Progenics Pharmaceuticals Inc. (PGNX)

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Ahead of the Bell: Progenics climbs on Relistor approval
Friday April 25, 8:18 am ET
Progenics jumps premarket after FDA approves constipation drug Relistor for sale

NEW YORK (AP) -- Progenics Pharmaceuticals surged in premarket trading after the Food and Drug Administration approved Relistor, a constipation drug Progenics developed with Wyeth.

Relistor is an injection designed to treat constipation caused by the use of opiate-based pain medications. Wyeth expects sales to start in early June, and it will pay Tarrytown, N.Y.-based Progenics $15 million as a result of the approval.

Progenics Pharmaceuticals Inc. shares jumped $2.86, or 26.9 percent, to $13.50 in premarket trading. The stock finished at $10.64 Thursday.

Citi analyst Yaron Werber upgraded Progenics stock to "Hold" from "Sell," saying he did not expect the FDA to approve Relistor. He raised his profit and sales estimates, and increased his target price to $13 per share from $4. Werber thinks a one-day dose will cost $25 in the U.S.