8-K

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): January 5, 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 1.01  Entry into a Material Definitive Agreement.

      On January 5, 2007, a subsidiary of the the Registrant, Igen, Inc. ("Igen"), entered into a sublicense agreement with Novavax, Inc. ("Novavax") pursuant to which it non-exclusively sublicensed certain technologies in certain territories back to Novavax for use with respect to animal pharmaceuticals and biologicals solely to enable Novavax to enter into amendments (the "Bharat Amendments") to certain agreements ("Bharat Agreements") with Bharat Biotech International Limited to include the treatment and/or prevention of animal diseases , including the prevention of avian bird flu.

      The rights were originally licensed by Igen to Novavax pursuant to a license agreement dated December 13, 1995. The term of the license agreement was extended until 2015 when Igen exercised an option in 2005 by payment to Novavax of $1,000,000.

      The Registrant has been informed by Novavax that Novavax has entered into the Bharat Amendments.

      With respect to products for the the prevention of avian flu in birds and other animals covered under the Bharat Agreements, IGI is to receive fifty percent (50%) of the net royalties paid by Bharat to Novavax on net sales utilizing Novavax proprietary virus-like particles and antigens (Novavax Antigens") and eighty percent (80%) of the net royalties paid by Bharat to Novavax on net sales using Bharat antigens, but not Novavax Antigens.

      With respect to other animal products covered by the Bharat Agreements, as amended, IGI is to receive 80% of the net royalties Novavax receives under such agreements with respect to net sales of products containing Novasome® paucilamellar vesicles but not Novavax Antigens.

      The rights which are the subject of the Sublicense relate to organized lipid structures, lipid vesicle encapsulation technologies, cellulose structure and micellar nanoparticles and superabsorber/hydrogel technology.

      The term of the Sublicense extends until expiration of the term of all agreements amended by the Bharat Amendments. In addition eith party may terminate the Sublicense upon a change of control (as defined) of the other party.

Item 8.01  Other Events

      On January 5, 2007 the Registrant issued a press release with respect to the Sublicense, a copy of which is attached hereto as Exhibit 99.1.

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Item 9.01  Financial Statements and Exhibits
Exhibit Number	Description
99.1	Press Release Dated January 5, 2007 Regarding Sublicense of Certain Rights to Novavax, Inc.

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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 President & Chief Executive Officer
Date:  January 11, 2007

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Exhibit Index
Exhibit Number	Description
99.1	Press Release Dated January 5, 2007 Regarding Sublicense of Certain Rights to Novavax, Inc.

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EX-99

News From
Buena, NJ 08310
Release Date:  January 5, 2006		Exhibit 99.1
Contact:	Rajiv Mathur
	President & Chief Executive Officer
	IGI, Inc.
	856-697-1441 ext. 211
	www.askigi.com
IGI and Novavax enter into license agreement
BUENA, NJ January 5, 2006 - IGI, INC, (AMEX: IG - News) announced today that Novavax, Inc. (Nasdaq - "NVAX") and IGI have entered into an agreement that would expand Novavax's existing strategic alliance with Bharat Biotech International Ltd. of India. Under the Agreement, Bharat will have rights to develop certain vaccines for animals using Novasomes® for India and other selected markets.
IGI is licensing back to Novavax a non-exclusive license with the right to sub-license to Bharat rights related to the use of Novasomes® as adjuvants for animal vaccines. Bharat will fund all pre-clinical and clinical development. IGI and Novavax will share royalties on products developed using Novasome® encapsulated delivery technology to treat diseases in animals and vaccines developed to combat the avian flu virus in birds.
"IGI believes this agreement could result in other opportunities between IGI and Novavax," said IGI Chairman, Frank Gerardi
IGI is a company committed to growth by applying proprietary technologies to achieve cost-effective solutions for varied customer needs. IGI offers the patented Novasome® lipid vesicle encapsulation technology which contributes value-added qualities to cosmetics, skin care products, dermatological formulations and other consumer products, providing improved dermal absorption, low potential for irritations, controlled and sustained release as well as improved stability. IGI sub-licensed the rights to obtain FDA approval for and market IGI's PTH (1-34) compound using Novasome® lipid vesicle encapsulation technology for psoriasis, which is being reformulated for Phase II clinical trials, to Manhattan Pharmaceuticals, Inc. IGI is also exploring the licensing of the topical PTH (7-34) compound for the prevention/treatment of chemotherapy induced-alopecia in patients undergoing chemotherapy. IGI markets its own line of proprietary products that diminish the visual affects of ag ing. These products can be found at www.miaj.com. Currently, the following companies have used Novasome technology: Estee Lauder, Johnson & Johnson, Neutrogena, Chattem, Vetoquinol, Genesis Pharmaceuticals (a Pierre-Fabre subsidiary), Apollo Pharmaceuticals, All Terrain, PSI, Complexions by Dr. Watts, Your Total Image, DermWorx, SuperFoods LLC and Interwood.
IGI has exclusive rights for the Novasome® adjuvant technologies for animal vaccines.
This report contains forward-looking statements relating to IGI's hopes and expectations for the future. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "will," "possible," "one time," "provides an opportunity," "continue" and similar expressions are intended to identify forward-looking statements. Such statements involve a number of risks and uncertainties and actual future events and results could differ materially from those indicated by such forward-looking statements due to general economic conditions, and the risk factors detailed in IGI's periodic reports and registration statements filed with the Securities and Exchange Commission.

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