UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------------------------
FORM 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): April 20, 2006
--------------
CYTOGEN CORPORATION
------------------------------------------------
(Exact Name of Registrant as Specified in Charter)
Delaware 000-14879 22-2322400
---------------------------- ------------------------ -------------------
(State or Other Jurisdiction (Commission File Number) (I.R.S. Employer
of Incorporation) Identification No.)
650 College Road East, CN 5308, Suite 3100, Princeton, NJ 08540
--------------------------------------------------------- ------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (609) 750-8200
--------------
--------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
|_| Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
|_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS
This Form 8-K/A amends the Form 8-K filed by Cytogen Corporation (the
"Company") on April 26, 2006 with respect to the sale by the Company to
Progenics Pharmaceuticals, Inc. ("Progenics") of the Company's 50% ownership
interest in PSMA Development Company LLC (the "Joint Venture"). On April 20,
2006, the Company entered into a Membership Interest Purchase Agreement with
Progenics providing for the sale to Progenics of the Company's 50% ownership
interest in the Joint Venture. In addition, the Company entered into an Amended
and Restated PSMA/PSMP License Agreement with Progenics and the Joint Venture
pursuant to which the Company licensed the Joint Venture certain rights in PSMA
technology. Under the terms of such agreements, the Company sold its 50%
interest in the Joint Venture for an upfront cash payment of $13.2 million,
potential future milestone payments totaling up to $52 million payable upon
regulatory approval and commercialization of the Joint Venture products, and an
undisclosed royalty on future product sales of the Joint Venture.
The following unaudited pro forma balance sheet information of the Company
reflects the disposition of the Joint Venture as if it had occurred on December
31, 2005. The accompanying unaudited pro forma statements of operations
information for the years ended December 31, 2005, 2004 and 2003, reflect the
disposition of the Joint Venture as if the sale had occurred on January 1, 2003.
The pro forma adjustments are based on the operations of the Joint Venture
during the periods presented and the impact from the sale of the Joint Venture.
Consequently, the pro forma financial information presented is not necessarily
indicative of the results that would have been reported had the transactions
actually occurred on the dates specified. The pro forma adjustments do not
include any gains the Company may record in connection with this transaction.
The pro forma adjustments for the years ended December 31, 2005, 2004 and
2003, from the sale of the Company's 50% ownership interest in the Joint Venture
would have reduced license and contract revenue by $185,000, $106,000 and
$214,000, respectively, equity in loss of Joint Venture by $3.2 million, $2.9
million, and $3.5 million, respectively, and Loss from Continuing Operations by
$3.0 million, $2.8 million and $3.2 million, respectively, or $0.17, $0.19 and
$0.32 per basic and diluted share. In addition, the pro forma adjustments as of
December 31, 2005 from the sale of the Company's 50% ownership interest in the
Joint Venture would have increased cash and cash equivalents by $3.8 million,
and reduced other Assets by $775,000 and Accumulated Deficit by $3.0 million.
The unaudited pro forma condensed balance sheet and Statements of
Operations information reflect the historical financial information adjusted for
the pro forma adjustments discussed above:
CYTOGEN CORPORATION AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2005
(All amounts in thousands, except share and per share data)
(Unaudited)
December 31,
2005
-----------
ASSETS:
Current assets:
Cash and cash equivalents................................................. $ 34,102
Accounts receivable, net.................................................. 1,743
Inventories............................................................... 3,582
Property and equipment, net............................................... 886
Quadramet license fee, net................................................ 6,327
Other assets.............................................................. 1,140
-----------
$ 47,780
-----------
LIABILITIES AND STOCKHOLDERS' EQUITY:
Accounts payable and accrued liabilities.................................. 5,271
Warrant liability......................................................... 1,869
Other liabilities......................................................... 72
-----------
-----------
Total liabilities................................................... 7,212
-----------
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, 50,000,000 shares authorized, 22,473,762
and 15,489,116 shares issued and outstanding at December 31, 2005 and
December 31, 2004, respectively........................................ 225
Additional paid-in capital................................................ 450,502
Unearned compensation..................................................... (610)
Accumulated other comprehensive income.................................... 28
Accumulated deficit....................................................... (409,577)
-----------
Total stockholders' equity.......................................... 40,568
-----------
-----------
$ 47,780
-----------
CYTOGEN CORPORATION AND SUBSIDIARIES
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except share and per share data)
(Unaudited)
Year Ended December 31,
2005 2004 2003
-------------- -------------- ---------------
REVENUES:
Product related:
PROSTASCINT................................................... $ 7,407 $ 7,186 $ 6,523
QUADRAMET..................................................... 8,350 7,293 2,765
NMP22 BLADDERCHEK............................................. -- 1 295
BRACHYSEED.................................................... -- -- 240
=========== ========== ===========
Total product revenues.................................. 15,757 14,480 9,823
QUADRAMET royalties................................................. -- -- 1,105
=========== ========== ==========
Total product related revenues.......................... 15,757 14,480 10,928
License and contract................................................ 4 33 2,700
============ ========== ==========
Total revenues.......................................... 15,761 14,513 13,628
============ ========== ==========
OPERATING EXPENSES:
Cost of product related revenues.................................... 9,621 9,309 6,268
Selling, general and administrative................................. 25,895 20,318 11,867
Research and development............................................ 6,064 3,206 2,342
Equity in loss of joint venture..................................... -- -- --
Impairment of intangible assets..................................... -- -- 115
============ ========== ==========
Total operating expenses................................ 41,580 32,833 20,592
============ ========== ==========
Loss from continuing operations......................... (25,819) (18,320) (6,964)
Interest income........................................................... 712 448 141
Interest expense.......................................................... (114) (185) (185)
Decrease in value of warrant liability.................................... 1,666 -- --
============ ========== ==========
Loss before income taxes................................ (23,555) (18,057) (10,246)
Income tax benefit........................................................ (256) (307) (888)
============= ========== ==========
Net loss.................................................................. $ (23,299 $ (17,750) $ (6,120)
============ =========== ===========
Basic and diluted net loss per share...................................... $ (1.36) $ (1.21) $ (0.60)
============ =========== ===========
Weighted-average common shares outstanding................................ 17,117 14,654 10,205
============ ========== ==========
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CYTOGEN CORPORATION
By: /s/ Michael D. Becker
-------------------------------------
Michael D. Becker
President and Chief Executive Officer
Dated: April 26, 2006