Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2014

Assets measured at fair value on recurring basis

The following tables present our money market funds, included in cash and cash equivalents, auction rate securities assets in 2013, and contingent consideration liability measured at fair value on a recurring basis as of the dates indicated, classified by valuation hierarchy:

			Fair Value Measurements at December 31, 2014
	Balance at December 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Money market funds	$	112,808	$	112,808	$	-	$	-
Total Assets	$	112,808	$	112,808	$	-	$	-

Liability:
Contingent consideration	$	17,200	$	-	$	-	$	17,200
Total Liability	$	17,200	$	-	$	-	$	17,200

			Fair Value Measurements at December 31, 2013
	Balance at December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Money market funds	$	60,364	$	60,364	$	-	$	-
Auction rate securities		2,208		-		-		2,208
Total Assets	$	62,572	$	60,364	$	-	$	2,208

Liability:
Contingent consideration	$	15,700	$	-	$	-	$	15,700
Total Liability	$	15,700	$	-	$	-	$	15,700

Fair Value, Measurement Inputs, Disclosure [Text Block]

The following tables present quantitative information pertaining to the fair value measurement of the Level 3 inputs as of December 31, 2014 and 2013:

	Fair Value as of December 31, 2014		Valuation Technique	Unobservable Input	Range (Weighted Average)
Contingent consideration liability:

Azedra commercialization	$	2,300	Probability adjusted discounted cash flow model	Probability of success		40%
				Period of milestone expected achievement		2018
				Discount rate		10%

1404 commercialization	$	3,800	Probability adjusted discounted cash flow model	Probability of success		59%
				Period of milestone expected achievement		2019
				Discount rate		10%

MIP-1095 commercialization	$	400	Probability adjusted discounted cash flow model	Probability of success		19%
				Period of milestone expected achievement		2023
				Discount rate		10%

Net sales targets	$	10,700	Monte-Carlo simulation	Probability of success		19% - 59% (37.4%)
				Period of milestone expected achievement		2019 - 2026
				Discount rates⁽¹⁾		12%/3.5%

	Fair Value as of December 31, 2013		Valuation Technique	Unobservable Input	Range (Weighted Average)
Asset:
Auction Rate Securities	$	2,208	Discounted cash flow model	Redemption period	5 to 15 years (6 years)
				Discount rate		0.25% - 3.00% (1.55%)
Contingent consideration liability:

Azedra commercialization	$	2,300	Probability adjusted discounted cash flow model	Probability of success		40%
				Period of milestone expected achievement		2017
				Discount rate		10%

1404 commercialization	$	2,000	Probability adjusted discounted cash flow model	Probability of success		31%
				Period of milestone expected achievement		2018
				Discount rate		10%

MIP-1095 commercialization	$	500	Probability adjusted discounted cash flow model	Probability of success		19%
				Period of milestone expected achievement		2021
				Discount rate		10%

Net sales targets	$	10,900	Monte-Carlo simulation	Probability of success		19% - 40% (32.8%)
				Period of milestone expected achievement		2018 - 2022
				Discount rate⁽¹⁾		12.5%

⁽¹⁾ At December 31, 2014, net sales targets contingent consideration liability was derived from a model under a risk neutral framework resulting in the application of 12% and 3.5% discount rates to estimated cash flows.

PROGENICS PHARMACEUTICALS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued

(amounts in thousands, except per share amounts or as otherwise noted)

Summary of activities in financial instruments with Level 3 inputs

For those financial instruments with significant Level 3 inputs, the following table summarizes the activities for the periods indicated:

	Asset – Auction Rate Securities Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Description	2014			2013
Balance at beginning of period	$	2,208		$	3,240
Transfers into Level 3		-			-
Total realized/unrealized gains (losses)
Included in net income (loss)		-			-
Included in comprehensive income (loss)		192			68
Settlements		(2,400	)		(1,100	)
Balance at end of period	$	-		$	2,208
Total amount of unrealized gains (losses) for the period included in other comprehensive income (loss) attributable to the change in fair market value of related assets still held at the reporting date	$	-		$	-

	Liability – Contingent Consideration Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Description	2014		2013
Balance at beginning of period	$	15,700	$	-
Fair value of contingent consideration – acquisition of Molecular Insight		-		15,900
Fair value adjustment to contingent consideration included in net income (loss)		1,500		(200	)
Balance at end of period	$	17,200	$	15,700
Changes in unrealized gains or losses for the period included in earnings (or changes in net assets) for liabilities held at the end of the reporting period	$	1,500	$	(200	)

Schedule of amortized cost basis, the aggregate fair value and gross unrealized holdings

The following tables summarize the amortized cost basis, the aggregate fair value and gross unrealized holding gains and losses at December 31, 2013:

	Amortized		Fair		Unrealized Holding
2013:	Cost Basis		Value		Gains		(Losses)			Net
Maturities greater than ten years:
Auction rate securities	$	2,400	$	2,208	$	-	$	(192	)	$	(192	)
	$	2,400	$	2,208	$	-	$	(192	)	$	(192	)

PROGENICS PHARMACEUTICALS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued

(amounts in thousands, except per share amounts or as otherwise noted)

Schedule of gross unrealized losses and fair value of our marketable securities

The following table shows the gross unrealized losses and fair value of our auction rate securities with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2013.

2013:	Less than 12 Months				12 Months or Greater					Total
Description of Securities	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses

Auction rate securities	$	-	$	-	$	2,208	$	(192	)	$	2,208	$	(192	)
Total	$	-	$	-	$	2,208	$	(192	)	$	2,208	$	(192	)

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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