Contact:
            Investors:
              
              Progenics
      Pharmaceuticals, Inc.
              Richard
      W. Krawiec, Ph.D.
              Vice
      President, Corporate Affairs
              (914)
      789-2814
              rkrawiec@progenics.com
              
              Dory
      A. Lombardo
              Associate
      Director, Corporate Affairs
              (914)
      789-2818
              dlombardo@progenics.com
            Media:
              
              WeissComm
      Partners
              Aline
      Schimmel
              (312)
      646-6295
              
              Barri
      Winiarski
              (914)
      584-7468





PROGENICS
PHARMACEUTICALS REPORTS


FOURTH
QUARTER AND YEAR-END RESULTS AND CORPORATE UPDATE





Tarrytown, NY, March 13, 2009
– Progenics Pharmaceuticals, Inc. (Nasdaq: PGNX) today announced its results of
operations for the fourth quarter and year ended December 31, 2008.





Revenues
for the fourth quarter totaled $6.8 million, compared to $15.5 million for the
same period of 2007. For the year ended December 31, 2008, the Company reported
revenues of $67.7 million compared to $75.6 million for the comparable period of
2007.





Progenics
ended the year 2008 with cash, cash equivalents and marketable securities of
$141.4 million, compared to $170.4 million at December 31, 2007.





“Progenics
had a pivotal year in 2008 – most significantly with the approval of
RELISTOR®,
our first commercial product, by the U.S. Food and Drug Administration,” said
Paul J. Maddon, M.D., Ph.D., Progenics’ Founder, Chief Executive Officer and
Chief Science Officer. “RELISTOR is now approved in over 30 countries including
the U.S., Canada, Australia and all member states of the European Union, and we
are receiving royalties on worldwide sales. In addition, we made significant
progress in advancing product candidates in our pipeline, completing two phase 2
trials of PRO 140 for the treatment of HIV infection, initiating the first
clinical study of our PSMA antibody-drug conjugate for prostate cancer, and
selecting PRO 206, a novel viral-entry inhibitor for the treatment of hepatitis
C infection, for clinical development.”





“Progenics
has historically been efficient in managing its capital and has not incurred
debt,” Dr. Maddon continued. “In these challenging economic times, we will
continue controlling expenses while carefully deploying existing cash,
government funding and royalty proceeds for product development. We are guided
by a conservative fiscal strategy in seeking non-dilutive sources of funding,
including alliances to help us support our development programs.”





-
more -








Revenues
for the three months and years ended December 31, 2008 and 2007
reflect:





·
            Reimbursement from Wyeth
      Pharmaceuticals,a division of Wyeth(NYSE:
      WYE), for development work performed by Progenics under the RELISTOR
      collaboration, which was recognized in the amounts of $2.9 million and
      $9.2 million for the fourth quarters of 2008 and 2007, respectively. For
      the years 2008 and 2007, $24.7 million and $40.1 million was
      recognized.





·
            Amortization of the $60.0
      million upfront
      payment received from Wyeth in December 2005, which was recognized
      in the amounts of $2.1 million and $3.3 million in the fourth quarters of
      2008 and 2007, respectively. For the years 2008 and 2007, $10.2 million
      and $16.4 million was recognized.





·
            $25.0 million in additional
      milestone payments from Wyeth, whichwere received in
      2008 (no payments were received in the fourth quarter). During2007,
      Progenics received milestone payments totaling $9.0
      million.





·
            Royalty
      income on net sales of subcutaneous RELISTOR, which was
      recognized inthe amounts of $60,000 for the fourth quarter of 2008
      and $146,000 for the year 2008. Cumulative earned royalties of $519,000
      were deferred at December 31, 2008 and will be recognized as royalty
      income over the period of Progenics’ development
    obligations.





·
            Funding
      from government grants and contractrelated
      to the Company’s proprietary virology and oncology programs, which totaled
      $1.8 million and $3.0 million in the fourth quarters of 2008 and 2007,
      respectively. For the years 2008 and 2007, $7.5 million and $10.1 million
      was recognized.





Expenses
for the fourth quarter of 2008 were $22.6 million, compared to $33.2 million for
the fourth quarter of 2007. For the year ended December 31, 2008, expenses
totaled $118.6 million, compared to $127.1 million for the same period of
2007.





Research
and development expenses, including license fees and royalty expense, decreased
$11.0 million, both for the fourth quarter of 2008 and the year ended December
31, 2008, compared to the same periods of 2007. The fourth quarter 2008 decrease
in research and development expenses resulted primarily from a decrease in
activity related to the RELISTOR, PRO 140 and PSMA clinical programs,
partially offset by an increase in license fees. For the year ended December 31,
2008, research and development expenses decreased, primarily from a decrease in
activity related to the PSMA clinical program, and to a lesser extent, activity
related to the HCV research program, partially offset by increased activity in
the PRO 140 clinical program and increased headcount.





General
and administrative expenses increased for the three months and for the year
ended December 31, 2008, compared to the same periods of 2007. The fourth
quarter 2008 increase in general and administrative expenses was primarily due
to an increase in consulting expenses, partially offset by decreases in
operating expenses and share-based compensation. For the year ended December 31,
2008, general and administrative expenses increased primarily due to increased
headcount, consulting and professional fees, partially offset by decreases in
operating expenses and share-based compensation.





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more -
  2


Fourth
quarter 2008 net loss was $14.6 million, compared to a net loss of $15.3 million
for the same period of 2007. Net loss per share was $0.49, basic and diluted,
for the fourth quarter of 2008, compared to net loss per share of $0.53, basic
and diluted, for the same period of 2007. The net loss for the year ended
December 31, 2008 was $44.7 million, compared to a $43.7 million net loss for
the same period of 2007. Net loss per share for the year ended December 31, 2008
was $1.51, basic and diluted, compared to net loss per share of $1.60, basic and
diluted, for the same period of 2007.





In April
2008, Progenics’ Board of Directors approved a share repurchase program to
acquire up to $15.0 million of the Company’s outstanding common stock, funding
for which came from the $15.0 million milestone payment from Wyeth for
receipt of U.S. marketing approval for subcutaneous
RELISTOR.Progenics
repurchased 200,000 shares during the year ended December 31, 2008 for a total
purchase price of $2.7 million.





2008
Company Highlights





·
            Received
      marketing approval for RELISTORfor the treatment
      of opioid–induced constipation (OIC) in advanced illness patients from the
      U.S. Food and Drug Administration (FDA) and the regulatory agencies of
      Canada, the European Union, Australia and elsewhere, representing approval
      in over 30 countries.





·
            Entered
      an exclusive license agreement with Ono Pharmaceutical Co., Ltd., granting
      Ono the rights to develop and commercialize subcutaneous RELISTOR in Japan
      for the treatment of OIC; received a $15.0 million upfront payment from
      Ono recorded as deferred revenue – current, which is expected to
      be recognized as revenue during the first quarter of 2009, upon
      satisfaction of our performance
  obligations.





·
            Reported
      a positive outcome from a phase 3 trial of subcutaneous RELISTOR in
      patients with OIC who have chronic, non-cancer pain. This clinical study
      showed statistically significant improvements in the occurrence of bowel
      movements, and adverse events observed were similar to those seen in prior
      studies of subcutaneous RELISTOR.





·
            Selected
      for further development the subcutaneous dosage form of PRO 140 for the
      treatment of HIV infection, following completion of two, phase 2 trials
      using the subcutaneous and intravenous formulations, both of which
      produced positive results. The subcutaneous dosage form has the potential
      for convenient, weekly self-administration. To design future pivotal
      trials for this product candidate, Progenics plans to meet with the FDA
      and key opinion leaders during 2009 to gather their views and
      guidance.





·
            Initiated
      a phase 1 trial of the Company’s prostate-specific membrane antigen
      antibody-drug conjugate (PSMA ADC) compound in patients with progressive,
      castration-resistant prostate
cancer.





·
            Selected
      PRO 206, a targeted, orally available hepatitis C viral entry inhibitor,
      for clinical development.




- more
-


3


RELISTOR
Program Developments








·
            In
      December, Progenics and Wyeth initiated an FDA-required one-year,
      open-label safety study of subcutaneous RELISTOR in chronic, non-cancer
      pain patients with OIC. This study is expected to enroll approximately 800
      patients to supplement the already completed 470-patient, double-blind,
      phase 3 trial conducted in this patient population.  Progenics
      and Wyeth recently conducted a pre-supplemental New Drug Application
      (sNDA) meeting with FDA. Based on this meeting, Progenics and Wyeth plan
      to present a consolidated safety database from both of these trials as
      part of an sNDA, which is now planned for submission by the end of
      2010.





·
            Results
      from the completed one-month, blinded portion of the 470-patient phase 3
      study will be presented at the annual meeting of the American Pain
      Society, May 7-9, 2009 in San Diego. Results from the two-month,
      open-label portion of this study are expected to be presented at other
      scientific conferences throughout the
year.





·
            Wyeth
      and Progenics announced positive preliminary results evaluating the
      effects of an oral formulation of RELISTOR for the treatment of OIC in
      patients with chronic, non-cancer pain. Progenics and Wyeth are evaluating
      information from clinical optimization studies of a formulation of this
      product candidate to determine the next stages of
    development.





·
            Wyeth
      and Progenics also have had in development an intravenous formulation of
      RELISTOR for the management of post-operative ileus, a temporary
      impairment of gastrointestinal tract function. As previously announced,
      results from the two, phase 3 clinical trials of this formulation showed
      that treatment did not achieve primary or secondary
      endpoints.  Recent results from a third phase 3 trial evaluating
      an intravenous formulation of RELISTOR in patients following abdominal
      hernia repair have confirmed these earlier
  findings.





Expected
Developments in Proprietary Programs





·
            Progenics
      expects to report results from the 12-week portion of a phase 1 study of
      PSMA ADC in patients with castration-resistant prostate cancer during the
      second half of 2009.





·
            Progenics
      plans to submit an Investigational New Drug Application (IND) for PRO 206
      by the end of 2009, and enter the candidate into phase 1 clinical testing
      in 2010.





About
Progenics’ Collaboration with Wyeth




In
December 2005, Wyeth Pharmaceuticals, a division of Wyeth, and Progenics
Pharmaceuticals, Inc. entered into an exclusive, worldwide agreement for the
joint development and commercialization of methylnaltrexone for the treatment of
opioid-induced side effects.




In
January 2009, Wyeth and Pfizer Inc. executed a definitive agreement under which
Pfizer is to acquire Wyeth. The proposed acquisition of Wyeth by Pfizer, which
is subject to closing conditions, does not trigger any change-of-control
provisions in our collaboration with Wyeth, and we believe that if the
acquisition occurs, the combined Pfizer/Wyeth organization will continue to have
the same rights and responsibilities under the collaboration agreement following
the acquisition as Wyeth had before.




- more -


4




About
Progenics’ Collaboration with Ono




In
October 2008, Ono Pharmaceutical Co., Ltd. and Progenics Pharmaceuticals, Inc.
entered into an exclusive license agreement under which Ono has acquired the
rights to subcutaneous RELISTOR in Japan, where it plans to develop and
commercialize the U.S.-approved drug for the treatment of opioid-induced
constipation. RELISTOR is being developed and commercialized in the rest of the
world by Progenics and Wyeth Pharmaceuticals, a division of Wyeth, and is
approved in over 30 countries.





(PGNX-F)





About
the Company





Progenics Pharmaceuticals,
Inc., of Tarrytown, NY, is a biopharmaceutical company focusing on the
development and commercialization of innovative therapeutic products to treat
the unmet medical needs of patients with debilitating conditions and
life-threatening diseases. Principal programs are directed toward supportive
care, virology–including human immunodeficiency virus (HIV) and hepatitis C
virus (HCV) infections–and oncology. Progenics, in collaboration with Wyeth, is
developing RELISTOR®
(methylnaltrexone bromide) for the treatment of opioid-induced side effects.
Wyeth has worldwide rights to develop and commercialize all forms of RELISTOR,
except in Japan where Progenics has granted Ono Pharmaceutical Co., Ltd. an
exclusive license to the subcutaneous form of RELISTOR for development and
commercialization in that country.RELISTOR
is currently approved in over 30 countries, including the U.S., Canada,
Australia and all European Union member states. In the U.S., RELISTOR
(methylnaltrexone bromide) subcutaneous injection is indicated for the treatment
of opioid-induced constipation (OIC) in patients with advanced illness who are
receiving palliative care, when response to laxative therapy has not been
sufficient. Marketing applications are pending for RELISTOR in other countries.
In the area of virology, Progenics is developing the HIV entry inhibitor PRO
140, a humanized monoclonal antibody targeting the entry co-receptor CCR5, which
is currently in phase 2 clinical testing. The Company is also developing a novel
HCV entry inhibitor, PRO 206. For the treatment of prostate cancer, Progenics is
conducting a phase 1 clinical trial of a human monoclonal antibody-drug
conjugate (ADC) designed to selectively target prostate-specific membrane
antigen (PSMA), a protein found on the surface of prostate cancer cells as well
as in blood vessels supplying non-prostatic solid tumors. Progenics is also
conducting phase 1 clinical trials with vaccines designed to treat prostate
cancer by stimulating an immune response to PSMA.








(Financial
Tables Follow)


5





PROGENICS
      PHARMACEUTICALS, INC.
                          CONDENSED
      CONSOLIDATED STATEMENTS OF OPERATIONS
                          (unaudited)
                          (in
      thousands, except net loss per share)For
      the Three Months Ended
                          December
      31,
                        
                        
                        For
      the Year Ended
                          December
      31,2008
                        
                        
                        2007
                        
                        
                        2008
                        
                        
                        2007Revenues:Research
      and development from collaborator
                        
                        $
                        4,989
                        
                        
                        $
                        12,468
                        
                        
                        $
                        59,885
                        
                        
                        $
                        65,455Royalty
      income
                        
                        
                        60
                        
                        
                        
                        -
                        
                        
                        
                        146
                        
                        
                        
                        -Research
      grants and contract
                        
                        
                        1,771
                        
                        
                        
                        2,999
                        
                        
                        
                        7,460
                        
                        
                        
                        10,075Other
      revenues
                        
                        
                        8
                        
                        
                        
                        67
                        
                        
                        
                        180
                        
                        
                        
                        116Total
      revenues
                        
                        
                        6,828
                        
                        
                        
                        15,534
                        
                        
                        
                        67,671
                        
                        
                        
                        75,646Expenses:Research
      and development
                        
                        
                        14,099
                        
                        
                        
                        26,068
                        
                        
                        
                        82,290
                        
                        
                        
                        95,234License
      fees – research and development
                        
                        
                        1,042
                        
                        
                        
                        109
                        
                        
                        
                        2,830
                        
                        
                        
                        942General
      and administrative
                        
                        
                        6,304
                        
                        
                        
                        6,154
                        
                        
                        
                        28,834
                        
                        
                        
                        27,901Royalty
      expense
                        
                        
                        6
                        
                        
                        
                        -
                        
                        
                        
                        15
                        
                        
                        
                        -Depreciation
      and amortization
                        
                        
                        1,182
                        
                        
                        
                        883
                        
                        
                        
                        4,609
                        
                        
                        
                        3,027Total
      expenses
                        
                        
                        22,633
                        
                        
                        
                        33,214
                        
                        
                        
                        118,578
                        
                        
                        
                        127,104Operating
      loss
                        
                        
                        (15,805
                        )
                        
                        
                        (17,680
                        )
                        
                        
                        (50,907
                        )
                        
                        
                        (51,458
                        )Interest
      income
                        
                        
                        1,207
                        
                        
                        
                        2,408
                        
                        
                        
                        6,235
                        
                        
                        
                        7,770Net
      loss
                        
                        $
                        (14,598
                        )
                        
                        $
                        (15,272
                        )
                        
                        $
                        (44,672
                        )
                        
                        $
                        (43,688
                        )Net
      loss per share; basic and diluted
                        
                        $
                        (0.49
                        )
                        
                        $
                        (0.53
                        )
                        
                        $
                        (1.51
                        )
                        
                        $
                        (1.60
                        )Weighted
      average shares outstanding; basic and diluted
                        
                        
                        29,953
                        
                        
                        
                        29,570
                        
                        
                        
                        29,654
                        
                        
                        
                        27,378





CONDENSED
      CONSOLIDATED BALANCE SHEETS
                        (unaudited)
                        (in
      thousands)December
      31, 2008
                      
                      
                      December
      31, 2007Cash,
      cash equivalents and marketable securities
                      
                      $
                      141,374
                      
                      
                      $
                      170,370Accounts
      receivable
                      
                      
                      1,337
                      
                      
                      
                      1,995Fixed
      assets, net
                      
                      
                      11,071
                      
                      
                      
                      13,511Other
      assets
                      
                      
                      4,051
                      
                      
                      
                      3,663Total
      assets
                      
                      $
                      157,833
                      
                      
                      $
                      189,539Liabilities
                      
                      $
                      38,464
                      
                      
                      $
                      42,040Stockholders’
      equity
                      
                      
                      119,369
                      
                      
                      
                      147,499Total
      liabilities and stockholders’ equity
                      
                      $
                      157,833
                      
                      
                      $
                      189,539






6


DISCLOSURE
NOTICE:





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





We
are also subject to risks and uncertainties associated with the actions of our
corporate, academic and other collaborators and government regulatory agencies,
including risks from market forces and trends, such as those relating to the
recently-announced acquisition of our RELISTOR®
collaborator, Wyeth Pharmaceuticals, by Pfizer, Inc.; potential product
liability; intellectual property, litigation, environmental and other risks; the
risk that licenses to intellectual property may be terminated for our failure to
satisfy performance milestones; the risk of difficulties in, and regulatory
compliance relating to, manufacturing products; and the uncertainty of our
future profitability.





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





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





###






Editors
Note:


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