NEW YORK, Nov. 07, 2016 (GLOBE NEWSWIRE) -- Progenics Pharmaceuticals, Inc. (Nasdaq:PGNX), an oncology company developing innovative medicines and other products for targeting and treating cancer, today announced that its wholly-owned subsidiary MNTX Royalties Sub LLC has entered into a $50 million term loan agreement with a fund managed by HealthCare Royalty Partners ("HCR") secured by, and to be repaid from, royalties from future sales of RELISTOR ®. Under the terms of the loan agreement, the lenders have no recourse to Progenics Pharmaceuticals, Inc., the parent company or to any of its assets other than the RELISTOR royalty rights. "This transaction recognizes the significant value of the RELISTOR franchise, and allows us to partially monetize our RELISTOR asset while retaining the upside potential of this program over the longer-term," stated Patrick Fabbio, Senior Vice President and Chief Financial Officer of Progenics. "Importantly, the immediate proceeds from this financing further strengthen our balance sheet, and provide us with the resources to launch our ultra-orphan candidate AZEDRA ®, assuming a positive trial outcome followed by an approval, as well as advance our portfolio of novel prostate cancer imaging agents and therapeutics, including 1404, PyL and 1095." "We have tracked the development of RELISTOR for some time and our investment reflects our confidence in the product's ability to meaningfully improve outcomes for patients suffering from opioid-induced constipation," commented Clarke Futch, co-founder and Chairman of the Investment Committee at HCR. "The successful development of RELISTOR is a testament to Progenics and we are pleased to structure a transaction that allows Progenics to leverage this success to fund their late-stage oncology portfolio." As a wholly-owned subsidiary of Progenics, MNTX Royalties Sub LLC was formed to borrow $50 million at a per annum interest rate of 9.50 percent and has granted to HCR a security interest in its right to receive certain royalty payments from the sales of RELISTOR Tablets and RELISTOR Subcutaneous Injection under Progenics' collaboration agreement with Valeant Pharmaceuticals International, Inc. Progenics will continue to record and report royalty revenues over the term of the loan, using the royalties from the Valeant collaboration agreement as the source of funds to repay the interest and principal on the loan. Any future sales milestone payments received under the Valeant collaboration agreement are excluded from the transaction and would not be used to service the loan.