Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

9. Commitments and Contingencies

a. Operating Leases

As of December 31, 2011, we leased office, manufacturing and laboratory space, under lease agreements expiring in June 2012 and December 2020.

Rental payments are recognized as rent expense on a straight-line basis over the term of the lease. In addition to rents due under these agreements, we are obligated to pay additional facilities charges, including utilities, taxes and operating expenses. We also lease certain office equipment under non-cancelable operating leases, which expire at various times through April 2013.

As of December 31, 2011, future minimum annual payments under all operating lease agreements are as follows:

Years ending December 31,	Minimum Annual Payments
2012	$	2,547
2013		2,410
2014		2,410
2015		2,470
2016		2,532
Thereafter		10,777
Total	$	23,146

Rental expense totaled approximately $3,475, $3,544 and $2,773 for the years ended December 31, 2011, 2010 and 2009, respectively. For the years ended December 31, 2011 and 2010, we recognized rent expense in excess of amounts paid of $63 and $181, respectively, due to the recognition of escalation clauses and lease incentives. For the year ended December 31, 2009 amounts paid exceeded rent expense by $154, due to the recognition of escalation clauses and lease incentives. Additional facility charges, including utilities, taxes and operating expenses, for the years ended December 31, 2011, 2010 and 2009 were approximately $4,033, $3,645 and $3,060, respectively.

b. Licensing, Service and Supply Agreements

Progenics has entered into intellectual property-based license and service agreements in connection with its product development programs. Progenics has recognized milestone, license and sublicense fees and supply costs, which are included in research and development expenses, totaling approximately $578, $1,266 and $788 for the years ended December 31, 2011, 2010 and 2009, respectively.

Agreement	Paid from inception to December 31, 2011	Future (1) Commitments	Terms
Progenics agreements with:
Lonza Sales AG	909	3,863	Annual license fee payments, milestones and royalties, as applicable, in respect of oncology and other products.
PSMA LLC agreements with:
Seattle Genetics, Inc.	3,800	14,300	Milestone and periodic maintenance payments to use ADC technology to link chemotherapeutic agents to monoclonal antibodies that target prostate specific membrane antigen. ADC technology is based in part on technology licensed by SGI from third parties.
Amgen Fremont, Inc. (formerly Abgenix)	850	6,250	Milestones and royalties to use XenoMouse� technology for generating fully human antibodies to PSMA LLC's PSMA antigen.
Former member of PSMA LLC	203	52,244	Annual minimum royalty payments and milestones to use technology related to PSMA.

(1)Amounts based on known contractual obligations as specified in the respective license agreements, which are dependent on the achievement or occurrence of future milestones or events and exclude amounts for royalties which are dependent on future sales and are unknown.

In focusing on the development of medicines to treat cancer, we are seeking to out-license or terminate license and services agreements as to which we have paid $7,951 through December 31, 2011, and have future commitments of $9,690, which are dependent on the achievement or occurrence of future milestones or events.

c. Consulting Agreements

As part of our research and development efforts, we enter into consulting agreements with external scientific specialists (Scientists). These agreements contain various terms and provisions, including fees to be paid by us and royalties, in the event of future sales, and milestone payments, upon achievement of defined events, payable by us. Certain Scientists are advisors to Progenics, including Stephen P. Goff, Ph.D. and David A. Scheinberg, M.D., Ph.D., both of whom are also members of our Board of Directors. Some Scientists have purchased our Common Stock or received stock options which are subject to vesting provisions. We have recognized expenses with regard to the consulting agreements of $87, $179 and $220 for the years ended December 31, 2011, 2010 and 2009, respectively. Those expenses include the fair value of stock options granted during 2011, 2010 and 2009, which were fully vested at grant date, of approximately $11, $42 and $83, respectively. Such amounts of fair value are included in research and development expense for each year presented (see Note 10).

d. Retirement Agreement

On March 14, 2012, Progenics and company founder Paul J. Maddon entered into an agreement providing for his retirement as Chief Science Officer.  In connection with Dr. Maddon's retirement and termination of his employment agreement, Progenics has agreed to pay him an amount equal to $1,789,333 and provide other benefits under the agreement.