-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 xenyK/c+MeKsiZEKb61eiw==

<SEC-DOCUMENT>0001192482-09-000123.txt : 20090522
<SEC-HEADER>0001192482-09-000123.hdr.sgml : 20090522
<ACCEPTANCE-DATETIME>20090519165706
ACCESSION NUMBER:		0001192482-09-000123
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20090515
FILED AS OF DATE:		20090519
DATE AS OF CHANGE:		20090519

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			LOF PARTNERS LLC
		CENTRAL INDEX KEY:			0001280952
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08568
		FILM NUMBER:		09840054

	MAIL ADDRESS:	
		STREET 1:		126 E 56TH ST 28TH FL
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			LIFE SCIENCES OPPORTUNITIES FUND INSTITTUTIONAL II LP
		CENTRAL INDEX KEY:			0001269417

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08568
		FILM NUMBER:		09840055

	BUSINESS ADDRESS:	
		STREET 1:		126 EAST 56TH STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
		BUSINESS PHONE:		212-419-3900

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			GALE JAMES C
		CENTRAL INDEX KEY:			0001184312

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08568
		FILM NUMBER:		09840051

	MAIL ADDRESS:	
		STREET 1:		C/O SANDERS MORRIS HARRIS INC
		STREET 2:		126 E. 56TH ST 24TH FL
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Erony Joyce
		CENTRAL INDEX KEY:			0001459212

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08568
		FILM NUMBER:		09840050

	MAIL ADDRESS:	
		STREET 1:		C/O IGI LABORATORIES, INC.
		STREET 2:		105 LINCOLN AVENUE
		CITY:			BUENA
		STATE:			NJ
		ZIP:			08310

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			IGI INC
		CENTRAL INDEX KEY:			0000352998
		STANDARD INDUSTRIAL CLASSIFICATION:	BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
		IRS NUMBER:				010355758
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		WHEAT RD AND LINCOCN AVE
		STREET 2:		P O BOX 687
		CITY:			BUENA
		STATE:			NJ
		ZIP:			08310
		BUSINESS PHONE:		6096971441

	MAIL ADDRESS:	
		STREET 1:		WHEAT ROAD AND LINCOCN AVE
		STREET 2:		P O BOX 687
		CITY:			BUENA
		STATE:			NJ
		ZIP:			08310

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	IMMUNOGENETICS INC
		DATE OF NAME CHANGE:	19870814

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			MORRIS BENJAMIN T
		CENTRAL INDEX KEY:			0001214494

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08568
		FILM NUMBER:		09840049

	MAIL ADDRESS:	
		STREET 1:		C/O SANDERS HARRIS MORRIS INC
		STREET 2:		600 TRAVIS #3100
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77002

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			SMH CAPITAL INC.
		CENTRAL INDEX KEY:			0001053994

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08568
		FILM NUMBER:		09840053

	BUSINESS ADDRESS:	
		STREET 1:		3100 CHASE TOWER
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77002
		BUSINESS PHONE:		7132243100

	MAIL ADDRESS:	
		STREET 1:		600 TRAVIS, SUITE 5800
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77002

	FORMER NAME:	
		FORMER CONFORMED NAME:	SANDERS MORRIS HARRIS INC/FA
		DATE OF NAME CHANGE:	20000208

	FORMER NAME:	
		FORMER CONFORMED NAME:	SANDERS MORRIS MUNDY INC /FA
		DATE OF NAME CHANGE:	19980129

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			LIFE SCIENCES OPPORTUNITIES FUND II LP
		CENTRAL INDEX KEY:			0001269415
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08568
		FILM NUMBER:		09840056

	BUSINESS ADDRESS:	
		STREET 1:		126 EAST 56TH STREET
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
		BUSINESS PHONE:		212-419-3900

	MAIL ADDRESS:	
		STREET 1:		126 E 56TH STREET
		STREET 2:		28TH FL
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			SANDERS MORRIS HARRIS GROUP INC
		CENTRAL INDEX KEY:			0001071341
		STANDARD INDUSTRIAL CLASSIFICATION:	INVESTMENT ADVICE [6282]
		STATE OF INCORPORATION:			TX
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08568
		FILM NUMBER:		09840052

	BUSINESS ADDRESS:	
		STREET 1:		600 TRAVIS
		STREET 2:		SUITE 5800
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77002
		BUSINESS PHONE:		7139934610

	MAIL ADDRESS:	
		STREET 1:		600 TRAVIS
		STREET 2:		SUITE 5800
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77002

	FORMER NAME:	
		FORMER CONFORMED NAME:	PINNACLE GLOBAL GROUP INC
		DATE OF NAME CHANGE:	19980930
</SEC-HEADER>
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<SEQUENCE>1
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    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2009-05-15</periodOfReport>

    <issuer>
        <issuerCik>0000352998</issuerCik>
        <issuerName>IGI INC</issuerName>
        <issuerTradingSymbol>IG</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001269415</rptOwnerCik>
            <rptOwnerName>LIFE SCIENCES OPPORTUNITIES FUND II LP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>CARNEGIE HALL TOWER</rptOwnerStreet1>
            <rptOwnerStreet2>152 WEST 57TH STREET, 19TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10019</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001269417</rptOwnerCik>
            <rptOwnerName>LIFE SCIENCES OPPORTUNITIES FUND INSTITTUTIONAL II LP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>CARNEGIE HALL TOWER</rptOwnerStreet1>
            <rptOwnerStreet2>152 WEST 57TH STREET, 19TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10019</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001280952</rptOwnerCik>
            <rptOwnerName>LOF PARTNERS LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>600 TRAVIS, SUITE 5800</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HOUSTON</rptOwnerCity>
            <rptOwnerState>TX</rptOwnerState>
            <rptOwnerZipCode>77002</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001053994</rptOwnerCik>
            <rptOwnerName>SMH CAPITAL INC.</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>600 TRAVIS, SUITE 5800</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HOUSTON</rptOwnerCity>
            <rptOwnerState>TX</rptOwnerState>
            <rptOwnerZipCode>77002</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001071341</rptOwnerCik>
            <rptOwnerName>SANDERS MORRIS HARRIS GROUP INC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>600 TRAVIS, SUITE 5800</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HOUSTON</rptOwnerCity>
            <rptOwnerState>TX</rptOwnerState>
            <rptOwnerZipCode>77002</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001184312</rptOwnerCik>
            <rptOwnerName>GALE JAMES C</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>CARNEGIE HALL TOWER</rptOwnerStreet1>
            <rptOwnerStreet2>152 WEST 57TH STREET, 19TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10019</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001459212</rptOwnerCik>
            <rptOwnerName>Erony Joyce</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>CARNEGIE HALL TOWER</rptOwnerStreet1>
            <rptOwnerStreet2>152 WEST 57TH STREET, 19TH FLOOR</rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10019</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001214494</rptOwnerCik>
            <rptOwnerName>MORRIS BENJAMIN T</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>600 TRAVIS, SUITE 5800</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HOUSTON</rptOwnerCity>
            <rptOwnerState>TX</rptOwnerState>
            <rptOwnerZipCode>77002</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Series B-1 Convertible Preferred Stock</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F1"/>
                <footnoteId id="F2"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2009-05-15</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>C</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>681.935</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F1"/>
                <footnoteId id="F2"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>9979437</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>854.035</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F3"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value></value>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Secured Convertible Promissory Note</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>6000.00</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2009-05-15</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>C</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>4091610.35</value>
                    <footnoteId id="F4"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F5"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F5"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Series B-1 Convertible Preferred Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>681.935</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F3"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value></value>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Series B-1 Convertible Preferred Stock</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F1"/>
                <footnoteId id="F2"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2009-05-15</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>C</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>122.044</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F1"/>
                <footnoteId id="F2"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>1785922</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>152.844</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F8"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value></value>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Secured Convertible Promissory Note</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>6000.00</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2009-05-15</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>C</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>732264.15</value>
                    <footnoteId id="F6"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F7"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F7"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Series B-1 Convertible Preferred Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>122.044</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F8"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value></value>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Option (Right to Buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>1.02</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2009-05-15</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>15000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2010-05-15</value>
            </exerciseDate>
            <expirationDate>
                <value>2019-05-15</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>15000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>15000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                    <footnoteId id="F9"/>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value></value>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Each share of Series B-1 Convertible Preferred Stock (the &quot;Series B-1 Preferred Stock&quot;) is convertible at any time into 14,634 shares of common stock at the holder's election, plus such number of shares of common stock as shall equal (x) the accrued and unpaid dividends on the Series B-1 Preferred Stock as of the date of conversion divided by (y) $0.41, and has no expiration date. Notwithstanding the foregoing, pursuant to the terms of the Certificate of Designation, the Series B-1 Preferred Stock will automatically convert into shares of common stock upon the earlier of the date that (i) the Closing Price (as defined in the Certificate of Designation) of the common stock shall have exceeded $1.20 for a period of twenty-five (25) consecutive trading days immediately preceding such date and (ii) (continued in Footnote 2)</footnote>
        <footnote id="F2">as determined by the affirmative vote or consent of the holders of at least a majority of the shares of the Series B-1 Preferred Stock outstanding at the time, given in person or by proxy, either in writing or at a meeting.  Quarterly dividends at the annual rate of 5% of the Original Issue Price, or $6,000 per share, on each outstanding share of Series B Preferred Stock shall accrue from day to day, whether or not earned or declared, commencing on the last day of the calendar quarter in which they would otherwise be declared.</footnote>
        <footnote id="F3">These securities are owned directly by Life Sciences Opportunities Fund (Institutional) II, L.P. and indirectly by Signet Healthcare Partners, LLC (&quot;General Partner&quot;), the general partner of Life Sciences Opportunities Fund (Institutional) II, L.P., James C. Gale, the chief investment officer, a manager and member of the General Partner, SMH Capital Inc. (&quot;SMH Capital&quot;), the controlling member of the General Partner, Sanders Morris Harris Group, Inc. (&quot;SMHG&quot;), the parent company of SMH Capital, Joyce Erony, a director of IGI Laboratories and a managing director of the General Partner and Ben T. Morris, a manager of the General Partner and Chief Executive Officer and a director of SMH Capital and SMHG. The General Partner, Mr. Gale, SMH Capital, SMHG, Ms. Erony and Mr. Morris disclaim beneficial ownership of the reported securities except to the extent of their pecuniary interest therein, if any.</footnote>
        <footnote id="F4">The number of securities disposed of represents the face value of the Note on May 15, 2009, including the principal amount of $4,056,601.32, plus $35,009.03 in accrued interest.</footnote>
        <footnote id="F5">On March 13, 2009, IGI Laboratories completed a private placement of Series B-1 Preferred Stock, secured convertible promissory notes (the &quot;Notes&quot;) and warrants to purchase shares of Series B-2 Preferred Stock (the &quot;Warrants&quot;) to Life Sciences Opportunities Fund (Institutional) II, L.P. and Life Sciences Opportunities Fund II, L.P., for an aggregate purchase price of $6,000,000 (the &quot;Offering&quot;).  On May 15, 2009, IGI Laboratories held its 2009 Annual Meeting of Stockholders during which the stockholders of IGI Laboratories entitled to vote thereat approved the Offering (the &quot;Stockholder Approval&quot;).  Effective immediately upon Stockholder Approval of the Offering, the Note converted into a total of 681.935 shares of Series B-1 Preferred Stock (676.1 shares in respect of the principal amount of Note plus 5.835 shares in respect of accrued interest thereon).</footnote>
        <footnote id="F6">The number of securities disposed of represents the face value of the Note on May 15, 2009, including the principal amount of $725,998.68, plus $6,265.47 in accrued interest.</footnote>
        <footnote id="F7">As mentioned above, on March 13, 2009, IGI Laboratories completed a private placement of Series B-1 Preferred Stock, Notes and Warrants to Life Sciences Opportunities Fund (Institutional) II, L.P. and Life Sciences Opportunities Fund II, L.P., for an aggregate purchase price of $6,000,000.  Effective immediately upon Stockholder Approval of the Offering on May 15, 2009, the Note converted into a total of 122.044 shares of Series B-1 Preferred Stock (121 shares in respect of the principal amount of Note plus 1.044 shares in respect of accrued interest thereon).</footnote>
        <footnote id="F8">These securities are owned directly by Life Sciences Opportunities Fund II, L.P. and indirectly by the General Partner, Mr. Gale, SMH Capital, SMHG, Ms. Erony and Mr. Morris. The General Partner, Mr. Gale, SMH Capital, SMHG, Ms. Erony and Mr. Morris disclaim beneficial ownership of the reported securities except to the extent of their pecuniary interest therein, if any.</footnote>
        <footnote id="F9">Stock options to purchase shares of common stock granted to James C. Gale, individually.</footnote>
    </footnotes>

    <remarks>This is a joint filing by Life Sciences Opportunities Fund (Institutional) II, L.P., Life Sciences Opportunities Fund II, L.P., the General Partner, Mr. Gale, SMH Capital, SMHG, Ms. Erony and Mr. Morris. Life Sciences Opportunities Fund II, L.P. is the designated filer for Life Sciences Opportunities Fund II (Institutional), L.P., General Partner, Mr. Gale, SMH Capital, SMHG, Ms. Erony and Mr. Morris. The address of each filer is the same as the designated filer except SMH Capital, SMHG and Mr. Morris, which is 600 Travis, Suite 5800, Houston, Texas 77002. Life Sciences Opportunities Fund (Institutional) II, L.P. and Life Sciences Opportunities Fund II, L.P. also may be deemed a director by virtue of their right, as holders of all of the issued and outstanding shares of Series B-1 Preferred Stock, to appoint directors to IGI's board of directors. Ms. Erony and Mr. Gale currently serve as their representatives on IGI's board of directors.</remarks>

    <ownerSignature>
        <signatureName>Life Sciences Opportunities Fund II, L.P., By:  Signet Healthcare Partners, LLC, By:  /s/ James C. Gale, Manager</signatureName>
        <signatureDate>2009-05-19</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Life Sciences Opportunities Fund (Institutional) II, L.P., By:  Signet Healthcare Partners, LLC, By:  /s/ James C. Gale, Manager</signatureName>
        <signatureDate>2009-05-19</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Signet Healthcare Partners, LLC, By:  SMH Capital Inc., By:  /s/ Ben T. Morris, Chief Executive Officer</signatureName>
        <signatureDate>2009-05-19</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>SMH Caiptal Inc., By:  /s/ Ben T. Morris, Chief Executive Officer</signatureName>
        <signatureDate>2009-05-19</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Sanders Morris Harris Group, Inc., By:  /s/ Ben T. Morris, Chief Executive Officer</signatureName>
        <signatureDate>2009-05-19</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ James C. Gale</signatureName>
        <signatureDate>2009-05-19</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Joyce Erony</signatureName>
        <signatureDate>2009-05-19</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/ Ben T. Morris</signatureName>
        <signatureDate>2009-05-19</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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