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): 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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EX-99

News From
Buena, NJ 08310
Release Date: August 28, 2007	Exhibit 99.1

Contact:	Rajiv Mathur
	President & Chief Executive Officer
	IGI, Inc.
	856-697-1441 ext. 211
	www.askigi.com
IGI SIGNS A NEW AGREEMENT WITH DERMWORX INCORPORATED
Buena, N.J. - August 28, 2007 - IGI, Inc. (AMEX:IG) announced that it has signed a new Exclusivity, Manufacturing and Supply Agreement with Dermworx, Incorporated. This agreement supersedes and replaces the earlier agreement, dated October 11, 2006, between Dermworx and IGI.
As per the new Agreement, IGI will recognize the $250,000 payment received from Dermworx in 2006 for the development of a 2% Salicylic Acid Novasome® product. IGI will receive manufacturing revenues and royalties on sales of this product starting in the fourth quarter of 2007. Under this Agreement, IGI will grant Dermworx the exclusive rights to market and sell the Salicylic Acid Novasome® product in North, Central and South America, and the United Kingdom. To maintain exclusivity, Dermworx will guarantee IGI minimum royalties for the first year of the product sale period. This will be increased to 150% for the second year sale period and minimum royalty payments will remain the same each year thereafter.
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.
"This new agreement provides a solid foundation for the growth of both of our companies", stated Rajiv Mathur, President and CEO of IGI, Inc.
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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