UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 

____________
 

FORM 8-K
 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 

Date of Report (Date of earliest event reported): August 27, 2007
 

___________________________________________________________
 

IGI, INC.

(Exact Name of Registrant as Specified in Charter)
 

___________________________________________________________
 

Delaware

001-08568

01-0355758

(State or Other Jurisdiction
of Incorporation)

(Commission File Number)

(I.R.S. Employer
Identification Number)
     

105 Lincoln Avenue
Buena, New Jersey 08310
(Address of Principal Executive Offices) (Zip Code)
 

(856) 697-1441
(Registrant's Telephone Number, Including Area Code)
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 

[  ]

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   

[  ]

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   

[  ]

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   

[  ]

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 8.01  Other Events
 

      On August 27, 2007 the Registrant ("IGI") executed an agreement (the "Agreement") with DermWorx Incorporated ("DermWorx").
 

      Under the Agreement, DermWorx will exclusively purchase from IGI, and IGI will exclusively sell to DermWorx for resale in North America, Central America, South America, and the United Kingdom, a 2% Salicylic Acid Novasome® product (the "Product"). In addition to purchasing the product from IGI, Dermworx must pay IGI minimum royalties for the first year of the product sale period and minimum royalties of at least 150% of the first year minimums for subsequent years. The agreement is subject to loss of exclusivity upon non-compliance by DermWorx.
 

      Under the Agreement, IGI has also granted Dermworx a right of first refusal, effective until January 31, 2008, for the development of two (2) additional Salicylic Acid Novasome® formulations, one for the treatment of Psoriasis and another for the treatment of Seborrheic Dermatitis.
 

      The Agreement supersedes an agreement entered into between IGI and DermWorx in October, 2006 (the "Prior Agreement"), but the $250,000 previously paid by DermWorx to IGI under the Prior Agreement is to be credited against a $250,000 Product development fee under the Agreement.
 

      IGI issued a press release with respect to the Agreement, which is attached as Exhibit 99.1.
 

Item 9.01  Financial Statements and Exhibits.
 

      99.1    IGI, Inc. Press Release dated August 28, 2007

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SIGNATURES
 

      Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 

IGI, INC.
   
 

By:

/s/ Rajiv Mathur
   

   

Rajiv Mathur
Chairman & Chief Executive Officer
     

Date:  August 31, 2007

    

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EXHIBIT INDEX
 

Exhibit
Number

  


Description
     

99.1

  

IGI, Inc. Press Release dated August 28, 2007

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