 | -8,000                      2-                                                            | 60,000                      5-25,000                      4                              | 27.71-24.26                                                            | 1,332,588194,080470,518                                                        |
| Thomas                      A. Boyd, Ph.D.              | 2/21/067/3/067/3/0610/20/0610/20/06 | ---5,000                      65,000                      7                                                                                          | -6,500                      2-                                                            | 25,000                      5-17,500                      4                              | 27.71-24.26                                                       | 555,245157,690329,362127,800127,800                                            |
| Alton                      B. Kremer, M.D., Ph.D.  | 2/21/067/3/067/3/0610/20/0610/20/06 | ---5,000                      65,000                      7                                                                                          | -6,500                      2                                                        | 25,000                      5 -17,500                      4                        | 27.71-24.26                                                       | 555,245157,690329,362127,800127,800                                            |

**Footnotes**

----

Table            of Contents

**Narrative      for Summary Compensation Table and Grants of      Plan-Based Awards Table**

***.***

----

Table            of Contents

----

Table            of Contents

**Outstanding      Equity Awards at Fiscal      Year-End**

|                                                | Option                  Awards                                                   | Stock                  Awards                                                                                                                                            |
|-----------------------------------------------------|----------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Name                                                | NumberofSecurities                  Underlying Unexercised Options(#)Exercisable | Number                  of Securities Underlying Unexercised Options(#)Unexercisable                                                                                     | Equity                  Incentive Plan Awards: Number of Securities Underlying Unexercised                  Unearned Options(#) | Option                  Exercise Price($) | Option Expiration                  Date | Number                  of Shares or Units of Stock That Have Not Vested(#) | Market                  Value of Shares or Units of Stock That Have Not Vested 13($) |
|                                                |                                                                             |                                                                                                                                                                     |   |   |   |   |   |
| Paul                  J. Maddon, M.D., Ph.D.        | 29,00075,00018,75026,25084,375112,500-75,000225,000275,001231,000                | -                  -                  18,750                  1 -                  28,125                  2 -                        | 116,000                  3--                  11,250                  4-                  -                  33,000                  5     | 24.2621.3916.8516.8515.0615.0612.2912.2912.0012.005.33 | 7/3/20167/1/20157/1/20147/1/20147/1/20137/1/20137/1/20127/1/201212/22/200812/22/200812/16/2007 | 84,106 | 2,164,888 |
| Robert                  A. McKinney, CPA            | -3,1256,25018,75025,00025,00025,00025,00016,000                                  | 25,000                  69,375                  718,750                  86,250                  2                                              |   | 24.2621.3922.6815.0612.2917.1913.6313.754.00 | 7/3/20167/1/20153/1/20157/1/20137/1/20121/7/20106/28/20104/16/20094/1/2007 | 15,125 | 389,318 |
| Mark                  R. Baker, J.D.                | --10,000                                                                         | 25,000                  660,000                  940,000                  11                                                                                             |   | 24.2627.7120.02 | 7/3/20162/21/20166/20/2015 | 8,000 | 205,920 |
| Thomas                  A. Boyd, Ph.D.              | --6,25018,75020,00040,00012,0004,000                                             | 17,500                  625,000                  918,750                  76,250                  2-                  10,000                  12               |   | 24.2627.7121.3915.0612.2918.4717.1913.63 | 7/3/20162/21/20167/1/20157/1/20137/1/20121/1/20121/18/20106/28/2010 | 25,875 | 666,023 |
| Alton                  B. Kremer, M.D., Ph.D.  | --2.5008,000                                                                     | 17,500                  625,000                  97,500                  724,000                  10                                                                     |   | 24.2627.7121.3913.57 | 7/3/20162/21/20167/1/20159/28/2014 | 19,125 | 492,278 |

**Footnotes**

----

Table            of Contents

**Option      Exercises and Stock Vested in Fiscal Year      2006**

|                                        |   | Option                Awards                                        |    | Stock                Awards                                |   |
|---------------------------------------------|--------|---------------------------------------------------------------------|---------|------------------------------------------------------------|--------|
| Name                                        |   | Number                ofSharesAcquiredon                Exercise(#) |    | Value                Realizedon                Exercise($) |   | Number                ofSharesAcquiredon                Vesting(#) |   | Value                Realizedon                Vesting($) |   |
| Paul                J. Maddon, M.D., Ph.D.  |   |                                                                | 243,774 |                                                       |   | 4,661,806 |   |   | 26,060 |   |   | 618,748 |   |
| Robert                A. McKinney, CPA      |   |                                                                | 24,000  |                                                       |   | 563,156 |   |   | 3,000 |   |   | 65,100 |   |
| Mark                R. Baker, J.D.          |   |                                                                | 0       |                                                       |   | 0 |   |   | 0 |   |   | 0 |   |
| Thomas                A. Boyd, Ph.D.        |   |                                                                | 14,000  |                                                       |   | 188,519 |   |   | 3,750 |   |   | 81,375 |   |
| Alton                B. Kremer, M.D., Ph.D. |   |                                                                | 8,000   |                                                       |   | 112,504 |   |   | 875 |   |   | 18,988 |   |

----

Table            of Contents

**Director      Compensation in Fiscal Year      2006**

| Name                1                           |   | Fees                Earned orPaid                inCash($) |   | OptionAwards                2($) |   | All                OtherCompensation                3($) |   | Total($) |    |
|-------------------------------------------------|--------|------------------------------------------------------------|--------|----------------------------------|--------|----------------------------------------------------------|--------|----------|---------|
| Kurt                W. Briner                   |   |                                                       | 52,500 |                             |   | 485,653                                                  |   |     |    |   |   | 538,153 |   |
| Paul                F. Jacobson                 |   |                                                       | 59,000 |                             |   | 485,653                                                  |   |     |    |   |   | 544,563 |   |
| Charles                A. Baker                 |   |                                                       | 32,000 |                             |   | 188,207                                                  |   |     |    |   |   | 220,207 |   |
| Mark                F. Dalton                   |   |                                                       | 30,500 |                             |   | 188,207                                                  |   |     |    |   |   | 218,707 |   |
| Stephen                P. Goff, Ph.D.           |   |                                                       | 25,500 |                             |   | 188,207                                                  |   |     | 30,000  |   |   | 243,707 |   |
| David                A. Scheinberg, M.D., Ph.D. |   |                                                       | 25,000 |                             |   | 188,207                                                  |   |     | 132,038 |   |   | 345,245 |   |

**Footnotes      **

----

Table            of Contents

**Narrative      to Director Compensation Table**

|   | • | $2,000                for each meeting of the Board of Directors attended in person, $1,000                for                each in-person meeting attended by telephone and $500 for participation                in                each telephonic meeting; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                            |   |
|   |    | •                                                                                                                                                                                                                                                         | for                committee meetings held other than in conjunction with a meeting                of the                entire Board, $1,000 for attendance in person and $500 for telephonic                participation; |
|   |    |                                                                                                                                                                                                                                                            |   |
|   |    | •                                                                                                                                                                                                                                                         | for                committee meetings held on the day after a meeting of the entire                Board,                $500 for participation; |
|   |    |                                                                                                                                                                                                                                                            |   |
|   |    | •                                                                                                                                                                                                                                                         | for                committee meetings held on the same day, no additional compensation                is                paid; |
|   |    |                                                                                                                                                                                                                                                            |
|   | • | an                annual retainer fee of $15,000, except for Messrs. Briner and Jacobson                who                are entitled to an annual retainer fee of $40,000 as described above;                and                                             |
|   |    |                                                                                                                                                                                                                                                            |
|   | • | an                option to purchase 10,000 fully-vested shares of our common stock                granted                annually on each July 1 with an exercise price equal to the fair                market                value as of the date of grant.  |

----

Table            of Contents

**Potential      Payments Upon Termination or Change in      Control**

**Chief      Executive Officer**

*Paul      J. Maddon, M.D., Ph.D.*

|                                                                                                                                                                                                                                                       |   | Cash                Severance |   | Equity |   | Health                and Welfare Benefits Continuation($)6 |   | Gross                up of I.R.C. Golden Parachute excise tax resulting from Change in                Control                ($) |   | Total                ($) |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|--------|--------|--------|-------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                                                                                                                                                                                       |   | Base                Salary    |   | Bonus  |   | Value                of Vested Equity($)                    |   | Value                of Accelerated Unvested Equity ($)                5                                                         |   |
| Circumstances                of Termination 1                                                                                                                                                                                                         |   | Multiple                      |   | ($)    |   | Multiple                                                    |   | ($)                                                                                                                              |   |                     |   |   |   |   |   |   |   |   |   |
| Termination                by us for cause or voluntary termination, normal retirement by named                executive officer in the normal course of business                                                                           |   |                          | N/A    |   |   | N/A                                                         |   |                                                                                                                             | N/A    |                     |   | N/A |   |   | 15,465,319 |   |   | N/A |   |   | N/A |   |   | N/A |   |   | 15,465,319 |   |
| Death                or disability of named executive officer in the normal course of                business 2                                                                                                                             |   |                          | N/A    |   |   | N/A                                                         |   |                                                                                                                             | N/A    |                     |   | 350,000 |   |   | 15,465,319 |   |   | N/A |   |   | 25,182 |   |   | N/A |   |   | 15,840,501 |   |
| Termination                by us for cause or voluntary termination by the named executive officer                or                termination as a result of normal retirement, death, or disability                following a change in control   |   |                          | N/A    |   |   | N/A                                                         |   |                                                                                                                             | N/A    |                     |   | N/A |   |   | 15,465,319 |   |   | 3,347,493 |   |   | N/A |   |   | N/A |   |   | 18,812,812 |   |
| Termination                by us without cause or by the named executive officer with good reason                3                                                                                                                                    |   |                          | 2.0    |   |   | 1,130,000                                                   |   |                                                                                                                             | 2.0    |                     |   | 800,000 |   |   | 15,465,319 |   |   | 3,347,493 |   |   | 25,182 |   |   | N/A |   |   | 20,767,994 |   |
| Termination                by us without cause or by the named executive officer with good reason                following a change in control 4                                                                                                           |   |                          | 3.0    |   |   | 1,695,000                                                   |   |                                                                                                                             | 3.0    |                     |   | 1,025,000 |   |   | 15,465,319 |   |   | 3,347,493 |   |   | 37,773 |   |   | 1,786,374 |   |   | 23,356,959 |   |

**          Footnotes**

----

Table            of Contents

* *
*Outstanding      Equity Awards at Fiscal Year-End *

**Narrative**

| §   | upon                termination by us for cause (as defined below) or voluntary termination                or                retirement by Dr. Maddon in the normal course of business, all                stock options that are not vested on the date of termination will                be                forfeited and Dr. Maddon will have the right to exercise the remaining                outstanding vested options; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | if                such circumstances of termination occur following a change of control,                all                unvested stock options will immediately vest; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | in                the event of Dr. Maddon’s death or disability, we will pay Dr. Maddon, a                pro-rated amount of bonus from the beginning of the year of termination                to                the date of termination, we will continue for two years to provide                Dr.                Maddon health and welfare benefits, all stock options that are not                vested                on the date of termination (except those performance-based options                that                vest within one year of the date of death or disability) will be                forfeited                and Dr. Maddon will have the right to exercise the remaining outstanding                vested options; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | upon                termination by us without cause (as defined below) or by Dr. Maddon                for                good reason (as defined below), we will pay to Dr. Maddon a lump                sum equal                to twice the sum of his annual salary for the year of termination                and                average bonus (defined as the average of the annual bonuses paid                to him in                the three years preceding the year of termination) and, in addition,                a                pro-rated amount of bonus from the beginning of the year of termination                to                the date of termination, we will continue for two years to provide                Dr.                Maddon health and welfare benefits and all unvested stock options                and                restricted stock will become fully vested and exercisable; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | upon                termination by us without cause or by Dr. Maddon for good reason                within                two years following a change in control (as defined below), or upon                termination by us without cause within three months preceding a change                in                control, we will pay to Dr. Maddon a lump sum equal to three times                the sum                of his salary and average bonus, we will continue for three years                to                provide Dr. Maddon health and welfare benefits and all unvested stock                options and restricted stock will become fully vested and exercisable;                and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **§  ** | in                the event that any payment under the Employment Agreement constitutes                an                excess parachute payment (which triggers an excise tax under Internal                Revenue Code sections 280G and 4999), Dr. Maddon will be entitled                to                additional gross-up payments, as described                below. |
|------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table            of Contents

**Non-Compete,      Non-Disclosure of Confidential Information and Non-Solicitation      Agreements**

**Involuntary      Without Cause Termination and Termination for Good Reason**

**Payments      upon a Termination in Connection with a Change in Control **

**Tax      Gross-up**

**Other      Named Executive Officers**

**Other      Executive Officers**

*Robert      J. Israel, M.D. Senior Vice President, Medical Affairs*

----

Table            of Contents

**SECURITY      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND      MANAGEMENT**

|                                                                      | **Shares                Beneficially****Owned                (2)** |
|---------------------------------------------------------------------------|--------------------------------------------------------------------|
| **Name                and Address of Beneficial Owner (1)**               | **Number                (22)**                                     | **Percent** |
| Entities                affiliated with Tudor Investment Corporation (3)  | 2,342,388                                                          | 8.9% |
| 1275                King Street                                           |                                                               |   |
| Greenwich,                CT 06831                                        |                                                               |   |
|  Paul                Tudor Jones II (4)                              | 2,888,513                                                          | 10.9% |
| 1275                King Street                                           |                                                               |   |
| Greenwich,                CT 06831                                        |                                                               |   |
|  Delaware                Management Holdings (5)                     | 1,747,547                                                          | 6.6% |
| One                Commerce Square, 2005 Market Street                    |                                                               |   |
| Philadelphia,                PA 19103                                     |                                                               |   |
|  Barclays                Global Investors, NA. (6)                   | 1,451,307                                                          | 5.5% |
| 45                Fremont Street                                          |                                                               |   |
| San                Francisco, CA 94105                                    |                                                               |   |
|  Federated                Investors, Inc. (7)                        | 1,705,800                                                          | 6.5% |
| Federated                Investors Tower                                  |                                                               |   |
| Pittsburgh,                PA 15222                                       |                                                               |   |
|  Sectoral                Asset Management Inc. (8)                   | 2,362,275                                                          | 8.9% |
| 2120-1000                Sherbrooke Street                                |                                                               |   |
| West                Montreal, PQ H3A 3G4 Canada                           |                                                               |   |
|   Paul                J. Maddon, M.D.,  Ph.D. (9)          | 1,760,993                                                          | 6.4% |
|  Charles                A. Baker (10)                                | 93,981                                                             | * |
|  Kurt                W. Briner (11)                                  | 158,000                                                            | * |
|  Mark                F. Dalton (12)                                  | 2,504,888                                                          | 9.4% |
|  Stephen                P. Goff, Ph.D. (13)                          | 141,000                                                            | * |
|  Paul                F. Jacobson (14)                                | 293,100                                                            | 1.1% |
|  David                A. Scheinberg, M.D., Ph.D. (15)                | 150,931                                                            | * |
| Nicole                S. Williams (16)                                    | 0                                                                  | * |
| Robert                A. McKinney, CPA (17)                               | 157,069                                                            | * |
|  Thomas                A. Boyd, Ph.D. (18)                           | 146,926                                                            | * |
|  Alton                B. Kremer, M.D., Ph.D. (19)                    | 39,938                                                             | * |
|  Mark                R. Baker, J.D. (20)                             | 35,953                                                             | * |
|  All                directors and executive officers as a group (21) | 6,089,219                                                          | 21.0% |

----

Table            of Contents

| *    | Less                than one percent.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)  | Unless                otherwise specified, the address of each beneficial owner is c/o                Progenics                Pharmaceuticals, Inc., 777 Old Saw Mill River Road, Tarrytown, New                York                10591.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (2)  | Except                as indicated and pursuant to applicable community property laws,                each                stockholder possesses sole voting and investment power with respect                to the                shares of common stock listed. The number of shares of common stock                beneficially owned includes the shares issuable pursuant to stock                options                to the extent indicated in the footnotes in this table. Shares issuable                upon exercise of these options are deemed outstanding for computing                the                percentage of beneficial ownership of the person holding the options                but                are not deemed outstanding for computing the percentage of beneficial                ownership of any other person.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (3)  | The                number of shares owned by entities affiliated with Tudor Investment                Corporation (TIC) consists of 1,820,068 shares held of record by                The Tudor                BVI Portfolio Ltd., a company organized under the law of the Cayman                Islands (Tudor BVI), 287,813 shares held of record by TIC, 193,126                shares                held of record by Tudor Arbitrage Partners L.P. (TAP), 25,981 shares                held                of record by Tudor Proprietary Trading, L.L.C. (TPT), and 15,400                shares                held of record by Tudor Global Trading LLC (TGT). In addition, because                TIC                provides investment advisory services to Tudor BVI, it may be deemed                to                beneficially own the shares held by such entity. TIC disclaims beneficial                ownership of such shares. TGT is the general partner of TAP. Tudor                Group                Holdings LLC (TGH) is the sole member of TGT and indirectly holds                all of                the membership interests of TPT. TGH is also the sole limited partner                of                TAP. TGH expressly disclaims beneficial ownership of the shares                beneficially owned by each of such entities. TGT disclaims beneficial                ownership of shares held by TAP. The number set forth does not include                shares owned of record by Mr. Jones and Mr. Dalton. See Notes (4) and                (12). |
| (4)  | Includes                2,342,388 shares beneficially owned by entities affiliated with TIC.                Mr. Jones is the Chairman and indirect principal equity owner of TIC,                TPT and TGT, and the indirect principal equity owner of TAP. Mr.                Jones may                be deemed to be the beneficial owner of shares beneficially owned,                or                deemed beneficially owned, by entities affiliated with TIC. Mr. Jones                disclaims beneficial ownership of such shares. See                Note (3).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (5)  | Based                on a Schedule 13G filed on February 7, 2007, the number of shares                owned by                Delaware Management Holdings and Delaware Management Business Trust                consists of 1,747,547 shares held by Delaware Management Holdings                and                Delaware Management Business Trust, which share voting and dispositive                powers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (6)  | Based                on a Schedule 13G, filed on January 23, 2007, the number of shares                owned                by Barclays Global Investors, NA. and Barclays Global Fund Advisors                is                1,451,307, which share voting and dispositive power.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (7)  | Based                on a Schedule 13G, filed February 13, 2007, Federated Investors,                Inc. (the                “Parent”) is the parent holding company of Federated Equity Management                Company of Pennsylvania and Federated Global Investment Management                Corp.                All of the Parent’s outstanding voting stock is held in the Voting Shares                Irrevocable Trust for which John F. Donahue, Rhodora J. Donahue and                J.                Christopher Donahue act as trustees and they have the collective                voting                control over the Parent.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| (8)  | Sectoral                Asset Management Inc. in its capacity as an investment adviser has                the                sole right to vote or dispose of the 2,362,275 shares set forth in                Schedule 13G filed on February 2, 2007. Jerome G. Pfund and Michael                L.                Sjostrom are the sole shareholders of Sectoral Asset Management                Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (9)  | Includes                560,044 shares outstanding; 1,103,876 shares issuable upon exercise                of                options exercisable within 60 days of March 1, 2007 and 96,073 shares                of                restricted stock. Also includes 1,000 shares held by Dr. Maddon’s spouse,                the beneficial ownership of which Dr. Maddon disclaims. Excludes                90,229                shares held by a trust, of which his spouse is the beneficiary; neither                Dr. Maddon nor his spouse has investment control over such                trust.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (10) | Includes                21,481 shares owned by the Baker Family Limited Partnership and 72,500                shares issuable upon exercise of options held by Mr. Baker and exercisable                within 60 days of March 1, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

----

Table            of Contents

| (11) | Includes                3,000 shares outstanding and 155,000 shares issuable upon exercise                of                options held by Mr. Briner exercisable within 60 days of March 1,                2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (12) | Includes                71,000 shares held of record directly by Mr. Dalton, 75,000 shares                issuable upon exercise of options held by Mr. Dalton exercisable                within 60 days of March 1, 2007 and 16,500 shares held of record                by DF                Partners, a family partnership of which Mr. Dalton is the sole                general partner. The number set forth also includes 2,342,388 shares                beneficially owned by entities affiliated with TIC. Mr. Dalton is                President and an equity owner of TIC and TGH. Mr. Dalton is also                the                President and an indirect equity owner of TGT and TPT. Mr. Dalton                disclaims beneficial ownership of shares beneficially owned, or deemed                beneficially owned, by entities affiliated with TIC and DF Partners,                except to the extent of his pecuniary interest therein. See Note                (3). |
| (13) | Includes                33,500 shares outstanding and 107,500 shares issuable upon exercise                of                options held by Dr. Goff exercisable within 60 days of March 1,                2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (14) | Includes                188,100 shares outstanding and 105,000 shares issuable upon exercise                of                options held by Mr. Jacobson exercisable within 60 days of March 1,                2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| (15) | Includes                32,181 shares outstanding and 118,750 shares issuable upon exercise                of                options held by Dr. Scheinberg exercisable within 60 days of March                1,                2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (16) | Ms.                Williams was appointed as a Director on January 2, 2007 and as of                March 1,                2007 does not own any shares, restricted stock or options exercisable                within 60 days of March 1, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (17) | Includes                7,569 shares outstanding and 134,375 shares issuable upon exercise                of                options held by Mr. McKinney exercisable within 60 days of March                1, 2007.                Also includes 15,125 shares of restricted stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (18) | Includes                7,801 shares outstanding and 113,250 shares issuable upon exercise                of                options held by Dr. Boyd exercisable within 60 days of March 1, 2007.                Also includes 25,875 shares of restricted stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| (19) | Includes                4,063 shares outstanding and 16,750 shares issuable upon exercise                of                options held by Dr. Kremer exercisable within 60 days of March 1,                2007. Also includes 19,125 shares of restricted stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (20) | Includes                2,953 shares outstanding and 25,000 shares issuable upon exercise                of                options held by Mr. Baker exercisable within 60 days of March 1,                2007. Also includes 8,000 shares of restricted stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (21) | Includes                3,334,645 shares outstanding, 224,073 shares of restricted stock                and                2,530,501 shares issuable upon the exercise of stock options exercisable                within 60 days of March 1, 2007 held by Directors and Named Executive                Officers as set forth in the above table and by all other executive                officers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (22) | None                of the shares held by beneficial owners and management are pledged                as                collateral except for 50,000 shares held by Mr. Jacobson in a margin                account.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |

----

Table            of Contents

**CORPORATEGOVERNANCE**

| **Board                and Committee Meetings** |
|-------------------------------------------------|

|   | *Audit                Committee* |
|--------|----------------------------------|

|   | *Compensation                Committee* |
|--------|-----------------------------------------|

|   | *Nominating                and Corporate Governance                Committee* |
|--------|-------------------------------------------------------------------------------|

|   | *Executive                Committee* |
|--------|--------------------------------------|

----

Table            of Contents

| **Affirmative                Determinations Regarding Director Independence and Other Matters** |
|-------------------------------------------------------------------------------------------------|

|   | Mark                F. DaltonPaul                F. JacobsonCharles                A. BakerKurt                W. BrinerStephen                P. Goff, Ph.D. Nicole                S. Williams |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **Stockholder                Communications with the Board; Board Attendance at the Annual Meeting                of                Stockholders** |
|----------------------------------------------------------------------------------------------------------------------------------------------------|

| **Code                of Business Ethics and                Conduct** |
|-----------------------------------------------------------------------|

| **Our                Director Nominations                Process** |
|--------------------------------------------------------------------|

|    | **Minimum                Criteria for Board Members** |
|--------------|-------------------------------------------------------|

|   | • | Each                candidate shall be prepared to represent the best interests of all                of our                stockholders and not just one particular constituency.                                                                                                                             |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |    |                                                                                                                                                                                                                                                                                                           |
|   | • | Each                candidate shall be an individual who has demonstrated integrity and                ethics                in his or her personal and professional life and has established                a record                of professional accomplishment in his or her chosen                field. |

----

Table            of Contents

|   |                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------|---------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | •                                           | No                candidate, or family member (as defined in the Nasdaq Marketplace                rules)                or affiliate or associate (each as defined in Rule 405 under the                Securities Act of 1933, as amended) of a candidate, shall have any                material personal, financial or professional interest in any of our                present or potential competitors.                                                                                                                                                                                                          |
|   |                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   | •                                           | Each                candidate shall be prepared to participate fully in Board activities,                including, if eligible, active membership on at least one Board committee                and attendance at, and active participation in, meetings of the Board                and                any committee of which he or she is a member, and not have other                personal                or professional commitments that would, in the Nominating and Corporate                Governance Committee’s sole judgment, interfere with or limit his or her                ability to do so. |
|   |                                              |
|   | **Desirable                Qualities and Skills** |

|   | •                                                                       | Each                candidate should contribute to the Board’s overall diversity — diversity                being broadly construed to mean a variety of opinions, perspectives,                personal and professional experiences and backgrounds, as well as                other                differentiating characteristics.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------|-------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | •                                                                       | Each                candidate should contribute positively to the collaborative culture                among                Board members.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | •                                                                       | Each                candidate should possess professional and personal experiences and                expertise relevant to our goal of being a leading biopharmaceutical                company. At this stage of our development, relevant experiences might                include, among other things, large biotechnology or pharmaceutical                company                CEO or senior management experience, senior-level management experience                in                medical research or clinical development activities in the fields                of                oncology, virology, immunology or molecular biology within a public                company or large university setting, and relevant senior-level expertise                in one or more of the following areas: finance, accounting, sales                and                marketing, organizational development and public                relations. |
|   |                                                                          |
|   | **Internal                Process for Identifying                Candidates** |

 Board,      the Nominating and Corporate Governance Committee and each candidate during      the      screening and evaluation process and thereafter to be available for consultation      as needed by the Nominating and Corporate Governance Committee. In 2005, the      Nominating and Corporate Governance Committee retained a search firm to identify      possible candidates. The Nominating and Corporate Governance Committee approved      Nicole S. Williams’ membership to the Board of Directors based on the      recommendation of the search firm.

|   | **Nomination                of Directors by                Stockholders** |
|--------|---------------------------------------------------------------------------|

----

Table            of Contents

|   | **Evaluation                of Candidates** |
|--------|---------------------------------------------|

|   | **Timing                of the Identification and Evaluation                Process** |
|--------|---------------------------------------------------------------------------------------|

|   | **Future                Revisions to the Nominations                Policy** |
|--------|------------------------------------------------------------------------------|

----

Table            of Contents

**Compensation      Committee Report**

|   | By                the Compensation Committee of the Board of Directors |
|--------|------------------------------------------------------------------------|
|   | Mark                F. Dalton, Chairman                                |
|   | Charles                A. Baker                                        |
|   | Paul                F. Jacobson                                        |

**CompensationCommittee      Interlocks and Insider      Participation**

**Report      of the Audit Committee of the Board of Directors**

*Communication      with Audit Committees*

*Independence      Discussions with Audit Committees*

----

Table            of Contents

----

Table            of Contents

**CERTAIN      RELATIONSHIPS AND RELATED      TRANSACTIONS**

**SECTION      16(A) BENEFICIAL OWNERSHIP REPORTING AND COMPLIANCE**

|                                                         |
|--------------------------------------------------------------|
| **SALES                OF STOCK BY                INSIDERS** |

----

Table            of Contents

**FORM      10-K**

**STOCKHOLDER      PROPOSALS**

**HOUSEHOLDING**

**OTHER      BUSINESS**

**         ROBERT      A.      McKINNEY**

----

Table            of Contents

----

Table            of Contents

***777        OLD SAW MILL RIVER ROAD***

***TARRYTOWN,        NY 10591***

| **VOTE                  BY INTERNET -****www.proxyvote.com**Use                  the Internet to transmit your voting instructions and for electronic                  delivery of information up until 8:00 A.M. Eastern Time on June                  11, 2007.                  Have your proxy card in hand when you access the web site and follow                  the                  instructions to obtain your records and to create an electronic                  voting                  instruction form.**VOTE                  BY PHONE-1-800-690-6903**Use                  any touch-tone telephone to transmit your voting instructions up                  until                  8:00 A.M. Eastern Time on June 11, 2007. Have your proxy card in                  hand when                  you call and then follow the instructions.**VOTE                  BY MAIL**Mark,                  sign and date your proxy card and return it in the postage-paid                  envelope                  we’ve provided or return to Progenics Pharmaceuticals, Inc., c/o ADP,                  51                  Mercedes Way, Edgewood, NY 11717. **VOTE                  IN PERSON**Attend                  the Annual Shareholders Meeting at 10:00 A.M. Eastern Time on Monday,                  June                  11, 2007. Landmark at Eastview Rockland Room 777 Old Saw Mill River                  Road                  Tarrytown, NY 10591**ELECTRONIC                  DELIVERY OF FUTURE SHAREHOLDER COMMUNICATIONS**If                  you would like to reduce the costs incurred by Progenics Pharmaceuticals,                  Inc. in mailing proxy materials, you can consent to receiving all                  future                  proxy statements, proxy cards and annual reports electronically                  via e-mail                  or the Internet. To sign up for electronic delivery, please follow                  the                  instructions above to vote using the Internet and, when prompted,                  indicate                  that you agree to receive or access shareholder communications                  electronically in future                  years. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| TO                  VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:               | PROGN1                                                                                                                                                                                                | KEEP                  THIS PORTION FOR YOUR RECORDS |
|--------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|
|                                                                                       |                                           DETACH AND RETURN THIS PORTION ONLY |
| **THIS                  PROXY CARD IS VALID ONLY WHEN SIGNED AND                  DATED.** |

|                                                 |                                                  |   |           |                |                                   |
|------------------------------------------------------|-------------------------------------------------------|--------|----------------|---------------------|----------------------------------------|
| **PROGENICS                  PHARMACEUTICALS, INC.** |                                                  |   |           |                |                                   |
|                                                 |                                                  |   |           |                |
| **Vote                  On Directors**               |                                                  |   |           |                |
|                                                 |                                                  |   |           |                |                                   |   |   |
| 1.                  ELECTION OF DIRECTORS:           |
|                                                 | **NOMINEES:**                                         |   |           |                |                                   |   |   |
|                                                 | 01)                  Kurt W. Briner                   |   | **For****All** | **Withhold****All** | **For                  All****Except** |   | To                  withhold authority to vote for any individual nominee(s), mark“For All                  Except” and write the nominee’s number on the line                  below. |
|                                                 | 02)                  Paul F. Jacobson                 |   |           |
|                                                 | 03)                  Charles A. Baker                 |   |           |                |                                   |   |
|                                                 | 04)                  Mark F. Dalton                   |   |           |                |                                   |   |   |
|                                                 | 05)                  Stephen P. Goff, Ph.D.           | o      | o              | o                   |                                   |   |
|                                                 | 06)                  Paul J. Maddon, M.D., Ph.D.      |   |           |                |                                   |   |
|                                                 | 07)                  David A. Scheinberg, M.D., Ph.D. |   |           |                |                                   |   |

|             08)                  Nicole S.                  Williams |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|----------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |
| **Vote                  On Proposals**                                                                                           | **For**                                                                                                                                                                                                                                                                                                                                                                                                                                                                | **Against** | **Abstain** |
|                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |
| 2.                                                                                                                               | Approval                  of amendments to the 1998 Employee Stock Purchase Plan and the                  1998                  Non-Qualified Employee Stock Purchase Plan to increase the number                  of                  shares of common stock reserved for issuance thereunder to 1,600,000                  and                  500,000, respectively and to make certain other changes to the                  terms of                  the Plans. | o | o | o |
|                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |
| 3.                                                                                                                               | Approval                  of an amendment to the 2005 Stock Incentive Plan to increase the                  number of                  shares of common stock reserved for issuance thereunder to 3,950,000                  and                  to make certain other changes to the terms of the Plan.                                                                                                                                                              | o | o | o |
|                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |
| 4.                                                                                                                               | Ratification                  of the selection of PricewaterhouseCoopers LLP to serve as the                  Company’s                  independent registered public accounting firm for the fiscal year                  ending                  December 31, 2007.                                                                                                                                                                                           | o | o | o |
|                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |
| 5.                                                                                                                               | Authority                  to vote in their discretion on such other business as may properly                  come                  before the meeting.                                                                                                                                                                                                                                                                                                               | o | o | o |
|                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |

| **NOTE:** | Please                  sign exactly as your name or names appear on this Proxy. When shares                  are                  held jointly, each holder should sign. When signing as executor,                  administrator, attorney, trustee or guardian, please give full                  title as                  such. If the signer is a corporation, please sign full corporate                  name by                  duly authorized officer, giving full title as such. If signer is                  a                  partnership, please sign in partnership name by authorized person. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                         |    |   |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------|---------|--------|--------|--------|--------|--------|
| For                comments, please check this box and write them on the back where                indicated | o       |   |   |   |   |
|                                                                                                         |    |   |   |   |   |   |
| Please                indicate if you plan to attend this meeting                                            | o       | o      |   |   |   |   |
|                                                                                                         | **Yes** | **No** |   |   |   |   |

|                                              |   |      |   |                                    |   |      |
|---------------------------------------------------|--------|-----------|--------|-----------------------------------------|--------|-----------|
| _________________________________                 |   | _________ |   | _____________________________           |   | _________ |
| Signature                [PLEASE SIGN WITHIN BOX] |   | Date      |   | Signature                (Joint Owners) |   | Date      |

----

Table          of Contents

| **PROGENICS                PHARMACEUTICALS, INC.** **777                OLD SAW MILL RIVER ROAD****TARRYTOWN,                NEW YORK 10591** **ANNUAL                MEETING OF STOCKHOLDERS JUNE 11, 2007****THIS                PROXY IS SOLICITED ON BEHALF OF THE BOARD OF                DIRECTORS** |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                 | **The                undersigned hereby appoints Paul J. Maddon, M.D., Ph.D., and Robert                A.                McKinney, and each of them, as Proxies each with the power to appoint                his                substitute and hereby authorizes them to represent and to vote, as                designated on the reverse side, all of the shares of common stock                of                Progenics Pharmaceuticals, Inc. held of record by the undersigned                on April                12, 2007 at the Annual Meeting of Stockholders to be held on June                11, 2007                or any adjournments or postponements thereof.** **This                proxy, when properly executed, will be voted in the manner directed                herein                by the undersigned stockholder. If no direction is made, this proxy                will                be voted for each of the proposals named on the reverse                side.** |
|                                                                                                                                                                                                                                                                                                                 |   |   |   |
|                                                                                                                                                                                                                                                                                                                 | **Comments:**  |
|                                                                                                                                                                                                                                                                                                                 |   |   |   |
|                                                                                                                                                                                                                                                                                                                 |   |
|                                                                                                                                                                                                                                                                                                                 |   |
|                                                                                                                                                                                                                                                                                                                 |   |
|                                                                                                                                                                                                                                                                                                                 |   |
|                                                                                                                                                                                                                                                                                                                 | (If                you noted any Comments above, please mark corresponding box on the                reverse                side.) |
|                                                                                                                                                                                                                                                                                                                 |   |   |   |
|                                                                                                                                                                                                                                                                                                                 |   | **(Continued                and to be signed on the reverse side)** |   |