PROGENICS PHARMACEUTICALS INC - 10-Q Quarterly Report

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)
	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the quarterly period ended March 31, 2003

OR

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

	For the transition period from _____________to _____________

Commission file number 000-23143

PROGENICS PHARMACEUTICALS, INC.
(Exact name of registrant as specified in its charter)

DELAWARE		13-3379479
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

777 Old Saw Mill River Road
Tarrytown, New York 10591
(Address of principal executive offices)
(Zip Code)

(914) 789-2800
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes checked box

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes checked box

As of March 31, 2003 there were 12,788,788 shares of common stock, par value $.0013 per share, of the registrant outstanding.

PROGENICS PHARMACEUTICALS, INC.

INDEX

		Page No.

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)

Condensed Balance Sheets at March 31, 2003 and December 31, 2002		3

Condensed Statements of Operations for the Three Months ended March 31, 2003 and 2002		4

Condensed Statement of Stockholders’ Equity and Comprehensive Loss for the Three Months ended March 31, 2003		5

Condensed Statements of Cash Flows for the Three Months ended March 31, 2003 and 2002		6

Notes to Condensed Financial Statements		7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		12

Item 3. Quantitative and Qualitative Disclosures about Market Risk		16

Item 4. Controls and Procedures		16

PART II - OTHER INFORMATION

Item 6. Exhibits and Reports on Form 8-K		17

	Certifications

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PROGENICS PHARMACEUTICALS, INC.

CONDENSED BALANCE SHEETS

AT MARCH 31, 2003 AND DECEMBER 31, 2002

(Unaudited)

	March 31, 2003			December 31, 2002

ASSETS:
Current assets:
Cash and cash equivalents	$	18,632,479		$	9,446,982
Marketable securities		14,396,143			27,753,984
Accounts receivable		378,461			334,006
Other current assets		1,093,701			1,573,815

Total current assets		34,500,784			39,108,787
Marketable securities		2,526,418			5,172,808
Fixed assets, at cost, net of accumulated depreciation and amortization		3,799,073			3,705,531
Investment in joint venture		613,232
Restricted cash		131,287			130,795

Total assets	$	41,570,794		$	48,117,921

LIABILITIES AND STOCKHOLDERS’ EQUITY:
Current liabilities:
Accounts payable and accrued liabilities	$	1,940,194		$	2,900,028

Total current liabilities		1,940,194			2,900,028
Deferred lease liability		64,138			71,264

Total liabilities		2,004,332			2,971,292

Commitments and contingencies
Stockholders’ equity:
Preferred stock, $.001 par value, 20,000,000 authorized; none issued and outstanding
Common stock - $.0013 par value, 40,000,000 authorized; issued and outstanding – 12,788,788 in 2003, 12,681,585 in 2002		16,625			16,486
Additional paid-in capital		91,876,727			91,332,106
Accumulated deficit		(52,411,387	)		(46,307,642	)
Accumulated other comprehensive income		84,497			105,679

Total stockholders’ equity		39,566,462			45,146,629

Total liabilities and stockholders’ equity	$	41,570,794		$	48,117,921

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

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PROGENICS PHARMACEUTICALS, INC.

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

	Three months ended March 31,

	2003			2002

Revenues:
Contract research and development from joint venture	$	1,052,700		$	1,007,119
Other contract research and development					193,734
Research grants		1,117,418			1,155,798
Product sales		59,566			13,428

Total revenues		2,229,684			2,370,079

Expenses:
Research and development		5,752,146			4,566,549
General and administrative		1,621,837			1,247,170
Loss in joint venture		879,641			502,319
Depreciation and amortization		303,931			201,938

Total expenses		8,557,555			6,517,976

Operating loss		(6,327,871	)		(4,147,897	)

Other income:
Interest income		224,126			546,882
Payment from insurance settlement					1,600,000

Total other income		224,126			2,146,882

Net loss	$	(6,103,745	)	$	(2,001,015	)

Net loss per share – basic and diluted	$	(0.48	)	$	(0.16	)

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

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PROGENICS PHARMACEUTICALS, INC.

CONDENSED STATEMENT OF STOCKHOLDERS’ EQUITY AND COMPREHENSIVE LOSS

FOR THE THREE MONTHS ENDED MARCH 31, 2003

(Unaudited)

					ADDITIONAL PAID-IN CAPITAL		ACCUMULATED DEFICIT			ACCUMULATED OTHER COMPREHENSIVE INCOME			TOTAL STOCKHOLDERS’ EQUITY			COMPREHENSIVE LOSS

	COMMON STOCK

	Shares		Amount

Balance at December 31, 2002		12,681,585	$	16,486	$	91,332,106	$	(46,307,642	)	$	105,679		$	45,146,629
Issuance of compensatory stock options						45,503								45,503
Sale of Common Stock under employee stock purchase plans and exercise of stock options and warrants		107,203		139		499,118								499,257
Net loss								(6,103,745	)					(6,103,745	)		(6,103,745	)
Change in unrealized gain on marketable securities											(21,182	)		(21,182	)		(21,182	)

Balance at March 31, 2003		12,788,788	$	16,625	$	91,876,727	$	(52,411,387	)	$	84,497		$	39,566,462		$	(6,124,927)

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

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PROGENICS PHARMACEUTICALS, INC.

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three months ended March 31,

	2003			2002

Cash flows from operating activities:
Net loss	$	(6,103,745	)	$	(2,001,015	)

Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		303,931			201,938
Amortization of discounts, net of premiums, on marketable securities		244,049			292,776
Loss in joint venture		879,641			502,319
Noncash expenses incurred in connection with issuance of common stock, stock options and warrants		45,503			152,021
Changes in assets and liabilities:
Increase in accounts receivable		(44,455	)		(119,499	)
Decrease in prepaid expenses and other assets