----

| x      | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934     |
|--------|------------------------------------------------------------------------------------------|
|   | For the fiscal year ended December 31, 2012                                              |
|   | Or                                                                                       |
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|   | For the transition period from ___________ to ___________                                |
| Delaware                                                       | 13-3379479                              |
|----------------------------------------------------------------|-----------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
| Securities registered pursuant to Section 12(b) of the Act: |
|-------------------------------------------------------------|
| Title of each class                                         | Name of each exchange on which registered |
| Common Stock, par value $0.0013 per share                   | The NASDAQ Stock Market LLC |
| Securities registered pursuant to Section 12(g) of the Act: | None |
|-------------------------------------------------------------|------|
| Large accelerated filer  ¨                                                          | Accelerated filer   x              |
|-----------------------------------------------------------------------------------------------|-----------------------------------------|
| Non-accelerated filer    ¨  (Do not check if a smaller reporting company) | Smaller reporting company   ¨ |
| (1) | Calculated by excluding all shares that may be deemed to be beneficially owned by executive officers, directors and five percent stockholders of the Registrant, without conceding that any such person is an "affiliate" of the Registrant for purposes of the Federal securities laws. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| PART I                                     |                                                                                                         |   |
|--------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------|
| Item 1.                                    | Business                                                                                                     | 2      |
| Item 1A.                                   | Risk Factors                                                                                                 | 11     |
| Item 1B.                                   | Unresolved Staff Comments                                                                                    | 23     |
| Item 2.                                    | Properties                                                                                                   | 23     |
| Item 3.                                    | Legal Proceedings                                                                                            | 23     |
| Item 4.                                    | Not Applicable                                                                                               | 23     |
|                                       |                                                                                                         |   |
| PART II                                    |                                                                                                         |   |
| Item 5.                                    | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 24     |
| Item 6.                                    | Selected Financial Data                                                                                      | 25     |
| Item 7.                                    | Management's Discussion and Analysis of Financial Condition and Results of Operations                        | 26     |
| Item 7A.                                   | Quantitative and Qualitative Disclosures about Market Risk                                                   | 36     |
| Item 8.                                    | Financial Statements and Supplementary Data                                                                  | 36     |
| Item 9.                                    | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure                         | 36     |
| Item 9A.                                   | Controls and Procedures                                                                                      | 36     |
| Item 9B.                                   | Other Information                                                                                            | 38     |
| PART III                                   |                                                                                                         |   |
| Item 10.                                   | Directors, Executive Officers and Corporate Governance                                                       | 39     |
| Item 11.                                   | Executive Compensation                                                                                       | 39     |
| Item 12.                                   | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters               | 39     |
| Item 13.                                   | Certain Relationships and Related Transactions, and Director Independence                                    | 39     |
| Item 14.                                   | Principal Accounting Fees and Services                                                                       | 39     |
|                                       |                                                                                                         |   |
| PART IV                                    |                                                                                                         |   |
| Item 15.                                   | Exhibits, Financial Statement Schedules                                                                      | 40     |
|                                       |                                                                                                         |
| INDEX TO CONSOLIDATED FINANCIAL STATEMENTS | F-1                                                                                                          |
| SIGNATURES                                 | S-1                                                                                                          |
| EXHIBIT INDEX                              | E-1                                                                                                          |

----

Table of Contents

----

Table of Contents

----

Table of Contents

| ONCOLOGY                                               |   |                                                                                                                                                      |   |                                                                                                                      |  |
|--------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|--|
|                                                   |   |                                                                                                                                                      |   |                                                                                                                      |  |
| Clinical product candidates                            |   | Proposed indication                                                                                                                                       |   | Status                                                                                                                    |  |
|                                                   |        |
| PSMA ADC                                               |   | Treatment of prostate and other cancers                                                                                                                   |   | Phase 2 testing ongoing                                                                                                   |  |
|                                                   |   |                                                                                                                                                      |   |                                                                                                                      |  |
| MIP-1404                                               |   | Imaging agent for prostate cancer                                                                                                                         |   | Phase 2 testing ongoing                                                                                                   |  |
|                                                   |   |                                                                                                                                                      |   |                                                                                                                      |  |
|                                                   |   | Imaging agent for prostate cancer (Japan)                                                                                                                 |   | In development by FUJIFILM RI Pharma                                                                                      |  |
|                                                   |   |                                                                                                                                                      |   |                                                                                                                      |  |
| Azedra™                                          |   | Treatment of pheochromocytoma (ultra-orphan) and paraganglioma                                                                                            |   | Phase 2b registrational trial under Special Protocol Assessment                                                           |  |
|                                                   |   |                                                                                                                                                      |   |                                                                                                                      |  |
|                                                   |   | Neuroblastoma                                                                                                                                             |   | Phase 2a testing completed                                                                                                |  |
|                                                   |   |                                                                                                                                                      |   |                                                                                                                      |  |
| Research                                               |   |                                                                                                                                                      |   |                                                                                                                      |  |
|                                                   |        |
| Small molecule therapeutics(MIP-1095, -1555 and -1558) |   | Treatment of prostate cancer                                                                                                                              |   | Preclinical                                                                                                               |  |
|                                                   |   |                                                                                                                                                      |   |                                                                                                                      |  |
| RELISTOR®                                         |        |
|                                                   |   |                                                                                                                                                           |
| Marketed commercial product                            |   | Approved indication                                                                                                                                       |   | Status                                                                                                                    |  |
|                                                   |   |                                                                                                                                                           |
| Relistor-Subcutaneous injection                        |   | Treatment of opioid induced constipation  (OIC) in advanced-illness patients receiving palliative care when laxative therapy has not been sufficient |   | Marketed in the U.S., E.U., Canada, Australia and elsewhere; Licensed to Salix Pharmaceuticals worldwide other than Japan |  |
|                                                   |   |                                                                                                                                                      |   |                                                                                                                      |  |
| Clinical product candidates                            |   | Proposed indication                                                                                                                                       |   |                                                                                                                      |  |
|                                                   |   |                                                                                                                                                      |   |                                                                                                                      |  |
| Relistor-Subcutaneous injection                        |   | Treatment of OIC in patients with non-cancer pain                                                                                                         |   | Complete Response Letter received on pending sNDA                                                                         |  |
|                                                   |   |                                                                                                                                                      |   |                                                                                                                      |  |
| Relistor-Subcutaneous injection                        |   | Treatment of OIC (Japan)                                                                                                                                  |   | In development by Ono Pharmaceutical                                                                                      |  |
|                                                   |   |                                                                                                                                                      |   |                                                                                                                      |  |
| Relistor-Oral                                          |   | Treatment of OIC                                                                                                                                          |   | Phase 3 testing completed                                                                                                 |  |
|                                                   |   |                                                                                                                                                           |
| PARTNERED PROGRAMS                                     |        |
|                                                   |   |                                                                                                                                                      |   |                                                                                                                      |  |
|                                                   |   | Proposed indication                                                                                                                                       |   | Status                                                                                                                    |  |
|                                                   |        |
| PRO 140                                                |   | Treatment of Human Immunodeficiency Virus (HIV) infection                                                                                                 |   | Partnered with CytoDyn; phase 2                                                                                           |  |
|                                                   |   |                                                                                                                                                      |   |                                                                                                                      |  |
| Anti-C. difficile monoclonal antibodies                |   | Treatment of conditions caused by Clostridium difficile toxins                                                                                            |   | Partnered with MedImmune; phase 2                                                                                         |  |
|                                                   |   |                                                                                                                                                      |   |                                                                                                                      |  |
|                                                   |   |                                                                                                                                                      |   |                                                                                                                      |  |

----

Table of Contents

|   | Research and discovery means initial research related to specific molecular targets, synthesis of new chemical entities, assay development or screening for identification and optimization of lead compound(s). This work precedes preclinical investigations, which involves lead compound(s) undergoing toxicology, formulation and other testing in preparation for clinical trials.  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Phase 1-3 clinical trials are safety and efficacy tests in humans:                                                                                                                                                                                                                                                                                                                        |
|   | 1:                                                                                                                                                                                                                                                                                                                                                                                             | Initial evaluation of safety in humans; study method of action and metabolization. |
|   | 2:                                                                                                                                                                                                                                                                                                                                                                                             | Evaluation of safety, dosing and activity or efficacy; continue safety evaluation. |
|   | 3:                                                                                                                                                                                                                                                                                                                                                                                             | Larger scale evaluation of safety, efficacy and dosage. |

----

Table of Contents

|             | FirstQuarter   |   |   | SecondQuarter |   |   | ThirdQuarter |   |   | FourthQuarter |   |   | FullYear |
|------------------|----------------|--------|--------|---------------|--------|--------|--------------|--------|--------|---------------|--------|--------|----------|
|                  | (in thousands) |
| 2012:            |                |
| Net Sales        | $              | 12,300 |   |          | $      | 10,800 |         |   | $      | 4,900         |   |   | $        | 5,200 |   |   | $ | 33,200 |
| Royalties Earned |           | 1,834  |   |          |   | 1,619  |         |   |   | 728           |   |   |     | 782 |   |   |   | 4,963 |
| 2011:            |                |
| Net Sales        | $              | 3,300  |   |          | $      | 5,200  |         |   | $      | 9,700         |   |   | $        | 8,800 |   |   | $ | 27,000 |
| Royalties Earned |           | -      |   |          |   | 527    |         |   |   | 1,240         |   |   |     | 1,279 |   |   |   | 3,046 |
| 2010:            |                |
| Net Sales        | $              | 4,200  |   |          | $      | 3,800  |         |   | $      | 4,100         |   |   | $        | 4,000 |   |   | $ | 16,100 |
| Royalties Earned |           | 625    |   |          |   | 581    |         |   |   | 620           |   |   |     | - |   |   |   | 1,826 |

----

Table of Contents

----

Table of Contents

| Clinical and Research             |   | Number of Patents |   | Expiration    |   | Number of Patent Applications |
|-----------------------------------|--------|-------------------|--------|---------------|--------|-------------------------------|
| Candidates; Relistor              |   | U.S.              |   | International |   | Dates (1)                     |   | U.S. |   | International |
|                              |   |              |   |          |   |                          |   |   |   |   |
| Oncology (PSMA; key MIP programs) |   | 13                |   | 7             |   | 2013-2029                     |   | 20 |   | 90 |
|                              |   |              |   |          |   |                          |   |   |   |   |
| Relistor                          |   | 10                |   | 34            |   | 2015-2030                     |   | 26 |   | 206 |
|                              |   |              |   |          |   |                          |   |   |   |   |
| Other                             |   | 13                |   | 60            |   | 2016-2023                     |   | 3 |   | 29 |
|                              |   |              |   |          |   |                          |   |   |   |   |

| (1) | Patent term extensions and pending patent applications may extend periods of patent protection. |
|-----|-------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

|   | · | It might not obtain labeling claims necessary to make the product commercially viable (in general, labeling claims define the medical conditions for which a drug product may be marketed, and are therefore very important to the commercial success of a product), or may be required to carry Boxed or other warnings that adversely affect its commercial success. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | · | Approval may be limited to uses of the product for treatment or prevention of diseases or conditions that are relatively less financially advantageous to us than approval of greater or different scope or subject to an FDA-imposed REMS that imposes limits on the distribution or use of the product. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | · | Side effects identified after the product is on the market might hurt sales or result in mandatory safety labeling changes, additional pre-clinical testing or clinical trials, imposition of a REMS, product recalls or withdrawals from the market. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | · | Efficacy or safety concerns regarding a marketed product, or manufacturing or other problems, may lead to a recall, withdrawal of marketing approval, reformulation of the product, additional pre-clinical testing or clinical trials, changes in labeling, imposition of a REMS, the need for additional marketing applications, declining sales or other adverse events. These potential consequences may occur whether or not the concerns originate from subsequent testing or other activities by us, governmental regulators, other entities or organizations or otherwise, and whether or not they are scientifically justified. If products lose previously received marketing and other approvals, our business, results of operations and financial condition would be materially adversely affected. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

|   |           | High   |   | Low    |
|--------|----------------|--------|--------|--------|
| 2012:  | Fourth quarter | $      | 3.30   |   | $ | 1.41 |
|        | Third quarter  |   | 11.00  |   |   | 2.81 |
|        | Second quarter |   | 11.34  |   |   | 7.44 |
|        | First quarter  |   | 10.50  |   |   | 8.32 |
|   |           |   |   |   |   |   |
| 2011:  | Fourth quarter |   | 9.19   |   |   | 5.01 |
|        | Third quarter  |   | 7.93   |   |   | 4.50 |
|        | Second quarter |   | 8.69   |   |   | 5.97 |
|        | First quarter  |   | 6.50   |   |   | 5.32 |

----

Table of Contents

|                                    |   | Years Ended December 31,              |    |
|-----------------------------------------|--------|---------------------------------------|---------|
|                                    |   | 2012                                  |    |   | 2011 |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                                    |   | (in thousands, except per share data) |    |
| Statement of Operations Data:           |   |                                       |    |   |  |   |   |  |   |   |  |   |   |  |   |
| Revenues:                               |   |                                       |    |   |  |   |   |  |   |   |  |   |   |  |   |
| Royalty income                          |   | $                                     | 4,963   |   |   | $ | 3,046 |   |   | $ | 1,826 |   |   | $ | 2,372 |   |   | $ | 146 |   |
| Collaboration revenue                   |   |                                  | 8,525   |   |   |   | 76,764 |   |   |   | 1,413 |   |   |   | 44,351 |   |   |   | 59,885 |   |
| Research grants and contract            |   |                                  | 488     |   |   |   | 4,810 |   |   |   | 4,573 |   |   |   | 1,968 |   |   |   | 7,460 |   |
| Other revenues                          |   |                                  | 72      |   |   |   | 176 |   |   |   | 140 |   |   |   | 256 |   |   |   | 180 |   |
| Total revenues                          |   |                                  | 14,048  |   |   |   | 84,796 |   |   |   | 7,952 |   |   |   | 48,947 |   |   |   | 67,671 |   |
| Expenses:                               |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Research and development                |   |                                  | 31,840  |   |   |   | 53,183 |   |   |   | 50,640 |   |   |   | 49,798 |   |   |   | 82,290 |   |
| License fees - research and development |   |                                  | 1,170   |   |   |   | 578 |   |   |   | 1,270 |   |   |   | 1,058 |   |   |   | 2,830 |   |
| Royalty expense                         |   |                                  | 499     |   |   |   | 405 |   |   |   | 241 |   |   |   | 237 |   |   |   | 15 |   |
| General and administrative              |   |                                  | 14,706  |   |   |   | 18,248 |   |   |   | 22,832 |   |   |   | 25,106 |   |   |   | 28,834 |   |
| Depreciation and amortization           |   |                                  | 1,324   |   |   |   | 2,066 |   |   |   | 2,853 |   |   |   | 5,078 |   |   |   | 4,609 |   |
| Total expenses                          |   |                                  | 49,539  |   |   |   | 74,480 |   |   |   | 77,836 |   |   |   | 81,277 |   |   |   | 118,578 |   |
| Operating (loss) income                 |   |                                  | (35,491 | ) |   |   | 10,316 |   |   |   | (69,884 | ) |   |   | (32,330 | ) |   |   | (50,907 | ) |
| Other income:                           |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                         |   |                                  | 60      |   |   |   | 65 |   |   |   | 64 |   |   |   | 1,481 |   |   |   | 6,235 |   |
| Gain on sale of marketable securities   |   |                                  | -       |   |   |   | - |   |   |   | - |   |   |   | 237 |   |   |   | - |   |
| Total other income                      |   |                                  | 60      |   |   |   | 65 |   |   |   | 64 |   |   |   | 1,718 |   |   |   | 6,235 |   |
| Net (loss) income before income taxes   |   |                                  | (35,431 | ) |   |   | 10,381 |   |   |   | (69,820 | ) |   |   | (30,612 | ) |   |   | (44,672 | ) |
| Income tax benefit                      |   |                                  | -       |   |   |   | - |   |   |   | 95 |   |   |   | - |   |   |   | - |   |
| Net (loss) income                       |   | $                                     | (35,431 | ) |   | $ | 10,381 |   |   | $ | (69,725 | ) |   | $ | (30,612 | ) |   | $ | (44,672 | ) |
| Per share amounts on net (loss) income: |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                   |   | $                                     | (1.02   | ) |   | $ | 0.31 |   |   | $ | (2.14 | ) |   | $ | (0.98 | ) |   | $ | (1.48 | ) |
| Diluted                                 |   | $                                     | (1.02   | ) |   | $ | 0.31 |   |   | $ | (2.14 | ) |   | $ | (0.98 | ) |   | $ | (1.48 | ) |
|                                   |   | December 31,   |   |
|----------------------------------------|--------|----------------|--------|
|                                   |   | 2012           |   |   | 2011 |   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                                   |   | (in thousands) |   |
| Balance Sheet Data:                    |   |                |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Cash and cash equivalents              |   | $              | 58,838 |   |   | $ | 70,105 |   |   | $ | 47,918 |   |   | $ | 90,903 |   |   | $ | 56,186 |   |
| Auction Rate and marketable securities |   |           | 3,240  |   |   |   | 3,332 |   |   |   | 3,608 |   |   |   | 5,293 |   |   |   | 85,188 |   |
| Working capital                        |   |           | 58,805 |   |   |   | 65,890 |   |   |   | 42,207 |   |   |   | 95,388 |   |   |   | 85,983 |   |
| Total assets                           |   |           | 76,308 |   |   |   | 80,110 |   |   |   | 62,738 |   |   |   | 113,613 |   |   |   | 157,833 |   |
| Deferred revenue - current             |   |           | 838    |   |   |   | 204 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Deferred revenue - long term           |   |           | -      |   |   |   | 162 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Other liabilities - long term          |   |           | 1,078  |   |   |   | 1,497 |   |   |   | 1,635 |   |   |   | - |   |   |   | 266 |   |
| Total stockholders' equity             |   |           | 66,568 |   |   |   | 71,801 |   |   |   | 51,308 |   |   |   | 107,607 |   |   |   | 119,369 |   |

----

Table of Contents

----

Table of Contents

|                    |   | 2012   |    |   | 2011   |   |    | 2010   |   |   | 2012 vs. 2011  |   |   | 2011 vs. 2010 |   |
|-------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|----------------|--------|--------|---------------|--------|
|                    |   |        |    |   |        |   |    |        |   |   | Percent Change |   |
|                    |   |        |    |   |        |   |    |        |   |   |                |   |   |               |   |
| Revenues                |   | $      | 14,048  |   |   | $      | 84,796  |   |   | $      | 7,952          |   |   |          | (83    | %) |   |   | 966 | % |
| Expenses                |   |   | (49,539 | )      |   |   | (74,480 | )      |   |   | (77,836        | )      |   |          | (33    | %) |   |   | (4 | %) |
| Operating (loss) income |   |   | (35,491 | )      |   |   | 10,316  |   |   |   | (69,884        | )      |   |          | (444   | %) |   |   | (115 | %) |
| Other income            |   |   | 60      |   |   |   | 65      |   |   |   | 64             |   |   |          | (8     | %) |   |   | 2 | % |
| Income tax benefit      |   |   | -       |   |   |   | -       |   |   |   | 95             |   |   |          | N/     | A |   |   | (100 | %) |
| Net (loss) income       |   | $      | (35,431 | )      |   | $      | 10,381  |   |   | $      | (69,725        | )      |   |          | (441   | %) |   |   | (115 | %) |
| Sources of Revenue    |   | 2012   |   |   | 2011   |   |   | 2010   |   |   | 2012 vs. 2011  |   |   | 2011 vs. 2010 |   |
|-----------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------------|--------|
|                  |   |        |   |   |        |   |   |        |   |   | Percent Change |   |
|                  |   |        |   |   |        |   |   |        |   |   |                |   |   |               |   |
| Royalty income        |   | $      | 4,963  |   |   | $      | 3,046  |   |   | $      | 1,826          |   |   |          | 63     | % |   |   | 67 | % |
| Collaboration revenue |   |   | 8,525  |   |   |   | 76,764 |   |   |   | 1,413          |   |   |          | (89    | %) |   |   | 5,333 | % |
| Research grants       |   |   | 488    |   |   |   | 4,810  |   |   |   | 4,573          |   |   |          | (90    | %) |   |   | 5 | % |
| Other revenues        |   |   | 72     |   |   |   | 176    |   |   |   | 140            |   |   |          | (59    | %) |   |   | 26 | % |
| Total                 |   | $      | 14,048 |   |   | $      | 84,796 |   |   | $      | 7,952          |   |   |          | (83    | %) |   |   | 966 | % |
|    |   | Relistor Net Sales Reported by Collaborators |
|---------|--------|----------------------------------------------|
|    |   | Years Ended December 31,                     |
|    |   | 2012                                         |   |   | 2011 |   |   | 2010 |
| U.S.    |   | $                                            | 29,200 |   |   | $ | 21,500 |   |   | $ | 9,500 |
| Ex-U.S. |   |                                         | 4,000 |   |   |   | 5,500 |   |   |   | 6,600 |
| Global  |   | $                                            | 33,200 |   |   | $ | 27,000 |   |   | $ | 16,100 |

----

Table of Contents

|                  |   | 2012 |   |   | 2011   |   |   | 2010   |   |   | 2012 vs. 2011  |   |   | 2011 vs. 2010 |   |
|-----------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------------|--------|
|                  |   |      |   |   |        |   |   |        |   |   | Percent change |   |
| Salaries and benefits |   | $    | 15,372 |   |   | $      | 18,658 |   |   | $      | 18,469         |   |   |          | (18    | %) |   |   | 1 | % |
|                     |   | 2012 |   |   | 2011   |   |   | 2010   |   |   | 2012 vs. 2011  |   |   | 2011 vs. 2010 |   |
|--------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------------|--------|
|                     |   |      |   |   |        |   |   |        |   |   | Percent change |   |
| Share-based compensation |   | $    | 4,568  |   |   | $      | 4,499  |   |   | $      | 5,091          |   |   |          | 2      | % |   |   | (12 | %) |

----

Table of Contents

|                 |   | 2012 |   |   | 2011   |   |   | 2010   |   |   | 2012 vs. 2011  |   |   | 2011 vs. 2010 |   |
|----------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------------|--------|
|                 |   |      |   |   |        |   |   |        |   |   | Percent change |   |
| Clinical trial costs |   | $    | 2,692  |   |   | $      | 10,099 |   |   | $      | 7,056          |   |   |          | (73    | %) |   |   | 43 | % |

|                         |   | 2012 |   |   | 2011   |   |   | 2010   |   |   | 2012 vs. 2011  |   |   | 2011 vs. 2010 |   |
|------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------------|--------|
| Laboratory and manufacturing |   |      |   |   |        |   |   |        |   |   | Percent change |   |
| supplies                     |   | $    | 592    |   |   | $      | 4,203  |   |   | $      | 2,388          |   |   |          | (86    | %) |   |   | 76 | % |
|                       |   | 2012 |   |   | 2011   |   |   | 2010   |   |   | 2012 vs. 2011  |   |   | 2011 vs. 2010 |   |
|----------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------------|--------|
| Contract manufacturing and |   |      |   |   |        |   |   |        |   |   | Percent change |   |
| subcontractors             |   | $    | 3,111  |   |   | $      | 6,713  |   |   | $      | 6,853          |   |   |          | (54    | %) |   |   | (2 | %) |
|        |   | 2012 |   |   | 2011   |   |   | 2010   |   |   | 2012 vs. 2011  |   |   | 2011 vs. 2010 |   |
|-------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------------|--------|
|        |   |      |   |   |        |   |   |        |   |   | Percent change |   |
| Consultants |   | $    | 330    |   |   | $      | 1,270  |   |   | $      | 3,310          |   |   |          | (74    | %) |   |   | (62 | %) |
|         |   | 2012 |   |   | 2011   |   |   | 2010   |   |   | 2012 vs. 2011  |   |   | 2011 vs. 2010 |   |
|--------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------------|--------|
|         |   |      |   |   |        |   |   |        |   |   | Percent change |   |
| License fees |   | $    | 1,170  |   |   | $      | 578    |   |   | $      | 1,270          |   |   |          | 102    | % |   |   | (54 | %) |

----

Table of Contents

|            |   | 2012 |   |   | 2011   |   |   | 2010   |   |   | 2012 vs. 2011  |   |   | 2011 vs. 2010 |   |
|-----------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------------|--------|
|            |   |      |   |   |        |   |   |        |   |   | Percent change |   |
| Royalty expense |   | $    | 499    |   |   | $      | 405    |   |   | $      | 241            |   |   |          | 23     | % |   |   | 68 | % |
|                     |   | 2012 |   |   | 2011   |   |   | 2010   |   |   | 2012 vs. 2011  |   |   | 2011 vs. 2010 |   |
|--------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------------|--------|
|                     |   |      |   |   |        |   |   |        |   |   | Percent change |   |
| Other operating expenses |   | $    | 5,175  |   |   | $      | 7,741  |   |   | $      | 7,473          |   |   |          | (33    | %) |   |   | 4 | % |
|                  |   | 2012 |   |   | 2011   |   |   | 2010   |   |   | 2012 vs. 2011  |   |   | 2011 vs. 2010 |   |
|-----------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------------|--------|
|                  |   |      |   |   |        |   |   |        |   |   | Percent change |   |
| Salaries and benefits |   | $    | 6,493  |   |   | $      | 7,228  |   |   | $      | 8,086          |   |   |          | (10    | %) |   |   | (11 | %) |
|                     |   | 2012 |   |   | 2011   |   |   | 2010   |   |   | 2012 vs. 2011  |   |   | 2011 vs. 2010 |   |
|--------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------------|--------|
|                     |   |      |   |   |        |   |   |        |   |   | Percent change |   |
| Share-based compensation |   | $    | 1,968  |   |   | $      | 1,863  |   |   | $      | 4,424          |   |   |          | 6      | % |   |   | (58 | %) |
|                             |   | 2012 |   |   | 2011   |   |   | 2010   |   |   | 2012 vs. 2011  |   |   | 2011 vs. 2010 |   |
|----------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------------|--------|
|                             |   |      |   |   |        |   |   |        |   |   | Percent change |   |
| Consulting and professional fees |   | $    | 2,362  |   |   | $      | 4,389  |   |   | $      | 5,843          |   |   |          | (46    | %) |   |   | (25 | %) |
|                     |   | 2012 |   |   | 2011   |   |   | 2010   |   |   | 2012 vs. 2011  |   |   | 2011 vs. 2010 |   |
|--------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------------|--------|
|                     |   |      |   |   |        |   |   |        |   |   | Percent change |   |
| Other operating expenses |   | $    | 3,883  |   |   | $      | 4,768  |   |   | $      | 4,479          |   |   |          | (19    | %) |   |   | 6 | % |

----

Table of Contents

|                          |   | 2012 |   |   | 2011   |   |   | 2010   |   |   | 2012 vs. 2011  |   |   | 2011 vs. 2010 |   |
|-------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------------|--------|
|                          |   |      |   |   |        |   |   |        |   |   | Percent change |   |
| Depreciation and amortization |   | $    | 1,324  |   |   | $      | 2,066  |   |   | $      | 2,853          |   |   |          | (36    | %) |   |   | (28 | %) |
|            |   | 2012 |   |   | 2011   |   |   | 2010   |   |   | 2012 vs. 2011  |   |   | 2011 vs. 2010 |   |
|-----------------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------------|--------|
|            |   |      |   |   |        |   |   |        |   |   | Percent change |   |
| Interest income |   | $    | 60     |   |   | $      | 65     |   |   | $      | 64             |   |   |          | (8     | %) |   |   | 2 | % |

----

Table of Contents

----

Table of Contents

|           |   | 2012   |   |   | 2011   |   |   | 2010   |
|----------------|--------|--------|--------|--------|--------|--------|--------|--------|
|           |   |        |
| Oncology       |   | $      | 29.1   |   |   | $      | 22.2   |   |   | $ | 17.4 |
| Relistor       |   |   | 1.7    |   |   |   | 23.2   |   |   |   | 23.4 |
| Other programs |   |   | 2.7    |   |   |   | 8.8    |   |   |   | 11.4 |
| Total          |   | $      | 33.5   |   |   | $      | 54.2   |   |   | $ | 52.2 |
|                                         |   |               |   |   | Payments due by Year-end |
|----------------------------------------------|--------|---------------|--------|--------|--------------------------|
|                                         |   | Total         |   |   | 2013                     |   |   |   | 2014-2015 |   |   |   | 2016-2017 |   |   | Thereafter |
|                                         |   | (in millions) |
| Operating leases                             |   | $             | 20.6   |   |                     | $ | 2.4 |   |   | $ | 4.9 |   |   | $ | 5.1 |   |   | $ | 8.2 |
| License, collaboration and other agreements: |   |          |   |   |                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed payments                               |   |          | 0.5    |   |                     |   | - |   |   |   | 0.2 |   |   |   | 0.3 |   |   |   | - |
| Contingent payments (1)                      |   |          | 72.1   |   |                     |   | - |   |   |   | 2.3 |   |   |   | 3.0 |   |   |   | 66.8 |
| Total                                        |   | $             | 93.2   |   |                     | $ | 2.4 |   |   | $ | 7.4 |   |   | $ | 8.4 |   |   | $ | 75.0 |

| (1) | Based on assumed achievement of milestones covered under each agreement, the timing and payment of which is highly uncertain. |
|-----|-------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

| ·  | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;                                                                                                                                                                       |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                 |
| ·  | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorization of our management and directors; and |
|         |                                                                                                                                                                                                                                                                                                                 |
| ·  | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.                                                                                                                   |

----

Table of Contents

----

Table of Contents

| Item of Form 10-K | Location in 2013 Proxy Statement                                                               |
|-------------------|------------------------------------------------------------------------------------------------|
|              |                                                                                           |   |
| Item 10.          | Directors, Executive Officers and Corporate Governance                                         | Election of Directors.Board and Committee Meetings.Executive Officers of the Company.Section 16(a) Beneficial Ownership Reporting and Compliance.Code of Business Ethics and Conduct.**The full text of our code of business ethics and conduct is available on our website (http://www.progenics.com/documents.cfm). |
|              |                                                                                           |   |
| Item 11.          | Executive Compensation                                                                         | Executive Compensation.Compensation Committee Report.Compensation Committee Interlocks and Insider Participation. |
|              |                                                                                           |   |
| Item 12.          | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | Equity Compensation Plan Information.Security Ownership of Certain Beneficial Owners and Management. |
|              |                                                                                           |   |
| Item 13.          | Certain Relationships and Related Transactions, and Director Independence                      | Certain Relationships and Related Transactions.Affirmative Determinations Regarding Director Independence and Other Matters. |
|              |                                                                                           |   |
| Item 14.          | Principal Accounting Fees and Services                                                         | Fees Billed for Services Rendered by our Independent Registered Public Accounting Firm.Pre-approval of Audit and Non-Audit Services by the Audit Committee. |

----

Table of Contents

|  | (a) | Documents filed as part of this Annual Report: |
|--|-----|------------------------------------------------|

|  | (b) | Financial Statement Schedules |
|--|-----|-------------------------------|

|  | (c) | Item 601 Exhibits |
|--|-----|-------------------|

----

Table of Contents

|                                                                                                        | Page   |
|-------------------------------------------------------------------------------------------------------------|--------|
| Reports of Independent Registered Public Accounting Firms                                                   | F-2    |
| Financial Statements:                                                                                       |   |
| Consolidated Balance Sheets at December 31, 2012 and 2011                                                   | F-3    |
| Consolidated Statements of Operations for the years ended December 31, 2012, 2011 and 2010                  | F-4    |
| Consolidated Statements of Comprehensive (Loss) Income for the years ended December 31, 2012, 2011 and 2010 | F-5    |
| Consolidated Statements of Stockholders' Equity for the years ended December 31, 2012, 2011 and 2010        | F-6    |
| Consolidated Statements of Cash Flows for the years ended December 31, 2012, 2011 and 2010                  | F-7    |
| Notes to Consolidated Financial Statements                                                                  | F-8    |

----

Table of Contents

----

----

Table of Contents

|                                                                                                                   |   | December 31, |     |
|------------------------------------------------------------------------------------------------------------------------|--------|--------------|----------|
|                                                                                                                   |   | 2012         |     |   | 2011 |   |
| Assets                                                                                                                 |   |              |     |   |  |   |
| Current assets:                                                                                                        |   |              |     |   |  |   |
| Cash and cash equivalents                                                                                              |   | $            | 58,838   |   |   | $ | 70,105 |   |
| Accounts receivable                                                                                                    |   |         | 6,937    |   |   |   | 1,516 |   |
| Other current assets                                                                                                   |   |         | 1,692    |   |   |   | 919 |   |
| Total current assets                                                                                                   |   |         | 67,467   |   |   |   | 72,540 |   |
| Auction rate securities                                                                                                |   |         | 3,240    |   |   |   | 3,332 |   |
| Fixed assets, at cost, net of accumulated depreciation and amortization                                                |   |         | 3,399    |   |   |   | 4,038 |   |
| Deferred tax assets – long term                                                                                  |   |         | 2,052    |   |   |   | - |   |
| Other assets                                                                                                           |   |         | 150      |   |   |   | 200 |   |
| Total assets                                                                                                           |   | $            | 76,308   |   |   | $ | 80,110 |   |
|                                                                                                                   |   |         |     |   |   |   |   |   |
| Liabilities and Stockholders' Equity                                                                                   |   |         |     |   |   |   |   |   |
| Current liabilities:                                                                                                   |   |         |     |   |   |   |   |   |
| Accounts payable and accrued expenses                                                                                  |   | $            | 5,640    |   |   | $ | 6,331 |   |
| Deferred tax liability - current                                                                                       |   |         | 2,069    |   |   |   | - |   |
| Deferred revenue - current                                                                                             |   |         | 838      |   |   |   | 204 |   |
| Other current liabilities                                                                                              |   |         | 115      |   |   |   | 115 |   |
| Total current liabilities                                                                                              |   |         | 8,662    |   |   |   | 6,650 |   |
| Deferred revenue - long term                                                                                           |   |         | -        |   |   |   | 162 |   |
| Other liabilities                                                                                                      |   |         | 1,078    |   |   |   | 1,497 |   |
| Total liabilities                                                                                                      |   |         | 9,740    |   |   |   | 8,309 |   |
| Commitments and contingencies (Note 9)                                                                                 |   |         |     |   |   |   |   |   |
| Stockholders' equity:                                                                                                  |   |         |     |   |   |   |   |   |
| Preferred stock, $.001 par value; 20,000,000 shares authorized; issued and outstanding – none                    |   |         | -        |   |   |   | - |   |
| Common stock, $.0013 par value; 80,000,000 shares authorized; issued – 46,765,472 in 2012 and 34,046,409 in 2011 |   |         | 61       |   |   |   | 44 |   |
| Additional paid-in capital                                                                                             |   |         | 493,613  |   |   |   | 463,440 |   |
| Accumulated deficit                                                                                                    |   |         | (424,105 | ) |   |   | (388,674 | ) |
| Accumulated other comprehensive loss                                                                                   |   |         | (260     | ) |   |   | (268 | ) |
| Treasury stock, at cost (200,000 shares in 2012 and 2011)                                                              |   |         | (2,741   | ) |   |   | (2,741 | ) |
| Total stockholders' equity                                                                                             |   |         | 66,568   |   |   |   | 71,801 |   |
| Total liabilities and stockholders' equity                                                                             |   | $            | 76,308   |   |   | $ | 80,110 |   |

----

Table of Contents

|                                          |   | Years Ended December 31, |    |
|-----------------------------------------------|--------|--------------------------|---------|
|                                          |   | 2012                     |    |   | 2011 |   |   | 2010 |   |
| Revenues:                                     |   |                          |    |   |  |   |   |  |   |
| Royalty income                                |   | $                        | 4,963   |   |   | $ | 3,046 |   |   | $ | 1,826 |   |
| Collaboration revenue                         |   |                     | 8,525   |   |   |   | 76,764 |   |   |   | 1,413 |   |
| Research grants                               |   |                     | 488     |   |   |   | 4,810 |   |   |   | 4,573 |   |
| Other revenues                                |   |                     | 72      |   |   |   | 176 |   |   |   | 140 |   |
| Total revenues                                |   |                     | 14,048  |   |   |   | 84,796 |   |   |   | 7,952 |   |
|                                          |   |                     |    |   |   |   |   |   |   |   |   |   |
| Expenses:                                     |   |                     |    |   |   |   |   |   |   |   |   |   |
| Research and development                      |   |                     | 31,840  |   |   |   | 53,183 |   |   |   | 50,640 |   |
| License fees – research and development |   |                     | 1,170   |   |   |   | 578 |   |   |   | 1,270 |   |
| Royalty expense                               |   |                     | 499     |   |   |   | 405 |   |   |   | 241 |   |
| General and administrative                    |   |                     | 14,706  |   |   |   | 18,248 |   |   |   | 22,832 |   |
| Depreciation and amortization                 |   |                     | 1,324   |   |   |   | 2,066 |   |   |   | 2,853 |   |
| Total expenses                                |   |                     | 49,539  |   |   |   | 74,480 |   |   |   | 77,836 |   |
|                                          |   |                     |    |   |   |   |   |   |   |   |   |   |
| Operating (loss) income                       |   |                     | (35,491 | ) |   |   | 10,316 |   |   |   | (69,884 | ) |
|                                          |   |                     |    |   |   |   |   |   |   |   |   |   |
| Other income:                                 |   |                     |    |   |   |   |   |   |   |   |   |   |
| Interest income                               |   |                     | 60      |   |   |   | 65 |   |   |   | 64 |   |
| Total other income                            |   |                     | 60      |   |   |   | 65 |   |   |   | 64 |   |
|                                          |   |                     |    |   |   |   |   |   |   |   |   |   |
| Net (loss) income before income taxes         |   |                     | (35,431 | ) |   |   | 10,381 |   |   |   | (69,820 | ) |
|                                          |   |                     |    |   |   |   |   |   |   |   |   |   |
| Income tax benefit                            |   |                     | -       |   |   |   | - |   |   |   | 95 |   |
|                                          |   |                     |    |   |   |   |   |   |   |   |   |   |
| Net (loss) income                             |   | $                        | (35,431 | ) |   | $ | 10,381 |   |   | $ | (69,725 | ) |
|                                          |   |                     |    |   |   |   |   |   |   |   |   |   |
| Net (loss) income per share - basic           |   | $                        | (1.02   | ) |   | $ | 0.31 |   |   | $ | (2.14 | ) |
| Weighted-average shares - basic               |   |                     | 34,754  |   |   |   | 33,375 |   |   |   | 32,590 |   |
|                                          |   |                     |    |   |   |   |   |   |   |   |   |   |
| Net (loss) income per share - diluted         |   | $                        | (1.02   | ) |   | $ | 0.31 |   |   | $ | (2.14 | ) |
| Weighted-average shares - diluted             |   |                     | 34,754  |   |   |   | 33,494 |   |   |   | 32,590 |   |

----

Table of Contents

|                                                     |   | Years Ended December 31, |    |
|----------------------------------------------------------|--------|--------------------------|---------|
|                                                     |   | 2012                     |    |   | 2011 |   |   | 2010 |   |
|                                                     |   |                          |    |   |  |   |   |  |   |
| Net (loss) income                                        |   | $                        | (35,431 | ) |   | $ | 10,381 |   |   | $ | (69,725 | ) |
| Other comprehensive income:                              |   |                     |    |   |   |   |   |   |   |   |   |   |
| Net change in unrealized loss on auction rate securities |   |                     | 8       |   |   |   | 24 |   |   |   | 15 |   |
| Total other comprehensive income                         |   |                     | 8       |   |   |   | 24 |   |   |   | 15 |   |
| Comprehensive (loss) income                              |   | $                        | (35,423 | ) |   | $ | 10,405 |   |   | $ | (69,710 | ) |

----

Table of Contents

|                                                                                                                         |   | Common Stock |   |   | Additional |   |   |                 |   |   | Accumulated Other   |   |   | Treasury Stock              |     |   |        |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------------|--------|--------|------------|--------|--------|-----------------|--------|--------|---------------------|--------|--------|-----------------------------|----------|--------|--------|--------|
|                                                                                                                         |   | Shares       |   |   | Amount     |   |   | Paid-In Capital |   |   | Accumulated Deficit |   |   | Comprehensive Income (Loss) |     |   | Shares |   |   | Amount |   |   | Total |   |
| Balance at December 31, 2009                                                                                                 |   |         | 32,142 |   |       | $      | 42     |            |   | $      | 439,943             |   |   | $                           | (329,330 | )      |   | $      | (307 | ) |   |   | (200 | ) |   | $ | (2,741 | ) |   | $ | 107,607 |   |
| Net loss                                                                                                                     |   |         | -      |   |       |   | -      |            |   |   | -                   |   |   |                        | (69,725  | )      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (69,725 | ) |
| Other comprehensive income                                                                                                   |   |         | -      |   |       |   | -      |            |   |   | -                   |   |   |                        | -        |   |   |   | 15 |   |   |   | - |   |   |   | - |   |   |   | 15 |   |
| Compensation expenses for share-based payment arrangements                                                                   |   |         | -      |   |       |   | -      |            |   |   | 9,515               |   |   |                        | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 9,515 |   |
| Issuance of restricted stock, net of forfeitures                                                                             |   |         | 173    |   |       |   | -      |            |   |   | -                   |   |   |                        | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Sale of common stock under employee stock purchase plans and exercise of stock options                                       |   |         | 1,011  |   |       |   | 1      |            |   |   | 3,895               |   |   |                        | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,896 |   |
| Balance at December 31, 2010                                                                                                 |   |         | 33,326 |   |       |   | 43     |            |   |   | 453,353             |   |   |                        | (399,055 | )      |   |   | (292 | ) |   |   | (200 | ) |   |   | (2,741 | ) |   |   | 51,308 |   |
| Net income                                                                                                                   |   |         | -      |   |       |   | -      |            |   |   | -                   |   |   |                        | 10,381   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 10,381 |   |
| Other comprehensive income                                                                                                   |   |         | -      |   |       |   | -      |            |   |   | -                   |   |   |                        | -        |   |   |   | 24 |   |   |   | - |   |   |   | - |   |   |   | 24 |   |
| Compensation expenses for share-based payment arrangements                                                                   |   |         | -      |   |       |   | -      |            |   |   | 6,362               |   |   |                        | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,362 |   |
| Forfeitures of restricted stock                                                                                              |   |         | (38    | )      |       |   | -      |            |   |   | -                   |   |   |                        | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Sale of common stock under employee stock purchase plans and exercise of stock options                                       |   |         | 758    |   |       |   | 1      |            |   |   | 3,725               |   |   |                        | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 3,726 |   |
| Balance at December 31, 2011                                                                                                 |   |         | 34,046 |   |       |   | 44     |            |   |   | 463,440             |   |   |                        | (388,674 | )      |   |   | (268 | ) |   |   | (200 | ) |   |   | (2,741 | ) |   |   | 71,801 |   |
| Net loss                                                                                                                     |   |         | -      |   |       |   | -      |            |   |   | -                   |   |   |                        | (35,431  | )      |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (35,431 | ) |
| Other comprehensive income                                                                                                   |   |         | -      |   |       |   | -      |            |   |   | -                   |   |   |                        | -        |   |   |   | 8 |   |   |   | - |   |   |   | - |   |   |   | 8 |   |
| Compensation expenses for share-based payment arrangements                                                                   |   |         | -      |   |       |   | -      |            |   |   | 6,536               |   |   |                        | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 6,536 |   |
| Sale of common stock in public offering, net of underwriting discounts and commissions ($1,518) and offering expenses ($434) |   |         | 12,650 |   |       |   | 17     |            |   |   | 23,331              |   |   |                        | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 23,348 |   |
| Forfeitures of restricted stock                                                                                              |   |         | (6     | )      |       |   | -      |            |   |   | -                   |   |   |                        | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Sale of common stock under stock incentive plan and exercise of stock options                                                |   |         | 75     |   |       |   | -      |            |   |   | 306                 |   |   |                        | -        |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 306 |   |
| Balance at December 31, 2012                                                                                                 |   |         | 46,765 |   |       | $      | 61     |            |   | $      | 493,613             |   |   | $                           | (424,105 | )      |   | $      | (260 | ) |   |   | (200 | ) |   | $ | (2,741 | ) |   | $ | 66,568 |   |

----

Table of Contents

|                                                                                                               |   | Years Ended December 31, |    |
|--------------------------------------------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                                                               |   | 2012                     |    |   | 2011 |   |   | 2010 |   |
| Cash flows from operating activities:                                                                              |   |                          |    |   |  |   |   |  |   |
| Net (loss) income                                                                                                  |   | $                        | (35,431 | ) |   | $ | 10,381 |   |   | $ | (69,725 | ) |
| Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:                 |   |                     |    |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                                                      |   |                     | 1,324   |   |   |   | 2,066 |   |   |   | 2,853 |   |
| Gains on sales of fixed assets                                                                                     |   |                     | (327    | ) |   |   | - |   |   |   | - |   |
| Expenses for share-based compensation awards                                                                       |   |                     | 6,536   |   |   |   | 6,362 |   |   |   | 9,515 |   |
| Changes in assets and liabilities:                                                                                 |   |                     |    |   |   |   |   |   |   |   |   |   |
| (Increase) decrease in accounts receivable                                                                         |   |                     | (5,421  | ) |   |   | 767 |   |   |   | 5,239 |   |
| (Increase) decrease in other current assets                                                                        |   |                     | (754    | ) |   |   | 882 |   |   |   | (333 | ) |
| (Increase) decrease in deferred tax and other assets                                                               |   |                     | (2,002  | ) |   |   | 1,050 |   |   |   | 617 |   |
| (Decrease) increase in accounts payable and accrued expenses                                                       |   |                     | (691    | ) |   |   | (3,352 | ) |   |   | 3,847 |   |
| Increase in deferred revenue – current                                                                       |   |                     | 634     |   |   |   | 204 |   |   |   | - |   |
| Increase (decrease) in deferred tax and other current liabilities                                                  |   |                     | 2,069   |   |   |   | 3 |   |   |   | (58 | ) |
| (Decrease) increase in deferred revenue - long term                                                                |   |                     | (162    | ) |   |   | 162 |   |   |   | - |   |
| (Decrease) increase in other liabilities                                                                           |   |                     | (419    | ) |   |   | (138 | ) |   |   | 1,635 |   |
| Net cash (used in) provided by operating activities                                                                |   |                     | (34,644 | ) |   |   | 18,387 |   |   |   | (46,410 | ) |
| Cash flows from investing activities:                                                                              |   |                     |    |   |   |   |   |   |   |   |   |   |
| Capital expenditures                                                                                               |   |                     | (767    | ) |   |   | (226 | ) |   |   | (2,171 | ) |
| Proceeds from sales of fixed assets                                                                                |   |                     | 390     |   |   |   | - |   |   |   | - |   |
| Proceeds from redemption of auction rate securities                                                                |   |                     | 100     |   |   |   | 300 |   |   |   | 1,700 |   |
| Net cash (used in) provided by investing activities                                                                |   |                     | (277    | ) |   |   | 74 |   |   |   | (471 | ) |
| Cash flows from financing activities:                                                                              |   |                     |    |   |   |   |   |   |   |   |   |   |
| Proceeds from public offering of common stock, net of underwriting discounts and commissions and offering expenses |   |                     | 23,348  |   |   |   | - |   |   |   | - |   |
| Proceeds from the exercise of stock options and sale of common stock under the employee stock purchase plans       |   |                     | 306     |   |   |   | 3,726 |   |   |   | 3,896 |   |
| Net cash provided by financing activities                                                                          |   |                     | 23,654  |   |   |   | 3,726 |   |   |   | 3,896 |   |
| Net (decrease) increase in cash and cash equivalents                                                               |   |                     | (11,267 | ) |   |   | 22,187 |   |   |   | (42,985 | ) |
| Cash and cash equivalents at beginning of period                                                                   |   |                     | 70,105  |   |   |   | 47,918 |   |   |   | 90,903 |   |
| Cash and cash equivalents at end of period                                                                         |   | $                        | 58,838  |   |   | $ | 70,105 |   |   | $ | 47,918 |   |

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

----

Table of Contents

| ·  | Level 1 - Valuations based on unadjusted quoted market prices in active markets for identical securities.                                                                                                                                                     |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                          |
| ·  | Level 2 - Valuations based on observable inputs other than Level 1 prices, such as quoted prices for similar assets at the measurement date, quoted prices in markets that are not active or other inputs that are observable, either directly or indirectly. |
|         |                                                                                                                                                                                                                                                          |
| ·  | Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement, and involve management judgment.                                                                                                            |

----

Table of Contents

| Computer equipment      | 3 years                                 |
|-------------------------|-----------------------------------------|
| Machinery and equipment | 5-7 years                               |
| Furniture and fixtures  | 5 years                                 |
| Leasehold improvements  | Earlier of life of improvement or lease |
|                            |   | 2012   |   |   | 2011   |
|---------------------------------|--------|--------|--------|--------|--------|
| Other current liabilities:      |   |        |   |   |        |
| Deferred lease incentive        |   | $      | 115    |   |   | $ | 115 |
| Total other current liabilities |   | $      | 115    |   |   | $ | 115 |
| Other liabilities:              |   |   |   |   |   |   |   |
| Deferred lease liability        |   | $      | 273    |   |   | $ | 577 |
| Deferred lease incentive        |   |   | 805    |   |   |   | 920 |
| Total other liabilities         |   | $      | 1,078  |   |   | $ | 1,497 |

----

Table of Contents

----

Table of Contents

|                    |   |                             |   |   | Fair Value Measurements at December 31, 2012                  |
|-------------------------|--------|-----------------------------|--------|--------|---------------------------------------------------------------|
|                    |   | Balance atDecember 31, 2012 |   |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |
|                    |   |                             |   |   |                                                               |   |   |  |   |   |  |
| Money market funds      |   | $                           | 56,224 |   |                                                          | $ | 56,224 |   |   | $ | - |   |   | $ | - |
| Auction rate securities |   |                        | 3,240  |   |                                                          |   | - |   |   |   | - |   |   |   | 3,240 |
| Total                   |   | $                           | 59,464 |   |                                                          | $ | 56,224 |   |   | $ | - |   |   | $ | 3,240 |
|                    |   |                             |   |   | Fair Value Measurements at December 31, 2011                  |
|-------------------------|--------|-----------------------------|--------|--------|---------------------------------------------------------------|
|                    |   | Balance atDecember 31, 2011 |   |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |
|                    |   |                             |   |   |                                                               |   |   |  |   |   |  |
| Money market funds      |   | $                           | 64,068 |   |                                                          | $ | 64,068 |   |   | $ | - |   |   | $ | - |
| Auction rate securities |   |                        | 3,332  |   |                                                          |   | - |   |   |   | - |   |   |   | 3,332 |
| Total                   |   | $                           | 67,400 |   |                                                          | $ | 64,068 |   |   | $ | - |   |   | $ | 3,332 |

----

Table of Contents

|                                                                                                                                                                                             |   | Fair Value Measurements Using SignificantUnobservable Inputs(Level 3) |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|
| Description                                                                                                                                                                                      |   | 2012                                                                  |   |   | 2011 |   |
| Balance at beginning of period                                                                                                                                                                   |   | $                                                                     | 3,332  |   |   | $ | 3,608 |   |
| Transfers into Level 3                                                                                                                                                                           |   |                                                                  | -      |   |   |   | - |   |
| Total realized/unrealized gains (losses)                                                                                                                                                         |   |                                                                  |   |   |   |   |   |   |
| Included in net income (loss)                                                                                                                                                                    |   |                                                                  | -      |   |   |   | - |   |
| Included in comprehensive income (loss)                                                                                                                                                          |   |                                                                  | 8      |   |   |   | 24 |   |
| Settlements                                                                                                                                                                                      |   |                                                                  | (100   | ) |   |   | (300 | ) |
| Balance at end of period                                                                                                                                                                         |   | $                                                                     | 3,240  |   |   | $ | 3,332 |   |
| Total amount of unrealized gains (losses) for the period included in other comprehensive loss attributable to the change in fair market value of related assets still held at the reporting date |   | $                                                                     | -      |   |   | $ | - |   |
|                                       |   | Amortized  |   |   | Fair   |   |   | Unrealized Holding |   |
|--------------------------------------------|--------|------------|--------|--------|--------|--------|--------|--------------------|--------|
| 2012:                                      |   | Cost Basis |   |   | Value  |   |   | Gains              |   |   | (Losses) |   |   | Net |   |
| Maturities greater than ten years:         |   |            |   |   |        |   |   |                    |   |   |  |   |   |  |   |
| Auction rate securities                    |   | $          | 2,500  |   |   | $      | 2,300  |               |   | $ | - |   |   | $ | (200 | ) |   | $ | (200 | ) |
| Investments without stated maturity dates: |   |       |   |   |   |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |
| Auction rate securities                    |   |       | 1,000  |   |   |   | 940    |               |   |   | - |   |   |   | (60 | ) |   |   | (60 | ) |
|                                       |   | $          | 3,500  |   |   | $      | 3,240  |               |   | $ | - |   |   | $ | (260 | ) |   | $ | (260 | ) |
|                                       |   | Amortized  |   |   | Fair   |   |   | Unrealized Holding |   |
|--------------------------------------------|--------|------------|--------|--------|--------|--------|--------|--------------------|--------|
| 2011:                                      |   | Cost Basis |   |   | Value  |   |   | Gains              |   |   | (Losses) |   |   | Net |   |
| Maturities greater than ten years:         |   |            |   |   |        |   |   |                    |   |   |  |   |   |  |   |
| Auction rate securities                    |   | $          | 2,600  |   |   | $      | 2,392  |               |   | $ | - |   |   | $ | (208 | ) |   | $ | (208 | ) |
| Investments without stated maturity dates: |   |       |   |   |   |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |
| Auction rate securities                    |   |       | 1,000  |   |   |   | 940    |               |   |   | - |   |   |   | (60 | ) |   |   | (60 | ) |
|                                       |   | $          | 3,600  |   |   | $      | 3,332  |               |   | $ | - |   |   | $ | (268 | ) |   | $ | (268 | ) |

----

Table of Contents

| 2012:                     |   | Less than 12 Months |   |   | 12 Months or Greater |   |   | Total      |   |
|---------------------------|--------|---------------------|--------|--------|----------------------|--------|--------|------------|--------|
| Description of Securities |   | Fair Value          |   |   | Unrealized Losses    |   |   | Fair Value |   |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |
|                      |   |                     |   |   |                      |   |   |            |   |   |  |   |   |  |   |   |  |   |
| Auction rate securities   |   | $                   | -      |   |                 | $      | -      |       |   | $ | 3,240 |   |   | $ | (260 | ) |   | $ | 3,240 |   |   | $ | (260 | ) |
| Total                     |   | $                   | -      |   |                 | $      | -      |       |   | $ | 3,240 |   |   | $ | (260 | ) |   | $ | 3,240 |   |   | $ | (260 | ) |
| 2011:                     |   | Less than 12 Months |   |   | 12 Months or Greater |   |   | Total      |   |
|---------------------------|--------|---------------------|--------|--------|----------------------|--------|--------|------------|--------|
| Description of Securities |   | Fair Value          |   |   | Unrealized Losses    |   |   | Fair Value |   |   | Unrealized Losses |   |   | Fair Value |   |   | Unrealized Losses |   |
|                      |   |                     |   |   |                      |   |   |            |   |   |  |   |   |  |   |   |  |   |
| Auction rate securities   |   | $                   | -      |   |                 | $      | -      |       |   | $ | 3,332 |   |   | $ | (268 | ) |   | $ | 3,332 |   |   | $ | (268 | ) |
| Total                     |   | $                   | -      |   |                 | $      | -      |       |   | $ | 3,332 |   |   | $ | (268 | ) |   | $ | 3,332 |   |   | $ | (268 | ) |
|            |   | 2012   |   |   | 2011   |
|-----------------|--------|--------|--------|--------|--------|
| Collaborators   |   | $      | 6,125  |   |   | $ | 77 |
| Royalties       |   |   | 781    |   |   |   | 1,279 |
| Research grants |   |   | 12     |   |   |   | 100 |
| Other           |   |   | 19     |   |   |   | 60 |
| Total           |   | $      | 6,937  |   |   | $ | 1,516 |

----

Table of Contents

|                                            |   | 2012   |    |   | 2011   |   |
|-------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Computer equipment                              |   | $      | 2,166   |   |   | $      | 2,133 |   |
| Machinery and equipment                         |   |   | 8,031   |   |   |   | 12,035 |   |
| Furniture and fixtures                          |   |   | 133     |   |   |   | 230 |   |
| Leasehold improvements                          |   |   | 5,327   |   |   |   | 11,526 |   |
| Construction in progress and other              |   |   | 12      |   |   |   | 175 |   |
|                                            |   |   | 15,669  |   |   |   | 26,099 |   |
| Less, accumulated depreciation and amortization |   |   | (12,270 | )      |   |   | (22,061 | ) |
| Total                                           |   | $      | 3,399   |   |   | $      | 4,038 |   |
|                                        |   | 2012   |   |   | 2011   |
|---------------------------------------------|--------|--------|--------|--------|--------|
| Accrued consulting and clinical trial costs |   | $      | 2,193  |   |   | $ | 1,637 |
| Accrued payroll and related costs           |   |   | 1,552  |   |   |   | 3,149 |
| Restructuring accrual                       |   |   | 813    |   |   |   | 731 |
| Legal and professional fees                 |   |   | 774    |   |   |   | 371 |
| Accounts payable                            |   |   | 229    |   |   |   | 309 |
| Other                                       |   |   | 79     |   |   |   | 134 |
| Total                                       |   | $      | 5,640  |   |   | $ | 6,331 |

----

Table of Contents

|                         |   | Severance and Related Benefits |   |   | Other Exit Costs |   |   | Contract Termination Costs |   |   | Total Restructuring Accrual |   |
|------------------------------|--------|--------------------------------|--------|--------|------------------|--------|--------|----------------------------|--------|--------|-----------------------------|--------|
| Balance at December 31, 2011 |   | $                              | 571    |   |             | $      | 6      |                       |   | $      | 154                         |   |   | $ | 731 |   |
| Additions, net               |   |                           | 1,905  |   |             |   | 184    |                       |   |   | 3                           |   |   |   | 2,092 |   |
| Payments                     |   |                           | (1,663 | )      |             |   | (190   | )                          |   |   | (157                        | )      |   |   | (2,010 | ) |
| Balance at December 31, 2012 |   | $                              | 813    |   |             | $      | -      |                       |   | $      | -                           |   |   | $ | 813 |   |
| Years ending December 31, |   | Minimum Annual Payments |
|--------------------------------|--------|-------------------------|
| 2013                           |   | $                       | 2,410 |
| 2014                           |   |                    | 2,410 |
| 2015                           |   |                    | 2,470 |
| 2016                           |   |                    | 2,532 |
| 2017                           |   |                    | 2,595 |
| Thereafter                     |   |                    | 8,182 |
| Total                          |   | $                       | 20,599 |

----

Table of Contents

| Agreement                              |   | Paid from inception to December 31, 2012 |   |   | Future (1)Commitments |   | Terms                    |
|----------------------------------------|--------|------------------------------------------|--------|--------|-----------------------|--------|--------------------------|
| Progenics agreements with:             |
|                                   |   |                                          |   |   |                       |   |      |
| Lonza Sales AG                         |   | $                                        | 909    |   |                  | $      | 808                      |   | Annual license fee payments, milestones and royalties, as applicable, in respect of oncology and other products. |
|                                   |   |                                     |   |   |                  |   |                     |   |      |
| PSMA LLC agreements with:              |
| Seattle Genetics, Inc.                 |   |                                     | 4,400  |   |                  |   | 13,800                   |   | Milestone and periodic maintenance payments to use ADC technology to link chemotherapeutic agents to monoclonal antibodies that target prostate specific membrane antigen. ADC technology is based in part on technology licensed by SGI from third parties. |
|                                   |   |                                     |   |   |                  |   |                     |   |      |
| Amgen Fremont, Inc. (formerly Abgenix) |   |                                     | 1,350  |   |                  |   | 5,750                    |   | Milestones and royalties to use XenoMouse® technology for generating fully human antibodies to PSMA LLC's PSMA antigen. |
|                                   |   |                                     |   |   |                  |   |                     |   |      |
| Former member of PSMA LLC              |   |                                     | 241    |   |                  |   | 52,216                   |   | Annual minimum royalty payments and milestones to use technology related to PSMA. |

----

Table of Contents

----

Table of Contents

|                                   |   | 2012                |   | 2011                |   | 2010                |
|----------------------------------------|--------|---------------------|--------|---------------------|--------|---------------------|
|                                   |   |                |   |                |   |                |
| Expected volatility                    |   | 70% – 85%     |   | 68% – 78%     |   | 68% – 87%     |
| Expected dividends                     |   | Zero                |   | zero                |   | zero                |
| Expected term (years)                  |   | 5.3 – 10      |   | 5.3 – 10      |   | 5.3 – 10      |
| Weighted average expected term (years) |   | 6.11                |   | 6.17                |   | 6.92                |
| Risk-free rate                         |   | 0.57% – 1.71% |   | 0.77% – 2.97% |   | 1.21% – 3.09% |
| Options                          |   | Shares |   |   | Weighted Average Exercise Price |   |   | Weighted Average Remaining Contractual Term (Yr.) |   |   | Aggregate Intrinsic Value |
|----------------------------------|--------|--------|--------|--------|---------------------------------|--------|--------|---------------------------------------------------|--------|--------|---------------------------|
|                             |   |        |   |   |                                 |   |   |                                                   |   |   |                           |
| Outstanding at January 1, 2012   |   |   | 5,597  |   |                            | $      | 12.60  |                                              |   |        |                      |   |  |
| Granted                          |   |   | 814    |   |                            |   | 9.54   |                                              |   |        |                      |   |  |
| Exercised                        |   |   | (38    | )      |                            |   | 5.28   |                                              |   |        |                      |   |  |
| Forfeited or expired             |   |   | (1,007 | )      |                            |   | 12.16  |                                              |   |        |                      |   |  |
| Outstanding at December 31, 2012 |   |   | 5,366  |   |                            | $      | 12.27  |                                              |   |   | 5.61                      |   |   | $ | 1 |
| Exercisable at December 31, 2012 |   |   | 3,970  |   |                            | $      | 13.72  |                                              |   |   | 4.77                      |   |   | $ | 1 |

----

Table of Contents

| Restricted Stock Awards        |   | Shares |   |   | Weighted Average Grant-DateFair Value |
|--------------------------------|--------|--------|--------|--------|---------------------------------------|
|                           |   |        |   |   |                                       |
| Nonvested at January 1, 2012   |   |   | 98     |   |                                  | $ | 7.40 |
| Granted                        |   |   | -      |   |                                  |   | - |
| Vested                         |   |   | (64    | )      |                                  |   | 8.50 |
| Forfeited                      |   |   | (6     | )      |                                  |   | 5.35 |
| Nonvested at December 31, 2012 |   |   | 28     |   |                                  | $ | 5.35 |
|                |   | 2011                |   | 2010                |
|---------------------|--------|---------------------|--------|---------------------|
|                |   |                |   |                |
| Expected volatility |   | 43% – 51%     |   | 45% – 72%     |
| Expected dividends  |   | zero                |   | zero                |
| Expected term       |   | 6 months            |   | 6 months            |
| Risk-free rate      |   | 0.06% – 0.22% |   | 0.11% – 0.18% |
|   |   | Qualified Plan   |   |   | Non-Qualified Plan |
|--------|--------|------------------|--------|--------|--------------------|
|   |   | Shares Purchased |   |   | Price Range        |   |   | WeightedAverage Grant-Date Fair Value |   |   | Shares Purchased |   |   | Price Range |   |   | WeightedAverage Grant-Date Fair Value |
|   |   |                  |   |   |                    |   |   |  |   |   |  |   |   |  |   |   |  |
| 2011   |   |             | 428    |   |               | $ | 4.62 – $5.65 |   |   | $ | 0.88 |   |   |   | 162 |   |   | $ | 4.62 – $5.65 |   |   | $ | 0.84 |
| 2010   |   |             | 802    |   |               | $ | 3.50 – $4.56 |   |   | $ | 0.94 |   |   |   | 208 |   |   | $ | 3.75 – $4.56 |   |   | $ | 0.96 |
|                       |   | 2012   |   |   | 2011   |   |   | 2010   |
|----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Recognized as:             |   |        |   |   |        |   |   |        |
| Research and Development   |   | $      | 4,568  |   |   | $      | 4,499  |   |   | $ | 5,091 |
| General and Administrative |   |   | 1,968  |   |   |   | 1,863  |   |   |   | 4,424 |
| Total                      |   | $      | 6,536  |   |   | $      | 6,362  |   |   | $ | 9,515 |

----

Table of Contents

|                                              |   | 2012   |     |   | 2011   |   |
|---------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Deferred tax assets:                              |   |        |     |   |        |   |
| Depreciation and amortization                     |   | $      | 6,497    |   |   | $      | 6,865 |   |
| R&E tax credit carry-forwards                 |   |   | 11,843   |   |   |   | 11,966 |   |
| NYS investment tax credit carry-forwards          |   |   | 1,084    |   |   |   | 1,088 |   |
| AMT credit carry-forwards                         |   |   | 211      |   |   |   | 211 |   |
| Net operating loss carry-forwards                 |   |   | 112,966  |   |   |   | 85,110 |   |
| Capitalized research and development expenditures |   |   | 30,884   |   |   |   | 43,113 |   |
| Stock compensation                                |   |   | 14,436   |   |   |   | 13,789 |   |
| Other items                                       |   |   | 2,193    |   |   |   | 3,600 |   |
| Total gross deferred tax assets                   |   |   | 180,114  |   |   |   | 165,742 |   |
| Less: Valuation allowance                         |   |   | (178,045 | )      |   |   | (165,742 | ) |
| Deferred tax assets                               |   |   | 2,069    |   |   |   | - |   |
| Deferred tax liability - current                  |   |   | (2,069   | )      |   |   | - |   |
| Net deferred tax asset (liability)                |   | $      | -        |   |   | $      | - |   |

|                                                             |   | 2012                   |   | 2011                   |   | 2010                     |
|------------------------------------------------------------------|--------|------------------------|--------|------------------------|--------|--------------------------|
|                                                             |   |                   |   |                   |   |                     |
| U.S. Federal statutory rate                                      |   |   (35.0)%    |   |   35.0%      |   |   (34.0)%      |
| State income taxes, net of Federal benefit                       |   | (5.4)                  |   | 8.0                    |   | (5.1)                    |
| Research and experimental tax credit                             |   | -                      |   | (4.1)                  |   | (1.7)                    |
| Change in valuation allowance                                    |   | 34.7                   |   | (22.6)                 |   | 38.2                     |
| Effect of federal tax rate bracket change on valuation allowance |   | -                      |   | (34.8)                 |   | -                        |
| Equity compensation                                              |   | 4.2                    |   | 17.0                   |   | 2.3                      |
| Investment tax credit                                            |   | -                      |   | (0.1)                  |   | 0.1                      |
| Other                                                            |   | 1.5                    |   | 1.6                    |   | 0.1                      |
| Income tax provision (benefit)                                   |   |    0.0% |   |    0.0% |   |    (0.1)% |

----

Table of Contents

|                                            |   | Net (Loss) Income (Numerator) |    |   | Weighted AverageCommon Shares (Denominator) |   |   | Per Share Amount |   |
|-------------------------------------------------|--------|-------------------------------|---------|--------|---------------------------------------------|--------|--------|------------------|--------|
| 2012:                                           |   |                               |    |   |                                             |   |   |                  |   |
| Basic and diluted                               |   | $                             | (35,431 | )      |                                        |   | 34,754 |             |   | $ | (1.02 | ) |
| 2011:                                           |   |                          |    |   |                                        |   |   |             |   |   |   |   |
| Basic                                           |   | $                             | 10,381  |   |                                        |   | 33,375 |             |   | $ | 0.31 |   |
|   Dilutive effect of stock options    |   |                          | -       |   |                                        |   | 66     |             |   |   |   |   |
|   Dilutive effect of restricted stock |   |                          | -       |   |                                        |   | 53     |             |   |   |   |   |
| Diluted                                         |   | $                             | 10,381  |   |                                        |   | 33,494 |             |   | $ | 0.31 |   |
| 2010:                                           |   |                          |    |   |                                        |   |   |             |   |   |   |   |
| Basic and diluted                               |   | $                             | (69,725 | )      |                                        |   | 32,590 |             |   | $ | (2.14 | ) |
|             |   | 2012                   |   |   | 2011                           |   |   | 2010                   |
|------------------|--------|------------------------|--------|--------|--------------------------------|--------|--------|------------------------|
|             |   | WeightedAverage Number |   |   | WeightedAverage Exercise Price |   |   | WeightedAverage Number |   |   | WeightedAverage Exercise Price |   |   | WeightedAverage Number |   |   | WeightedAverage Exercise Price |
| Options          |   |                   | 5,947  |   |                           | $      | 12.32  |                   |   |   | 4,543 |   |   | $ | 14.92 |   |   |   | 5,037 |   |   | $ | 15.17 |
| Restricted stock |   |                   | 60     |   |                           |   |   |                   |   |   | 45 |   |   |   |   |   |   |   | 45 |   |   |   |   |
| Total            |   |                   | 6,007  |   |                           |   |   |                   |   |   | 4,588 |   |   |   |   |   |   |   | 5,082 |   |   |   |   |

----

Table of Contents

|                                   |   | 2012 Quarter Ended |    |
|----------------------------------------|--------|--------------------|---------|
|                                   |   | March 31           |    |   | June 30 |   |   | September 30 |   |   | December 31 |   |
| Revenues (1)                           |   | $                  | 2,226   |   |   | $ | 1,820 |   |   | $ | 1,117 |   |   | $ | 8,885 |   |
| Net loss                               |   |               | (13,086 | ) |   |   | (10,720 | ) |   |   | (11,301 | ) |   |   | (324 | ) |
| Net loss per share - basic and diluted |   |               | (0.39   | ) |   |   | (0.32 | ) |   |   | (0.33 | ) |   |   | (0.01 | ) |
|                                  |   | 2011 Quarter Ended |    |
|---------------------------------------|--------|--------------------|---------|
|                                  |   | March 31           |    |   | June 30 |   |   | September 30 |   |   | December 31 |   |
| Revenues (2)                          |   | $                  | 2,388   |   |   | $ | 74,407 |   |   | $ | 5,804 |   |   | $ | 2,197 |   |
| Net income (loss)                     |   |               | (22,927 | ) |   |   | 55,486 |   |   |   | (11,432 | ) |   |   | (10,746 | ) |
| Net income (loss) per share - basic   |   |               | (0.69   | ) |   |   | 1.66 |   |   |   | (0.34 | ) |   |   | (0.32 | ) |
| Net income (loss) per share - diluted |   |               | (0.69   | ) |   |   | 1.64 |   |   |   | (0.34 | ) |   |   | (0.32 | ) |

| (1) | Revenues in the fourth quarter of 2012 include $5.0 million and $2.8 million from the MedImmune and CytoDyn Agreements, respectively. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Revenues in the second quarter of 2011 include $59.5 million from the Salix Agreement |
|-----|---------------------------------------------------------------------------------------|

----

Table of Contents

|   | PROGENICS PHARMACEUTICALS, INC. |
|--------|---------------------------------|
|   | By:                             | /s/ MARK R. BAKER |
|   |                            | Mark R. Baker Chief Executive Officer and Director(Principal Executive Officer) |
| Signature                         |   | Capacity                                                                                                 | Date           |
|-----------------------------------|--------|----------------------------------------------------------------------------------------------------------|----------------|
|  /s/ PETER J. CROWLEY        |   | Chairman                                                                                                 | March 14, 2013 |
| Peter J. Crowley                  |   |                                                                                                     |           |
| /s/ PAUL J. MADDON                |   | Vice Chairman                                                                                            | March 14, 2013 |
| Paul J. Maddon, M.D., Ph.D.  |   |                                                                                                     |           |
| /s/ MARK R. BAKER                 |   | Chief Executive Officer and Director(Principal Executive Officer)                                        | March 14, 2013 |
| Mark R. Baker                     |   |                                                                                                     |           |
|                              |   |                                                                                                     |           |
| /s/ CHARLES A. BAKER              |   | Director                                                                                                 | March 14, 2013 |
| Charles A. Baker                  |   |                                                                                                     |           |
| /s/ KURT W. BRINER                |   | Director                                                                                                 | March 14, 2013 |
| Kurt W. Briner                    |   |                                                                                                     |           |
| /s/ STEPHEN P. GOFF               |   | Director                                                                                                 | March 14, 2013 |
| Stephen P. Goff, Ph.D.            |   |                                                                                                     |           |
| /s/ DAVID A. SCHEINBERG           |   | Director                                                                                                 | March 14, 2013 |
| David A. Scheinberg, M.D., Ph.D.  |   |                                                                                                     |           |
| /s/ NICOLE S. WILLIAMS            |   | Director                                                                                                 | March 14, 2013 |
| Nicole S. Williams                |   |                                                                                                     |           |
| /s/ ANGELO W. LOVALLO, JR.        |   | Senior Executive Director, Financial Reporting and Treasurer(Principal Financial and Accounting Officer) | March 14, 2013 |
| Angelo W. Lovallo, Jr.            |   |                                                                                                     |           |
|                              |   |                                                                                                     |           |

----

Table of Contents

|                    |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Exhibit                 |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Number *                |   | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 3.1(1)                  |   | Amended and Restated Certificate of Incorporation of the Registrant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 3.2(2)                  |   | Amended and Restated By-laws of the Registrant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 4.1(3)                  |   | Specimen Certificate for Common Stock, $0.0013 par value per share, of the Registrant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.1(3)                 |   | Form of Registration Rights Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.2(3)                 |   | 1989 Non-Qualified Stock Option Plan‡                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.3(3)                 |   | 1993 Stock Option Plan, as amended‡                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.4(3)                 |   | 1993 Executive Stock Option Plan‡                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.5(4)                 |   | Amended and Restated 1996 Stock Incentive Plan‡                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.6.3(5)               |   | Amended 2005 Stock Incentive Plan ‡                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.6.4(6)               |   | Form of Non-Qualified Stock Option Award Agreement ‡                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| 10.6.5(6)               |   | Form of Restricted Stock Award Agreement ‡                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| 10.7(7)                 |   | Form of Indemnification Agreement‡                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| 10.8(8)                 |   | Employment Agreement, dated December 31, 2007, between the Registrant and Dr. Paul J. Maddon‡                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.8.1(9)               |   | First Amendment to Employment Agreement, dated March 31, 2011, between the Registrant and Dr. Paul J. Maddon‡                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.8.2(10)              |   | Retirement Agreement, dated as of March 14, 2012, between the Registrant and Dr. Paul J. Maddon‡                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 10.9(3)                 |   | Letter dated August 25, 1994 between the Registrant and Dr. Robert J. Israel‡                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.16(11)†        |   | Development and License Agreement, dated April 30, 1999, between Protein Design Labs, Inc. and the Registrant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| 10.16.1(12)             |   | Letter Agreement, dated November 24, 2003, relating to the Development and License Agreement between Protein Design Labs, Inc. and the Registrant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.18(13)               |   | Director Stock Option Plan‡                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 10.19(14)†        |   | Exclusive Sublicense Agreement, dated September 21, 2001, between the Registrant and UR Labs, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.19.1(15)             |   | Amendment to Exclusive Sublicense Agreement, dated September 21, 2001, between the Registrant and UR Labs, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.21.1(16)             |   | Amended and Restated Agreement of Lease, dated October 28, 2009, between BMR-Landmark at Eastview LLC and the Registrant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.23                   |   | Information concerning compensation of the Registrant's non-employee directors is included in the Registrant's proxy material for its 2012 Annual Meeting of Stockholders and is incorporated herein by reference.‡                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 10.25(17) †       |   | Option and License Agreement, dated May 8, 1985, by and between the University of Chicago and UR Labs, Inc., as amended by (i) Amendment to Option and License Agreement, dated September 17, 1987, by and between the University of Chicago and UR Labs, Inc., (ii) Second Amendment to Option and License Agreement, dated March 3, 1989, by and among the University of Chicago, ARCH Development Corporation and UR Labs, Inc., and (iii) Letter Agreement Related to Progenics' Relistor In-License dated, December 22, 2005, by and among the University of Chicago, acting on behalf of itself and ARCH Development Corporation, the Registrant, Progenics Pharmaceuticals Nevada, Inc. and Wyeth, acting through its Wyeth Pharmaceuticals Division. |
| 10.26(18)               |   | Membership Interest Purchase Agreement, dated April 20, 2006, between the Registrant Inc. and Cytogen Corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 10.27(18) †       |   | Amended and Restated PSMA/PSMP License Agreement, dated April 20, 2006, by and among the Registrant, Cytogen Corporation and PSMA Development Company LLC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.28(19)               |   | Consulting Agreement, dated May 1, 1995, between Active Biotherapies, Inc. and Dr. David A. Scheinberg, M.D., Ph.D., as amended on June 13, 1995, as assigned to the Registrant, and as amended on January 1, 2001‡                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.29(20)  † |   | License Agreement, dated as of October 16, 2008, by and among Ono Pharmaceutical Co., Ltd. and the Registrant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.30(20)  † |   | Partial Termination and License Agreement, dated October 16, 2008, by and among Wyeth, acting through Wyeth Pharmaceuticals Division, Wyeth-Whitehall Pharmaceuticals, Inc. and Wyeth-Ayerst Lederle, Inc. and the Registrant and Progenics Pharmaceuticals Nevada, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.31(20)  † |   | Consent, Acknowledgment and Agreement, dated as of October 16, 2008, by and among Wyeth, acting through Wyeth Pharmaceuticals Division, Wyeth-Whitehall Pharmaceuticals, Inc. and Wyeth-Ayerst Lederle, Inc., the Registrant and Ono Pharmaceutical Co., Ltd.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| 10.32(20)  † |   | 2008 Agreement Related to Progenics' MNTX In-License, dated October 16, 2008, by and among the University of Chicago, acting on behalf of itself and ARCH Development Corporation, the Registrant, Progenics Pharmaceuticals Nevada, Inc. and Ono Pharmaceutical Co., Ltd.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.33(21)  † |   | Termination and Transition Agreement, effective as of October 1, 2009, by and among Wyeth, acting through Wyeth Pharmaceuticals Division, Wyeth-Whitehall Pharmaceuticals, Inc., Wyeth-Ayerst Lederle, Inc., and AHP Manufacturing B.V., and the Registrant, Progenics Pharmaceuticals Nevada, Inc. and Excelsior Life Sciences Ireland Limited.                                                                                                                                                                                                                                                                                                                                                                                                                                 |

----

Table of Contents

| 10.33.1(22)  † |   | First Amendment to Termination and Transition Agreement, effective as of October 1, 2010, by and among Wyeth LLC, acting through Wyeth Pharmaceuticals Division, Wyeth-Whitehall Pharmaceuticals LLC, Wyeth-Ayerst Lederle LLC, and AHP Manufacturing B.V., and the Registrant, Progenics Pharmaceuticals Nevada, Inc. and Excelsior Life Sciences Ireland Limited. |
|---------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.34(23)  †   |   | Collaboration Agreement, effective June 14, 2005, by and between Seattle Genetics, Inc. and PSMA Development Company, LLC.                                                                                                                                                                                                                                          |
| 10.37(9)  †    |   | License Agreement dated as of February 3, 2011, by and between Salix Pharmaceuticals, Inc., the Registrant, Progenics Pharmaceuticals Nevada, Inc. and Excelsior Life Sciences Ireland Limited.                                                                                                                                                                     |
| 10.37.1(9) †        |   | 2010 Agreement Related to Progenics' MNTX In-License, dated February 3, 2011, by and among the University of Chicago, acting on behalf of itself and ARCH Development Corporation, the Registrant, Progenics Pharmaceuticals Nevada, Inc. and Salix Pharmaceuticals, Inc.                                                                                           |
| 12.1                      |   | Statement re computation of ratio of earnings (loss) to combined fixed charges and preferred stock dividends.                                                                                                                                                                                                                                                  |
| 21.1                      |   | Subsidiaries of the Registrant.                                                                                                                                                                                                                                                                                                                                     |
| 23.1                      |   | Consent of PricewaterhouseCoopers LLP.                                                                                                                                                                                                                                                                                                                              |
| 23.2                      |   | Consent of Ernst & Young LLP.                                                                                                                                                                                                                                                                                                                                   |
| 31.1                      |   | Certification of Mark R. Baker, Chief Executive Officer of the Registrant pursuant to 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended.                                                                                                                                                                                      |
| 31.2                      |   | Certification of Angelo W. Lovallo, Jr., Senior Executive Director, Financial Reporting & Treasurer of the Registrant pursuant to 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended.                                                                                                                                           |
| 32.1                      |   | Certification of Mark R. Baker, Chief Executive Officer of the Registrant pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                       |
| 32.2                      |   | Certification of Angelo W. Lovallo, Jr., Senior Executive Director, Financial Reporting & Treasurer of the Registrant pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                            |
| 101                       |   | Interactive Data File                                                                                                                                                                                                                                                                                                                                               |
| 101.INS                   |   | XBRL Instance Document                                                                                                                                                                                                                                                                                                                                              |
| 101.SCH                   |   | XBRL Taxonomy Extension Schema                                                                                                                                                                                                                                                                                                                                      |
| 101.CAL                   |   | XBRL Taxonomy Extension Calculation Linkbase                                                                                                                                                                                                                                                                                                                        |
| 101.LAB                   |   | XBRL Taxonomy Extension Label Linkbase                                                                                                                                                                                                                                                                                                                              |
| 101.PRE                   |   | XBRL Taxonomy Extension Presentation Linkbase                                                                                                                                                                                                                                                                                                                       |
| 101.DEF                   |   | XBRL Taxonomy Extension Definition Document                                                                                                                                                                                                                                                                                                                         |
|    |   |                                                                                                                                                                               |
|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *       |   | Exhibits footnoted as previously filed have been filed as an exhibit to the document of the Registrant referenced in the footnote below, and are incorporated by reference herein. |
|    |   |                                                                                                                                                                               |
| (1)     |   | Previously filed in Quarterly Report on Form 10-Q for the quarter ended June 30, 2011.                                                                                             |
| (2)     |   | Previously filed in Current Report on Form 8-K filed on March 16, 2012.                                                                                                       |
| (3)     |   | Previously filed in Registration Statement on Form S-1, Commission File No. 333-13627.                                                                                   |
| (4)     |   | Previously filed in Registration Statement on Form S-8, Commission File No. 333-120508.                                                                                  |
| (5)     |   | Previously filed in Current Report on Form 8-K filed on November 28, 2012.                                                                                                    |
| (6)     |   | Previously filed in Current Report on Form 8-K filed on July 8, 2008.                                                                                                    |
| (7)     |   | Previously filed in Quarterly Report on Form 10-Q for the quarterly period ending March 31, 2007                                                                         |
| (8)     |   | Previously filed in Annual Report on Form 10-K for the year ended December 31, 2007.                                                                                               |
| (9)     |   | Previously filed in Quarterly Report on Form 10-Q for the quarter ended March 31, 2011.                                                                                            |
| (10)    |   | Previously filed in Quarterly Report on Form 10-Q for the quarter ended March 31, 2012.                                                                                            |
| (11)    |   | Previously filed in Quarterly Report on Form 10-Q for the quarterly period ended June 30, 1999.                                                                          |
| (12)    |   | Previously filed in Annual Report on Form 10-K for the year ended December 31, 2004.                                                                                               |
| (13)    |   | Previously filed in Annual Report on Form 10-K for the year ended December 31, 1999.                                                                                     |
| (14)    |   | Previously filed in Annual Report on Form 10-K for the year ended December 31, 2002.                                                                                     |
| (15)    |   | Previously filed in Current Report on Form 8-K filed on September 20, 2004.                                                                                              |
| (16)    |   | Previously filed in Current Report on Form 8-K filed on November 28, 2012.                                                                                                         |
| (17)    |   | Previously filed in Annual Report on Form 10-K for the year ended December 31, 2005.                                                                                               |
| (18)    |   | Previously filed in Quarterly Report on Form 10-Q for the quarterly period ending June 30, 2006.                                                                                   |
| (19)    |   | Previously filed in Annual Report on Form 10-K/A for the year ended December 31, 2006.                                                                                   |
| (20)    |   | Previously filed in Annual Report on Form 10-K for the year ended December 31, 2008.                                                                                               |
| (21)    |   | Previously filed in Annual Report on Form 10-K for the year ended December 31, 2009.                                                                                               |
| (22)    |   | Previously filed in Annual Report on Form 10-K for the year ended December 31, 2010.                                                                                               |
| (23)    |   | Previously filed in Amendment No. 2 to Annual Report on Form 10-K/A for the year ended December 31, 2009.                                                                          |
|    |   |                                                                                                                                                                               |
|    |   |                                                                                                                                                                               |
| † |   | Confidential treatment granted as to certain portions omitted and filed separately with the Commission.                                                                            |
| ‡ |   | Management contract or compensatory plan or arrangement.                                                                                                                           |
|    |   |                                                                                                                                                                               |