Progenics reports wider 1Q loss on higher research expenses

The company lost $15.5 million, or 52 cents per share, compared with $10.4 million, or 40 cents per share, in the prior-year period.

Revenue fell 16 percent to $14.8 million from $17.6 million in the year-ago period.

Analysts surveyed by Thomson Financial expected, on average, a loss of 47 cents per share on revenue of $17.7 million.

The company said that compared to the first quarter of 2007, expenses rose about 8 percent to $32.2 million. Research and development costs rose $800,000 as a result of its collaboration with Wyeth on the opioid-induced constipation injection Relistor. General and administrative expenses rise $900,000 due to more employees.

Relistor was approved by the Food and Drug Administration in April, triggering a $15 million milestone payment from Wyeth to Progenics. The drug is expected to launch in early June.

Oppenheimer & Co. analyst Bret Holley, who has an "Outperform" rating and $18 price target on Progenics shares, said the stock is attractive ahead of 2008 catalysts for the company, including the U.S. and E.U. launch of Relistor and potential positive data from an oral formulation of the drug.

Friedman, Billings, Ramsey & Co. analyst David Amsellem said that given previous formulation issues with the drug, he is cautious on the outcome of the oral studies. He has a "Market Perform" rating and a $9 price target.

Shares of Progenics fell 11 cents in after-hours trading to $12.31. In the regular trading session, shares closed down 20 cents to $12.42.