BUENA, NJ December 7, 2006 - IGI, INC, (AMEX:IG - News) a manufacturer of cosmetics, skin care, and consumer products utilizing Novasome® lipid vesicle encapsulation and other technologies, announced today that it has received an initial $250,000 from DermWorx as part of a previously announced $1 million agreement to license, develop and manufacture, for DermWorx, a series of dermatological specialty products that will utilize IGI's licensed Novasome® technology. DermWorx will be responsible for all clinical trials and will pay IGI a 7% royalty on product sales. IGI presently holds 19.9% of DermWorx outstanding shares of common stock. If DermWorx fails to pay IGI an additional $750,000 by February 15, 2007, which amount is to be credited against development of other products, it will lose rights to certain specified products.
IGI also announced today it has entered into a one year $1,000,000 line of credit with PharmaChem Laboratories, Inc. Loans under the line of credit bear interest, which is payable monthly, at a rate of prime plus 1.5% and are secured by the Company’s assets (other than real property). All amounts borrowed under the line of credit must be repaid by December 5, 2007. A drawdown of the credit agreement is being used to repay interest and principal under the existing $100,000 loan from PharmaChem, which was secured by real property of the Company. In addition, the Company has drawn down an additional $200,000 under the line of credit. The Company believes this line of credit will assist the Company in pursuing its short term and long term goals. www.pharmachemlabs.com.
IGI also announced that Rajiv Mathur has resigned from the Board of Directors. The Company believes that the resignation is the result of a disagreement over the financing plans that the majority of the Board approved and believes are in the best interest of the shareholders.
IGI is planning an investor conference call Thursday, December 14, 2006, at 9:30 AM to discuss ongoing business plans. The call-in number will be distributed on Monday, December 11, 2006.
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 has licensed Novasome® lipid vesicle encapsulation technology to leading global dermatological and skin care companies including Johnson & Johnson Consumer Products, Inc., Estee Lauder Companies, Chattem Inc., Genesis Pharmaceutical, Inc., Apollo Pharmaceutical, Inc. and Vetoquinol USA. 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 aging. These products can be found at www.miaj.com.
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.
Contact:
Frank Gerardi Chairman & Chief Executive Officer IGI, Inc. 856-697-1441 ext. 102 gerardi00@aol.com