Relistor is approved to treat constipation caused by opioid pain relievers (called OIC) in patients with advanced illnesses. With Adolor
Unfortunately, the drug's sales have been plain awful. They totaled just $3.2 million last quarter, and Progenics got less than $300,000 of that in royalty payments. Needless to say, Progenics shares have suffered greatly over the last year.
Wyeth is paying $10 million to return the rights to Progenics, and it'll pay for other development costs associated with the expansion of the drug into chronic pain. It'll also continue to market the drug for another year in the U.S., and until the end of next year outside the U.S. That should give Progenics plenty of time to find another partner -- if anyone is willing to take it -- or set up a sales force of its own.
The drug's return may not be the worst thing for Progenics. Development of the oral version of the drug, which should be easier to sell in the chronic-pain setting, seems to have stalled, and the takeover of Wyeth by Pfizer
Whether Progenics is a value at this beaten-down price will depend on how quickly it can get development moving again.
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