<PAGE>
 
                SECURITIES AND EXCHANGE COMMISSION      Conformed
                      Washington, D.C. 20549               Copy  

                            FORM 10-Q

          (Mark One)
          [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF 
              THE SECURITIES EXCHANGE ACT OF 1934
               
          For the quarterly period ended September 30, 1997

                                OR

          [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF 
              THE SECURITIES EXCHANGE ACT OF 1934

          For the transition period from             to           
                                         -----------    ----------- 

                 Commission file number  0-14879 
                                        ---------

                        CYTOGEN Corporation
                 --------------------------------                               
      (Exact name of Registrant as specified in its charter)

   Delaware                                                     22-2322400   
---------------                                               -------------     
(State or Other Jurisdiction  of                            (I.R.S. Employer   
Incorporation or Organization)                         Identification Number)

           600 College Road East, CN 5308, Princeton, NJ 08540-5308
           --------------------------------------------------------             
             (Address of Principal Executive Offices and Zip Code)

      Registrant's telephone number, including area code (609) 987-8200

     Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days:  Yes X  No   .
                          ---   ---    
     Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date:

   Class                                   Outstanding at November 6, 1997
-----------------                         -------------------------------       
Common Stock, $.01 par value                           51,169,605              

<PAGE>

PART I -  FINANCIAL INFORMATION
-------------------------------
Item I:  Consolidated Financial Statements

                  CYTOGEN CORPORATION AND SUBSIDIARIES
                       CONSOLIDATED BALANCE SHEETS
           (All amounts in thousands, except share data)   
                             (Unaudited)
<TABLE>
<CAPTION>
                                                              September 30,     December 31,
ASSETS:                                                            1997              1996
                                                             ---------------    ------------- 
<S>                                                         <C>               <C>    
Current Assets:
  Cash and cash equivalents                                 $        4,873    $       20,296
  Short-term investments                                               -               4,469
  Restricted cash                                                   11,145             9,916
  Accounts receivable, net                                           3,099               439
  Inventories                                                          106               258
  Other current assets                                                 418               241
                                                            ----------------  ---------------      
       Total current assets                                         19,641            35,619
                                                            ----------------  --------------- 

Property and Equipment:
  Leasehold improvements                                            10,117            10,023
  Equipment and furniture                                            7,700             7,248
                                                            ----------------  ---------------
                                                                    17,817            17,271

  Less- Accumulated depreciation and amortization                  (13,600)          (12,455)
                                                            ----------------  ---------------
        Net property and equipment                                   4,217             4,816
                                                            ----------------  ---------------  
Other Assets                                                         1,562             1,509
                                                            ----------------  ---------------
                                                            $       25,420    $       41,944
                                                            ================  ===============
LIABILITIES AND STOCKHOLDERS' EQUITY:

Current Liabilities:
  Accounts payable and accrued liabilities                  $        6,042    $        5,338
  Current portion of long-term liabilities                           2,050             1,824
                                                            ----------------  ---------------

       Total current liabilities                                     8,092             7,162
                                                            ----------------  ---------------
Long-Term Liabilities                                               10,201             1,855
                                                            ----------------  ---------------
Stockholders' Equity:
  Preferred stock, $.01 par value, 5,400,000 shares 
     authorized - Series A Convertible Preferred Stock, 
     $.01 par value, 1,000 shares authorized, issued and 
     outstanding in 1997 and 1996                                        -                 -      
  Common stock, $.01 par value, 89,600,000 shares authorized,
     51,160,000 and 51,079,000 shares issued and outstanding
     in 1997 and 1996, respectively                                    511               511
  Additional paid-in capital                                       284,814           284,527
  Unrealized (loss) on short-term investments                            0                (5)
  Accumulated deficit                                             (278,198)         (252,106)
                                                            ----------------  ---------------    
       Total stockholders' equity                                    7,127            32,927
                                                            ----------------  ---------------
                                                            $       25,420    $       41,944
                                                            ===============   ===============
</TABLE>


              The accompanying notes are an integral part of these statements.
                                                   
                                               2 
<PAGE>

                       CYTOGEN CORPORATION AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                (All amounts in thousands, except per share data)
                                   (Unaudited)

<TABLE>
<CAPTION>


                            Three Months Ended Sept. 30,      Nine Months Ended Sept. 30,
                            ----------------------------      --------------------------- 
                                1997            1996              1997           1996
                            ------------    ------------      ------------   ------------      ---- 
<S>                          <C>            <C>              <C>            <C>       
REVENUES:
  Product related            $    3,159     $      393       $    5,360     $    1,135
  License and contract            1,013            795            4,834          2,804
                             -----------    -----------      -----------    -----------       
     Total Revenues               4,172          1,188           10,194          3,939

                             -----------    -----------      -----------    -----------

OPERATING EXPENSES:
  Research and development        5,280          4,736           19,767         14,062
  Acquisition of product right    7,500              -            7,500              - 
  Selling and marketing           1,180            945            3,678          2,797
  General and administrative      2,155          1,276            5,896          4,468
                             -----------    -----------      -----------    -----------   
    Total Operating Expenses     16,115          6,957           36,841         21,327
                             -----------    -----------      -----------    -----------

    Loss from Operations     $  (11,943)    $   (5,769)      $  (26,647)    $  (17,388)
                             -----------    -----------      -----------    -----------    
INTEREST INCOME                     223            313              905          1,079
INTEREST EXPENSE                   (204)          (116)            (350)          (342)
                            ------------    -----------      -----------    ----------- 
NET LOSS                     $  (11,924)    $   (5,572)      $  (26,092)    $  (16,651)
                            ============    ===========      ===========    ===========

NET LOSS PER COMMON SHARE    $    (0.23)    $    (0.12)      $    (0.51)    $    (0.35)
                            ============    ===========      ===========    ===========

WEIGHTED AVERAGE COMMON
 SHARES OUTSTANDING              51,152         48,358           51,124         47,703
                            ============    ===========      ===========    ===========
</TABLE>

             The accompanying notes are an integral part of these statements.

                                              3

<PAGE>

                           CYTOGEN CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (All amounts in thousands)
                                         (Unaudited)
                                                              
<TABLE>
<CAPTION>
                                                              Nine Months Ended September 30,
                                                              -------------------------------  
                                                                   1997               1996  
                                                              ------------       ------------    
<S>                                                         <C>                 <C> 
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss                                                    $     (26,092)      $    (16,651)         
                                                            --------------      -------------   
Adjustments to Reconcile Net Loss to Cash Used for
   Operating Activities:
      Depreciation and Amortization                                 1,145              1,135    
      Imputed Interest                                                195                310
      Amortization of Deferred Charges                                  -                (17)
      Stock Grants                                                     42                  -
      Changes in Assets and Liabilities:                           
         Accounts receivable, net                                  (2,660)              (243)
         Inventories                                                  152                 86
         Other assets                                                (230)               (89)
         Accounts payable and accrued liabilities                     718             (2,851)
         Other current liabilities                                     31               (389)
                                                           ---------------      -------------
                    Total adjustments                                (607)            (2,058)
                                                           ---------------      ------------- 
      Net cash used for operating activities                      (26,699)           (18,709)
                                                           ---------------      -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Redemption (Purchases) of Short Term Investments                    4,474             (4,813)
(Increase) Decrease in Restricted Cash                             (1,229)            (9,467)
Purchases of Property and Equipment                                  (546)              (614)
                                                           ---------------      -------------
      Net cash provided by (used for) investing activities          2,699            (14,894)
                                                           ---------------      -------------   
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Issuance of Common Stock                                231             17,370
Proceeds from Issuance of Series A Preferred Stock                      -              4,850
Proceeds from Note Payable                                         10,000                  -
Payment of Long Term Debt                                          (1,654)            (1,690)
                                                           ---------------      -------------
      Net cash provided by financing activities                     8,577             20,530 
                                                           ---------------      -------------
Net Decrease in Cash and Cash Equivalents                         (15,423)           (13,073)

Cash and Cash Equivalents, Beginning of Period                     20,296             27,551
                                                           ---------------      -------------
Cash and Cash Equivalents, End of Period                   $        4,873       $     14,478
                                                           ===============      =============
</TABLE>

           The accompanying notes are an integral part of these statements.     
                                     
                                     4

<PAGE>
                        CYTOGEN CORPORATION AND SUBSIDIARIES
                    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


1.     THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

The Company

       CYTOGEN Corporation ("CYTOGEN" or the "Company") is a biopharmaceutical
company engaged in the  development,  manufacture and commercialization of 
products for the targeted delivery of diagnostic and therapeutic substances 
directly to disease sites.  In March 1997, CYTOGEN received clearance from 
the U.S. Food and Drug Administration ("FDA") to market the Quadramet, 
CYTOGEN's product for the relief of  pain due to cancer that has spread to the 
bone.  In October 1996, CYTOGEN received marketing approval from FDA for the 
ProstaScint imaging agent, CYTOGEN's prostate cancer diagnostic imaging product.
In December 1992, FDA approved OncoScint CR/OV  imaging agent, CYTOGEN's 
colorectal and ovarian cancer specific diagnostic imaging product, for single 
administration per patient. In November 1995, FDA approved an expanded 
indication allowing for repeat administration of OncoScint CR/OV.  All three 
products are currently available in the market place.

Basis of Consolidation

       The consolidated financial statements include the accounts of CYTOGEN and
its subsidiaries, AxCell Biosciences Corporation ("AxCell"), Cellcor Inc.
("Cellcor") and Targon Corporation ("Targon").  Intercompany balances and
transactions have been eliminated in consolidation.  Unless the context 
otherwise indicates, as used herein, the term "Company" refers to CYTOGEN and 
its subsidiaries, taken as a whole.

Basis of Presentation

       These consolidated financial statements of CYTOGEN Corporation are
unaudited and include all adjustments which, in the opinion of management, are
necessary to present fairly the financial condition and results of operations as
of and for the periods set forth in the Consolidated Balance Sheets, 
Consolidated Statements of Operations and Consolidated Statements of Cash 
Flows.  All such accounting adjustments are of a normal, recurring nature.  
The consolidated financial statements do not include all of the information 
and footnote disclosures normally included in financial statements prepared 
in accordance with generally accepted accounting principles and should be 
read in conjunction with the consolidated financial statements and notes 
thereto included in the Company's Annual Report on Form 10-K, filed with the 
Securities and Exchange Commission, which includes financial statements as of 
and for the year ended December 31, 1996.  The results of the Company's 
operations for any interim period are not necessarily indicative of the 
results of the Company's operations for any other interim period or for a 
full year.

                                      5
<PAGE> 

                        CYTOGEN CORPORATION AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)


Cash and Cash Equivalents 

       Cash and cash equivalents include cash on hand, cash in banks and all
highly-liquid investments with a maturity of three months or less at the time of
purchase.

Restricted Cash

       In 1996, CYTOGEN and Elan Corporation, plc and affiliated corporations
(collectively, "Elan") created Targon, a U.S.-based cancer company.  Targon was
initially funded by CYTOGEN with the proceeds of equity investments CYTOGEN
received from Elan which were contractually restricted in use for Targon.  In  
July 1997, Targon received $10.0 million from CYTOGEN in exchange for a three
year interest bearing note (see Note 3), of which $7.5 million was used to 
purchase from Elan Morphelan, an oral once-daily, controlled-release 
formulation of morphine sulfate which would be studied by Targon as an 
analgesic therapy for moderate to severe pain.  The remaining $2.5 million is 
to be used by Targon as working capital for product development of Morphelan.

        At September 30, 1997 and December 31, 1996, the aggregate amount of
restricted cash totaled $11.1 million and $9.9 million, respectively.

Earnings per Share (EPS)

   In February 1997, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings per 
Share", which the Company is required to adopt for both interim and annual 
periods ending after December 15, 1997.  SFAS No. 128 simplifies the EPS 
calculation by replacing primary EPS with basic EPS.  Basic EPS is computed 
by dividing reported earnings available to common stockholders by the 
weighted average shares outstanding.  Early application of SFAS No. 128 is 
prohibited, although footnote disclosure of pro forma EPS amounts is required.
Since the Company has incurred losses in the three and nine month periods 
ended September 30, 1997 and 1996, there is no difference between pro forma 
basic EPS and net loss per share as reported.

Reclassifications

   Certain reclassifications have been reflected in the 1996 financial
statements to conform with the 1997 presentation.

2. QUADRAMET RELATED REVENUES/EXPENSES:

   In March 1997, the Company received marketing clearance from FDA for
Quadramet.  As a result of the clearance CYTOGEN recorded a milestone payment of
 
                                    6
<PAGE>

                        CYTOGEN CORPORATION AND SUBSIDIARIES
                NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Cont'd) 

  
$2.0 million from The DuPont Merck Pharmaceutical Company ("DuPont Merck"), for
manufacturing and marketing rights to Quadramet, and also recorded a $4.0 
million milestone payment to The Dow Chemical Company ("Dow") for the
exclusive license to Quadramet.  Since the product launch in the second 
quarter of 1997 CYTOGEN has earned royalty revenues on Quadramet from DuPont
Merck.  Royalties are based on a percentage of sales of Quadramet or guaranteed
contractual minimum royalty payments, whichever is greater.  

 3.     ACQUISITION OF PRODUCT RIGHTS:

   In July 1997, Targon entered into an agreement with Elan pursuant to which
Targon acquired an exclusive worldwide license for Morphelan, for an up-front
license fee of $7.5 million.  CYTOGEN received from Elan $10.0 million in 
exchange for a three-year interest bearing note with principal due in full at 
the end of year three.  CYTOGEN, in turn, loaned $10.0 million to Targon in 
exchange for a three year interest bearing note with principal due in full at 
the end of year three.  The funds were used by Targon for the purchase of the 
Morphelan license ($7.5 million) with the balance to provide working capital 
for development of this product.  Additional payments may be due Elan by 
Targon if certain milestones are met.  As a result of the license agreement, 
the Company recorded a charge of $7.5 million in  acquisition of product  
rights to its Statement of Operations during the third quarter of 1997.


Item 2  -  Management's Discussion and Analysis of Financial Condition and 
     Results of Operations

   From time to time, as used herein, the term "Company" may include CYTOGEN 
and its  subsidiaries AxCell, Cellcor and Targon,  taken as a whole, where
appropriate.

   Background.  Currently,  the Company's commercial products and priority
developmental technology are: (i) Quadramet, a cancer therapy agent for the
treatment of bone pain associated with bone metastases, (ii) ProstaScint, a
monoclonal antibody-based diagnostic imaging product for prostate cancer, (iii)
OncoScint CR/OV, a monoclonal antibody-based diagnostic imaging agent for
colorectal and ovarian cancer, which received FDA licensure to market for both
single and repeat administration; (iv) autolymphocyte therapy developed by 
Cellcor for the treatment of advanced metastatic renal cell carcinoma, which 
has completed Phase III development; and (v) the Genetic Diversity Library 
technology involving peptides that have potentially significant commercial 
applications in high throughput screening of drug candidates, in accelerated, 
functional drug discovery programs, as peptide-based therapeutics, and in the 
discovery of synthetic genes.

   In June 1997, DuPont Merck launched into the market place CYTOGEN's third

                                     7     

<PAGE>

Item 2 - Management's Discussion and Analysis of Financial Condition and Results
     of Operations (Cont'd)

FDA-approved product, Quadramet, a treatment for the pain associated with bone
metastases, a condition that occurs when cancer spreads to the bone.   DuPont 
Merck manufactures, markets  and distributes Quadramet through its 
radiopharmaceuticals operations in the U.S.   CYTOGEN  records royalty 
revenues on Quadramet from DuPont Merck, as they are earned.  Royalties are 
based on a percentage of sales of Quadramet or guaranteed contractual minimum 
royalty payments, whichever is greater. 

   In February 1997, CYTOGEN launched its second FDA-approved product,
ProstaScint, a monoclonal antibody-based imaging agent developed to detect the
presence  and extent of metastatic prostate cancer.  In connection with the 
launch, CYTOGEN has developed its  PIE  (Partners in Excellence) 
accreditation program by establishing a network of qualified nuclear medicine 
sites and physicians.  Each site is trained and certified in acquiring, 
processing and interpreting the antibody-derived images.  As of October 31, 
1997 there are 168 PIE sites in operation.  ProstaScint is available only at 
such qualified sites, thus providing quality control and support. C.R. Bard, 
Inc. ("Bard") is currently marketing ProstaScint to urologists while CYTOGEN 
markets ProstaScint to the medical imaging community through its PIE Program.  
Both companies work together to market ProstaScint to managed care 
organizations. 

Results of Operations

   Revenues.  Total revenues for the three and nine months ended September 30,
1997 were $4.2 million and $10.2 million, respectively, compared to $1.2 million
and $3.9 million recorded in the same periods of 1996.  The increase from the 
prior year periods is principally attributable to increased product related 
revenues from royalties earned on Quadramet and sales of the ProstaScint 
product.  The 1997 year-to-date revenues were further increased by a $2.0 
million milestone payment recorded in the first quarter of 1997 from DuPont 
Merck upon FDA clearance of Quadramet.

   For the three and nine months ended September 30, 1997, product related
revenues were $3.2 million and $5.4 million, respectively,  compared to $393,000
and $1.1 million  recorded for the same periods of 1996.  The increase from the
prior year periods is attributable  primarily to royalties earned on 
Quadramet and sales of the ProstaScint product, both launched earlier in 1997. 

   License and contract revenues for the three and nine months ended September 
30, 1997 were $1.0 million and $4.8 million, respectively, compared to $795,000 
and $2.8 million  recorded in the same periods of 1996.  The third quarter 
increase from the prior year period is primarily attributable to higher  
revenues realized from the sale of manufacturing services.  The year-to-date 
increase from the prior year period is primarily attributable to the $2.0 
million milestone payment from DuPont Merck. 

   Operating Expenses.  The current year operating expenses reflect the
Company's efforts in acquiring, developing and marketing of new products.  For 
the three and nine  months ended September 30, 1997 operating expenses were 
$16.1 million and $36.8 million, respectively,  compared to $7.0 million and 
$21.3 million recorded in the same periods of 1996.  The increase from the prior
year periods is due to the one-time license fee of $7.5 million for the 

                                    8
<PAGE>

Item 2 - Management's Discussion and Analysis of Financial Condition and Results
     of Operations (Cont'd)

acquisition of Morphelan, product development efforts by Targon and AxCell, 
higher administrative costs and increased selling and marketing efforts to 
promote ProstaScint and establish PIE sites.  The 1997 year-to-date operating 
expenses are further increased by a one-time $4.0 million milestone payment to 
Dow recorded in the first quarter of 1997. 

   Research and development expenses for the three and nine months ended
September 30,  1997 were $5.3 million and $19.8 million, respectively, compared
to $4.7 million and $14.1 million recorded in the same periods of 1996.  These
expenses principally reflect product development efforts and support of clinical
trials.  The increase over the prior year periods is due to expenses associated
with the Targon and AxCell subsidiaries.  The 1997 year-to-date research and
development expenses were further increased by the aforementioned $4.0 million
milestone payment to Dow.
 
   Acquisition of product rights expense of $7.5 million was recorded in the
third quarter of 1997.  This expense represents the one-time license fee for the
exclusive worldwide rights to Morphelan purchased by Targon from Elan.  The 
license fee payment was funded by a $10 million loan from Elan (evidenced by 
notes from CYTOGEN to Elan and, in turn, from Targon to CYTOGEN), with the 
balance of the proceeds of such loan planned to be used by Targon for the 
development of Morphelan.

   Selling and marketing expenses for the three and nine months ended
September 30, 1997 were $1.2 million and $3.7 million, respectively, compared to
$945,000 and $2.8 million recorded in the same periods of 1996.  The increase 
from the prior year periods is primarily attributable to expenses associated 
with the launch of ProstaScint, including expenses to establish the PIE Program.

   General and administrative expenses for the three and nine months ended
September 30, 1997 were $2.2 million and $5.9 million, respectively, compared to
$1.3 million and $4.5 million recorded in the comparable periods of 1996.  The
increase from the prior year periods is primarily due to higher employment 
related costs, including accruals for year-end merit awards which will 
normalize by year-end to prior year levels, and professional services.

   Interest Income/Expense.  Interest income for the three and nine months
ended September 30, 1997 was $223,000 and $905,000, respectively, compared to
$313,000 and $1.1 million realized in the same periods of the prior year.  The
decrease from the prior year periods is due to lower cash and short term 
investment balances for the periods.   

   Interest expense for the three and nine months ended September 30, 1997 was
$204,000 and $350,000, respectively, compared to $116,000 and $342,000 recorded
in the same periods of 1996.  The increase from the prior year periods is due to
the interest expense associated with the $10.0 million note due to Elan.  

                                   9

<PAGE>

Item 2 - Management's Discussion and Analysis of Financial Condition and Results
     of Operations (Cont'd)

   Net Loss.  Net loss for the three months ended September 30, 1997 was $11.9
million compared to a net loss of $5.6 million incurred in the same period of 
1996.  The loss per common share was $0.23 on 51.2 million average shares 
outstanding compared to $0.12 on 48.4 million average shares outstanding for 
the same period in 1996.  The third quarter 1997 net loss per common share 
included $0.15 per share attributable to the Morphelan product acquisition.  
For the nine months ended September 30, 1997, the net loss was $26.1 million 
compared to a $16.7 million loss recorded in the comparable period of the prior
year.  The loss per common share was $0.51 (including the $0.15 impact of the 
Morphelan transaction) on 51.1 million average shares outstanding compared to 
$0.35 on 47.7 million average shares outstanding in 1996. 

Liquidity and Capital Resources

   The Company's cash, restricted cash  and short term investments were $16.0
million as of September 30, 1997, compared to $34.7 million as of December 31, 
1996 (see Note 1).  The Company's primary sources of cash have been proceeds 
from the issuance and sale of its stock through public offerings and private 
placements, product related revenues, the sale of research and manufacturing 
services, fees paid under its license agreements and interest earned on its 
cash and short term investments.  

   ProstaScint.  Beginning in 1997, product related revenues included sales
of ProstaScint.  CYTOGEN is co-promoting ProstaScint with Bard.  During the term
of the co-promotion agreement, Bard will receive performance-based compensation 
for its services.

   Quadramet.  Upon the  FDA clearance of Quadramet, the product was launched
by DuPont Merck in June 1997.  In April 1997, pursuant to the terms of an 
agreement between CYTOGEN and DuPont Merck, CYTOGEN received a $2.0 million 
milestone payment from DuPont Merck in connection with FDA clearance of 
Quadramet.  The agreement also provides for future payments towards additional 
clinical programs, additional payments upon achievement of certain other 
milestones and royalty payments based on sales, including guaranteed minimum 
payments.  CYTOGEN  records royalty revenues on Quadramet from DuPont Merck, as 
they are earned.   

   OncoScint CR/OV.  In 1994, the Company reacquired all U.S marketing rights
to OncoScint from Knoll Pharmaceuticals Company ("Knoll") and is required to pay
to Knoll as follows:  $1.6 million in 1997 which was paid on July 1, 1997 and 
$1.7 million in 1998.  In that same year, the Company reacquired the exclusive 
marketing and distribution rights in Europe from Chiron B.V. ("Chiron") and is 
required to pay to Chiron in 1997 the $377,000 outstanding balance from the 
resulting liability.

   During the third quarter of 1997, Targon entered into an agreement with
Elan to purchase Morphelan.  After the up-front license fee payment to Elan, the
agreement provides Targon with $2.5 million for product development.  The 
three-year $10.0 million interest bearing note between CYTOGEN and Elan will be 

                                    10
<PAGE>

Item 2 - Management's Discussion and Analysis of Financial Condition and Results
     of Operations (Cont'd)

due in full at the end of year three while interest payments on the note are due
quarterly.  Similar terms apply to the $10.0 million note between Targon and
CYTOGEN.  Additional payments may be due Elan by Targon if certain milestones 
are met.  See Note 3 to the Consolidated Financial Statements.

   CYTOGEN acquired an exclusive license in the U.S., Canada and Latin America
from Dow for Quadramet.  In April 1997, the Company paid to Dow $4.0 million in
connection with FDA clearance of Quadramet.  The agreement provides for 
additional payments by the Company upon achievement of certain milestones and 
royalties on net sales of the product once commercialized, including 
guaranteed minimum payments. 


   The Company's capital and operating requirements may change depending upon
several factors, including: (i) the success of the Company and its strategic
partners in manufacturing, marketing and commercialization of its products; (ii)
the amount of resources which the Company devotes to clinical evaluations and 
the establishment of marketing and sales capabilities; (iii) results of 
preclinical testing, clinical trials and research and development activities; 
and (iv) competitive and technological developments. 

   The Company's financial objectives are to meet its capital and operating
requirements through revenues from existing products, subcontract manufacturing,
license and research contracts, and control of spending.  To achieve its 
strategic objectives, the Company may enter into research and development 
partnerships and acquire, in-license and develop other technologies, products or
services.  Certain of these strategies may require payments by the Company in 
either cash or stock in addition to the costs associated with developing and 
marketing a product or technology.  However, the Company believes that, if 
successful, such strategies may increase long term revenues.  There can be no 
assurance as to the success of such strategies or that resulting funds will be 
sufficient to meet cash requirements until product related revenues are 
sufficient to cover operating expenses.  To fund these strategic and operating 
activities, the Company may sell equity and debt securities as market conditions
permit or enter into credit facilities.  The Company is currently evaluating 
financing options.  If necessary, the Company believes that it has the 
ability to reduce the operating expenses so that it will have adequate cash flow
to carry it through the first quarter of 1998.  
                                                                
                            ==========================                         
                               Cautionary Statement

   The foregoing discussion contains historical information as well as forward
looking statements that involve a number of risks and uncertainties.  In 
addition to the risks discussed above, among other factors that could cause 
actual results to differ materially from expected results are the following:  
(i) the timing and results of clinical studies; (ii) market acceptance of the 
Company's products, including programs designed to facilitate use of the 
products, such as the PIE Program; (iii) the acceptance by the majority of 

                                   11

<PAGE>

Item 2 - Management's Discussion and Analysis of Financial Condition and Results
     of Operations (Cont'd)

public and private insurance carriers to reimburse patients for the Company's 
products; (iv) the profitability of its products; (v) the ability to attract, 
and the ultimate success of strategic partnering arrangements, collaborations, 
and acquisition candidates; (vi) the ability to attract additional contract 
manufacturing customers; (vii) the ability of the Company and its partners to 
identify new products as a result of those collaborations that are capable of 
achieving FDA approval, that are cost-effective alternatives to existing 
products and that are ultimately accepted by the key users of the product; 
(viii) the success of the Company's distributors in obtaining marketing 
approvals in Canada and in additional European countries, in achieving 
milestones and achieving sales of products resulting in royalties; and (ix) the
Company's ability to access the capital markets in the near term and in the 
future for continued funding of existing projects and for the pursuit of new 
projects.

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<PAGE>

PART II  -  OTHER INFORMATION
-------     -----------------
Item 5  -    Other Information
------
             On October 29, 1997 and November 13, 1997, the Company issued the 
             attached press releases.

Item 6  -    Exhibits and Reports on Form 8-K
------       
             (a) Exhibits: 

             27   -   Financial Data Schedule (Submitted to SEC only in
                      electronic format).

             99.1 -   Press release issued by CYTOGEN Corporation on October 29,
                      1997.

             99.2 -   Press release issued by CYTOGEN Corporation on November  
                      13, 1997. 
  
             (b) Reports on Form 8-K:
                 
                 On July 8, 1997, the Company filed a report on Form 8-K
                 reporting on "Item 5. Other Events" regarding the amendment of
                 its request for confidential treatment for information 
                 contained in certain exhibits filed with its Quarterly Report 
                 on Form 10-Q for the quarter ended September 30, 1996.   

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<PAGE>
                                     SIGNATURES



    Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                        CYTOGEN CORPORATION





Date November 14, 1997                  By /s/ Jane M. Maida             
     -----------------                    ------------------  
                                          Jane M. Maida
                                          Chief Accounting Officer







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