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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) October 26, 1999
Progenics Pharmaceuticals, Inc.
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(Exact name of registrant as specified in its charter)
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<S> <C> <C>
Delaware 333-88931 13-3379479
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
777 Old Saw Mill River Road 10591
Tarrytown, New York (Zip Code)
(Address of Principal
Executive Offices)
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Registrant's telephone number, including area code (914) 789-2800
No Change
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(Former name or former address, if changed since last report)
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Item 5. Other Events
Progenics Pharmaceuticals, Inc. reported the information
contained in the following press release dated October 26, 1999:
PROGENICS PHARMACEUTICALS, INC. REPORTS
THIRD QUARTER 1999 RESULTS
TARRYTOWN, NY, OCTOBER 26, 1999 -- Progenics Pharmaceuticals, Inc.
(Nasdaq: PGNX) today announced its results of operations for the third quarter
and first nine months of 1999.
Revenues for the third quarter ended September 30, 1999, totaled $5.7
million compared to $3.9 million for the same quarter in 1998. For the nine
months ended September 30, 1999, Progenics reported revenues of $11.6 million
compared to $10.6 million for the comparable period in 1998. The increases
resulted from the recognition of a milestone payment under our collaboration
with Bristol-Myers Squibb Company. The Company's expenses for the third quarter
of 1999 were $4.2 million compared to $3.2 million for the third quarter of
1998. For the nine months ended September 30, 1999, expenses totaled $13.6
million compared to $9.3 million for the nine months ended September 30, 1998.
The primary reasons for the increase were the recognition of the Company's
investment in the previously announced joint venture with CYTOGEN Corporation
and the initiation of a license agreement with Protein Design Labs, Inc. Other
increases reflect the continued advancement of several of the Company's products
in clinical trials.
The Company reported net income of $1.5 million or $0.16 per share
(basic) and $0.13 per share (diluted) for the third quarter of 1999, compared to
net income of $588,000 or $0.06 per share (basic and diluted) for the third
quarter of 1998. For the nine months ended September 30, 1999, Progenics
reported a net loss of ($2.0 million) or ($0.21) per share (basic and diluted)
compared to a net income of $1.2 million or $0.13 per share (basic) and $0.11
per share (diluted) in 1998.
"The third quarter was one in which Progenics achieved significant
milestones in the development of its lead clinical programs. We reached the
targeted enrollment in our pivotal Phase III trial for our GMK melanoma vaccine,
triggering a milestone payment from our partner, Bristol-Myers Squibb. We also
presented encouraging Phase I/II data on our HIV antibody PRO 542 at the
Interscience Conference on Antimicrobial Agents and Chemotherapy, which showed
the agent to be safe and to produce significant reductions in viral load with a
single dose," said Ronald J. Prentki, Progenics' President. "Further, we have
continued to maintain our strong financial position, being awarded $3.0 million
in new grants from the National Institutes of Health to support Progenics HIV
programs."
Progenics Pharmaceuticals, Inc. is a biopharmaceutical company focusing
on the development and commercialization of products for the treatment and
prevention of cancer and viral diseases. The
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Company's most advanced product, GMK, is a cancer vaccine in pivotal Phase III
clinical trials for the treatment of malignant melanoma. A second cancer
vaccine, MGV, with broad application to a variety of cancers, is entering Phase
II trials. GMK and MGV are being developed in collaboration with Bristol-Myers
Squibb Company. The Company, with CYTOGEN Corporation, has formed a joint
venture focusing on the development of cancer immunotherapies based on PSMA
(Prostate Specific Membrane Antigen) technology. The Company's lead HIV product,
PRO 542, has completed two Phase I/II clinical trials, and a follow-on HIV
product, PRO 367, is expected to commence Phase I/II in 1999. Progenics also has
collaborations with F. Hoffmann-La Roche Ltd in the area of HIV fusion
co-receptors, and with American Home Products and Pharmacopeia, Inc. focusing on
small-molecules targeting the CD4 receptor.
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CONDENSED STATEMENTS OF OPERATIONS
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Three Months Ended Nine Months Ended
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9/30/99 9/30/98 9/30/99 9/30/98
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Contract research and development.................. $ 5,027,984 $ 3,070,256 $ 9,887,816 $ 8,399,473
Research grants.................................... 341,649 390,518 764,649 971,228
Product sales...................................... 500 73,759 35,315 110,205
Interest income.................................... 301,849 371,078 894,960 1,097,703
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Total revenues.................................. 5,671,982 3,905,611 11,582,740 10,578,609
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Research and development expense................... 3,112,592 2,142,964 8,433,226 6,054,405
General and adminstrative.......................... 762,308 940,007 2,738,976 2,876,990
Loss in joint venture.............................. 96,753 1,893,687
Interest expense................................... 40,953 13,493 69,458 31,785
Depreciation and amortization...................... 162,412 134,973 467,194 362,252
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Total expenses.................................. 4,175,018 3,231,437 13,602,541 9,325,432
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Operating income (loss)...................... 1,496,964 674,174 (2,019,801) 1,253,177
Income taxes 86,250 86,250
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Net income (loss).................................. $ 1,496,964 $ 587,924 $(2,019,801) $ 1,166,927
Net income (loss) per share:
Basic.................................. $ 0.16 $ 0.06 $ (0.21) $ 0.13
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Diluted................................ $ 0.13 $ 0.06 $ (0.21) $ 0.11
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Weighted average common shares outstanding:
Basic.................................. 9,429,496 9,051,024 9,425,114 9,025,803
================ ============== =============== ==============
Diluted................................ 11,175,746 10,658,127 9,425,114 10,848,282
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CONDENSED BALANCE SHEETS
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September 30, 1999 December 31, 1998
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Cash, cash equivalents and marketable securities....... $23,356,491 $24,650,139
Accounts receivable.................................... 3,633,907 1,634,480
Fixed assets, net...................................... 1,334,435 1,045,389
Other assets........................................... 689,402 569,607
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Total assets........................................... $29,014,235 $27,899,615
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Current liabilities.................................... 2,836,261 1,703,011
Other liablilities..................................... 884,194 117,166
Stockholders' equity................................... 25,293,780 26,079,438
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Total liabilities and stockholders' equity............. $29,014,235 $27,899,615
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This press release may contain certain forward-looking statements that
relate to future events or future business and financial performance. Such
statements can only be predictions and the actual events or results may differ
from those discussed. The Company cautions that these statements are subject to
important factors that could cause actual results to differ materially from
those expressed or implied in such forward-looking statements and are more fully
discussed in periodic reports and registration statements filed with the
Securities and Exchange Commission.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this Report to be signed on
its behalf by the undersigned thereunto duly authorized.
Progenics Pharmaceuticals, Inc.
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Registrant
By:/s/ Robert A. McKinney
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Name: Robert A. McKinney
Title: Vice President, Finance
and Operations and Treasurer
Dated: October 26, 1999
