----

----

**FORM      10-Q**

| (Mark                One) |                                                                                                                                                                                                                |
|---------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ý                    | QUARTERLY                REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF                1934                FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2007                                         |   |
|                      |                                                                                                                                                                                                                |   |
| o                         | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934 FOR THE TRANSITION PERIOD                FROM     TO |   |

----

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

----

----

----

| Large                Accelerated Filer o | Accelerated                Filer ý | Non-                Accelerated Filer o |
|-----------------------------------------------|----------------------------------------------|----------------------------------------------|

| Class:                Common Stock, $.01 par value | Outstanding                at August 6, 2007: 35,473,957 |
|----------------------------------------------------|----------------------------------------------------------|

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----

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Page     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|  PART                I.  FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | 1        |
|  Item                1.            Consolidated                Financial Statements                (unaudited)                                                                                                  |  1  |
|  Consolidated                Balance Sheets as of June 30, 2007 and December 31,                2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  2  |
|  Consolidated                Statements of Operations for the Three Months and Six Months Ended                June                30, 2007 and 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  3  |
|  Consolidated                Statements of Cash Flows for the Six Months Ended June 30, 2007 and                2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  4  |
|  Notes                to Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |  5  |
|  Item                2.                           Management's Discussion and Analysis of Financial Condition and Results                of                Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  15 |
|  Item                3.            Quantitative                and Qualitative Disclosures About Market Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  36 |
|  Item                4.            Controls                and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  36 |
|  PART                II.  OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  38 |
|  Item                1A.         Risk                Factors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  38 |
|  Item                2.                           Unregistered Sales of Equity Securities and Use of                Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  50 |
|  Item                4.                           Submission of Matters to a Vote of Security Holders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  50 |
|  Item                6.                           Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  52 |
|  SIGNATURES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  53 |

----

**PART      I  - FINANCIAL INFORMATION**

**Item      1.     Consolidated Financial Statements      (unaudited)**

----

**CYTOGEN      CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      BALANCE SHEETS**

*(All      amounts in thousands, except share and per share data)*

*(Unaudited)*

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | **June                  30,****2007** |     |   | **December                  31,**** 2006** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|----------|--------|-------------------------------------------------|--------|
| **ASSETS:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                  |     |   |                                            |   |
| Current                assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                  |     |   |                                            |   |
| Cash                and cash                equivalents                                                                                                               |   | $                                     | 16,095   |   |                                            | $      | 32,507 |   |
| Restricted                cash                                                                                                                                        |   |                                  | --       |   |                                            |   | 1,100 |   |
| Accounts                receivable,                net                                                                                                                |   |                                  | 2,145    |   |                                            |   | 2,113 |   |
| Inventories                                                                                                                                                           |   |                                  | 5,393    |   |                                            |   | 2,538 |   |
| Inventories                at                wholesalers                                                                                                              |   |                                  | 24       |   |                                            |   | 93 |   |
| Prepaid                expenses                                                                                                                                       |   |                                  | 1,411    |   |                                            |   | 1,571 |   |
| Other                current                assets                                                                                                                    |   |                                  | 47       |   |                                            |   | 63 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  |     |   |                                            |   |   |   |
| Total                current                assets                                                                                                                                   |   |                                  | 25,115   |   |                                            |   | 39,985 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  |     |   |                                            |   |   |   |
| Property                and equipment, less accumulated depreciation and amortization of                $1,571                and $1,409 at                  June 30, 2007 and December 31, 2006, respectively                                                                                                                                                                                                                                                                                                                                                    |   |                                  | 1,051    |   |                                            |   | 691 |   |
| Product                license fees, less accumulated amortization of $3,195 and $2,577                at June                30, 2007 and                  December 31, 2006, respectively                                                                                                                                                                                                                                                                                                                                                                       |   |                                  | 10,994   |   |                                            |   | 11,612 |   |
| Other                assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                  | 1,952    |   |                                            |   | 2,065 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  |     |   |                                            |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                     | 39,112   |   |                                            | $      | 54,353 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  |     |   |                                            |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                  |     |   |                                            |   |   |   |
| Current                liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                  |     |   |                                            |   |   |   |
| Current                portion of long-term                liabilities                                                                                                |   |                                  | 86       |   |                                            |   | 64 |   |
| Accounts                payable and accrued                liabilities                                                                                                |   |                                  | 11,240   |   |                                            |   | 10,104 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  |     |   |                                            |   |   |   |
| Total                current                liabilities                                                                                                                              |   |                                  | 11,326   |   |                                            |   | 10,168 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  |     |   |                                            |   |   |   |
| Warrant                liabilities                                                                                                           |   |                                  | 4,349    |   |                                            |   | 6,464 |   |
| Other                long-term                liabilities                                                                                    |   |                                  | 84       |   |                                            |   | 59 |   |
| Total                liabilities                                                                                                                                                     |   |                                  | 15,759   |   |                                            |   | 16,691 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  |     |   |                                            |   |   |   |
| 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 and 50,000,000 shares authorized, 29,659,357 and                29,605,631                         shares issued and outstanding at June 30, 2007 and December 31,                2006, respectively                                                                                                                                                                                                                                                        |   |                                  | 297      |   |                                            |   | 296 |   |
| Additional                paid-in                capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                  | 465,921  |   |                                            |   | 465,016 |   |
| Accumulated                other                comprehensive income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  | 33       |   |                                            |   | 20 |   |
| Accumulated                deficit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                  | (442,898 | )      |                                            |   | (427,670 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  |     |   |                                            |   |   |   |
| Total                stockholders'                equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                  | 23,353   |   |                                            |   | 37,662 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                  |     |   |                                            |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                     | 39,112   |   |                                            | $      | 54,353 |   |

----

**CYTOGEN      CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

*(All      amounts in thousands, except per share data)*

*(Unaudited)*

|                                                           |   |   | **Three                Months****Ended                June 30,** |   | **Six                Months****Ended                June                30,**  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | **2007** |    |   | **2006** |   |   | **2007** |   |   | **2006** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
| **Revenues:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |     |    |   |     |   |   |     |   |   |     |   |
| Product                revenue:                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |     |    |   |     |   |   |     |   |   |     |   |
| QUADRAMET                                                                                                                                             |   | $        | 2,410   |   |     | $      | 1,988  |     |   | $      | 4,760    |   |   | $ | 4,244 |   |
| PROSTASCINT                                                                                                                                           |   |     | 2,508   |   |     |   | 2,180  |     |   |   | 4,964    |   |   |   | 4,364 |   |
| CAPHOSOL                                                                                                                                              |   |     | 234     |   |     |   | --     |     |   |   | 234      |   |   |   | -- |   |
| Total                product                revenue                                                                                                                            |   |     | 5,152   |   |     |   | 4,168  |     |   |   | 9,958    |   |   |   | 8,608 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |     |    |   |     |   |   |     |   |   |     |   |   |   |   |   |
| Contract                revenue                                                                                                        |   |     | 2       |   |     |   | 4      |     |   |   | 4        |   |   |   | 6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |     |    |   |     |   |   |     |   |   |     |   |   |   |   |   |
| Total                revenues                                                                                                                                                  |   |     | 5,154   |   |     |   | 4,172  |     |   |   | 9,962    |   |   |   | 8,614 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |     |    |   |     |   |   |     |   |   |     |   |   |   |   |   |
| **Operating                expenses:**                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |    |   |     |   |   |     |   |   |     |   |   |   |   |   |
| Cost                of product                revenue                                                                                  |   |     | 3,157   |   |     |   | 2,552  |     |   |   | 6,059    |   |   |   | 4,914 |   |
| General                and                administrative                                                                               |   |     | 2,394   |   |     |   | 2,892  |     |   |   | 4,804    |   |   |   | 5,255 |   |
| Selling                and                marketing                                                                                    |   |     | 9,656   |   |     |   | 4,102  |     |   |   | 17,787   |   |   |   | 7,976 |   |
| Research                and                development                                                                                 |   |     | 1,624   |   |     |   | 1,505  |     |   |   | 3,228    |   |   |   | 4,541 |   |
| Equity                in (income) loss of                joint venture                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     | --      |   |     |   | (13    | )        |   |   | --       |   |   |   | 120 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |     |    |   |     |   |   |     |   |   |     |   |   |   |   |   |
| Total                operating                expenses                                                                                                                         |   |     | 16,831  |   |     |   | 11,038 |     |   |   | 31,878   |   |   |   | 22,806 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |     |    |   |     |   |   |     |   |   |     |   |   |   |   |   |
| Operating                loss                                                                                                                                                  |   |     | (11,677 | )      |     |   | (6,866 | )        |   |   | (21,916  | )      |   |   | (14,192 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |     |    |   |     |   |   |     |   |   |     |   |   |   |   |   |
| **Interest                income                                                                          **  |   |     | 285     |   |     |   | 392    |     |   |   | 661      |   |   |   | 689 |   |
| **Interest                expense                                                                          ** |   |     | (24     | )      |     |   | (6     | )        |   |   | (34      | )      |   |   | (12 | ) |
| **Advanced                Magnetics Inc. litigation settlement, net**                                                                                                                                                                                                                                                                                                                                                                                                                           |   |     | --      |   |     |   | --     |     |   |   | 3,946    |   |   |   | -- |   |
| **Gain                on sale of equity interest in joint venture**                                                                                                                                                                                                                                                                                                                                                                                                                             |   |     | --      |   |     |   | 12,873 |     |   |   | --       |   |   |   | 12,873 |   |
| **Decrease                in value of warrant liabilities**                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |     | 1,020   |   |     |   | 813    |     |   |   | 2,115    |   |   |   | 182 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |     |    |   |     |   |   |     |   |   |     |   |   |   |   |   |
| **Net                income (loss)**                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $        | (10,396 | )      |     | $      | 7,206  |     |   | $      | (15,228  | )      |   | $ | (460 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |     |    |   |     |   |   |     |   |   |     |   |   |   |   |   |
| **Basic                and diluted net income (loss) per share**                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $        | (0.35   | )      |     | $      | 0.32   |     |   | $      | (0.51    | )      |   | $ | (0.02 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |     |    |   |     |   |   |     |   |   |     |   |   |   |   |   |
| **Basic                and diluted weighted average common shares                outstanding**                                                                                                                                                                                                                                                                                                                                                                                                  |   |     | 29,644  |   |     |   | 22,474 |     |   |   | 29,625   |   |   |   | 22,474 |   |

----

**CYTOGEN      CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

*(All      amounts in thousands)*

*(Unaudited)*

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | **Six                Months Ended June 30,** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | **2007**                                     |   |   | **2006** |
| **CASH                FLOWS FROM OPERATING ACTIVITIES:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                         |   |   |   |   |   |
| Net                loss                                                                                                                              |   | $                                            | (15,228 | ) |   | $ | (460 | ) |
| Adjustments                to reconcile net loss to net cash used                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                         |   |   |   |   |   |
| in                operating                activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                         |   |   |   |   |   |
| Depreciation                and                amortization                                                                                                                                  |   |                                         | 872 |   |   |   | 601 |   |
| Decrease                in value of warrant                liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                         | (2,115 | ) |   |   | (182 | ) |
| Share-based                compensation                expense                                                                                                                               |   |                                         | 847 |   |   |   | 772 |   |
| Gain                on sale of equity interest                in joint venture                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                         | -- |   |   |   | (12,873 | ) |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                         | 51 |   |   |   | 12 |   |
| Changes                in assets and                liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                         |   |   |   |   |   |
| Accounts                receivable                                                                                                                                                                          |   |                                         | (32 | ) |   |   | (173 | ) |
| Inventories                                                                                                                                                                                                 |   |                                         | (2,854 | ) |   |   | 1,623 |   |
| Other                assets                                                                                                                                                                                 |   |                                         | 1,481 |   |   |   | 656 |   |
| Accounts                payable and accrued                liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                         | 2,143 |   |   |   | 22 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                         |   |   |   |   |   |
| Net                cash used in operating                activities                                                                                                                          |   |                                         | (14,835 | ) |   |   | (10,002 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                         |   |   |   |   |   |
| **CASH                FLOWS FROM INVESTING ACTIVITIES:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                         |   |   |   |   |   |
| Purchase                of product                rights                                                                                        |   |                                         | (1,000 | )  |   |   | (2,000 | ) |
| Purchases                of property and                equipment                                                                                    |   |                                         | (598 | ) |   |   | (86 | ) |
| Proceeds                from sale of equity interest in joint venture                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                         | -- |   |   |   | 13,132 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                         |   |   |   |   |   |
| Net                cash provided by (used in)                investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                         | (1,598 | ) |   |   | 11,046 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                         |   |   |   |   |   |
| **CASH                FLOWS FROM FINANCING ACTIVITIES:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                         |   |   |   |   |   |
| Proceeds                from issuance of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                         | 58 |   |   |   | 36 |   |
| Payment                of long-term                liabilities                                                                                       |   |                                         | (37 | ) |   |   | (17 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                         |   |   |   |   |   |
| Net                cash provided by financing                activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                         | 21 |   |   |   | 19 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                         |   |   |   |   |   |
| Net                increase (decrease) in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                         | (16,412 | ) |   |   | 1,063 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                         |   |   |   |   |   |
| Cash                and cash equivalents, beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                         | 32,507 |   |   |   | 30,337 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                         |   |   |   |   |   |
| Cash                and cash equivalents, end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                            | 16,095 |   |   | $ | 31,400 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                         |   |   |   |   |   |
| Supplemental                disclosure of non-cash information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                         |   |   |   |   |   |
| Capital                lease of                equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                                            | 84 |   |   | $ | 96 |   |
| Unrealized                holding gain on                marketable securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $                                            | 13 |   |   | $ | 41 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                         |   |   |   |   |   |
| Supplemental                disclosure of cash information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                         |   |   |   |   |   |
| Cash                paid for                interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $                                            | 17 |   |   | $ | 12 |   |

----

**CYTOGEN      CORPORATION AND SUBSIDIARIES**

**NOTES      TO CONSOLIDATED FINANCIAL STATEMENTS**

***(Unaudited)***

**1.       THE COMPANY**

**Background**

----

**Basis      of Consolidation**

**Basis      of Presentation**

**Summary      of Significant Accounting Policies**

*Use      of Estimates*

*Cash      and Cash Equivalents*

*Restricted      Cash*

----

*Inventories*

|                          |   | **June                  30, 2007** |   |   | **December                  31, 2006** |   |
|-------------------------------|--------|------------------------------------|--------|--------|----------------------------------------|--------|
| Raw                materials  |   | $                                  | 232    |   |                                   | $      | 325 |   |
| Work-in-process               |   |                               | 2,875  |   |                                   |   | 1,296 |   |
| Finished                goods |   |                               | 2,286  |   |                                   |   | 917 |   |
|                          |   | $                                  | 5,393  |   |                                   | $      | 2,538 |   |

*Net      Loss Per Share*

**Other      Comprehensive Income or Loss**

----

**Recent      Accounting Pronouncements**

*Advance      Payments for Goods or Services*

*Fair      Value Option*

*Fair      Value Measurement*

*Income      Taxes*

----

**Reclassification**

**2.        SHARE-BASED COMPENSATION**

----

|                                        |   | **Three                    Months****Ended****June                    30, 2007**       |    |   | **Six                    Months****Ended****June                    30, 2007** |   |
|---------------------------------------------|--------|----------------------------------------------------------------------------------------|---------|--------|--------------------------------------------------------------------------------|--------|
|                                        |   |                                                                                   |    |   |                                                                           |   |
| Expected                    life (years)    |   |                                                                                   | 8.92    |   |                                                                           |   | 6.35 |   |
| Expected                    volatility      |   |                                                                                   | 101%    |   |                                                                           |   | 85% |   |
| Dividend                    yield           |   |                                                                                   | 0%      |   |                                                                           |   | 0% |   |
| Risk-free                    interest rate  |   |                                                                                   | 5.25%   |   |                                                                           |   | 4.77% |   |
| Options                    granted          |   |                                                                                   | 103,000 |   |                                                                           |   | 816,500 |   |
| Nonvested                    shares granted |   |                                                                                   | 80,000  |   |                                                                           |   | 245,000 |   |
|                                        |   |  **Three                    Months****Ended****June                    30, 2006** |    |   | **Six                    Months****Ended****June                    30, 2006** |   |
|                                        |   |                                                                                   |    |   |                                                                           |   |   |   |
| Expected                    life (years)    |   |                                                                                   | 6.53    |   |                                                                           |   | 6.51 |   |
| Expected                    volatility      |   |                                                                                   | 97%     |   |                                                                           |   | 97% |   |
| Dividend                    yield           |   |                                                                                   | 0%      |   |                                                                           |   | 0% |   |
| Risk-free                    interest rate  |   |                                                                                   | 4.95%   |   |                                                                           |   | 4.94% |   |
| Options                    granted          |   |                                                                                   | 532,400 |   |                                                                           |   | 551,600 |   |
| Nonvested                    shares granted |   |                                                                                   | 69,800  |   |                                                                           |   | 71,800 |   |

**3.        LAUREATE PHARMA, L.P.**

----

**4.          WARRANT LIABILITY**

|                                      |   | **June                  30,****2007** |      |   | **June                  30,****2006** |   |
|-------------------------------------------|--------|---------------------------------------|-----------|--------|---------------------------------------|--------|
| Dividend                yield             |   |                                  | 0%        |   |                                  |   | 0% |   |
| Expected                volatility        |   |                                  | 75%       |   |                                  |   | 107% |   |
| Expected                life(1)           |   | 5.0                years              |      |   | 9.1                years              |   |
| Risk-free                interest rate    |   |                                  | 5.0%      |   |                                  |   | 5.2% |   |
| Company                Common Stock Price |   | $                                     | 1.95      |   |                                  | $      | 2.50 |   |
| Outstanding                warrants       |   |                                  | 4,322,203 |   |                                  |   | 776,096 |   |

|  | (1) | The                  remaining expected life assumptions at June 30, 2007 and 2006 for                  the                  warrants issued in July and August 2005 were 8.1 years and 9.1                  years,                  respectively.  The expected life assumption at June 30, 2007 for                  the warrants issued in November                  2006 was 4.4 years. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**5.       **
**ONCOLOGY THERAPEUTICS NETWORK, J.V.**

**6.        INPHARMA AS**

**7.        HOLOPACK VERPACKUNGSTECHNIK GMBH**

----

**8.          LITIGATION**

**9.        INCOME TAXES**

*Accounting for Uncertainty      in Income Taxes*
*Accounting for Income Taxes*

----

**10.        INCREASE IN AUTHORIZED COMMON STOCK**

**11.        SALE OF COMMON STOCK AND WARRANTS**

----

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

----

**Overview**

**Significant      Events in 2007**

*Settlement*
*Agreement      with Advanced Magnetics*

*Initiation      of Phase 1 Trial for Radiolabeled Antibody for the Treatment of      Hormone-Refractory Prostate Cancer*

*Introduction      of CAPHOSOL in the United States*

----

*Addition      of Senior Vice President of Sales and Marketing*

*Sale      of Common Stock and Warrants*

**Results      of Operations**

**Three      Months Ended June 30, 2007 and 2006**

**Revenues**

|                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                   |   |   |     |   |   | **Increase/(Decrease)** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|-------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                |   | **2007**                                                                               |   |   | **2006** |   |   |  $                 |   |   |   | **%** |   |
|                                                                                                                                                                                                                                                                                                                                                                |   | ***(All                amounts in thousands, except percentage                data)*** |   |
| QUADRAMET                                                                             |   | $                                                                                      | 2,410  |   |     | $      | 1,988  |                    |   | $ | 422 |   |   |   | 21 | % |
| PROSTASCINT                                                                           |   |                                                                                   | 2,508  |   |     |   | 2,180  |                    |   |   | 328 |   |   |   | 15 | % |
| CAPHOSOL                                                                              |   |                                                                                   | 234    |   |     |   | --     |                    |   |   | 234 |   |   |   | n/a |   |
| Contract                revenue                                                       |   |                                                                                   | 2      |   |     |   | 4      |                    |   |   | (2 | ) |   |   | (50 | )% |
| Total                revenues                                                         |   | $                                                                                      | 5,154  |   |     | $      | 4,172  |                    |   | $ | 982 |   |   |   | 24 | % |

----

***QUADRAMET.  ***

***PROSTASCINT.***

----

***CAPHOSOL.***

**Operating      Expenses**

|                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                   |   |   |     |   |   | **Increase/(Decrease)** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|-------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                     |   | **2007**                                                                               |   |   | **2006** |   |   |  $                 |   |   |   | **%** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                     |   | ***(All                amounts in thousands, except percentage                data)*** |   |
| Cost                of product                revenue                                                            |   | $                                                                                      | 3,157  |   |     | $      | 2,552  |                    |   | $ | 605 |   |   |   | 24 | % |
| General                and                administrative                                                         |   |                                                                                   | 2,394  |   |     |   | 2,892  |                    |   |   | (498 | ) |   |   | (17 | )% |
| Selling                and                marketing                                                              |   |                                                                                   | 9,656  |   |     |   | 4,102  |                    |   |   | 5,554 |   |   |   | 135 | % |
| Research                and                development                                                           |   |                                                                                   | 1,624  |   |     |   | 1,505  |                    |   |   | 119 |   |   |   | 8 | % |
| Equity                in (income) loss of joint venture                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                   | --     |   |     |   | (13    | )                       |   |   | 13 |   |   |   | 100 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                                                                      | 16,831 |   |     | $      | 11,038 |                    |   | $ | 5,793 |   |   |   | 52 | % |

***Cost      of Product Revenue.***

----

***General      and Administrative.  ***

***Selling      and Marketing.***

***Research      and Development.***

***Equity      (Income) in Loss of Joint Venture.***

***Interest      Income/Expense.***

***Gain      on Sale of Equity Interest in Joint Venture.***
*in vivo*

----

***Decrease      in Warrant Liability.***

***Net      Income (Loss).***

** **
** **

**Six      Months Ended June 30, 2007 and 2006**

**Revenues**

|                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                   |   |   |     |   |   | **Increase/(Decrease)** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|-------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                |   | **2007**                                                                               |   |   | **2006** |   |   |  **$**             |   |   |   | **%** |   |
|                                                                                                                                                                                                                                                                                                                                                                |   | ***(All                amounts in thousands, except percentage                data)*** |   |
| QUADRAMET                                                                             |   | $                                                                                      | 4,760  |   |     | $      | 4,244  |                    |   | $ | 516 |   |   |   | 12 | % |
| PROSTASCINT                                                                           |   |                                                                                   | 4,964  |   |     |   | 4,364  |                    |   |   | 600 |   |   |   | 14 | % |
| CAPHOSOL                                                                              |   |                                                                                   | 234    |   |     |   | --     |                    |   |   | 234 |   |   |   | n/a |   |
| Contract                revenue                                                       |   |                                                                                   | 4      |   |     |   | 6      |                    |   |   | (2 | ) |   |   | (33 | )% |
| Total                revenues                                                         |   | $                                                                                      | 9,962  |   |     | $      | 8,614  |                    |   | $ | 1,348 |   |   |   | 16 | % |

----

***QUADRAMET.***

***PROSTASCINT.***

***CAPHOSOL.***

----

**Operating      Expenses**

|                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                   |   |   |     |   |   | **Increase/(Decrease)** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|-------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                     |   | **2007**                                                                               |   |   | **2006** |   |   |  **$**             |   |   |   | **%** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                     |   | ***(All                amounts in thousands, except percentage                data)*** |   |
| Cost                of product                revenue                                                            |   | $                                                                                      | 6,059  |   |     | $      | 4,914  |                    |   | $ | 1,145 |   |   |   | 23 | % |
| General                and                administrative                                                         |   |                                                                                   | 4,804  |   |     |   | 5,255  |                    |   |   | (451 | ) |   |   | (9 | )% |
| Selling                and                marketing                                                              |   |                                                                                   | 17,787 |   |     |   | 7,976  |                    |   |   | 9,811 |   |   |   | 123 | % |
| Research                and                development                                                           |   |                                                                                   | 3,228  |   |     |   | 4,541  |                    |   |   | (1,313 | ) |   |   | (29 | )% |
| Equity                in (income) loss of joint venture                                                                                                                                                                                                                                                                                                                                                  |   |                                                                                   | --     |   |     |   | 120    |                    |   |   | (120 | ) |   |   | (100 | )% |
|                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                                                                      | 31,878 |   |     | $      | 22,806 |                    |   | $ | 9,072 |   |   |   | 40 | % |

***Cost      of Product Revenues.  ***

***General      and Administrative.***

***Selling      and Marketing.***

***Research      and Development.  ***

----

***Equity      in Loss of Joint Venture.***

***Interest      Income/Expense.***

***Advanced      Magnetics, Inc. Litigation Settlement, Net.***

***Gain      on Sale of Equity Interest in Joint Venture.***
*in vivo*

***Decrease      in Warrant Liability.***

----

***Net      Income (Loss).***
** **
** **

----

**COMMITMENTS**

|                                           |   | **Less****Than****1                  Year**     |   |   | **1                  to 3****Years** |   |   | **4                  to 5****Years** |   |   | **More**** Than****5                  Years** |   |   | **Total** |   |
|------------------------------------------------|--------|-------------------------------------------------|--------|--------|--------------------------------------|--------|--------|--------------------------------------|--------|--------|----------------------------------------------------|--------|--------|-----------|--------|
|                                           |   | ***(All                amounts in thousands)*** |   |
| Capital                lease obligations       |   | $                                               | 86     |   |                                 | $      | 84     |                                 |   | $      | --                                                 |   |   | $         | --     |   |   | $ | 170 |   |
| Facility                leases                 |   |                                            | 338    |   |                                 |   | 451    |                                 |   |   | --                                                 |   |   |      | --     |   |   |   | 789 |   |
| Research                and development        |   |                                            | 160    |   |                                 |   | 197    |                                 |   |   | 150                                                |   |   |      | 444    |   |   |   | 951 |   |
| Marketing                and other obligations |   |                                            | 1,486  |   |                                 |   | 2      |                                 |   |   | --                                                 |   |   |      | --     |   |   |   | 1,488 |   |
| Manufacturing                contracts(1)      |   |                                            | 4,961  |   |                                 |   | 4,859  |                                 |   |   | --                                                 |   |   |      | --     |   |   |   | 9,820 |   |
| Minimum                royalty payments(2)     |   |                                            | 1,247  |   |                                 |   | 3,027  |                                 |   |   | 3,186                                              |   |   |      | 4,890  |   |   |   | 12,350 |   |
|                                           |   |                                            |   |   |                                 |   |   |                                 |   |   |                                               |   |   |      |   |   |   |   |   |   |
| Total                                          |   | $                                               | 8,278  |   |                                 | $      | 8,620  |                                 |   | $      | 3,336                                              |   |   | $         | 5,334  |   |   | $ | 25,568 |   |

|  | (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 $4.9 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                June 30, 2009. |
|--|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (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 2007 through 2012 and $833,000                in                2013. We acquired the exclusive marketing                rights                for SOLTAMOX in the United States under our distribution agreement                with                Rosemont.  The agreements with Rosemont require us to pay                Rosemont quarterly minimum royalties based on an agreed upon percentage                of                total tamoxifen prescriptions in the United States through June 2018.                The                above table includes future estimated annual minimum royalties based                upon                tamoxifen prescriptions in the United States for the quarter ended                March                31, 2007. |
|--|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Liquidity      and Capital Resources**

**Condensed      Statement of Cash Flows:**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | **Six                  Months Ended****June                  30, 2007** |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | ***(All                amounts in thousands)***                         |    |
| Net                loss                                                                                                                               |   | $                                                                       | (15,228 | ) |
| Adjustments                to reconcile net loss to net cash used inoperating                activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                    | 393     |   |
| Net                cash used in operating                activities                                                                                   |   |                                                                    | (14,835 | ) |
| Net                cash used in investing                activities                                                                                   |   |                                                                    | (1,598  | ) |
| Net                cash provided by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                    | 21      |   |
| Net                decrease in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                                                       | (16,412 | ) |

**Overview**

----

**Other      Liquidity Events**

----

----

----

**CRITICAL      ACCOUNTING POLICIES AND ESTIMATES**

**Revenue      Recognition**

----

** **

----

**Accounts      Receivable**

**Inventories**

**Carrying      Value of Fixed and Intangible Assets**

----

**Warrant      Liability**

**Share-Based      Compensation**

----

**Recent      Accounting Pronouncements**

*Advance      Payments for Goods or Services*

*Fair      Value Option*

*Fair      Value Measurement*

*Income      Taxes*

----

**Item      3.    Quantitative and Qualitative Disclosures About Market      Risk**

**Item      4.    Controls and Procedures**

----

----

**PART      II  - OTHER INFORMATION**

**Item      1A.    Risk Factors**

*We      have a history of operating losses and an accumulated deficit and expect to      incur losses in the future.*

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

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

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

----

*We      depend on sales of QUADRAMET and PROSTASCINT for substantially all of our      near-term revenues.*

*We      will depend on market acceptance of SOLTAMOX and CAPHOSOL for future      revenues.*

*A      small number of customers account for the majority of our sales, and the loss      of      one of them, or changes in their purchasing patterns, could result in reduced      sales, thereby adversely affecting our operating results.*

----

*There      are risks associated with the manufacture and supply of our      products.*

----

*We      rely heavily on our collaborative partners.*

|   | · | 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.) for                PROSTASCINT; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | 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                distribution agreement and a manufacture and supply agreement with                Rosemont Pharmaceuticals Limited related to the supply and marketing                of                SOLTAMOX; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a                purchase and supply agreement with OTN for the distribution of SOLTAMOX                and 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. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

*Certain      of our products are in the early stages of development and commercialization      and      we may never achieve the revenue goals set forth in our business      plan.*

----

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

|   | · | to                ensure that our products are safe and                effective; |
|--------|--------|-----------------------------------------------------------------------------------|

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

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

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

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

*We      depend on attracting and retaining key personnel.*

----

*Failure      of third party payors to provide adequate coverage and reimbursement for our      products could limit market acceptance and affect pricing of our products and      affect our revenues.*

----

*We      will need to raise additional capital which may not be available or only      available on less favorable terms.*

|   | · | success                of our product commercialization                efforts; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | success                of any future acquisitions of complementary products and technologies                we                may make; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | · | magnitude,                scope and results of our product development and research and development                efforts; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | progress                of preclinical studies and clinical                trials; |
|--------|--------|------------------------------------------------------------------------------------|

|   | · | progress                toward regulatory approval for our                products; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | costs                of filing, prosecuting, defending and enforcing patent claims and                other                intellectual property rights; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | competing                technological and market developments;                and |
|--------|--------|------------------------------------------------------------------------------------|

|   | · | expansion                of strategic alliances for the sale, marketing and distribution of                our                products. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------|

*Our      capital raising efforts may dilute stockholder interests.*

*We      have limited sales, marketing and distribution capabilities for our      products.*

*We      may need to raise funds other than through the issuance of equity      securities.*

*A      significant portion of our total outstanding shares of common stock may be      sold      in the market in the near future, which could cause the market price of our      common stock to drop significantly.*

----

*Our      common stock has a limited trading market, which could limit your ability to      resell your shares of common stock at or above your purchase      price.*

*Our      common stock may be subject to the "penny stock" regulations which may affect      the ability of our stockholders to sell their shares.*

*The      liquidity of our common stock could be adversely affected if we are delisted      from the NASDAQ Global Market.*

----

*Our      stock price has been and may continue to be volatile, and your investment in      our      stock could decline in value or fluctuate significantly.*

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

|   | Ÿ | technological                innovations or new commercial                products; |
|--------|--------|-------------------------------------------------------------------------------------|

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

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

|   | Ÿ | changes                in health care policies and                practices; |
|--------|--------|------------------------------------------------------------------------------|

|   | Ÿ | developments                or disputes concerning proprietary                rights; |
|--------|--------|---------------------------------------------------------------------------------------|

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

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

----

*We        will be obligated to pay liquidated damages if our recently filed registration        statement is not declared effective within a certain period of        time.*

|   | Ÿ | the                    registration statement is not declared effective by September                    26,                    2007; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | we                      fail to file with the SEC an acceleration request of the registration                      statement within five trading days of the date that we are                      notified by the                      SEC that such registration statement will not be subject to                      further                      review; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | we                      fail to file a pre-effective amendment and otherwise respond                      in writing to                      comments made by the SEC in respect of such registration statement                      within                      15 trading days after the receipt of comments by or notice                      from the SEC                      that such amendment is required in order for such registration                      statement                      to be declared                      effective; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | all                    of the securities sold in the private placement are not registered                    for                    resale pursuant to one or more effective registration statements                    on or                    before June 30, 2008; or |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Ÿ | after                      the effectiveness, such registration statement ceases for any                      reason to                      remain continuously effective as to all securities sold in                      the private                      placement for which it is required to be effective, or the                      purchasers are                      not permitted to utilize the prospectus in such registration                      statement for                      more than ten trading days or more than an aggregate of 20                      trading days                      during any 12-month                      period. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Item        2.    Unregistered Sales of Equity Securities and Use of        Proceeds**

**Item      4.    Submission of Matters to a Vote of Security      Holders**

----

| **Nominees**                                   |   | **For** |       |   | **Withheld** |   |    | **Abstentions** |   |   | **Broker                            Non-Votes** |   |
|------------------------------------------------|--------|---------|------------|--------|--------------|--------|---------|-----------------|--------|--------|-------------------------------------------------|--------|
| John                          E. Bagalay, Jr.  |   |    | 21,609,689 |   |         |   | 734,405 |            |   |   | N/A                                             |   |   |   | N/A |   |
| Michael                          D. Becker     |   |    | 21,761,090 |   |         |   | 583,004 |            |   |   | N/A                                             |   |   |   | N/A |   |
| Allen                          Bloom           |   |    | 21,608,936 |   |         |   | 735,158 |            |   |   | N/A                                             |   |   |   | N/A |   |
| Stephen                          K. Carter     |   |    | 21,779,870 |   |         |   | 564,224 |            |   |   | N/A                                             |   |   |   | N/A |   |
| James                          A. Grigsby      |   |    | 21,764,116 |   |         |   | 579,978 |            |   |   | N/A                                             |   |   |   | N/A |   |
| Robert                          F. Hendrickson |   |    | 21,600,598 |   |         |   | 743,496 |            |   |   | N/A                                             |   |   |   | N/A |   |
| Dennis                          H. Langer      |   |    | 21,601,037 |   |         |   | 743,057 |            |   |   | N/A                                             |   |   |   | N/A |   |
| Kevin                          G. Lokay        |   |    | 21,603,893 |   |         |   | 740,201 |            |   |   | N/A                                             |   |   |   | N/A |   |
| Joseph                          A. Mollica     |   |    | 21,784,058 |   |         |   | 560,036 |            |   |   | N/A                                             |   |   |   | N/A |   |

|   | (ii) | Proposal                to approve an amendment to our 2004 Non-Employee Director Stock Incentive                Plan to increase the maximum aggregate number of shares of common                stock                available for issuance thereunder from 375,000 to                750,000: |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **For** |      |   |  **Against** |   |    | **Abstentions** |   |   | **Broker                    Non-Votes** |   |
|---------|-----------|--------|-------------------|--------|---------|-----------------|--------|--------|-----------------------------------------|--------|
|    | 4,392,226 |   |              |   | 910,816 |            |   |   | 36,799                                  |   |   |   | 17,004,214 |   |

|   | (iii) | Proposal                to approve an amendment to our Certificate of Incorporation to increase                the total authorized shares of common stock, $0.01 par value per                share, of                the Company from 50,000,000 to                100,000,000: |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **For** |       |   | **Against** |   |      | **Abstentions** |   |   | **Broker                    Non-Votes** |   |
|---------|------------|--------|-------------|--------|-----------|-----------------|--------|--------|-----------------------------------------|--------|
|    | 20,280,233 |   |        |   | 1,957,377 |            |   |   | 106,485                                 |   |   |   | -0- |   |

----

**Item      6.                                Exhibits.**

| Exhibit                  No. | Description                                                                                                                                                                                                                                                                                                                                                                          |
|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  3.1                    |  Certificate                  of Amendment to Restated Certificate of Incorporation dated June                  13,                  2007.  Filed herewith.                                                                                                                                                                                                           |
|  10.1                   |  Securities                  Purchase Agreement between the Company and each of the Purchasers                  dated as                  of June 28, 2007. Filed as an exhibit to the Company's Current                  Report on                  Form 8-K, filed with the Commission on July 2, 2007, and incorporated                  herein by reference.                |
|  10.2                   |  Form                  of Common Stock Purchase Warrant issued by the Company in favor                  of each                  Purchaser. Filed as an exhibit to the Company's Current Report                  on Form                  8-K, filed with the Commission on July 2, 2007, and incorporated                  herein by                  reference.               |
|  10.3                   |  Registration Rights Agreement                  between the Company and each of the Purchasers dated as of June 28,                  2007. Filed as an exhibit to the Company's Current Report on Form                  8-K,                  filed with the Commission on July 2, 2007, and incorporated herein                  by                  reference. |
|  10.4                   |  Engagement                  Agreement between the Company, Rodman & Renshaw, LLC and Roth Capital                  Partners, LLC. Filed as an exhibit to the Company's Current Report on                  Form 8-K, filed with the Commission on July 11, 2007, and incorporated                  herein by reference.                                                |
|  10.5                   |  Cytogen                  Corporation 2004 Non-Employee Director Stock Incentive Plan, as                  amended.  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.                                                   |

----

**SIGNATURES**

| Date:                August 9, 2007 | CYTOGEN                CORPORATION |
|-------------------------------------|------------------------------------|
|                                |                               |   |
|                                | By:                                | /s/    MICHAEL                  D. BECKER |
|                                |                               | Michael                D. Becker, |
|                                |                               | President                and Chief Executive Officer |

| Date:                August 9, 2007 | CYTOGEN                CORPORATION |
|-------------------------------------|------------------------------------|
|                                |                               |   |
|                                | By:                                | /s/    KEVIN                  J. BRATTON |
|                                |                               | Kevin                J. Bratton |
|                                |                               | Senior                Vice President, Finance, andChief                Financial                Officer(Principal                Financial and Accounting Officer) |

----

**EXHIBIT      INDEX**

| Exhibit                  No. | Description                                                                                                                                                                                                                                                                                                                                                                          |
|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  3.1                    |  Certificate                  of Amendment to Restated Certificate of Incorporation dated June                  13,                  2007.  Filed herewith.                                                                                                                                                                                                           |
|  10.1                   |  Securities                  Purchase Agreement between the Company and each of the Purchasers                  dated as                  of June 28, 2007. Filed as an exhibit to the Company's Current                  Report on                  Form 8-K, filed with the Commission on July 2, 2007, and incorporated                  herein by reference.                |
|  10.2                   |  Form                  of Common Stock Purchase Warrant issued by the Company in favor                  of each                  Purchaser. Filed as an exhibit to the Company's Current Report                  on Form                  8-K, filed with the Commission on July 2, 2007, and incorporated                  herein by                  reference.               |
|  10.3                   |  Registration Rights Agreement                  between the Company and each of the Purchasers dated as of June 28,                  2007. Filed as an exhibit to the Company's Current Report on Form                  8-K,                  filed with the Commission on July 2, 2007, and incorporated herein                  by                  reference. |
|  10.4                   |  Engagement                  Agreement between the Company, Rodman & Renshaw, LLC and Roth Capital                  Partners, LLC. Filed as an exhibit to the Company's Current Report on                  Form 8-K, filed with the Commission on July 11, 2007, and incorporated                  herein by reference.                                                |
|  10.5                   |  Cytogen                  Corporation 2004 Non-Employee Director Stock Incentive Plan, as                  amended.  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.                                                   |