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| (Mark      One) |                                                                                                                                                                   |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ý          | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2008                        |   |
|            |                                                                                                                                                                   |   |
| o               | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 FOR THE TRANSITION PERIOD      FROM     TO |   |

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| Delaware                                                            | 22-2322400                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or Other Jurisdiction of Incorporation or Organization) | (I.R.S.      Employer Identification No.) |

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| Large      Accelerated Filer¨ | Accelerated      Filer ¨                 | Non-      Accelerated Filer ¨ | Smaller      Reporting Company x |
|------------------------------------|----------------------------------------------------|-----------------------------------------|----------------------------------|
|                               | (Do      not check if a smaller reporting company) |
|                               |                                               |                                    |

|  Class:      Common Stock, $0.01 par value |  Outstanding      at May 4, 2008: 35,593,633 |
|-------------------------------------------------|---------------------------------------------------|

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Table of Contents

CYTOGEN CORPORATION

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                     Page    |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| PART I.  FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                      1 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                              |
| Item 1.    Consolidated Financial      Statements      (unaudited)                                                                                                  | 1                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                              |
| Consolidated Balance Sheets as of March 31, 2008 and      December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 2                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                              |
| Consolidated Statements of Operations for the Three Months      Ended March 31, 2008 and 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 3                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                              |
| Consolidated Statements of Cash Flows for the Three Months      Ended March 31, 2008 and 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 4                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                              |
| Notes to Consolidated Financial    Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 5                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                              |
| Item 2.    Management's Discussion and      Analysis of Financial Condition and Results of    Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 17                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                              |
| Item 3.    Quantitative and Qualitative      Disclosures About Market Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 33                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                              |
| Item 4.    Controls and      Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 34                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                              |
| PART II.  OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 35                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                              |
| Item 1.    Legal      Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 35                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                              |
| Item 1A  Risk Factors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 35                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                              |
| Item 2.    Unregistered Sales of Equity      Securities and Use of Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 48                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                              |
| Item 3.    Defaults Upon Senior      Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | 48                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                              |
| Item 4.    Submission of Matters to a      Vote of Security Holders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 48                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                              |
| Item 5.    Other      Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 48                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                              |
| Item 6.    Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 49                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                              |
| SIGNATURES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 50                                                                                                                                                                                                |

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Table of Contents

PARTI  -FINANCIAL INFORMATION

Item 1.  

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Table of Contents

CYTOGEN CORPORATION AND SUBSIDIARIES

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | March      31,2008 |              |   | December      31, 2007 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-------------------|--------|------------------------|--------|
| ASSETS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |               |              |   |                   |   |
| Current      assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |               |              |   |                   |   |
| Cash and cash      equivalents                                                                                                                    |   | $                  | 3,090             |   |                   | $      | 8,914 |   |
| Accounts receivable,      net                                                                                                                     |   |               | 2,966             |   |                   |   | 2,747 |   |
| Inventories                                                                                                                                       |   |               | 4,133             |   |                   |   | 4,635 |   |
| Prepaid      expenses                                                                                                                             |   |               | 1,379             |   |                   |   | 1,070 |   |
| Other current      assets                                                                                                                         |   |               | 262               |   |                   |   | 121 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |               |              |   |                   |   |   |   |
| Total current      assets                                                                                                                                        |   |               | 11,830            |   |                   |   | 17,487 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |               |              |   |                   |   |   |   |
| Property      and equipment, less accumulated depreciation and amortization of $1,720      and $1,662 at March 31, 2008 and December 31, 2007,            respectively                                                                                                                                                                                                                                                                                                                                                         |   |               |   913        |   |                   |   |   1,046 |   |
| Product      license fees, less accumulated amortization of $3,821 and $3,547 at March      31, 2008 and December 31, 2007, respectively                                                                                                                                                                                                                                                                                                                                                                                                                |   |               |   8,568      |   |                   |   |   8,842 |   |
| Other      assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |               | 1,948             |   |                   |   | 1,952 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |               |              |   |                   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                  | 23,259            |   |                   | $      | 29,327 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |               |              |   |                   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |               |              |   |                   |   |   |   |
| Current      liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               |              |   |                   |   |   |   |
| Current portion of long-term      liabilities                                                                                                     |   |               | 80                |   |                   |   | 87 |   |
| Accounts payable and accrued      liabilities                                                                                                     |   |               | 7,948             |   |                   |   | 8,490 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |               |              |   |                   |   |   |   |
| Total current      liabilities                                                                                                                                   |   |               | 8,028             |   |                   |   | 8,577 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |               |              |   |                   |   |   |   |
| Warrant      liabilities                                                                                                 |   |               | 965               |   |                   |   | 995 |   |
| Other      long-term      liabilities                                                                                    |   |               | 50                |   |                   |   | 66 |   |
| Total      liabilities                                                                                                                                           |   |               | 9,043             |   |                   |   | 9,638 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |               |              |   |                   |   |   |   |
| Commitments      and contingencies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |               |              |   |                   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |               |              |   |                   |   |   |   |
| Stockholders'      equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |               |              |   |                   |   |   |   |
| Preferred stock, $.01 par      value, 5,400,000 shares authorized-Series C Junior Participating Preferred      Stock, $.01 par value, 200,000 shares authorized, none issued and      outstanding                                                                                                                                                                                                                                                                                                                                                       |   |               |     --  |   |                   |   |     -- |   |
| Common stock, $.01 par value,      100,000,000 shares authorized, 35,593,633 and 35,570,836 shares issued and      outstanding at March 31, 2008 and December 31, 2007,      respectively                                                                                                                                                                                                                                                                                                                                                               |   |               |     356 |   |                   |   |     356 |   |
| Additional paid-in      capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               | 473,038           |   |                   |   | 472,648 |   |
| Accumulated other      comprehensive income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |               | 42                |   |                   |   | 47 |   |
| Accumulated      deficit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |               | (459,220          | )      |                   |   | (453,362 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |               |              |   |                   |   |   |   |
| Total stockholders'      equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |               | 14,216            |   |                   |   | 19,689 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |               |              |   |                   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $                  | 23,259            |   |                   | $      | 29,327 |   |

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Table of Contents

CYTOGEN CORPORATION AND SUBSIDIARIES

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | Three      Months Ended March 31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2008                              |   |   | 2007 |   |
| Revenues:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                              |   |   |   |   |
| Product    revenue:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                              |   |   |   |   |
| QUADRAMET                                                                                                                                                                     |   | $                                 | 2,138  |   |   | $ | 2,350 |   |
| PROSTASCINT                                                                                                                                                                   |   |                              | 2,580  |   |   |   | 2,456 |   |
| CAPHOSOL                                                                                                                                                                      |   |                              | 620    |   |   |   | -- |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              |   |   |   |   |   |   |
| Total product      revenue                                                                                                                                                                             |   |                              | 5,338  |   |   |   | 4,806 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              |   |   |   |   |   |   |
| Other      revenue                                                                                                                                             |   |                              | 1      |   |   |   | 2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              |   |   |   |   |   |   |
| Total      revenues                                                                                                                                                                                    |   |                              | 5,339  |   |   |   | 4,808 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              |   |   |   |   |   |   |
| Operating      expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                              |   |   |   |   |   |   |
| Cost of product      revenue                                                                                                                                   |   |                              | 3,095  |   |   |   | 2,902 |   |
| General and      administrative                                                                                                                                |   |                              | 3,121  |   |   |   | 2,410 |   |
| Selling and      marketing                                                                                                                                     |   |                              | 3,942  |   |   |   | 8,131 |   |
| Research and      development                                                                                                                                  |   |                              | 1,120  |   |   |   | 1,604 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              |   |   |   |   |   |   |
| Total operating      expenses                                                                                                                                                                          |   |                              | 11,278 |   |   |   | 15,047 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              |   |   |   |   |   |   |
| Operating      loss                                                                                                                                                                                    |   |                              | (5,939 | ) |   |   | (10,239 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              |   |   |   |   |   |   |
| Interest      income                                                                                                                  |   |                              | 63     |   |   |   | 376 |   |
| Interest      expense                                                                                                                 |   |                              | (12    | ) |   |   | (10 | ) |
| Advanced      Magnetics Inc. litigation settlement, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                              | --     |   |   |   | 3,946 |   |
| Decrease      in value of warrant      liabilities                                                                                    |   |                              | 30     |   |   |   | 1,095 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              |   |   |   |   |   |   |
| Net      loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                 | (5,858 | ) |   | $ | (4,832 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              |   |   |   |   |   |   |
| Basic      and diluted net loss per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                                 | (0.16  | ) |   | $ | (0.16 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              |   |   |   |   |   |   |
| Weighted-average      common shares outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              | 35,576 |   |   |   | 29,606 |   |

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CYTOGEN CORPORATION AND SUBSIDIARIES

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Three      Months Ended March 31, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2008                              |   |   | 2007 |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              |   |   |   |   |
| Net      loss                                                                                                                    |   | $                                 | (5,858 | ) |   | $ | (4,832 | ) |
| Adjustments      to reconcile net loss to net cash used in      operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                              |   |   |   |   |   |   |
| Depreciation and      amortization                                                                                                                                       |   |                              | 393    |   |   |   | 438 |   |
| Decrease in value of warrant      liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                              | (30    | ) |   |   | (1,095 | ) |
| Share-based compensation      expense                                                                                                                                    |   |                              | 385    |   |   |   | 428 |   |
| Other                                                                                                                                                                    |   |                              | 9      |   |   |   | (11 | ) |
| Changes in assets and      liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                              |   |   |   |   |   |   |
| Accounts      receivables                                                                                                                                                               |   |                              | (220   | ) |   |   | (57 | ) |
| Inventories                                                                                                                                                                             |   |                              | 506    |   |   |   | (1,351 | ) |
| Other      assets                                                                                                                                                                       |   |                              | (451   | ) |   |   | (1,099 | ) |
| Accounts payable and accrued      liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                              | (539   | ) |   |   | 792 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                              |   |   |   |   |   |   |
| Net cash used in operating      activities                                                                                                                               |   |                              | (5,805 | ) |   |   | (6,787 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                              |   |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              |   |   |   |   |   |   |
| Purchases      of property and      equipment                                                                                    |   |                              | -      |   |   |   | (153 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                              |   |   |   |   |   |   |
| Net cash used in investing      activities                                                                                                                               |   |                              | -      |   |   |   | (153 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                              |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                              |   |   |   |   |   |   |
| Proceeds      from issuances of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                              | 4      |   |   |   | 34 |   |
| Payment      of long-term      liabilities                                                                                       |   |                              | (23    | ) |   |   | (16 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                              |   |   |   |   |   |   |
| Net cash provided by (used in)      financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                              | (19    | ) |   |   | 18 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                              |   |   |   |   |   |   |
| Net      decrease in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                              | (5,824 | ) |   |   | (6,922 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                              |   |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                              | 8,914  |   |   |   | 32,507 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                              |   |   |   |   |   |   |
| Cash      and cash equivalents, end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $                                 | 3,090  |   |   | $ | 25,585 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                              |   |   |   |   |   |   |
| Supplemental      disclosure of non-cash information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                              |   |   |   |   |   |   |
| Capital      lease of equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                              | -      |   |   | $ | 71 |   |
| Unrealized holding gain (loss)      on marketable securities                                                                                                             |   | $                                 | (5     | ) |   | $ | 10 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                              |   |   |   |   |   |   |
| Supplemental      disclosure of cash information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                              |   |   |   |   |   |   |
| Cash paid for      interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                 | 10     |   |   | $ | 10 |   |

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CYTOGEN CORPORATION AND SUBSIDIARIES

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|                |   | March      31, 2008 |   |   | December      31, 2007 |   |
|---------------------|--------|---------------------|--------|--------|------------------------|--------|
| Raw      materials  |   | $                   | 82     |   |                   | $      | 82 |   |
| Work-in-process     |   |                | 1,619  |   |                   |   | 3,221 |   |
| Finished      goods |   |                | 2,432  |   |                   |   | 1,332 |   |
|                |   | $                   | 4,133  |   |                   | $      | 4,635 |   |

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|                            |   | Three      Months EndedMarch      31, |   |
|---------------------------------|--------|---------------------------------------|--------|
|                            |   | 2008                                  |   |   | 2007 |   |
|                            |   |                                  |   |   |   |   |
| General      and administrative |   | $                                     | 226    |   |   | $ | 234 |   |
| Selling      and marketing      |   |                                  | 87     |   |   |   | 123 |   |
| Research      and development   |   |                                  | 72     |   |   |   | 71 |   |
|                            |   | $                                     | 385    |   |   | $ | 428 |   |

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|                          |   | Three      Months EndedMarch 31,      2007 |
|-------------------------------|--------|--------------------------------------------|
|                          |   |                                       |   |
| Expected      life (years)    |   |                                       | 5.98 |
| Expected      volatility      |   |                                       | 83% |
| Dividend      yield           |   |                                       | 0% |
| Risk-free      interest rate  |   |                                       | 4.7% |
| Option      granted           |   |                                       | 713,500 |
| Nonvested      shares granted |   |                                       | 165,000 |

|                         |   | Three      Months EndedMarch      31, |
|------------------------------|--------|---------------------------------------|
|                         |   | 2008                                  |   | 2007 |
|                         |   |                                  |   |   |   |   |
| Expected      life (months)  |   |                                  | 3 |   |   | 3 |
| Expected      volatility     |   |                                  | 82% |   |   | 63% |
| Dividend      yield          |   |                                  | 0% |   |   | 0% |
| Risk-free      interest rate |   |                                  | 3.26% |   |   | 5.02% |
| ESPP      Options granted    |   |                                  | 39,516 |   |   | 18,764 |

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|                            |   | March      31,2008   |   | March      31, 2007 |
|---------------------------------|--------|----------------------|--------|---------------------|
| Dividend      yield             |   |  0%             |        | 0%                  |
| Expected      volatility        |   | 72%                  |   | 82%                 |
| Expected      life(1)           |   |  4.5      years |   | 5.3      years      |
| Risk-free      interest rate    |   | 2.4%                 |   | 4.6%                |
| Company      Common Stock Price |   | $0.57                |   | $2.09               |
| Outstanding      warrants       |   | 7,578,380            |   | 4,322,203           |

|     (1) | The      remaining expected life assumptions at March 31, 2008 and 2007 for the      warrants issued in July and August 2005 were 7.3 years and 8.3 years,      respectively.  The remaining expected life assumption at March      31, 2008 and 2007 for the warrants issued in November 2006 was 3.6 years      and 4.6 years, respectively.  The remaining expected life      assumption at March 31, 2008 for the warrants issued in July 2007 was 4.8      years. |
|-----------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Item 2.   Management's Discussion and Analysis ofFinancial Condition and Results of Operations

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|                                                                                                                                                                                                                                                                                                                                                    |   |                                                    |   |   |   |   |   | Increase/(Decrease) |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------|--------|--------|--------|--------|---------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                    |   | 2008                                                    |   |   | 2007   |   |   |  $             |   |  | % |
|                                                                                                                                                                                                                                                                                                                                                    |   | (All      amounts in thousands, except percentage data) |
| QUADRAMET                                                                 |   | $                                                       | 2,138  |   |   | $      | 2,350  |                |   | $ | (212 | ) |   |   | (9 | %) |
| PROSTASCINT                                                               |   |                                                    | 2,580  |   |   |   | 2,456  |                |   |   | 124 |   |   |   | 5 | % |
| CAPHOSOL                                                                  |   |                                                    | 620    |   |   |   | -      |                |   |   | 620 |   |   |   | n/a |   |
| Other      revenue                                                        |   |                                                    | 1      |   |   |   | 2      |                |   |   | (1 | ) |   |   | (50 | %) |
| Total      revenues                                                       |   | $                                                       | 5,339  |   |   | $      | 4,808  |                |   | $ | 531 |   |   |   | 11 | % |

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|                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                    |   |   |   |   |   | Increase/(Decrease) |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|--------|--------|--------|--------|--------|---------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                 |   | 2008                                                    |   |   | 2007   |   |   |  $             |   |  | % |
|                                                                                                                                                                                                                                                                                                                                                                                 |   | (All      amounts in thousands, except percentage data) |
| Cost      of product      revenue                                                            |   | $                                                       | 3,095  |   |   | $      | 2,902  |                |   | $ | 193 |   |   |   | 7 | % |
| General      and      administrative                                                         |   |                                                    | 3,121  |   |   |   | 2,410  |                |   |   | 711 |   |   |   | 30 | % |
| Selling      and      marketing                                                              |   |                                                    | 3,942  |   |   |   | 8,131  |                |   |   | (4,189 | ) |   |   | (52 | %) |
| Research      and      development                                                           |   |                                                    | 1,120  |   |   |   | 1,604  |                |   |   | (484 | ) |   |   | (30 | %) |
|                                                                                                                                                                                                                                                                                                                                                                                 |   | $                                                       | 11,278 |   |   | $      | 15,047 |                |   | $ | (3,769 | ) |   |   | (25 | %) |

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|                                 |   | LessThan1      Year             |   |   | 1      to 3Years |   |   | 4      to 5Years |   |   | More      Than5      Years |   |   |  Total |   |
|--------------------------------------|--------|---------------------------------|--------|--------|------------------|--------|--------|------------------|--------|--------|----------------------------|--------|--------|-------------|--------|
|                                 |   | (All      amounts in thousands) |   |
| Capital      lease obligations       |   | $                               | 80     |   |             | $      | 50     |             |   | $      | --                         |   |   | $           | --     |   |   | $ | 130 |   |
| Facility      leases                 |   |                            | 338    |   |             |   | 197    |             |   |   | --                         |   |   |        | --     |   |   |   | 535 |   |
| Research      and development        |   |                            | 177    |   |             |   | 150    |             |   |   | 150                        |   |   |        | 387    |   |   |   | 864 |   |
| Marketing      and other obligations |   |                            | 904    |   |             |   | 538    |             |   |   | --                         |   |   |        | --     |   |   |   | 1,442 |   |
| Manufacturing      contracts(1)      |   |                            | 5,714  |   |             |   | 5,077  |             |   |   | --                         |   |   |        | --     |   |   |   | 10,791 |   |
| Minimum      royalty payments(2)     |   |                            | 1,000  |   |             |   | 2,000  |             |   |   | 2,000                      |   |   |        | 622    |   |   |   | 5,622 |   |

| Total(3) |   | $ | 8,213 |   |   | $ | 8,012 |   |   | $ | 2,150 |   |   | $ | 1,009 |   |   | $ | 19,384 |   |
|----------|--------|---|-------|--------|--------|---|-------|--------|--------|---|-------|--------|--------|---|-------|--------|--------|---|--------|--------|

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|      (1) |  Effective      January 1, 2004, we entered into a manufacturing and supply agreement with      Bristol-Myers Squibb Medical Imaging, Inc. (“BMSMI”) for QUADRAMET whereby      BMSMI manufactures, distributes and provides order processing and customer      services for us relating to QUADRAMET.  Under the terms of our      agreement, we are obligated to pay at least $5.1 million annually, subject      to future annual price adjustment, through 2008, unless terminated by      BMSMI or us on a two year prior written notice.  This agreement      will automatically renew for five successive one-year periods unless      terminated by BMSMI or us on a two-year prior written      notice.  Accordingly, we have not included commitments beyond      March 31, 2010. |
|-----------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     (2) | We      acquired an exclusive license from The Dow Chemical Company for QUADRAMET      for the treatment of osteoblastic bone metastases in certain      territories.  The agreement requires us to pay Dow royalties based on      a percentage of net sales of QUADRAMET, or a guaranteed contractual      minimum payment, whichever is greater, and future payments upon      achievement of certain milestones.  Future annual minimum royalties      due to Dow are $1.0 million per year in 2008 through 2012 and $833,000 in      2013. |
|-----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|     (3) | At      March 31, 2008, we have no uncertain tax positions.  We do not      anticipate any events in the next 12-months that would require us to      record a liability related to any uncertain income tax positions as      prescribed by FASB Interpretation No. 48, Accounting for Uncertainty in      Income Taxes (FIN 48). |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | Three      Months EndedMarch      31, 2008 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | (All      amounts in thousands)            |
| Net      loss                                                                                                                     |   | $                                          | (5,858 | ) |
| Adjustments      to reconcile net loss to net cash used in operating      activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                       | 53     |   |
| Net      cash used in operating      activities                                                                                   |   |                                       | (5,805 | ) |
| Net      cash used in financing      activities                                                                                   |   |                                       | (19    | ) |
| Net      decrease in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                                          | (5,824 | ) |

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Item 3.  Quantitative and Qualitative Disclosures AboutMarket Risk

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Item 4.  Controls and Procedures

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PART II  - OTHER INFORMATION

Item 1.  Legal Proceedings

Item 1A.  Risk Factors

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|   | Ÿ | undergoing      steps to realign and implement our focus as a product-driven      biopharmaceutical company; |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | Ÿ | establishing      and maintaining our in-house specialty sales force;  and |
|--------|--------|----------------------------------------------------------------------------|

|   | Ÿ | enhancing      our marketed product portfolio through marketing alliances and strategic      arrangements. |
|--------|--------|------------------------------------------------------------------------------------------------------------|

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|   | · | a      license agreement with The Dow Chemical Company relating to the QUADRAMET      technology; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | a      manufacturing and supply agreement for the manufacture of QUADRAMET with      BMSMI; |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | a      manufacturing agreement for the manufacture of PROSTASCINT with Laureate      Pharma, L.P.; |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | a      distribution services agreement with Cardinal Health 105, Inc. (formerly      CORD Logistics, Inc.) forPROSTASCINT; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

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|   | · | a      license agreement with The Dow Chemical Company relating to Dow's      proprietary MeO-DOTA bifunctional chelant technology for use with our      CYT-500 program; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a      purchase and supply agreement with OTN for the distribution of      CAPHOSOL; |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | a      license agreement with InPharma AS for the marketing of CAPHOSOL;      and |
|--------|--------|-----------------------------------------------------------------------------------|

|   | · | a      manufacturing agreement with Holopack for the manufacturing and supply of      CAPHOSOL. |
|--------|--------|-------------------------------------------------------------------------------------------------|

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|   | · | to      obtain sufficient capital to support the expenses of developing our      technology and commercializing ourproducts; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

|   | · | to      ensure that our products are safe andeffective; |
|--------|--------|---------------------------------------------------------|

|   | · | to      obtain regulatory approval for the use and sale of our      products; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | to      manufacture our products in sufficient quantities and at a reasonable      cost; |
|--------|--------|------------------------------------------------------------------------------------------|

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|   | · | to      develop a sufficient market for our products;  and |
|--------|--------|------------------------------------------------------------|

|   | · | to      attract and retain qualified management, sales, technical and scientific      staff. |
|--------|--------|----------------------------------------------------------------------------------------------|

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|   | Ÿ | results      of clinical trials; |
|--------|--------|----------------------------------|

|   | Ÿ | technological      innovations or new commercialproducts; |
|--------|--------|-----------------------------------------------------------|

|   | Ÿ | changes      in governmental regulation or the status of our regulatory approvals or      applications; |
|--------|--------|---------------------------------------------------------------------------------------------------------|

|   | Ÿ | changes      in earnings; |
|--------|--------|---------------------------|

|   | Ÿ | changes      in health care policies andpractices; |
|--------|--------|----------------------------------------------------|

|   | Ÿ | developments      or disputes concerning proprietaryrights; |
|--------|--------|-------------------------------------------------------------|

|   | Ÿ | litigation      or public concern as to safety of the our potential products;      and |
|--------|--------|----------------------------------------------------------------------------------------|

|   | Ÿ | changes      in general market conditions. |
|--------|--------|--------------------------------------------|

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Item 2.   Unregistered Sales of Equity Securites andUse of Proceeds

Item 3.   

Item 4.  

Item 5.  

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Item 6. 

| Exhibit      No. | Description                                                                                                                                                                                                                                                                       |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1             | Amendment      No. 2 to Product License and Assignment Agreement dated as of February 14,      2008 by and between Cytogen Corporation and InPharma AS.  Filed      herewith.*                                                                                          |
|             |                                                                                                                                                                                                                                                                              |
| 31.1             | Certification      of President and Chief Executive Officer, pursuant to Rule 13a-14(a) or      15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to      Section 302 of the Sarbanes-Oxley Act of 2002.  Filed      herewith.                      |
|             |                                                                                                                                                                                                                                                                              |
| 31.2             | Certification      of Senior Vice President, Finance and Chief Financial Officer, pursuant to      Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as      adopted pursuant to Section 302 of the Sarbanes-Oxley Act of      2002.  Filed herewith. |
|             |                                                                                                                                                                                                                                                                              |
| 32.1             | Certification      of President and Chief Executive Officer, pursuant to 18 U.S.C. Section      1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.  Furnished herewith.                                                                   |
|             |                                                                                                                                                                                                                                                                              |
| 32.2             | Certification      of Senior Vice President, Finance and Chief Financial Officer, pursuant to      18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.  Furnished  herewith.                                             |

| * | The      Company has submitted an application for confidential treatment with      the Securities and Exchange Commission with respect to certain      provisions contained in this exhibit.  The copy filed as an      exhibit omits the information subject to the confidentiality      application. |
|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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SIGNATURES

| Date:      May 7, 2008 | CYTOGEN      CORPORATION |
|------------------------|--------------------------|
|                   |                     |   |
|                   | By:                      | /s/       KEVIN G. LOKAY |
|                   |                     | Kevin      G. Lokay |
|                   |                     | President      and Chief Executive Officer |

| Date:      May 7, 2008 | CYTOGEN      CORPORATION |
|------------------------|--------------------------|
|                   |                     |   |
|                   | By:                      | /s/       KEVIN J. BRATTON |
|                   |                     | Kevin      J. Bratton |
|                   |                     | Senior      Vice President, Finance, andChief Financial      Officer(Principal      Financial and Accounting Officer) |

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