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Progenics Pharmaceuticals Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 9, 2012 01:22PM
Progenics Pharmaceuticals Inc. (PGNX) filed Quarterly Report for the period ended 2012-06-30.
Highlight of Business Operations:A majority of our expenditures to date have been for research and development activities. During the six months ended June 30, 2012, expenses for Oncology, primarily related to PSMA ADC, were $15.7 million compared to $8.9 million in 2011. Expenses for Relistor and Other research programs were $1.2 million and $2.5 million, respectively, during the six months ended June 30, 2012 compared to $18.7 million and $5.5 million, respectively, for the same period in 2011. We expect to incur significant development expenses for our PSMA ADC product candidate as clinical trials progress, while expenses, including reimbursement revenue, related to Relistor depend on the amount of research and development work we perform upon request by Salix or Ono.
Royalty income. During the three and six months ended June 30, 2012 and during the three and six months ended June 30, 2011, we recognized $1,619, $3,453, $527 and $527, respectively, of royalty income based on net sales of Relistor reported by Salix or its sublicensees. No royalties were payable to us during the first quarter of 2011.
Salix Collaboration. During the three and six months ended June 30, 2012, we recognized $86 and $375, respectively, of revenue from Salix, which includes $51 and $102, respectively, from the $60,000 upfront cash payment under the License Agreement and $35 and $273, respectively, as reimbursement of our expenses, in accordance with the License Agreement. As of June 30, 2012, $204 and $60 are recorded in deferred revenue – current and long-term, respectively. During the three and six months ended June 30, 2011, we recognized $71,884 and $71,884, respectively, of upfront and reimbursement revenue from Salix and we recognized $572 and $1,630, respectively, of revenue from Wyeth, our collaborator before Salix, as reimbursement of our expenses under the 2009 Transition Agreement. We received no such reimbursement in 2012.
Research grants. During the three months ended June 30, 2012 and 2011, we recognized $88 and $1,401, respectively, and during the six months ended June 30, 2012 and 2011, we recognized $174 and $2,665, respectively, as revenue from federal government grants by the NIH to partially offset costs related to our research and development programs. The decrease in grant revenue resulted from lower reimbursable expenses in 2012 than in 2011. We expect NIH reimbursable expenses to continue to decline.
Investing Activities. Of $47,820 in cash and cash equivalents at June 30, 2012, $40,353 is guaranteed by the U.S. Treasury or Federal Deposit Insurance Corporation s guarantee program. Our auction rate securities of $3,240 include $2,300 of securities collateralized by student loan obligations subsidized by the U.S. government, $100 of which was redeemed at par during the first quarter of 2012. These investments, while rated investment grade by the Standard & Poor s and Moody s rating agencies and predominantly having scheduled maturities greater than ten years, are heavily concentrated in the U.S. financial sector. During the six months ended June 30, 2012, proceeds from sales of fixed assets were $263.
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