----

----

**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 SEPTEMBER 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 November 8, 2007: 35,512,651 |
|----------------------------------------------------|------------------------------------------------------------|

----

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Page     |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|  PART                  I.FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  1  |
|  Item                  1.    Consolidated                  Financial Statements                  (unaudited)                                                                                                  |  1  |
|  Consolidated                  Balance Sheets as of September 30, 2007 and December 31,                  2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  2  |
|  Consolidated                  Statements of Operations for the Three Months and Nine Months Ended                  September 30, 2007 and 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  3  |
|  Consolidated                  Statements of Cash Flows for the Nine Months Ended September 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                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  17 |
|  Item                  3.    Quantitative                  and Qualitative Disclosures About Market Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  38 |
|  Item                  4.            Controls                  and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  38 |
|  PART                  II.OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  40 |
|                    Item                    1.            Legal                    Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  40 |
|  Item                  1A.         Risk                  Factors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |  40 |
|  Item                  2.    Unregistered                  Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  53 |
|  Item                    5.    Other                    Events                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |  53 |
|  Item                  6.    Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  54 |
|  SIGNATURES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  56 |

----

**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)*

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | **September                  30,****2007** |     |   | **December                  31,****2006** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------|----------|--------|-------------------------------------------|--------|
| **ASSETS:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                       |     |   |                                      |   |
| Current                assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                       |     |   |                                      |   |
| Cash                and cash                equivalents                                                                                                               |   | $                                          | 16,965   |   |                                      | $      | 32,507 |   |
| Restricted                cash                                                                                                                                        |   |                                       | --       |   |                                      |   | 1,100 |   |
| Accounts                receivable,                net                                                                                                                |   |                                       | 2,235    |   |                                      |   | 2,113 |   |
| Inventories                                                                                                                                                           |   |                                       | 5,632    |   |                                      |   | 2,538 |   |
| Prepaid                expenses                                                                                                                                       |   |                                       | 1,328    |   |                                      |   | 1,571 |   |
| Other                current                assets                                                                                                                    |   |                                       | 36       |   |                                      |   | 156 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                       |     |   |                                      |   |   |   |
| Total                current                assets                                                                                                                                   |   |                                       | 26,196   |   |                                      |   | 39,985 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                       |     |   |                                      |   |   |   |
| Property                and equipment, less accumulated depreciation and amortization of                $1,580                and $1,409 at September 30, 2007 and December 31, 2006,                respectively                                                                                                                                                                                                                                                                                                                                                           |   |                                       | 1,033    |   |                                      |   | 691 |   |
| Product                license fees, less accumulated amortization of $3,273 and $2,577                at                September 30, 2007 and December 31, 2006, respectively                                                                                                                                                                                                                                                                                                                                                                                             |   |                                       | 8,916    |   |                                      |   | 11,612 |   |
| Other                assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                       | 1,965    |   |                                      |   | 2,065 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                       |     |   |                                      |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                          | 38,110   |   |                                      | $      | 54,353 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                       |     |   |                                      |   |   |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                       |     |   |                                      |   |   |   |
| Current                liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                       |     |   |                                      |   |   |   |
| Current                portion of long-term                liabilities                                                                                                |   | $                                          | 84       |   |                                      | $      | 64 |   |
| Accounts                payable and accrued                liabilities                                                                                                |   |                                       | 10,836   |   |                                      |   | 10,104 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                       |     |   |                                      |   |   |   |
| Total                current                liabilities                                                                                                                              |   |                                       | 10,920   |   |                                      |   | 10,168 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                       |     |   |                                      |   |   |   |
| Warrant                liabilities                                                                                                           |   |                                       | 2,219    |   |                                      |   | 6,464 |   |
| Other                long-term                liabilities                                                                                    |   |                                       | 66       |   |                                      |   | 59 |   |
| Total                liabilities                                                                                                                                                     |   |                                       | 13,205   |   |                                      |   | 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, 35,512,651 and 29,605,631                shares issued and outstanding at September 30, 2007 and December                31, 2006,                respectively                                                                                                                                                                                                                                                                                                    |   |                                       | 355      |   |                                      |   | 296 |   |
| Additional                paid-in                capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                       | 472,521  |   |                                      |   | 465,016 |   |
| Accumulated                other                comprehensive income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                       | 45       |   |                                      |   | 20 |   |
| Accumulated                deficit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                       | (448,016 | )      |                                      |   | (427,670 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                       |     |   |                                      |   |   |   |
| Total                stockholders'                equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                       | 24,905   |   |                                      |   | 37,662 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                       |     |   |                                      |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                          | 38,110   |   |                                      | $      | 54,353 |   |

----

**CYTOGEN      CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF OPERATIONS**

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

*(Unaudited)*

|                                                                                               |   | **Three                    Months****Ended                    September 30,** |        |   | **Nine                    Months****Ended                    September 30,** |   |
|----------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|-------------|--------|------------------------------------------------------------------------------|--------|
|                                                                                               |   | **2007**                                                                      |        |   | **2006**                                                                     |   |   | **2007** |   |   | **2006** |   |
| **Revenues:**                                                                                      |   |                                                                          |        |   |                                                                         |   |   |   |   |   |   |   |
| Product                  revenue:                                                                  |   |                                                                          |        |   |                                                                         |   |   |   |   |   |   |   |
| QUADRAMET                                                                                          |   | $                                                                             | 2,482       |   |                                                                         | $      | 1,998 |   |   | $ | 7,242 |   |   | $ | 6,242 |   |
| PROSTASCINT                                                                                        |   |                                                                          | 2,229       |   |                                                                         |   | 2,171 |   |   |   | 7,193 |   |   |   | 6,535 |   |
| CAPHOSOL                                                                                           |   |                                                                          | 409         |   |                                                                         |   | -- |   |   |   | 643 |   |   |   | -- |   |
| Total                  product                  revenue                                            |   |                                                                          | 5,120       |   |                                                                         |   | 4,169 |   |   |   | 15,078 |   |   |   | 12,777 |   |
|                                                                                               |   |                                                                          |        |   |                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Contract                  revenue                                                                  |   |                                                                          | 2           |   |                                                                         |   | 3 |   |   |   | 6 |   |   |   | 9 |   |
|                                                                                               |   |                                                                          |        |   |                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Total                  revenues                                                                    |   |                                                                          | 5,122  |   |                                                                         |   | 4,172  |   |   |   | 15,084  |   |   |   | 12,786  |   |
|                                                                                               |   |                                                                          |        |   |                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| **Operating                  expenses:**                                                           |   |                                                                          |        |   |                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Cost                  of product                  revenue                                          |   |                                                                          | 3,174       |   |                                                                         |   | 2,631 |   |   |   | 9,233 |   |   |   | 7,545 |   |
| Impairment                  of intangible                  asset                                   |   |                                                                          | 1,767       |   |                                                                         |   | -- |   |   |   | 1,767 |   |   |   | -- |   |
| General                  and                  administrative                                       |   |                                                                          | 2,736       |   |                                                                         |   | 2,701 |   |   |   | 7,540 |   |   |   | 7,956 |   |
| Selling                  and                  marketing                                            |   |                                                                          | 6,894       |   |                                                                         |   | 4,036 |   |   |   | 24,681 |   |   |   | 12,012 |   |
| Research                  and                  development                                         |   |                                                                          | 1,466       |   |                                                                         |   | 1,040 |   |   |   | 4,694 |   |   |   | 5,581 |   |
| Equity                  in loss of joint                  venture                                  |   |                                                                          | --          |   |                                                                         |   | -- |   |   |   | -- |   |   |   | 120 |   |
|                                                                                               |   |                                                                          |        |   |                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Total                  operating                  expenses                                         |   |                                                                          | 16,037      |   |                                                                         |   | 10,408 |   |   |   | 47,915 |   |   |   | 33,214 |   |
|                                                                                               |   |                                                                          |        |   |                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  loss                                                                    |   |                                                                          | (10,915     | )      |                                                                         |   | (6,236 | ) |   |   | (32,831 | ) |   |   | (20,428 | ) |
|                                                                                               |   |                                                                          |        |   |                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| **Interest                  income**                                                               |   |                                                                          | 271         |   |                                                                         |   | 384 |   |   |   | 933 |   |   |   | 1,073 |   |
| **Interest                  expense**                                                              |   |                                                                          | (11         | )      |                                                                         |   | (8 | ) |   |   | (45 | ) |   |   | (20 | ) |
| **Advanced                  Magnetics, Inc. litigation settlement, net**                           |   |                                                                          | --          |   |                                                                         |   | -- |   |   |   | 3,946 |   |   |   | -- |   |
| **Gain                  on sale of equity interest in joint venture**                              |   |                                                                          | --          |   |                                                                         |   | -- |   |   |   | -- |   |   |   | 12,873 |   |
| **Decrease                  in value of warrant liabilities**                                      |   |                                                                          | 5,536       |   |                                                                         |   | 122 |   |   |   | 7,651 |   |   |   | 304 |   |
|                                                                                               |   |                                                                          |        |   |                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| **Net                  loss**                                                                      |   | $                                                                             | (5,119      | )      |                                                                         | $      | (5,738 | ) |   | $ | (20,346 | ) |   | $ | (6,198 | ) |
|                                                                                               |   |                                                                          |        |   |                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| **Basic                  and diluted net loss per share**                                          |   | $                                                                             | (0.15       | )      |                                                                         | $      | (0.26 | ) |   | $ | (0.65 | ) |   | $ | (0.28 | ) |
|                                                                                               |   |                                                                          |        |   |                                                                         |   |   |   |   |   |   |   |   |   |   |   |
| **Basic                  and diluted weighted-average common shares                  outstanding** |   |                                                                          | 35,099      |   |                                                                         |   | 22,494 |   |   |   | 31,483 |   |   |   | 22,481 |   |

----

**CYTOGEN      CORPORATION AND SUBSIDIARIES**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

*(All      amounts in thousands)*

*(Unaudited)*

|                                                                                          |   | **Nine                    Months Ended September 30,** |      |
|-----------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|-----------|
|                                                                                          |   | **2007**                                               |      |   | **2006** |   |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES:**                                    |   |                                                   |      |   |   |   |
| Net                  loss                                                                     |   | $                                                      | (20,346   | ) |   | $ | (6,198 | ) |
| Adjustments                  to reconcile net loss to net cash used                           |   |                                                   |      |   |   |   |   |   |
| in                  operating                  activities:                                    |   |                                                   |      |   |   |   |   |   |
| Depreciation                  and                  amortization                               |   |                                                   | 1,300     |   |   |   | 933 |   |
| Decrease                  in value of warrant                  liabilities                    |   |                                                   | (7,651    | ) |   |   | (304 | ) |
| Share-based                  compensation                  expense                            |   |                                                   | 1,323     |   |   |   | 1,359 |   |
| Increase                  (decrease) in provision                  for doubtful accounts |   |                                                   | 58        |   |   |   | (4 | ) |
| Gain                  on sale of equity interest                  in joint venture            |   |                                                   | --        |   |   |   | (12,873 | ) |
| Reserve                  for excess                  inventory                                |   |                                                   | 366       |   |   |   | -- |   |
| Impairment                  of intangible                  asset                              |   |                                                   | 1,767     |   |   |   | -- |   |
| Other                                                                                         |   |                                                   | 47        |   |   |   | (14 | ) |
| Changes                  in assets and                  liabilities:                          |   |                                                   |      |   |   |   |   |   |
| Accounts                  receivable                                                          |   |                                                   | (180      | ) |   |   | (55 | ) |
| Inventories                                                                                   |   |                                                   | (3,442    | ) |   |   | 1,808 |   |
| Other                  assets                                                                 |   |                                                   | 1,598     |   |   |   | (399 | ) |
| Accounts                  payable and accrued                  liabilities                    |   |                                                   | 1,742     |   |   |   | 1,331 |   |
|                                                                                          |   |                                                   |      |   |   |   |   |   |
| Net                  cash used in operating                  activities                       |   |                                                   | (23,418   | ) |   |   | (14,416 | ) |
|                                                                                          |   |                                                   |      |   |   |   |   |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES:**                                    |   |                                                   |      |   |   |   |   |   |
| Purchases                  of product rights                                                  |   |                                                   | (1,000    | ) |   |   | (2,000 | ) |
| Purchases                  of property and equipment                                          |   |                                                   | (711      | ) |   |   | (103 | ) |
| Proceeds                  from sale of equity interest in joint venture                       |   |                                                   | --        |   |   |   | 13,132 |   |
|                                                                                          |   |                                                   |      |   |   |   |   |   |
| Net                  cash provided by (used in)                  investing activities         |   |                                                   | (1,711    | ) |   |   | 11,029 |   |
|                                                                                          |   |                                                   |      |   |   |   |   |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES:**                                    |   |                                                   |      |   |   |   |   |   |
| Proceeds                  from issuance of common stock                                       |   |                                                   | 6,603     |   |   |   | 52 |   |
| Proceeds                  from issuance of warrants                                           |   |                                                   | 3,041     |   |   |   | -- |   |
| Payment                  of long-term liabilities                                             |   |                                                   | (57       | ) |   |   | (30 | ) |
|                                                                                          |   |                                                   |      |   |   |   |   |   |
| Net                  cash provided by financing                  activities                   |   |                                                   | 9,587     |   |   |   | 22 |   |
|                                                                                          |   |                                                   |      |   |   |   |   |   |
| Net                  decrease in cash and cash equivalents                                    |   |                                                   | (15,542   | ) |   |   | (3,365 | ) |
|                                                                                          |   |                                                   |      |   |   |   |   |   |
| Cash                  and cash equivalents, beginning of period                               |   |                                                   | 32,507    |   |   |   | 30,337 |   |
|                                                                                          |   |                                                   |      |   |   |   |   |   |
| Cash                  and cash equivalents, end of period                                     |   | $                                                      | 16,965    |   |   | $ | 26,972 |   |
|                                                                                          |   |                                                   |      |   |   |   |   |   |
| Supplemental                  disclosure of non-cash information:                             |   |                                                   |      |   |   |   |   |   |
| Capital                  lease of                  equipment                                  |   | $                                                      | 84        |   |   | $ | 96 |   |
| Unrealized                  holding gain on                  marketable securities            |   | $                                                      | 25        |   |   | $ | 41 |   |
| Issuance                  of warrants to placement agents                                     |   | $                                                      | 365  |   |   | $ | --  |   |
|                                                                                          |   |                                                   |      |   |   |   |   |   |
| Supplemental                  disclosure of cash information:                                 |   |                                                   |      |   |   |   |   |   |
| Cash                  paid for                  interest                                      |   | $                                                      | 22        |   |   | $ | 20 |   |

----

**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*

|                          |   | **September                  30, 2007** |   |   | **December                  31, 2006** |   |
|-------------------------------|--------|-----------------------------------------|--------|--------|----------------------------------------|--------|
| Raw                materials  |   | $                                       | 82     |   |                                   | $      | 325 |   |
| Work-in-process               |   |                                    | 3,623  |   |                                   |   | 1,296 |   |
| Finished                goods |   |                                    | 1,927  |   |                                   |   | 917 |   |
|                          |   | $                                       | 5,632  |   |                                   | $      | 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.      IMPAIRMENT OF ASSETS**

----

**3.      SHARE-BASED COMPENSATION**

|                                        |   | **Three                  Months****Ended****September                  30,** |   |
|---------------------------------------------|--------|------------------------------------------------------------------------------|--------|
|                                        |   | **2007**                                                                     |   |   | **2006** |   |
|                                        |   |                                                                         |   |   |   |   |
| General                  and administrative |   | $                                                                            | 258    |   |   | $ | 335 |   |
| Selling                  and marketing      |   |                                                                         | 55     |   |   |   | 147 |   |
| Research                  and development   |   |                                                                         | 54     |   |   |   | 105 |   |
|                                        |   | $                                                                            | 367    |   |   | $ | 587 |   |
|                                        |   |                                                                         |   |   |   |   |   |   |

|                                        |   | **Nine                  Months****Ended****September                  30,** |   |
|---------------------------------------------|--------|-----------------------------------------------------------------------------|--------|
|                                        |   | **2007**                                                                    |   |   | **2006** |   |
|                                        |   |                                                                        |   |   |   |   |
| General                  and administrative |   | $                                                                           | 807    |   |   | $ | 892 |   |
| Selling                  and marketing      |   |                                                                        | 229    |   |   |   | 310 |   |
| Research                  and development   |   |                                                                        | 177    |   |   |   | 157 |   |
|                                        |   | $                                                                           | 1,213  |   |   | $ | 1,359 |   |
|                                        |   |                                                                        |   |   |   |   |   |   |

----

|                                    |   | **Three                Months Ended****September                30,** |   |   | **Nine                Months Ended****September                30,** |   |
|-----------------------------------------|--------|-----------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------|--------|
|                                    |   | **2007**                                                              |   |   | **2007**                                                             |   |
|                                    |   |                                                                  |   |   |                                                                 |   |
| Expected                life (years)    |   |                                                                  | 5.98   |   |                                                                 |   | 6.32 |   |
| Expected                volatility      |   |                                                                  | 79     | %      |                                                                 |   | 85 | % |
| Dividend                yield           |   |                                                                  | 0      | %      |                                                                 |   | 0 | % |
| Risk-free                interest rate  |   |                                                                  | 5.03   | %      |                                                                 |   | 4.79 | % |
| Options                granted          |   |                                                                  | 59,000 |   |                                                                 |   | 875,500 |   |
| Nonvested                shares granted |   |                                                                  | 20,000 |   |                                                                 |   | 265,000 |   |

|                                    |   | **Three                Months Ended****September                30,** |   |   | **Nine                Months****Ended****September                30,** |   |
|-----------------------------------------|--------|-----------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------|--------|
|                                    |   | **2006**                                                              |   |   | **2006**                                                                |   |
|                                    |   |                                                                  |   |   |                                                                    |   |
| Expected                life (years)    |   |                                                                  | 5.96   |   |                                                                    |   | 6.48 |   |
| Expected                volatility      |   |                                                                  | 91     | %      |                                                                    |   | 97 | % |
| Dividend                yield           |   |                                                                  | 0      | %      |                                                                    |   | 0 | % |
| Risk-free                interest rate  |   |                                                                  | 4.92   | %      |                                                                    |   | 4.94 | % |
| Options                granted          |   |                                                                  | 33,750 |   |                                                                    |   | 585,350 |   |
| Nonvested                shares granted |   |                                                                  | 5,000  |   |                                                                    |   | 76,800 |   |

**4.      LAUREATE PHARMA, L.P.**

----

**5.      WARRANT LIABILITY**

|                                        |   | **September                    30,****2007** |      |   | **September                    30,**** 2006** |   |
|---------------------------------------------|--------|----------------------------------------------|-----------|--------|----------------------------------------------------|--------|
| Dividend                  yield             |   |                                         | 0         | %      |                                               |   | 0 | % |
| Expected                  volatility        |   |                                         | 75        | %      |                                               |   | 108 | % |
| Expected                  life(1)           |   | 4.98                  years                  |      |   | 8.8                  years                         |   |
| Risk-free                  interest rate    |   |                                         | 4.29      | %      |                                               |   | 4.69 | % |
| Company                  Common Stock Price |   | $                                            | 0.79      |   |                                               | $      | 2.35 |   |
| Outstanding                  warrants       |   |                                         | 7,578,380 |   |                                               |   | 776,096 |   |

----

| (1) | The                remaining expected life assumptions at September 30, 2007 and 2006                for the                warrants issued in July and August 2005 were 7.8 years and 8.8 years,                respectively.  The expected life assumption at September 30,                2007 for the warrants issued in November 2006 was 4.1 years. The                expected                life assumption at September 30, 2007 for the warrants issued in                July 2007                was 5.2 years. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**6.        **
**ONCOLOGY THERAPEUTICS NETWORK, J.V.**

----

**7.      INPHARMA AS**

**8.      HOLOPACK VERPACKUNGSTECHNIK GMBH**

**9.      LITIGATION**

----

**10.      INCOME TAXES**

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

**11.      INCREASE IN AUTHORIZED COMMON STOCK**

----

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

**13.        SUBSEQUENT EVENT**

** **

----

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

----

**Overview**

**Significant      Events in 2007**

*Settlement*
*Agreement      with Advanced Magnetics*

*Introduction      of CAPHOSOL in the United States*

*Addition      of Senior Vice President of Sales and Marketing*

----

*Sale      of Common Stock and Warrants*

*Engagement      of Investment Banking Firm to Identify and Evaluate Strategic      Alternatives*

*Receipt      ofNasdaq Notification Related to Minimum Bid Price*

----

*Kevin        Lokay appointed as President and Chief Executive Officer*

**Results      of Operations**

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

**Revenues**

|                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                   |   |   |     |   |   | **Increase/(Decrease)** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|-------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                |   | **2007**                                                                               |   |   | **2006** |   |   | **$**                   |   |   |   | **%** |   |
|                                                                                                                                                                                                                                                                                                                                                                |   | ***(All                amounts in thousands, except percentage                data)*** |   |
| QUADRAMET                                                                             |   | $                                                                                      | 2,482  |   |     | $      | 1,998  |                    |   | $ | 484 |   |   |   | 24 | % |
| PROSTASCINT                                                                           |   |                                                                                   | 2,229  |   |     |   | 2,171  |                    |   |   | 58 |   |   |   | 3 | % |
| CAPHOSOL                                                                              |   |                                                                                   | 409    |   |     |   | --     |                    |   |   | 409 |   |   |   | n/a |   |
| Contract                revenue                                                       |   |                                                                                   | 2      |   |     |   | 3      |                    |   |   | (1 | ) |   |   | (33 | )% |
| Total                revenues                                                         |   | $                                                                                      | 5,122  |   |     | $      | 4,172  |                    |   | $ | 950 |   |   |   | 23 | % |

***QUADRAMET.  ***

----

***PROSTASCINT.***

***CAPHOSOL.***

**Operating      Expenses**

|                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                   |   |   |     |   |   | **Increase/(Decrease)** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|-------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                     |   | **2007**                                                                               |   |   | **2006** |   |   | **$**                   |   |   |   | **%** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                     |   | ***(All                amounts in thousands, except percentage                data)*** |   |
| Cost                of product                revenue                                                            |   | $                                                                                      | 3,174  |   |     | $      | 2,631  |                    |   | $ | 543 |   |   |   | 21 | % |
| Impairment                of intangible assets                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                   | 1,767  |   |     |   | --     |                    |   |   | 1,767 |   |   |   | n/a |   |
| General                and                administrative                                                         |   |                                                                                   | 2,736  |   |     |   | 2,701  |                    |   |   | 35 |   |   |   | 1 | % |
| Selling                and                marketing                                                              |   |                                                                                   | 6,894  |   |     |   | 4,036  |                    |   |   | 2,858 |   |   |   | 71 | % |
| Research                and                development                                                           |   |                                                                                   | 1,466  |   |     |   | 1,040  |                    |   |   | 426 |   |   |   | 41 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                                                                      | 16,037 |   |     | $      | 10,408 |                    |   | $ | 5,629 |   |   |   | 54 | % |

***Cost      of Product Revenue.***

----

***Impairment        of Intangible Assets.***
** **

***General      and Administrative.  ***

***Selling      and Marketing.***

***Research      and Development.***

***Interest      Income/Expense.***

***Decrease      in Value of Warrant Liability.***

----

***Net        Loss.***
** **

** **

**Nine      Months Ended September 30, 2007 and 2006**

**Revenues**

|                                                                                                                                                                                                                                                                                                                                                                |   |                                                                                   |   |   |     |   |   | **Increase/(Decrease)** |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|-------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                |   | **2007**                                                                               |   |   | **2006** |   |   | ** $**             |   |   |   | **%** |  |
|                                                                                                                                                                                                                                                                                                                                                                |   | ***(All                amounts in thousands, except percentage                data)*** |   |
| QUADRAMET                                                                             |   | $                                                                                      | 7,242  |   |     | $      | 6,242  |                    |   | $ | 1,000 |   |   |   | 16 | % |
| PROSTASCINT                                                                           |   |                                                                                   | 7,193  |   |     |   | 6,535  |                    |   |   | 658 |   |   |   | 10 | % |
| CAPHOSOL                                                                              |   |                                                                                   | 643    |   |     |   | --     |                    |   |   | 643 |   |   |   | n/a |   |
| Contract                revenue                                                       |   |                                                                                   | 6      |   |     |   | 9      |                    |   |   | (3 | ) |   |   | (33 | )% |
| Total                revenues                                                         |   | $                                                                                      | 15,084 |   |     | $      | 12,786 |                    |   | $ | 2,298 |   |   |   | 18 | % |

***QUADRAMET.***

----

***PROSTASCINT.***

***CAPHOSOL.***

**Operating      Expenses**

|                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                                                   |   |   |     |   |   | **Increase/(Decrease)** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|-------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                     |   | **2007**                                                                               |   |   | **2006** |   |   |  **$**             |   |   |   | **%** |   |
|                                                                                                                                                                                                                                                                                                                                                                                                     |   | ***(All                amounts in thousands, except percentage                data)*** |   |
| Cost                of product                revenue                                                            |   | $                                                                                      | 9,233  |   |     | $      | 7,545  |                    |   | $ | 1,688 |   |   |   | 22 | % |
| Impairment                of intangible assets                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                   | 1,767  |   |     |   | --     |                    |   |   | 1,767 |   |   |   | n/a |   |
| General                and                administrative                                                         |   |                                                                                   | 7,540  |   |     |   | 7,956  |                    |   |   | (416 | ) |   |   | (5 | )% |
| Selling                and                marketing                                                              |   |                                                                                   | 24,681 |   |     |   | 12,012 |                    |   |   | 12,669 |   |   |   | 105 | % |
| Research                and                development                                                           |   |                                                                                   | 4,694  |   |     |   | 5,581  |                    |   |   | (887 | ) |   |   | (16 | )% |
| Equity                in loss of joint venture                                                                                                                                                                                                                                                                                                                                                           |   |                                                                                   | --     |   |     |   | 120    |                    |   |   | (120 | ) |   |   | (100 | )% |
|                                                                                                                                                                                                                                                                                                                                                                                                     |   | $                                                                                      | 47,915 |   |     | $      | 33,214 |                    |   | $ | 14,701 |   |   |   | 44 | % |

***Cost      of Product Revenues.  ***

----

***Impairment        of Intangible Assets.***
** **

***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 Value of Warrant Liability.***

***Net      Loss.***
** **
** **

----

**COMMITMENTS**

|                                           |   | **Less****Than****1                  Year**     |   |   | **2                  to 3****Years** |   |   | **4                  to 5****Years** |   |   | **More****Than****5                  Years** |   |   | **Total** |   |
|------------------------------------------------|--------|-------------------------------------------------|--------|--------|--------------------------------------|--------|--------|--------------------------------------|--------|--------|----------------------------------------------|--------|--------|-----------|--------|
|                                           |   | ***(All                amounts in thousands)*** |   |
| Capital                lease obligations       |   | $                                               | 84     |   |                                 | $      | 66     |                                 |   | $      | --                                           |   |   | $         | --     |   |   | $ | 150 |   |
| Facility                leases                 |   |                                            | 338    |   |                                 |   | 366    |                                 |   |   | --                                           |   |   |      | --     |   |   |   | 704 |   |
| Research                and development        |   |                                            | 243    |   |                                 |   | 150    |                                 |   |   | 150                                          |   |   |      | 425    |   |   |   | 968 |   |
| Marketing                and other obligations |   |                                            | 1,035  |   |                                 |   | 1      |                                 |   |   | --                                           |   |   |      | --     |   |   |   | 1,036 |   |
| Manufacturing                contracts(1)      |   |                                            | 4,859  |   |                                 |   | 4,859  |                                 |   |   | --                                           |   |   |      | --     |   |   |   | 9,718 |   |
| Minimum                royalty payments(2)     |   |                                            | 1,000  |   |                                 |   | 2,000  |                                 |   |   | 2,000                                        |   |   |      | 1,083  |   |   |   | 6,083 |   |
|                                           |   |                                            |   |   |                                 |   |   |                                 |   |   |                                         |   |   |      |   |   |   |   |   |   |
| Total                                          |   | $                                               | 7,559  |   |                                 | $      | 7,442  |                                 |   | $      | 2,150                                        |   |   | $         | 1,508  |   |   | $ | 18,659 |   |

| (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                September 30, 2009.  We owe at least $1.1 million during the fourth                quarter of 2007. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (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 owe $285,000 during the fourth quarter of                2007. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**Liquidity      and Capital Resources**

**Condensed      Statement of Cash Flows:**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | **Nine                  Months Ended****September                  30, 2007** |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | ***(All                amounts in thousands)***                               |    |
| Net                loss                                                                                                                               |   | $                                                                             | (20,346 | ) |
| Adjustments                to reconcile net loss to net cash used inoperating                activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                                          | (3,072  | ) |
| Net                cash used in operating                activities                                                                                   |   |                                                                          | (23,418 | ) |
| Net                cash used in investing                activities                                                                                   |   |                                                                          | (1,711  | ) |
| Net                cash provided by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                          | 9,587   |   |
| Net                decrease in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                                                                             | (15,542 | ) |

**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      1.           Legal      Proceedings**

**Item      1A.        Risk      Factors**

*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. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

*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. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------|

*Our      efforts to enhance the value of the Company for our stockholders may not be      successful. There is no guarantee that our stockholders will realize greater      value for, or preserve existing value of, their shares of the      Company.*

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

----

*We        will depend on market acceptance of 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                purchase and supply agreement with OTN for the distribution of                CAPHOSOL; |
|--------------------|----------------------------------------------------------------------------------------------------------|

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

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

----

*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.*

----

*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.*

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

----

----

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

*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 we do not keep certain      registration statement effective for a certain period of time.*

----

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

**Item        5.           Other        Events.**

** **

----

**Item        6.           Exhibits.**

| Exhibit                    No. | Description                                                                                                                                                                                                                                                                                                                                                                                      |
|--------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  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 |  Amendment                  No. 1 to Product License and Assignment Agreement dated August                  30, 2007                  between the Company and InPharma AS.*  Filed                  herewith.                                                                                                                                               |
|  31.1 |  Certification                  of President and Chief Executive Officer pursuant to Rule 13a-14(a)                  or                  15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant                  to                  Section 302 of the Sarbanes-Oxley Act of 2002.  Filed                  herewith.                        |
|  31.2 |  Certification                  of Senior Vice President, Finance, and Chief Financial Officer,                  pursuant                  to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of                  1934, as                  adopted pursuant to Section 302 of the Sarbanes-Oxley Act of                  2002.  Filed herewith. |
|  32.1 |  Certification                  of President and Chief Executive Officer pursuant to 18 U.S.C.                  Section                  1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley                  Act of                  2002.  Furnished                  herewith.                                                                |

----

|  32.2 |  Certification                  of Senior Vice President, Finance, and Chief Financial Officer,                  pursuant                  to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of                  the                  Sarbanes-Oxley Act of 2002.  Furnished                  herewith. |
|------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**SIGNATURES**

| Date:                November 14, 2007 | CYTOGEN                CORPORATION |
|----------------------------------------|------------------------------------|
|                                   |                               |   |
|                                   | By:                                | /s/    KEVIN                  G. LOKAY |
|                                   |                               | Kevin                G. Lokay, |
|                                   |                               | President                and Chief Executive Officer |

| Date:                November 14, 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                                                                                                                                                                                                                                                                                                                                                                          |
|------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  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                   |  Amendment                  No. 1 to Product License and Assignment Agreement dated August                  30, 2007                  between the Company and InPharma AS.*  Filed                  herewith.                                                                                                                                                         |
|  31.1                   |  Certification                  of President and Chief Executive Officer pursuant to Rule 13a-14(a)                  or                  15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant                  to                  Section 302 of the Sarbanes-Oxley Act of 2002.  Filed                  herewith.                                  |
|  31.2                   |  Certification                  of Senior Vice President, Finance, and Chief Financial Officer,                  pursuant                  to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of                  1934, as                  adopted pursuant to Section 302 of the Sarbanes-Oxley Act of                  2002.  Filed herewith.           |
|  32.1                   |  Certification                  of President and Chief Executive Officer pursuant to 18 U.S.C.                  Section                  1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley                  Act of                  2002.  Furnished                  herewith.                                                                          |

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|  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. |
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