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SMITHKLINE BEECHAM AND IGI ANNOUNCE JOINT VACCINE TESTING AGREEMENT

 RIXENSART, Belgium and BUENA, N.J., Aug. 9 /PRNewswire/ -- SmithKline Beecham (NYSE: SB) and IGI, Inc. (AMEX: IG) announced today that they have entered into an agreement under which SB will test IGI's patented NOVASOMER lipid vesicle encapsulation technology as a vehicle to formulate various SB human vaccines.
 The agreement calls for SB to pay IGI certain of its development expenses and to invest $1 million in newly issued shares of IGI's common stock at the current market price. At the conclusion of the joint study and, if the results of the study are mutually acceptable and certain other conditions met, SB will have the exclusive option of entering into a license agreement for the use of IGI's NOVASOME encapsulation technology for formulation of certain SB vaccines.
 If SB acquires the license, it will invest in additional common stock of IGI, fund research support for two years and pay royalties based on future sales. SB will also have the right of first offer for certain future vaccines IGI may wish to develop or market jointly with an industry partner while IGI retains the right to develop and market certain vaccines itself. SB will also have right of first offer on certain animal health and pharmaceutical applications of IGI's patents and technology.
 IGI stated that it cannot predict the outcome of these studies, which may take a year or longer, nor can it give any assurance that the proposed license agreement will be entered into by SB or that SB will invest additional funds in IGI. However, SB and IGI have all the technology and antigens available to fully evaluate IGI technology.
 Development of new adjuvant systems comprising immunostimulants and vehicles are key for the development of new effective vaccines.
 Novasome lipid vesicles are microscopic spheres used to deliver pharmaceutical, cosmetics, personal care products, flavors, paints, pesticides and other materials. They may also be used to deliver genetic material and vaccines and to stimulate the immune system.
 SmithKline Beecham -- one of the world's leading health care companies -- discovers, develops, manufactures and markets human and animal pharmaceuticals, over-the-counter medicines, consumer health care products and clinical laboratory testing services.
 IGI is a diversified company engaged in the development, production and marketing of animal health care products, cosmetics, consumer products and human pharmaceuticals.
 -0- 8/9/93
 /CONTACT: Michael Dodge of IGI, Inc., 609-697-1441, or Steven Bruce or Rick Stockton of Abernathy/MacGregor/Scanlon, 212-371-5999, or Walter Vandermissen of SB Biologicals S.A., 32-2-656-8370/
 (SB IG)


CO: Smithkline Beecham, IGI ST: New Jersey IN: MTC SU: JVN

CK -- NY029 -- 0675 08/09/93 10:28 EDT
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Publication:PR Newswire
Date:Aug 9, 1993
Words:432
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