UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington,WASHINGTON, D.C. 20549

                                  SCHEDULE 14A
                                 (RULE 14a-101)

                     INFORMATION REQUIRED IN PROXY STATEMENT

                            SCHEDULE 14A INFORMATION

                    PROXY STATEMENT PURSUANT TO SECTION 14(a)
             OF THE SECURITIES EXCHANGE ACT OF 1934 (AMENDMENT NO. )

Filed by the registrant /X/Registrant |X|

Filed by a partyParty other than the registrant /_/Registrant | |

Check the appropriate box:

      /_/| |   Preliminary Proxy Statement

      /_/| |   Confidential, for Use of the Commission Only (as permitted by Rule
            14a-6(e)(2)2))

      /X/|X|   Definitive Proxy Statement

      /_/| |   Definitive Additional Materials

      /_/| |   Soliciting Material Pursuant to ss.240.14a-12

                             THE QUIGLEY CORPORATION
- --------------------------------------------------------------------------------
                  (Name of Registrant as Specified in Its Charter)


- --------------------------------------------------------------------------------
    (Name of Person(s) Filing Proxy Statement, if other thanOther Than the Registrant)

      Payment of filing fee (Check the appropriate box):

      /X/|X|   No fee required.

      /_/| |   Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and
            0-11.

      (1)  Title of each class of securities to which transaction applies:

- --------------------------------------------------------------------------------
      (2)  Aggregate number of securities to which transaction applies:

- --------------------------------------------------------------------------------
      (3)  Per unit  price or other  underlying  value of  transaction  computedcompared
pursuant to Exchange Act Rule 0-11 (set(Set forth the amount on which the filing fee
is calculated and state how it was determined):

- --------------------------------------------------------------------------------
      (4)  Proposed maximum aggregate value of transaction:

- --------------------------------------------------------------------------------

      (5) Total fee paid:

- --------------------------------------------------------------------------------

      /_/| |   Fee paid previously with preliminary materials.

      /_/| |   Check box if any part of the fee is offset as provided by Exchange
Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
paid previously. Identify the previous filing by registration statement number,
or the formForm or Schedule and the date of its filing.




      (1) Amount Previously Paid:

- --------------------------------------------------------------------------------

      (2) Form, Schedule or Registration Statement No.no.:

- --------------------------------------------------------------------------------

      (3)  Filing Party:

- --------------------------------------------------------------------------------

      (4)  Date Filed:

- --------------------------------------------------------------------------------




                             THE QUIGLEY CORPORATION
                                 KELLS BUILDING
                             621 SHADY RETREAT ROAD
                                 P. O. BOX 1349
                              DOYLESTOWN, PA 18901

                               ------------------

                    NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
                             TO BE HELD JUNE 27, 2006MAY 22, 2007

                               ------------------

TO THE STOCKHOLDERS OF THE QUIGLEY CORPORATION:

NOTICE IS HEREBY GIVEN that the Annual Meeting of  Stockholders  (the "Meeting")
of THE QUIGLEY CORPORATION,  a Nevada Corporation (the "Company"),  will be held
at the Doylestown Country Club, Green Street, P.O. Box 417, Doylestown, PA 18901
on Tuesday, June 27, 2006,May 22, 2007, at 4:00 P.M., local time, for the following purposes:

      (i)   To elect a Board of Directors to serve for the ensuing year until
            the next Annual Meeting of Stockholders and until their respective
            successors have been duly elected and qualified.

      (ii)  To ratify the appointment of Amper, Politziner & Mattia, P.C. as
            independent auditors for the year ending December 31, 2006.2007.

      (iii) To transact such other business as may properly come before the
            Meeting and any adjournments or postponements thereof.

Only  stockholders  of record at the close of business on April 28, 2006March 30, 2007 will be
entitled  to  notice  of and to  vote  at the  Meeting  or any  adjournments  or
postponements  thereof.  Any stockholder may revoke a proxy at any time prior to
its exercise by filing a  later-dated  proxy or a written  notice of  revocation
with the Secretary of the Company,  or by voting in person at the Meeting.  If a
stockholder is not attending the Meeting, any proxy or notice should be returned
in time for receipt no later than the close of business on the day preceding the
Meeting.

DUE TO LIMITED SEATING  CAPACITY,  ADMISSION WILL BE LIMITED TO ONE (1) SEAT PER
STOCKHOLDER  OF RECORD.  IF YOUR  SHARES ARE HELD BY A BANK OR BROKER,  YOU MUST
BRING YOUR BANK OR BROKER'S  STATEMENT  EVIDENCING YOUR BENEFICIAL  OWNERSHIP OF
THE QUIGLEY CORPORATION STOCK TO THE MEETING.


                                    By Order of the Board of Directors

                                    /s/ Charles A. Phillips
                                    ------------------------------
                                    CHARLES A. PHILLIPS, Secretary


Doylestown, PA
May 26, 2006April 20, 2007

WHETHER OR NOT YOU EXPECT TO BE  PRESENT AT THE  MEETING,  YOU ARE URGED TO FILL
IN, DATE,  SIGN AND RETURN THE ENCLOSED  PROXY IN THE ENVELOPE  PROVIDED,  WHICH
REQUIRES NO POSTAGE IF MAILED IN THE UNITED STATES.




                             THE QUIGLEY CORPORATION
                                 KELLS BUILDING
                             621 SHADY RETREAT ROAD
                                 P. O. BOX 1349
                              DOYLESTOWN, PA 18901

                               ------------------

                         ANNUAL MEETING OF STOCKHOLDERS
                             TO BE HELD MAY 22, 2007

                               -------------------

                                TABLE OF CONTENTS

                                                                            Page
                                                                         -------
Proxy Statement                                                                1
  Solicitation                                                                 1
  Voting Information                                                           1
Proposal 1 -- Election of Directors                                            2
Corporate Governance                                                           3
Meetings and Committees of the Board                                           4
Executive Compensation                                                         6
Defined Contribution Plan                                                      8
Compensation Committee Report                                                  9
Summary Compensation Table                                                     9
Outstanding Equity Awards at Fiscal Year-End                                  11
Option Exercises and Stock Vested                                             12
Director Compensation                                                         12
Security Ownership                                                            13
Section 16(a) Beneficial Ownership Reporting Compliance                       14
Audit Committee Disclosure                                                    15
Proposal 2 -- To ratify the appointment of Amper,
              Politziner & Mattia, P.C. as  independent auditors
              for the year ending  December 31, 2007.                         16




                             THE QUIGLEY CORPORATION
                                 KELLS BUILDING
                             621 SHADY RETREAT ROAD
                                 P. O. BOX 1349
                              DOYLESTOWN, PA 18901

                               -------------------

                                 PROXY STATEMENT

                               ------------------

                                  JUNE 27, 2006MAY 22, 2007

This proxy  statement (the "Proxy  Statement") is being  furnished in connection
with the solicitation of proxies  ("Proxies," or if one, a "Proxy") by the Board
of Directors of The Quigley  Corporation  (the  "Company") for use at the Annual
Meeting of  Stockholders  of the  Company to be held at the  Doylestown  Country
Club, Green Street, P.O. Box 417, Doylestown, PA 18901 on Tuesday, June 27,
2006,May 22, 2007,
at 4:00 P.M.,  local time, and any  adjournments or  postponements  thereof (the
"Meeting").

The  principal  executive  offices  of the  Company  are  located  at the  Kells
Building, 621 Shady Retreat Road, P.O. BOX 1349, DOYLESTOWN, PENNSYLVANIA 18901.
The approximate  date on which this Proxy Statement and the  accompanying  Proxy
will first be sent or given to stockholders is May 26, 2006.April 20, 2007.

At the Meeting,  the following  proposals will be presented to the  stockholders
for approval:

      (i)   To elect a Board of Directors to serve for the ensuing year until
            the next Annual Meeting of Stockholders and until their respective
            successors have been duly elected and qualified.

      (ii)  To ratify the appointment of Amper, Politziner & Mattia, P.C. as
            independent auditors for the year ending December 31, 2006.2007.

     (iii)  To transact such other business as may properly come before the
            Meeting and any adjournments or postponements thereof.

DUE TO LIMITED SEATING  CAPACITY,  ADMISSION WILL BE LIMITED TO ONE (1) SEAT PER
STOCKHOLDER  OF RECORD.  IF YOUR  SHARES ARE HELD BY A BANK OR BROKER,  YOU MUST
BRING YOUR BANK OR BROKER'S  STATEMENT  EVIDENCING YOUR BENEFICIAL  OWNERSHIP OF
THE QUIGLEY CORPORATION STOCK TO THE MEETING.

                          RECORD AND VOTING SECURITIES

Only  stockholders  of record at the close of  business  on April 28,  2006March 30,  2007 (the
"Record Date") will be entitled to notice of and to vote at the Meeting.  At the
close of business  on such record  date,  the Company had  12,480,47812,684,633  shares of
Common Stock, par value $.0005 per share (the "Common  Stock"),  outstanding and
entitled  to vote at the  Meeting.  Each  outstanding  share of Common  Stock is
entitled  to one vote.  There was no other  class of  voting  securities  of the
Company  outstanding on the Record Date. A majority of the outstanding shares of
Common Stock present in person or by Proxy is required for a quorum.

                            PROXIES AND VOTING RIGHTS

Shares of Common Stock represented by Proxies that are properly  executed,  duly
returned  and not  revoked  will be voted in  accordance  with the  instructions
contained  therein.  If no instructions  are contained in a Proxy, the shares of
Common Stock represented thereby will be voted (i) for the election as directors
the persons who have been  nominated by the Board of  Directors,  (ii),  for the
ratification  of the  appointment  of Amper,  Politziner  & Mattia,  P.C. as the
Company's  independent auditors for the year ending December 31, 2006,2007, and (iii)
upon any other  matter  that may  properly  be  brought  before  the  Meeting in
accordance  with the  judgment  of the person or persons  voting the Proxy.  The
execution of a Proxy will in no way affect a  stockholder's  right to attend the
Meeting and to vote in person.  Any Proxy executed and returned by a stockholder
may be revoked at any time  thereafter by written notice of revocation  given to
the  Secretary  of the  Company  prior to the vote to be taken at the Meeting by
execution of a subsequent Proxy that is presented at the Meeting or by voting in
person at the Meeting in any such case,  except as to any matter or matters upon
which a vote shall have been cast  pursuant to the  authority  conferred by such
Proxy prior to such revocation.


                                      -1-


Broker  "non-votes"  and the  shares of Common  Stock as to which a  stockholder
abstains are included for purposes of  determining  the presence or absence of a
quorum for the  transaction  of business  at the  Meeting.  A broker  "non-vote"
occurs when a nominee  holding shares for a beneficial  owner does not vote on a
particular proposal because the nominee does not have discretionary voting power
with respect to that item and has not received  instructions from the beneficial
owner.

                   ANNUAL REPORT PROVIDED WITH PROXY STATEMENT

Copies of the Company's Annual Report containing audited financial statements of
the Company for the year ended December 31, 20052006 are being mailed  together with
this Proxy Statement to all stockholders entitled to vote at the Meeting.

                               SECURITY OWNERSHIP

The following table sets forth information concerning ownership of the Company's
Common  Stock as of April 28, 2006 by each person known by the Company to be the
beneficial  owner of more than five percent of the Common  Stock,  each Director
and Executive Officer and all directors and executive officers of the Company as
a group. Unless otherwise indicated, the address of each person or entity listed
below is the Company's principal executive office.

        Five Percent Stockholders, Directors, and all Executive        Common Stock Beneficially     Percent of
                   Officers and Directors as a Group                           Owned (1)                Class
     -----------------------------------------------------------------------------------------------------------

     GUY J. QUIGLEY (2) (3) (4)                                                 3,708,764               27.8

     CHARLES A. PHILLIPS (2) (3) (5)                                            1,700,377               12.9

     GEORGE J. LONGO (2) (3) (6)                                                  675,000                5.2

     JACQUELINE F. LEWIS (2) (7)                                                  120,000                1.0

     ROUNSEVELLE W. SCHAUM (2) (8)                                                 65,000                 -

     STEPHEN W. WOUCH (2) (9)                                                      50,500                 -

     TERRENCE O. TORMEY (2) (10)                                                   40,000                 -

     ALL DIRECTORS AND OFFICERS (11) (Seven Persons)                            6,359,641               42.6

(1)  Beneficial  ownership has been  determined  in  accordance  with Rule 13d-3
     under the Securities  Exchange Act of 1934, as amended ("Rule 13d-3"),  and
     unless  otherwise  indicated,  represents  shares for which the  beneficial
     owner has sole voting and  investment  power.  The  percentage  of class is
     calculated  in  accordance  with Rule 13d-3 and  includes  options or other
     rights to subscribe for shares of common stock which are exercisable within
     sixty (60) days of April 28, 2006.
(2)  Director of the Company.
(3)  Executive Officer of the Company.
(4)  Mr.   Quigley's   beneficial   ownership   includes  options  and  warrants
     exercisable  within sixty (60) days from April 28, 2006 to purchase 785,000
     shares of Common Stock,  options and warrants to purchase  82,500 shares of
     Common Stock  beneficially  owned by Mr. Quigley's wife and an aggregate of
     394,705 shares  beneficially  owned by members of Mr.  Quigley's  immediate
     family and no longer  includes  120,000 shares held by Mr.  Quigley's adult
     children.
(5)  Mr.   Phillips'   beneficial   ownership   includes  options  and  warrants
     exercisable  within sixty (60) days from April 28, 2006 to purchase 687,000
     shares of Common Stock and 1,671 shares of Common Stock  beneficially owned
     by Mr. Phillips' wife.
(6)  Mr. Longo's beneficial  ownership includes options and warrants exercisable
     within  sixty (60) days from April 28, 2006 to purchase  635,000  shares of
     Common Stock.
(7)  Ms.  Lewis'  address  is P. O. Box  581,  Lahaska,  PA  18931.  Ms.  Lewis'
     beneficial  ownership  includes options  exercisable within sixty (60) days
     from April 28, 2006 to purchase 120,000 shares of Common Stock.
(8)  Mr.  Schaum's  address is 157 Harrison Ave,  #17,  Newport,  RI 02840.  Mr.
     Schaum's  beneficial  ownership  includes options  exercisable within sixty
     (60) days from April 28, 2006 to purchase 65,000 shares of Common Stock.
(9)  Mr.  Wouch's  address is 415 Sargon Way,  Suite J, Horsham,  PA 19044.  Mr.
     Wouch's beneficial ownership includes options exercisable within sixty (60)
     days from April 28, 2006 to purchase 50,000 shares of Common Stock.
(10) Mr.  Tormey's  address is 4842 Mountain Top Road West,  New Hope, PA 18938.
     Mr. Tormey's beneficial ownership includes options exercisable within sixty
     (60) days from April 28, 2006 to purchase 40,000 shares of Common Stock.
(11) Includes  an  aggregate  of  2,464,500  shares of Common  Stock  underlying
     options and warrants that are exercisable within sixty (60) days from April
     28, 2006.

                                      -2-




                       COMPENSATION AND OTHER INFORMATION
                        CONCERNING DIRECTORS AND OFFICERS

EXECUTIVE COMPENSATION

The following  table provides  summary  information  concerning cash and certain
other  compensation for the years ended December 31, 2005, 2004 and 2003 paid or
accrued by the Company to the Company's Chief Executive  Officer and each highly
compensated  executive  officer  of  the  Company  whose  compensation  exceeded
$100,000 (the "Named Executive Officers") during 2005:

                           SUMMARY COMPENSATION TABLE


                                                                                           Long-Term        All  Other
                                                      Annual Compensation                 Compensation      Compensation
                                             ---------------------------------------     ---------------   -------------

                                                                      Other Annual         Securities
                                               Salary     Bonus       Compensation         Underlying
Name and Principal Position          Year        (1)        (2)         (3) (4)              Options            (5)
                                                 ($)        ($)           ($)                  (#)              ($)
- ------------------------------------------------------------------------------------     ---------------   -------------

Guy J. Quigley                       2005       775,513   631,635        275,091             100,000           18,396
  Chairman of the Board,             2004       725,800   244,958        782,509              50,000           16,396
  President, Chief                   2003       604,800   226,800        667,006              50,000           14,396
  Executive Officer

Charles A. Phillips                  2005       571,813   453,360         91,697              80,000           18,258
  Executive Vice President,          2004       508,100   171,484        260,836              45,000           16,258
  Chief Operating Officer            2003       423.400   158,775        222,334              45,000           14,258

George J. Longo                      2005       383,460   287,595          -                  40,000           18,258
   Vice President,                   2004       365,200   123,255          -                  40,000           16,258
   Chief Financial Officer           2003       347,800   130,425          -                  40,000           14,258


     (1)  Compensation paid pursuant to employment agreements.

     (2)  Bonuses paid pursuant to the Company attaining specified sales and net
          income goals and contract extension.

     (3)  Additional  compensation,  until  May  31,  2005,  includes  founder's
          commission of 3.75% of sales collected,  less certain deductions,  for
          Mr.  Quigley,  and founder's  commission of 1.25% of sales  collected,
          less certain deductions, for Mr. Phillips.

     (4)  The value of personal benefits for the Named Executive Officers of the
          Company that might be attributable  to management as executive  fringe
          benefits,  such as  vehicles,  cannot  be  specifically  or  precisely
          determined;  however, it would not exceed the lesser of $50,000 or 10%
          of the total annual salary and bonus reported for any individual named
          above.

     (5)  Includes amounts attributable to matching  contributions  attributable
          to each officer in the Company's 401(k) Plan and term insurance.

COMPENSATION PURSUANT TO PLANS

An incentive  stock option plan was  instituted  in 1997 (the "1997 Stock Option
Plan") and approved by the stockholders in 1998 and subsequently amended in 2000
and  approved  by the  stockholders  in 2001 and  amended  and  approved  by the
stockholders in 2005.  Pursuant to the 1997 Stock Option Plan, options have been
granted to directors,  executive  officers,  and employees during 2005, 2004 and
2003. In early 1999, the Company implemented a defined contribution plan for its
employees with the Company's contribution to the plan based on the amount of the
employee plan contribution.

                                      -3-




OPTION GRANTS TABLE

The following table sets forth certain information regarding stock option grants
made to each of the Named Executive Officers during 2005:


                                     OPTION GRANTS DURING 2005 FISCAL YEAR

                                                                                     Potential Realizable
                                       Percent of                                      Value at Assumed
                          Number of   Total Options                                  Annual Rates of Stock
                         Securities    Granted to        Exercise                   Price Appreciation for
                         Underlying   Employees in       or Base                      Option Term ($) (1)
                           Options     Fiscal Year       Price      Expiration
         Name              Granted         (%)           ($/sh)        Date               5%        10%
- -------------------------------------------------------------------------------------------------------------

Guy J. Quigley             100,000         19.2             13.80       12/11/15      868,000     2,199,000

Charles A. Phillips         80,000         15.4             13.80       12/11/15      694,400     1,759,000

George J. Longo             40,000          7.7             13.80       12/11/15      347,200       879,600


(1)  The potential  realizable value portion of the foregoing table  illustrates
     value that might be realized upon exercise of options  immediately prior to
     the expiration of their term, assuming (for illustrative purposes only) the
     specified  compounded  rates of appreciation on the Company's  Common Stock
     over  the term of the  option.  These  numbers  do not  take  into  account
     provisions providing for termination of the option following termination of
     employment or non-transferability.

AGGREGATED OPTION EXERCISES AND YEAR-END OPTION VALUES TABLE

The following  table sets forth  certain  information  concerning  stock options
exercised  during  2005 and  unexercised  stock  options at the end of 2005 with
respect to the Named Executive Officers:

                             AGGREGATED OPTION EXERCISES DURING THE MOST RECENTLY
                           COMPLETED FISCAL YEAR AND FISCAL YEAR-END OPTION VALUES

                           Shares                    Number of Securities          Value of Unexercised
                        Acquired on    Value        Underlying Unexercised       In-the Money Options at
                          Exercise    Realized    Options at Fiscal Year End     Fiscal Year End ($) (1)
         Name               (#)          ($)     Exercisable / Unexercisable    Exercisable/Unexercisable
- ------------------------------------------------------------------------------------------------------------
Guy J. Quigley               -            -            1,085,000 / 0                  8,839,450 / 0

Charles A. Phillips          -            -              987,000 / 0                  8,427,310 / 0

George J. Longo              -            -              635,000 / 0                  4,588,025 / 0


(1)  Represents  the  total  gain that  would be  realized  if all  in-the-money
     options held at December 30, 2005 were exercised, determined by multiplying
     the number of shares  underlying the options by the difference  between the
     per share option exercise price and $13.82 per share, which was the closing
     price per share of the  Company's  Common Stock on December  30,  2005.  An
     option is  in-the-money  if the fair market value of the underlying  shares
     exceeds the exercise price of the option.

EMPLOYMENT AGREEMENTS

An employment  agreement between the Company and Guy J. Quigley was entered into
on June 1, 1995,  whereby  Guy J.  Quigley is  employed  as the Chief  Executive
Officer of the Company for a term ending on December  31,  2005.  In addition to
compensation for services as an officer of the Company, Mr. Quigley was entitled
to receive a founder's commission of five percent (5%) on sales collected,  less
certain deductions, of the Company's Cold-Eeze(R) products, which expired on May
31,  2005 and was shared  with  Charles A.  Phillips  at a ratio of 75% and 25%,
respectively.  Upon the termination of the contract for any reason,  Mr. Quigley
was entitled to the remainder of the compensation  owed him through December 31,
2005.

An employment  agreement between the Company and Charles A. Phillips was entered
into on June 1, 1995,  whereby  Charles A. Phillips is employed as the Executive
Vice President and Chief  Operating  Officer of the Company for a term ending on
December 31, 2005. In addition to compensation for services as an officer of the
Company,  Mr.  Phillips was entitled to receive twenty five percent (25%) of the
founder's  commission  received by Guy J. Quigley,  either  directly from Guy J.
Quigley or, if requested,  directly from the Company until its expiration on May
31, 2005.  Should Mr. Phillips make such a request upon the Company,  the amount
owed to him would be deducted from any commissions due Guy J. Quigley.  Upon the
termination  of the  contract for any reason,  Mr.  Phillips was entitled to the
remainder of the compensation owed him through December 31, 2005.


                                                     -4-



George J.  Longo is  employed  as the Chief  Financial  Officer  of the  Company
pursuant to an employment  agreement,  dated November 5, 1996, for a term ending
on December 31, 2005. The agreement  provided for a base salary of $150,000,  or
such greater  amount as the Board of Directors may from time to time  determine,
with annual  increases  over the prior year's base  salary.  In the event of his
disability,  Mr.  Longo was to receive  the full  amount of his base  salary for
eighteen months. Upon a change of control of the Company, Mr. Longo was entitled
to receive  compensation  for the remaining term of the agreement until December
31, 2005. Upon early termination by the Company without cause (as defined in the
agreement),  the Company  was  required to pay Mr.  Longo the  remainder  of the
salary owed him through December 31, 2005.


      REPORTS ABOUT OWNERSHIP OF THE COMPANY'S COMMON STOCK AND COMPLIANCE
         WITH SECTION 16 (A) OF THE SECURITIES AND EXCHANGE ACT OF 1934

Section 16(a) of the Securities  Exchange Act of 1934, as amended,  requires the
Company's  officers,  directors  and  persons who own more than ten percent of a
registered class of the Company's equity securities to file reports of ownership
and changes in  ownership  with the  Securities  and  Exchange  Commission  (the
"Commission"). Officers, directors and greater than ten-percent stockholders are
required by the  Commission's  regulations to furnish the Company with copies of
all Section 16(a) forms they file.

Based  solely on its  review of the  copies of such  forms  received  by it, the
Company  believes  that  during the fiscal year ended  December  31,  2005,  all
reports of  ownership  and  changes in  ownership  applicable  to its  executive
officers,  directors,  and greater than ten-percent  beneficial  owners were not
filed on a timely basis, as each such person  inadvertently  filed a Form 4 late
on one occasion for one transaction.

                 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

For the year ended December 31, 2005,  $366,788 was paid or payable  pursuant to
the founder's  commission  agreements between the Company and Guy J. Quigley and
Charles A.  Phillips,  who share a  commission  of 5% on sales  collected,  less
certain deductions, of the Company's Cold-Eeze(R) lozenge and gum products.

Certain  individuals  related to the Company's Chief Executive  Officer are also
employees of the Company.  Their aggregate  compensation  for 2005 was $519,455,
and they received option grants to purchase an aggregate of 29,500 shares of the
Company's Common Stock.

The Company is in the process of acquiring licenses in certain countries through
related party entities,  including arrangements with ScandaSystems Ltd. (UK) and
ScandaSystems Ltd. (USA) whose officer and major stockholder,  respectively,  is
Mr.  Gary  Quigley,  a  relative  of  the  Company's  Chief  Executive  Officer.
Approximately  $40,000 was paid or payable by the  Company to such firms  during
2005 and fees amounting to $226,882 have been paid to another  related entity to
obtain such licenses.  The Company believes that the services performed by these
firms and employees  are on terms no more  favorable  than could have  otherwise
been obtained from an unaffiliated third party.

               PROPOSALS TO BE SUBMITTED FOR STOCKHOLDER APPROVAL

PROPOSAL 1.  ELECTION OF A BOARD OF DIRECTORS

The  directors  of the  Company  are  elected  annually  and hold office for the
ensuing  year until the next  Annual  Meeting of  Stockholders  and until  their
successors  have been duly elected and  qualified.  The directors are elected by
plurality of votes cast by  stockholders.  The Company's  by-laws state that the
number  of  directors  constituting  the  entire  Board  of  Directors  shall be
determined  by  resolution  of the Board of  Directors.  The number of directors
currently fixed by the Board of Directors is seven.

No proxy may be voted for more people than the number of nominees  listed below.
Shares  represented by all proxies received by the Board of Directors and not so
marked as to withhold authority to vote for any individual  director (by writing
that  individual  director's  name  where  indicated  on the  proxy)  or for all
directors  will be voted  "FOR" the  election  of all the  nominees  named below
(unless one or more  nominees are unable or  unwilling  to serve).  The Board of
Directors  knows of no reason why any such nominee  would be unable or unwilling
to serve, but if such should be the case,  proxies may be voted for the election
of substitute nominees selected by the Board of Directors.

-5-
The following table and the paragraphs following the table set forth information
regarding  the current  ages,  terms of office and  business  experience  of the
current directors and executive  officers of the Company,  all of whom are being
nominated for re-election to the Board of Directors:

                                                                     Year First
         Name                   Position                     Age      Elected
---------------------------------- ------------------------------------------------ --------- --------------- --------------------------------------------------------------------------------
   Guy J. Quigley          Chairman of the Board,             65       1989
                           President, CEO               64         1989

   Charles A. Phillips     Executive Vice President, COO      59       1989
                           and Director          58         1989

   George J. Longo         Vice President, CFO and Director   5960       1997

   Jacqueline F. Lewis*    Director                           61       1997

   Rounsevelle W. Schaum*  Director                           7475       2000

   Stephen W. Wouch*       Director                           5152       2003

   Terrence O. Tormey      Director                           5152       2004

* Current member of the Audit & Compensation Committees.

GUY J. QUIGLEY is the founder and has been Chairman of the Board,  President and
Chief Executive Officer of the Company since September 1989. Prior to such date,
Mr.  Quigley,   an  accomplished   author,   established  and  operated  various
manufacturing,  sales, marketing,  cattle ranching, pedigree cattle breeding and
real estate companies in the United States, Europe and Africa.

CHARLES A. PHILLIPS has been Executive Vice President,  Chief Operating  Officer
and a Director of the Company since September  1989.  Before his employment with
the Company,  Mr.  Phillips  founded and operated  KPB  Enterprises,  a gold and
diamond  mining  operation  that was  based in Sierra  Leone,  West  Africa.  In
addition, Mr. Phillips served as a technical consultant for Re-Tech, Inc., Horsham,  Pennsylvania,   where
he was responsible  for full marketing and production of a prototype  electrical
device.


                                      -2-


GEORGE J. LONGO  currently  serves as Vice President,  Chief  Financial  Officer
and a Director of the Company.  Mr. Longo  assumed his duties as Vice  President
and Chief  Financial  Officer for the  Company in January  1997.  Mr.  Longo was
also  appointed  a Director of the  Company in March  1997.  Before  joining the
Company,  Mr.  Longo  served as Chief  Financial  Officer of two  privately-held
international  manufacturing firms, and in Corporate Accounting  Management with the
predecessor pharmaceutical company to Aventis S.A.  Prior to that,  Mr. Longo, and was with KPMG LLP.

JACQUELINE  F. LEWIS was  appointed to the Board of Directors in December  1997.
From 2003 until March 2005,  she was the  President  and Director of CPC, a list
management and marketing  company.  Prior to 2003, she co-founded and managed D.
A. Lewis,  Inc.,  a direct mail  advertising  company,  for 27 years.  Ms. Lewis
was a founding  director of Suburban  Community  Bank and served on its Board of
Directors  until Univest  Corporation of  Pennsylvania  (Nasdaq:  UVSP) acquired
Suburban  Community  Bank.  In April 2005,  Ms. Lewis was appointed to the Board
of Directors of Univest Foundation.

ROUNSEVELLE  W. SCHAUM was  appointed  to the Board of  Directors in March 2000.
Since  1993,  Mr.  Shaum has served as  Chairman  of Newport  Capital  Partners,
Inc.,  an  investment-banking  firm  specializing  in the private  placement  of
equity  and  convertible  debt  securities.  In such  capacity,  Mr.  Schaum has
directed and organized over thirty  private equity  placements and served on the
board of directors of numerous  public and private  emerging  growth  companies.
Prior to 1993, Mr. Schaum held senior  management  positions with  international
manufacturing  companies.  He also  served  as the  Chairman  of the  California
Small Business  Development  Corporation,  a private venture capital  syndicate,
and   was   the   founder   of   the   Center   of   Management    Sciences,   a
management-consulting   firm  that  services   multinational   high   technology
companies  and  government  agencies,  including  NASA  and  the  Department  of
Defense.  Mr. Schaum also serves on the Board of Directors of Gales  Industries,
Inc. (OTCBB: GLDS), and Camelot Entertainment Group, Inc. (OTCBB: CMEG);  Magic Web, Inc.  (OTCPK:  MGWB) and
Turboworx, Inc..

STEPHEN W.  WOUCH was  appointed  to the Board of  Directors  in  January  2003.
Since 1988,  Mr. Wouch has been Managing  Partner of Wouch,  Maloney & Co., LLP,
Certified  Public  Accountants,  a regional public  accounting firm with offices
in  Pennsylvania  and  Florida.  This  firm  has  a  diverse  client  base  that
encompasses   various   industries   such   as   health   care,   manufacturing,
construction  and  service  providers.  Prior to 1988,  Mr.  Wouch  held  senior
management  positions with other Certified  Public  Accounting  firms. Mr. Wouch
is  an  author,   lecturer  and  a  licensed   Certified  Public  Accountant  in
Pennsylvania, New Jersey and Florida.


                                      -6-


TERRENCE O. TORMEY was  appointed to the Board of  Directors in April 2004.  Mr.
Tormey is currently the President  and founder of The Tormey  Consulting  Group,
which was founded in 2003, a sales and marketing  consulting firm whose services
include film and video  productions  for a variety of  industries  including the
healthcare industry. During the years 2000 to 2003, Mr. Tormey was the President
and Chief Operating Officer of Nelson Professional Sales, a division of Publicis
SA, Paris.  From 1994 to 2000,  Mr. Tormey was the President and co-owner of The
Medical Phone Company(R),  a firm that eventually grew to the largest healthcare
telesales company in the country,  whose clients included  virtually every major
pharmaceutical  company  in the  United  States.  Additionally,  his  experience
includes  holding  various  senior sales,  sales  training and sales  management
positions with various US pharmaceutical  companies  including Johnson & Johnson
Inc. (NYSE-JNJ) and American Home Products  Corporation (Wyeth - NYSE-WYE).  Mr.
Tormey also serves on the Board of Directors of The  Foundation for Ichthyosis &
Related Skin Types, Inc. (F.I.R.S.T.),  a non-profit organization,  dedicated to
medical research of rare skin diseases.

REQUIRED VOTE

Directors  are elected by a plurality of the votes cast,  in person or by proxy,
at the Meeting.  Votes  withheld and broker  non-votes are not counted  toward a
nominee's total.

RECOMMENDATION OF THE BOARD OF DIRECTORS

The Board of  Directors  of the Company  recommends a vote "FOR" the election of
each of the nominees.

MEETINGS AND COMMITTEES OF THE BOARD OF DIRECTORS

For the fiscal year ended  December  31, 2005,  there were five  meetings of the
Board of Directors. Each of the directors attended (or participated by telephone
in) more than 75% of such  meetings of the Board of  Directors  and  meetings of
committees  on which they served in 2005.  During  2005,  the Board of Directors
also acted by unanimous  written  consent in lieu of a meeting on two occasions.CORPORATE GOVERNANCE

The independent  membersCompany's corporate governance serves to ensure that serve on committees of the Board of Directors met
in executive session on seven occasions during 2005. Messrs.  Schaum,  Wouch and
Tormey and Ms.  Lewis are deemed to be  independent  under NASD Rule 4200 and as
such,  the Board of Directors  contains a majority of  independent  directors as
required by NASD Rule 4350.

Each  director  is  expected  to make  reasonable  efforts  to  attend  Board of
Directors  meetings,  meetings of  committees of which such director is a member
and the  Annual  Meeting  of  Stockholders.  All seven members of the Board of
Directors   attended("Board")  are  independent  from  management  and  that  the  2005 Annual MeetingBoard
adequately  performs its function to ensure that the  interests of Stockholders.the Board and
management are in alignment with the interests of the stockholders.


                                      -3-


On an annual  basis,  each Director and named  executive  officer is required to
complete a Director and Officer  Questionnaire.  Within this  questionnaire  are
requirements  for disclosure of any  transactions  with the Company in which the
Director  or named  executive  officer,  or any  member of his or her  immediate
family,  have a direct or  indirect  material  conflict of interest in which the
Board is responsible for resolving any such conflict.

During 2002, the Company formed a Disclosure Committee in response to Management
Certification  Responsibilities under Sections 302 and 404 of the Sarbanes-Oxley
Act of 2002. The Company has three standing  committees:Disclosure  Committee assists the Chief Executive Officer,  the
Chief Financial  Officer and the Audit Committee in monitoring (1) the Executive
Operating Committeeintegrity
of the financial statements, policies, procedures and the Compensation Committee.  Prior to establishing these
Committees,internal financial and
disclosure controls and risks of the customary functions of such committees had been performedCompany,  (2) the compliance by the entireCompany
with  legal and  regulatory  requirements,  to the extent  that these  policies,
procedures  and  controls  may  generate  either   financial  or   non-financial
disclosures   in  the  Company's   filings  with  the  Securities  and  Exchange
Commission.  Additionally, in 2003, the Company also initiated a Code of Ethics,
and in 2004,  it initiated an Insider  Trading  Policy for all  employees of the
Company.

CODE OF ETHICS

The Company's Code of Ethics was instituted in January 2003 and is applicable to
all Directors, officers and employees. Each person, whether an employee, officer
or director,  has an individual  responsibility to deal ethically in all aspects
of the Company's  business and to comply fully with all laws,  regulations,  and
Company  policies.  In complying with the Company's Code of Ethics,  individuals
are expected to exercise high standards of integrity and good judgment and among
other items,  to apply  principles  of:  honesty;  avoid  conflicts of interest,
illegal or  unethical  conduct;  advancement  for  legitimate  interests  to the
Company's when the opportunity to do so arises;  protecting the Company's assets
and ensure their efficient use and to comply with all laws, rules,  regulations,
policies and guidelines applicable to the operation of the Company.

DIRECTOR INDEPENDENCE

In  accordance   with  Nasdaq  Global   Market  rules   ("Nasdaq"),   the  Board
affirmatively  determines the  independence of Directors.each Director and any nominee for
election as a Director in accordance  with  required  guidelines as set forth in
the Nasdaq listing standards.

Based on these  standards,  at its meeting held on December 14, 2006,  the Board
determined  that each of its  non-employee  Directors is independent  and has no
relationship  with the Company,  except as a Director and/or  stockholder of the
Company.

NOMINATIONS FOR DIRECTORS

The Company does not have a designated nominating committee.  Since December 18,
2003, decisions concerning nominees for the Board of Directors have been made by
Messrs. Schaum and Wouch and Ms. Lewis, who are independent directors as defined
under  NASD  Rule  4200(a)(15).  The  Board of  Directors  does not  consider  a
nominating  committee  necessary in that its independent  directors  perform the
same role as a nominating committee.

The  Company  has  not  adopted  a  formal   policy  with   respect  to  minimum
qualifications  for members of its Board of  Directors.  However,  in making its
nominations,  Messrs.  Schaum  and Wouch and Ms.  Lewis  consider,  among  other
things, an individual's senior level business  experience,  industry experience,
financial  background,  breadth of knowledge about issues affecting the Company,
time available for meetings and consultation regarding Company matters and other
particular skills and experience possessed by the individual. Additionally, each
proposed  director  must have the  highest  personal  and  professional  ethics,
integrity and values including the ability and fortitude to advance constructive
opinion on issues affecting the Company and to be able to function appropriately
in an atmosphere by and between other members of the Board of Directors.

Stockholders  wishing to recommend  candidates for consideration by the Board of
Directors may do so by writing to the Secretary of the Company and providing the
candidate's  name,   biographical  data  and  qualifications.   Such  candidates
recommended  by  stockholders  will be  evaluated on the same basis as all other
candidates.

MEETINGS AND COMMITTEES OF THE BOARD OF DIRECTORS

For the fiscal year ended  December  31, 2006,  there were five  meetings of the
Board of Directors. Each of the directors attended (or participated by telephone
in) more than 75% of such  meetings of the Board of  Directors  and  meetings of
committees  on which they served in 2006.  During  2006,  the Board of Directors
also acted by unanimous written consent in lieu of a meeting on one occasion.


                                      -4-


The  independent  members that serve on committees of the Board of Directors met
in executive session on five occasions during 2006.  Messrs.  Schaum,  Wouch and
Tormey and Ms.  Lewis are deemed to be  independent  under NASD Rule 4200 and as
such,  the Board of Directors  contains a majority of  independent  directors as
required by NASD Rule 4350.

Each  director  is  expected  to make  reasonable  efforts  to  attend  Board of
Directors  meetings,  meetings of  committees of which such director is a member
and the  Annual  Meeting  of  Stockholders.  All seven  members  of the Board of
Directors attended the 2006 Annual Meeting of Stockholders.

The Company has three standing  committees:  the Audit Committee,  the Executive
Operating Committee and the Compensation Committee.  Prior to establishing these
Committees, the customary functions of such committees had been performed by the
entire Board of Directors.

The members of the Audit  Committee are Messrs.  Schaum and Wouch and Ms. Lewis.
Mr.  Schaum  serves as  Chairman  of the Audit  Committee.  The Audit  Committee
reviews,  analyzes  and makes  recommendations  to the Board of  Directors  with
respect to the Company's  accounting  policies,  internal controls and financial
statements,   consults  with  the  Company's   independent   registered   public
accountants, and reviews filings containing financial information of the Company
to be made with the Securities and Exchange Commission.  The Audit Committee met
fourfive times during 2005.

                                      -7-
2006.

The members of the Executive Operating Committee are Messrs.  Quigley,  Phillips
and Longo.  The Executive  Operating  Committee  possesses and exercises all the
power and authority of the Board of Directors in the management and direction of
the business and affairs of the Company  except as limited by law and except for
the  power  to  change  the  membership  or to fill  vacancies  on the  Board of
Directors  or  the  Executive  Operating  Committee.   The  Executive  Operating
did not
meetCommittee met three times during 2005.2006.

The members of the Compensation  Committee are Messrs.  Schaum and Wouch and Ms.
Lewis.  The  Compensation  Committee  reviews and  approves the salary and other
compensation  of officers and key employees of the Company,  including  non-cash
benefits,  and designates the employees entitled to participate in the Company's
benefits plans and other  arrangements,  as from time to time  constituted.  The
Compensation Committee also administers the Company's 1997 Stock Option Plan and
recommends  the terms of grants of stock  options  and the  persons to whom such
options shall be granted in accordance with such plan. These recommendations are
then  subject to  approval  by the full  Board of  Directors.  The  Compensation
Committee met three timesone time during 2005.

COMPENSATION OF DIRECTORS

Outside  directors  receive  annualized  compensation  of $18,900.  Each outside
director  that  serves  on the  Audit  Committee  received  a  total  annualized
compensation  of  $28,350  and the  Chairman  of the  Audit  Committee  received
annualized  compensation of $28,350. In addition, in December 2005, the Board of
Directors  approved  the grant of options to  purchase  20,000  shares of Common
Stock to each of the  then-current  outside  directors  under the Company's 1997
Stock Option Plan.  Officers of the Company  receive no  compensation  for their
service on the Board of Directors or on any Committee thereof.

COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

The  Compensation  Committee  provides  overall  guidance  and  approval  of the
Company's executive compensation program. Messrs. Schaum and Wouch and Ms. Lewis
served on the  Compensation  Committee during the fiscal year ended December 31,
2005. None of the Compensation  Committee  members were officers or employees of
the  Company  at any time prior to  December  31,  2005 or had any  relationship
requiring  disclosure  under the  caption  "Certain  Relationships  and  Related
Transactions." All independent members of the Board of Directors  participate in
the approval of each of the Company's executive  compensation programs described
in the "Report on Executive  Compensation."  No executive officer of the Company
served  on  any  other  entity's  compensation   committee  or  other  committee
performing  similar  functions during the fiscal year. There are certain related
parties of Mr. Quigley that receive  compensation from the Company. See "Certain
Relationships and Related Transactions."

The report of the Audit Committee,  the report of the Compensation Committee and
the performance graph that follow shall not be deemed  incorporated by reference
by any general  statement  incorporating  by reference  this proxy  statement or
future  filings  into any filing under the  Securities  Act of 1933 or under the
Securities  Exchange  Act  of  1934,  except  to the  extent  that  the  Company
specifically  incorporates the information by reference, and shall not otherwise
be deemed filed under such Acts.

OTHER CORPORATE GOVERNANCE

During 2002, the Company formed a Disclosure Committee in response to Management
Certification  Responsibilities under Sections 302 and 404 of the Sarbanes-Oxley
Act of 2002. The Disclosure  Committee assists the Chief Executive Officer,  the
Chief Financial  Officer and the Audit Committee in monitoring (1) the integrity
of the financial statements, policies, procedures and the internal financial and
disclosure controls and risks of the Company,  (2) the compliance by the Company
with  legal and  regulatory  requirements,  to the extent  that these  policies,
procedures  and  controls  may  generate  either   financial  or   non-financial
disclosures   in  the  Company's   filings  with  the  Securities  and  Exchange
Commission.  Additionally, in 2002, the Company also initiated a Code of Ethics,
and in 2004,  it initiated an Insider  Trading  Policy for all  employees of the
Company.2006.

PROCEDURES FOR CONTACTING DIRECTORS

The  Company  has  adopted  a   procedure   by  which   stockholders   may  send
communications  as defined  within Item 7(h) of Schedule  14A under the Exchange
Act  to one or more  members of the Board of  Directors by writing to
such  director(s) at their respective  address listed in the Security  Ownership
section of this Proxy  Statement or to the whole Board of Directors  care of the
Corporate Secretary, The Quigley Corporation,  Kells Building, 621 Shady Retreat
Road, P.O. Box 1349, Doylestown,  PA 18901. Any such communications addressed to
the whole Board of Directors  will be promptly  distributed  by the Secretary to
each director.

COMPENSATION COMMITTEE INTERLOCKS AND INSIDER PARTICIPATION

The  Compensation  Committee  provides  overall  guidance  and  approval  of the
Company's executive compensation program. Messrs. Schaum and Wouch and Ms. Lewis
served on the  Compensation  Committee during the fiscal year ended December 31,
2006. None of the Compensation  Committee  members were officers or employees of
the  Company  at any time prior to  December  31,  2006 or had any  relationship
requiring  disclosure  under the  caption  "Certain  Relationships  and  Related
Transactions." All independent members of the Board of Directors  participate in
the approval of each of the Company's executive  compensation programs described
in the  "Compensation  Discussion  and  Analysis."  No executive  officer of the
Company served on any other entity's  compensation  committee or other committee
performing  similar  functions during the fiscal year. There are certain related
parties of Mr. Quigley that receive  compensation from the Company. See "Certain
Relationships and Related Transactions."

The report of the Audit Committee and the report of the  Compensation  Committee
that  follow  shall not be  deemed  incorporated  by  reference  by any  general
statement incorporating by reference this proxy statement or future filings into
any filing under the Securities Act of 1933 or under the Securities Exchange Act
of 1934,  except to the extent that the Company  specifically  incorporates  the
information  by  reference,  and shall not  otherwise be deemed filed under such
Acts.


                                      -5-


                             EXECUTIVE COMPENSATION
                      COMPENSATION DISCUSSION AND ANALYSIS

OVERVIEW

The  Compensation  Committee  ("Committee"  within this  report) does not have a
specific  charter and has the  responsibility  for  establishing,  implementing,
monitoring  and reviewing the Company's  compensation  philosophy and along with
the other  outside  director,  approves  the  salary and other  compensation  of
officers and key employees of the Company.  The Committee also  administers  the
Company's  1997 Stock  Option Plan and  recommends  the terms of grants of stock
options and the persons to whom such options shall be granted in accordance with
such plan, which are subject to approval by the full Board of Directors.

Individuals  who  served as the  Company's  Chief  Executive  Officer  and Chief
Financial Officer during fiscal 2006, as well as the other individuals  included
in the  Summary  Compensation  Table on page 9,  are  referred  to as the  named
"executive(s)" officers within this report.

COMPENSATION PHILOSOPHY

In reaching decisions regarding executive  compensation,  the Committee balances
the total  compensation  package  for each  executive  with  sales  and  profits
attained  as well as  achievement  of annual and  long-term  goals.  Competitive
levels of compensation are necessary in attracting,  rewarding,  motivating, and
retaining  qualified  management  and that  compensation  provided to executives
remains competitive  relative to the compensation paid to comparable  executives
of similar companies.  The Committee also believes that the potential for equity
ownership by management is beneficial in aligning management's and stockholders'
interests in the enhancement of stockholder value.

Section  162(m) of the Internal  Revenue Code of 1986,  as amended (the "Code"),
places a limit of $1,000,000 on the amount of compensation  that may be deducted
by the Company in any year with respect to certain of the Company's highest paid
executives.  Certain  performance-based  compensation  that has been approved by
stockholders is not subject to the deduction  limit.  If necessary,  the Company
may attempt to qualify  certain  compensation  paid to  executive  officers  for
deductibility under the Code, including Section 162(m). However, the Company may
from time to time pay  compensation  to its  executive  officers that may not be
deductible.

ROLE OF EXECUTIVE OFFICERS IN COMPENSATION DECISIONS

The Committee makes all compensation  decisions based upon  recommendations made
by the Chief Executive  Officer and Chief  Financial  Officer  regarding  equity
awards to participating executives and employees of the Company.

The Committee  annually  reviews the  performance  of the  executives  including
salary  adjustments  and equity  awards  whereby the  Committee can exercise its
discretion in modifying any recommended adjustments or awards to executives.

COMPENSATION PROGRAM

The Company has a  comprehensive  compensation  program,  which consists of cash
compensation,  both fixed and variable, and equity-based  compensation.  Overall
compensation  is  predicated  on  industry  and peer  group  comparisons  and on
performance  judgments  as to past  and  expected  future  contributions  of the
individual  executive.  Specific  compensation for each executive is designed to
fairly  remunerate  that employee of the Company for the  effective  exercise of
their  responsibilities,  their  management of the business  functions for which
they are responsible,  their extended period of service to the Company and their
dedication and diligence in carrying out their responsibilities for the Company.

Additionally,  as the Company must compete with other  healthcare  companies for
executive  employees,  the  Committee  sets overall  compensation  paid to these
executives to attract and subsequently retain such employees. This objective may
vary,  but  generally  is dictated by the  experience  level of the  individual,
specific  employment  requirements  of the Company and  current  market  factors
occurring in the  healthcare  industry.  The Committee  recognizes  that closely
monitoring  these  expectations  over the long term,  will continue to be in the
best interest for the enhancement of stockholder value.

The fixed  aspect is  intended  to meet the  requirements  of  compensating  the
executive for meeting  essential goals in performance and are in place to insure
the  Company  of  consistency  of  leadership  and the  retention  of  qualified
executives to foster a spirit of employment  security,  which thereby encourages
decisions that will benefit  long-term  stockholders.  Variable  compensation is
based upon the Committee annually adopting and approving sales, profit and stock
price performance goals to be attained for the ensuing year.


                                      -6-


Prior to January 1, 2006 and currently,  there is no pre-established  policy for
the allocation  between cash and non-cash or short-term and long-term  incentive
compensation.  The  Committee  reviews  information  provided to  determine  the
appropriate  level  and  mix  for  compensation.   Income  from  such  incentive
compensation  is realized as a result of the  performance of the Company and the
individual,  depending  on the type of the  incentive,  compared to  established
goals. Historically,  the Committee has granted a majority of total compensation
to executives in the form of cash incentive compensation.

Equity-based  compensation is through options periodically  granted,  usually in
October or December and  occasionally in July, under the 1997 Stock Option Plan.
These grants are designed to directly reward and create a proprietary  interest,
among the executive officers and other employees,  in the Company, which will be
an incentive for these  employees to work to maximize the long-term total return
to stockholders.

During 2006 the Company  adopted  Statement  of Financial  Accounting  Standards
(SFAS) No. 123R, "Accounting for Stock-Based  Compensation," which requires that
stock option grants be determined under the fair value method and be included in
the financial statements as compensation expense.

The market price of the Company's common stock, which is a factor in determining
fair value,  has  experienced  significant  volatility as the holding  period of
options may in some cases be as much as five years, can significantly effect the
pricing model.  During this five year period for valuation purposes from January
1, 2002 to December 31,  2006,  the per share bid price has ranged from a low of
approximately $2.03 to a high of approximately $16.94.

There are several factors which could affect the price of the common stock, some
of which are  announcements  of  technological  innovations  for new  commercial
products by us or competitors,  developments concerning propriety rights, new or
revised  governmental  regulation  or general  conditions  in the market for the
Company's  products.  Sales  of a  substantial  number  of  shares  by  existing
stockholders could also have an adverse effect on the market price of the common
stock.

These factors have a significant  impact in  calculating  the fair value for any
option grants under the  Black-Scholes  pricing model during any period of grant
during  2006  or in  subsequent  years.  Since  any  grants  during  2006  or in
subsequent  years  would  result  in  significant  compensation  expense  in the
financial  statements,  the  granting  of  options  has been  suspended  for all
executives  and employees.  Furthermore,  the  requirements  of (SFAS) No. 123R,
"Accounting for Stock-Based  Compensation,"  could have a significant  impact on
attracting and retaining desired executives and employees.

BASE SALARY

The  Company  provides  executives  with a base  salary to  compensate  them for
services  rendered  during the fiscal  year.  Base  salary  for  executives  are
determined for each  executive  based on their  position and  responsibility  by
using  comparative  market data  within the  health-care  industry.  Base salary
determinations  are designed to recognize the contributions  made or expected to
be made in the future by the executive.

Base salary levels are reviewed  annually as part of the  Company's  performance
review  process  as  well  as upon a  promotion  or  other  change  in  position
responsibility.  The Committee will consider  current  market data  individually
relative to the position and responsibilities and to other executives, including
the individual  performance of the executive  during its review of base salaries
for executives.

PERFORMANCE-BASED INCENTIVE COMPENSATION

Variable or performance-based incentive compensation is based upon the Committee
annually adopting and approving sales,  profit and stock price performance goals
to be attained for the ensuing year.

This cash incentive  portion of executive  compensation  gives the Committee the
latitude to design  incentive  compensation  programs to promote a team approach
for high performance and achievement of corporate goals by directors, executives
and  employees,  encourage  the  growth  of  stockholder  value and  allows  all
employees to participate in the successes of the Company.


                                      -7-


At the  end of the  fiscal  year in  order  to set  performance-based  incentive
compensation,  the  Committee  assesses  the  performance  of  the  Company  and
executives for objectives  achieved,  including  estimated  results for the next
fiscal  year.  In order to  pre-determine  minimum and  maximum  levels for each
objective,  an overall  percentage and cash payouts for the corporate  financial
objectives  are  calculated  in order to balance  such  payouts  relative to the
overall success of the Company.

In making the annual  determination  of the minimum,  target and maximum levels,
the Committee may consider the specific  circumstances facing the Company during
the coming year. Sales volume,  necessary research and development  expenditures
for its  ethical  pharmaceutical  subsidiary  and  return  to  shareholders  for
improved stock price targets are set in alignment  with the Company's  strategic
plan, expectations and performance.

LONG-TERM INCENTIVE COMPENSATION

STOCK OPTION PLAN

Equity-based compensation is through options to purchase shares of the Company's
Common Stock,  which assists the Company to provide  competitive levels of total
compensation  and increases the link between the creation of stockholder  value.
Additionally,  the plan encourages  participants  to focus on long-term  Company
performance and provides an opportunity for executives and certain  employees to
increase their ownership in the Company  through grants of the Company's  Common
Stock. These grants are periodically recommended by the Committee and granted by
all directors to participants'  base upon their respective level of contribution
and  responsibility  for the success of the Company.  In granting these options,
the Committee may establish any conditions or restrictions it deems  appropriate
and are granted at the Nasdaq  Global  Market's  closing price on the day of the
grant approval by the entire Board of Directors.

As previously discussed,  certain factors of volatility would have a significant
impact  in  calculating   the  fair  value  for  any  option  grants  under  the
Black-Scholes  pricing  model  during  any  period  of grant  during  2006 or in
subsequent years. Therefore, any grants during 2006 or in subsequent years would
result in significant compensation expense in the financial statements,  thereby
the granting of options has been  suspended for all  executives  and  employees,
which  could have a  significant  impact on  attracting  and  retaining  desired
executives and employees.

DEFINED CONTRIBUTION PLAN

During 1999, the Company implemented a 401(k) defined  contribution plan for its
employees.  The Company's contribution to the plan is based on the amount of the
employee plan contributions and compensation.  The Company's contribution to the
plan in 2006 for its executives was approximately $60,000.

PERQUISITES AND OTHER PERSONAL BENEFITS

The Company provides  executives with limited personal benefits that the Company
and the  Committee  believe  are  reasonable  and  consistent  with its  overall
compensation  program to better enable the Company to attract and retain desired
employees for key positions.  The Committee reviews annually the levels of these
limited personal benefits provided to the executives,  which includes the use of
Company vehicles and subsequently, the ability of the executive to purchase such
asset at a later date.  Additionally,  life and disability insurance is provided
at no cost to the executive and medical  insurance is provided to each executive
after each executive  contributes to such costs for health and dental  insurance
as is also  available  to other  employees.  The  effects of such  benefits  are
included in the Summary Compensation Table on page 9 as Other Compensation.

EXECUTIVE COMPENSATION

The Summary Compensation table provides summary information  concerning cash and
certain other  compensation for the year ended December 31, 2006 paid or accrued
by the Company to the  Company's  Chief  Executive  Officer and Chief  Financial
Officer  and each highly  compensated  executive  officer of the  Company  whose
compensation exceeded $100,000 (the "Named Executive Officers") during 2006.

Additionally,  the Company has not entered  into any new  employment  agreements
since the expiration of existing agreements on December 31, 2005 with any of the
named  executive  officers.  In  reviewing  compensation  for each of the  named
executive  officers,  the Committee reviews summaries which show the executive's
current  and  previous  compensation,  including  equity  and  non-equity  based
compensation.


                                      -8-

COMPENSATION COMMITTEE REPORT

The  Compensation  Committee  of the  Company has  reviewed  and  discussed  the
Compensation  Discussion and Analysis  required by Item 402(b) of Regulation S-K
with  management  and, based on such review and  discussions,  the  Compensation
Committee recommended to the Board that the Compensation Discussion and Analysis
be included in this Proxy Statement.

Compensation Committee

Rounsevelle W. Schaum, Chairman
Jacqueline F. Lewis
Stephen W. Wouch

                                             SUMMARY COMPENSATION TABLE

                                                                     Option      All Other
                                                          Bonus      Awards     Compensation
                                             Salary        (1)        (2)            (3)          Total
Name and Principal Position         Year       ($)         ($)        ($)            ($)           ($)
- ---------------------------         ----     -------     ------      ------     ------------     -------
Guy J. Quigley                      2006     838,000     73,325        --         45,735         957,060
   Chairman of the Board,
   President, Chief Executive
   Officer

Charles A. Phillips                 2006     617,800     52,763        --         45,646         716,209
   Executive Vice President,
   Chief Operating Officer

George J. Longo                     2006     414,000     36,225        --         41,345         491,570
   Vice President, Chief
   Financial Officer

      (1)   Bonuses paid pursuant to the Company  attaining  specified sales and
            net income goals.
      (2)   There were no option awards during 2006.
      (3)   The value of attributable personal benefits for each Named Executive
            Officers of the Company such as; insurances for life, health, dental
            and disability; vehicles and matching contributions in the Company's
            401(k) Plan. Additionally, there was no additional compensation from
            Stock  Awards;  Change in Pension  Value and  Nonqualified  Deferred
            Compensation Earnings or Non-Equity Incentive Plan Compensation.

EMPLOYMENT AGREEMENTS

An employment  agreement between the Company and Guy J. Quigley was entered into
on June 1, 1995,  whereby  Guy J.  Quigley is  employed  as the Chief  Executive
Officer of the  Company,  which  expired on December  31,  2005.  In addition to
compensation for services as an officer of the Company, Mr. Quigley was entitled
to receive a founder's commission of five percent (5%) on sales collected,  less
certain deductions, of the Company's Cold-Eeze(R) products, which expired on May
31,  2005 and was shared  with  Charles A.  Phillips  at a ratio of 75% and 25%,
respectively.  Upon the termination of the contract for any reason,  Mr. Quigley
was entitled to the remainder of the compensation  owed him through December 31,
2005.

An employment  agreement between the Company and Charles A. Phillips was entered
into on June 1, 1995,  whereby  Charles A. Phillips is employed as the Executive
Vice  President  and Chief  Operating  Officer of the Company,  which expired on
December 31, 2005. In addition to compensation for services as an officer of the
Company,  Mr.  Phillips was entitled to receive twenty five percent (25%) of the
founder's  commission  received by Guy J. Quigley,  either  directly from Guy J.
Quigley or, if requested,  directly from the Company until its expiration on May
31, 2005.  Should Mr. Phillips make such a request upon the Company,  the amount
owed to him would be deducted from any commissions due Guy J. Quigley.  Upon the
termination  of the  contract for any reason,  Mr.  Phillips was entitled to the
remainder of the compensation owed him through December 31, 2005.


                                      -9-


George J.  Longo is  employed  as the Chief  Financial  Officer  of the  Company
pursuant to an employment  agreement,  dated November 5, 1996,  which expired on
December 31, 2005. The agreement provided for a base salary of $150,000, or such
greater amount as the Board of Directors may from time to time  determine,  with
annual  increases  over  the  prior  year's  base  salary.  In the  event of his
disability,  Mr.  Longo was to receive  the full  amount of his base  salary for
eighteen months. Upon a change of control of the Company, Mr. Longo was entitled
to receive  compensation  for the remaining term of the agreement until December
31, 2005. Upon early termination by the Company without cause (as defined in the
agreement),  the Company  was  required to pay Mr.  Longo the  remainder  of the
salary owed him through December 31, 2005.

COMPENSATION PURSUANT TO PLANS

An incentive  stock option plan was  instituted  in 1997 (the "1997 Stock Option
Plan") and approved by the stockholders in 1998 and subsequently amended in 2000
and  approved  by the  stockholders  in 2001 and  amended  and  approved  by the
stockholders  in 2005.  Pursuant to the 1997 Stock Option Plan,  no options have
been granted to directors,  executive  officers,  and employees  during 2006. In
early  1999,  the  Company  implemented  a  defined  contribution  plan  for its
employees with the Company's contribution to the plan based on the amount of the
employee plan contribution.


                                      -10-


                                                   OUTSTANDING EQUITY AWARDS AT FISCAL YEAR END

                                                                    Equity
                                                                  Incentive
                                                                     Plan
                                                                    Awards
                                   Number of       Number of      Number of
                                   Securities     Securities      Securities
                                   Underlying     Underlying      Underlying     Option or
                                  Unexercised     Unexercised    Unexercised      Warrant        Option or
                                   Option or       Option or       Unearned      Exercise         Warrant
                                    Warrants       Warrants       Option or        Price          Exercise      Stock
Name of Officer and Director      Exercisable    Unexercisable     Warrants         ($)             Date      Awards (1)
- --------------------------------- ------------- ---------------- ------------- -------------- --------------- ----------

Guy J. Quigley                      140,000            --             --           10.00           5/5/2007      --
  Chairman of the Board,            100,000                                         9.68         12/1/2007
  President,                         85,000                                         5.12          4/6/2009
  Chief Executive Officer            70,000                                         0.81         12/20/2010
                                     70,000                                         1.26         12/10/2011
                                     45,000                                         5.19          7/30/2012
                                     50,000                                         8.11         10/29/2013
                                     50,000                                         9.50         10/26/2014
                                    100,000                                        13.80         12/11/2015

Charles A. Phillips                  85,000            --             --           10.00           5/5/2007      --
  Executive Vice President,         100,000                                         9.68         12/1/2007
  Chief Operating Officer            85,000                                         5.12          4/6/2009
                                     70,000                                         0.81         12/20/2010
                                     60,000                                         1.26         12/10/2011
                                     42,000                                         5.19          7/30/2012
                                     45,000                                         8.11         10/29/2013
                                     45,000                                         9.50         10/26/2014
                                     80,000                                        13.80         12/11/2015

George J. Longo                      75,000            --             --           10.00           5/5/2007      --
   Vice President,                  125,000                                         9.68         12/1/2007
   Chief Financial Officer          100,000                                         5.12          4/6/2009
                                     70,000                                         0.81         12/20/2010
                                     55,000                                         1.26         12/10/2011
                                     40,000                                         5.19          7/30/2012
                                     40,000                                         8.11         10/29/2013
                                     40,000                                         9.50         10/26/2014
                                     40,000                                        13.80         12/11/2015

Rounsevelle W. Schaum                15,000            --             --            5.19          7/30/2012      --
  Chairman of the Audit and          10,000                                         8.11         10/29/2013
  Compensation Committees            20,000                                         9.50         10/26/2014
                                     20,000                                        13.80         12/11/2015

Jacqueline F. Lewis                  10,000            --             --            9.68          12/1/2007      --
  Member of the Audit and            10,000                                         5.12          4/6/2009
  Compensation Committees            20,000                                         0.81         12/20/2010
                                     15,000                                         1.26         12/10/2011
                                     15,000                                         5.19          7/30/2012
                                     10,000                                         8.11         10/29/2013
                                     20,000                                         9.50         10/26/2014
                                     20,000                                        13.80         12/11/2015

Stephen W. Wouch                     10,000            --             --            8.11         10/29/2013      --
   Member of the Audit and           20,000                                         9.50         10/26/2014
   Compensation Committees           20,000                                        13.80         12/11/2015

Terrence O.  Tormey                  20,000            --             --            9.50         10/26/2014      --
                                     20,000                                        13.80         12/11/2015

(1) The Company does not have any stock awards


                                                        -11-


OPTION / WARRANT EXERCISES AND VESTING DURING 2006

The following table sets forth certain  information  concerning stock options or
warrants exercised during 2006 with respect to the Named Executive Officers:

                           Option / Warrant Awards                 Stock Awards
                        -----------------------------     ----------------------------
                         Number of                         Number of
                          Shares          Exercise          Shares           Value
                        Acquired on    Value Realized     Acquired on       Realized
                        on Exercise       Exercise         Exercise       on  Exercise
Name                        (#)          ($) (1) (2)         (#)             ($) (3)
- -------------------     ----------     --------------     -----------     ------------
Guy J. Quigley            575,000         3,731,892           --               --

Charles A. Phillips       375,000         2,383,859           --               --

George J. Longo            50,000           172,500           --               --

(1)   Represents the total gain realized, which was determined by multiplying
      the number of shares exercised by the difference between the per share
      option / warrant exercise price and the net selling price per share.
(2)   Includes $1,348,033 realized by Mr. Quigley's wife.
(3)   The Company does not have any stock awards.

COMPENSATION OF DIRECTORS

                                                                           Option       All Other
                                                Director      Bonus        Awards      Compensation
                                                  Fees         (1)          (2)             (3)             Total
Name of Independent Director            Year       ($)         ($)          ($)             ($)              ($)
- ------------------------------------- -------- ------------ ----------- ------------- ---------------- ----------------

Rounsevelle W. Schaum                   2006       38,600        --          --             --             38,600
  Chairman of the Audit and
  Compensation Committees

Jacqueline F. Lewis                     2006       35,300        --          --             --             35,300
  Member of the Audit and
  Compensation Committees

Stephen W. Wouch                        2006       35,300        --          --             --             35,300
   Member of the Audit and
   Compensation Committees

Terrence O.  Tormey                     2006       25,100        --          --             --             25,100

      (1)   There were no Bonuses paid pursuant to the Company attaining
            specified stock performance goals.
      (2)   There were no option awards during 2006.
      (3)   There was no other compensation attributable for each Named Director
            of the Company.
      (4)   See Outstanding Equity Awards at Fiscal Year End for each director's
            option awards outstanding at fiscal year end on page 11.

The Company  compensates its  independent  directors with a combination of cash,
both fixed and variable,  and  equity-based  compensation  to attract and retain
qualified  candidates  to serve on the Board of Directors.  In setting  Director
compensation,  the  Company  considers  the  significant  amount  of  time  that
Directors  expend  in  fulfilling  their  duties to the  Company  as well as the
skill-level required by the Company for its members.

CASH COMPENSATION PAID TO BOARD MEMBERS

Independent outside directors receive annualized  compensation of $25,100.  Each
outside director that serves on the Audit and Compensation Committees received a
total  annualized  compensation  of $35,300  and the  Chairman  of the Audit and
Compensation Committees received annualized compensation of $38,600.


                                      -12-


Variable or performance-based  incentive compensation is based upon the Board of
Directors  annually  adopting and approving stock price  performance goals to be
attained  for  the  ensuing  year.  This  cash  incentive  portion  of  Director
compensation   gives  the  entire  Board  the   latitude  to  design   incentive
compensation  programs  to  promote a team  approach  with  management  for high
performance  and  achievement  of corporate  goals by Directors,  executives and
employees, encourage the growth of stockholder value and allows all Directors to
participate in the successes of the Company.

STOCK OPTION PLAN

As indicated in the Compensation Committee Report, certain factors of volatility
would have a  significant  impact in  calculating  the fair value for any option
grants under the  Black-Scholes  pricing model during any period of grant during
2006 or in subsequent years. Therefore,  any grants during 2006 or in subsequent
years  would  result  in  significant  compensation  expense  in  the  financial
statements,  thereby the  granting of options  has also been  suspended  for all
Directors,  which could have a significant  impact on  attracting  and retaining
desired  Directors.  Directors  who are  employees  of the  Company  receive  no
compensation for their service as directors.

                 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

Certain individuals related to the Company's Chief Executive Officer that earned
at  least  $120,000  are  also  employees  of  the  Company.   Their   aggregate
compensation  for 2006 was  $411,205,  and no  option  awards  were  granted  to
purchase shares of the Company's Common Stock.

The Company is in the process of acquiring licenses in certain countries through
a related  party  entity,  ScandaSystems  Ltd.  (UK),  whose  officer  and major
stockholder  is Mr. Gary Quigley,  a relative of the Company's  Chief  Executive
Officer.  Approximately $153,000 was paid or payable by the Company to such firm
during 2006 to obtain such  licenses.  The Company  believes  that the  services
performed by this firm and employees are on terms no more  favorable  than could
have otherwise been obtained from an unaffiliated third party.

The Company does not have a formal  policy for related party  transactions.  The
outside  independent   directors  must  approve  any  related  transactions  for
executive officers. In the event that there would be a related party transaction
with one of the outside independent directors,  then such director would abstain
from any voting on such related party transaction.

                               SECURITY OWNERSHIP

The following table sets forth information concerning ownership of the Company's
Common  Stock as of March 30, 2007 by each person known by the Company to be the
beneficial  owner of more than five percent of the Common  Stock,  each Director
and Executive Officer and all directors and executive officers of the Company as
a group. Unless otherwise indicated, the address of each person or entity listed
below is the Company's principal executive office.

       Five Percent Stockholders, Directors,        Common Stock      Percent
                 and all Executive                  Beneficially         of
         Officers and Directors as a Group            Owned (1)        Class
      --------------------------------------        ------------     --------
      GUY J. QUIGLEY (2) (3) (4)                     3,633,764         27.0

      CHARLES A. PHILLIPS (2) (3) (5)                1,625,377         12.2

      GEORGE J. LONGO (2) (3) (6)                      625,000          4.7

      JACQUELINE F. LEWIS (2) (7)                      120,000          1.0

      ROUNSEVELLE W. SCHAUM (2) (8)                     65,000          --

      STEPHEN W. WOUCH (2) (9)                          50,500          --

      TERRENCE O. TORMEY (2) (10)                       40,000          --

      ALL DIRECTORS AND OFFICERS (11) (Seven
      Persons)                                       6,159,641         41.2

(1)   Beneficial ownership has been determined in accordance with Rule 13d-3
      under the Securities Exchange Act of 1934, as amended ("Rule 13d-3"), and
      unless otherwise indicated, represents shares for which the beneficial
      owner has sole voting and investment power. The percentage of class is
      calculated in accordance with Rule 13d-3 and includes options or other
      rights to subscribe for shares of common stock which are exercisable
      within sixty (60) days of March 30, 2007.
(2)   Director of the Company.


                                      -13-


(3)   Executive Officer of the Company.
(4)   Mr. Quigley's beneficial ownership includes options and warrants
      exercisable within sixty (60) days from March 30, 2007 to purchase 710,000
      shares of Common Stock, options and warrants to purchase 82,500 shares of
      Common Stock beneficially owned by Mr. Quigley's wife and an aggregate of
      394,705 shares beneficially owned by members of Mr. Quigley's immediate
      family.
(5)   Mr. Phillips' beneficial ownership includes options and warrants
      exercisable within sixty (60) days from March 30, 2007 to purchase 612,000
      shares of Common Stock and 1,671 shares of Common Stock beneficially owned
      by Mr. Phillips' wife.
(6)   Mr. Longo's beneficial ownership includes options and warrants exercisable
      within sixty (60) days from March 30, 2007 to purchase 585,000 shares of
      Common Stock.
(7)   Ms. Lewis' address is P. O. Box 581, Lahaska, PA 18931. Ms. Lewis'
      beneficial ownership includes options exercisable within sixty (60) days
      from March 30, 2007 to purchase 120,000 shares of Common Stock.
(8)   Mr. Schaum's address is 157 Harrison Ave, #17, Newport, RI 02840. Mr.
      Schaum's beneficial ownership includes options exercisable within sixty
      (60) days from March 30, 2007 to purchase 65,000 shares of Common Stock.
(9)   Mr. Wouch's address is 415 Sargon Way, Suite J, Horsham, PA 19044. Mr.
      Wouch's beneficial ownership includes options exercisable within sixty
      (60) days from March 30, 2007 to purchase 50,000 shares of Common Stock.
(10)  Mr. Tormey's address is 4842 Mountain Top Road West, New Hope, PA 18938.
      Mr. Tormey's beneficial ownership includes options exercisable within
      sixty (60) days from March 30, 2007 to purchase 40,000 shares of Common
      Stock.
(11)  Includes an aggregate of 2,264,500 shares of Common Stock underlying
      options and warrants that are exercisable within sixty (60) days from
      March 30, 2007.

    REPORTS ABOUT OWNERSHIP OF THE COMPANY'S COMMON STOCK AND COMPLIANCE WITH
            SECTION 16 (a) OF THE SECURITIES AND EXCHANGE ACT OF 1934

Section 16(a) of the Securities  Exchange Act of 1934, as amended,  requires the
Company's  officers,  directors  and  persons who own more than ten percent of a
registered class of the Company's equity securities to file reports of ownership
and changes in  ownership  with the  Securities  and  Exchange  Commission  (the
"Commission"). Officers, directors and greater than ten-percent stockholders are
required by the  Commission's  regulations to furnish the Company with copies of
all Section 16(a) forms they file.

Based  solely on its  review of the  copies of such  forms  received  by it, the
Company  believes  that  during the fiscal year ended  December  31,  2006,  all
reports of  ownership  and  changes in  ownership  applicable  to its  executive
officers,  directors,  and greater than ten-percent beneficial owners were filed
on a timely basis,  except that each of our directors each failed to timely file
one report for one transaction.


                                      -14-


REPORT OF THE AUDIT COMMITTEE

The members of the Audit  Committee are Messrs.  Schaum and Wouch and Ms. Lewis,
who are independent directors as defined under NASD Rule 4200(a)(15). All of the
members of the Audit  Committee are  financially  literate under current listing
standards of Nasdaq.  The Board of Directors has determined that Messrs.  Schaum
and Wouch are  financial  experts,  as defined  under SEC rules,  serving on the
Audit Committee. The Audit Committee operates under a written charter adopted by
the Board of Directors in 2000 and amended in 2002.

Management is responsible  for the financial  reporting  process,  including its
systems  of  internal  and  disclosure  controls,  and  for the  preparation  of
consolidated   financial   statements  in  accordance  with  generally  accepted
accounting principles.  The Company's independent registered public accountants,
who are appointed by the Committee, are responsible for auditing those financial
statements. Our responsibility is to monitor and review these processes. We have
relied, without independent  verification,  on management's  representation that
the financial  statements  have been prepared with integrity and objectivity and
in conformity with accounting principles generally accepted in the United States
of America  and on the  representations  of the  independent  registered  public
accountants included in their report of the Company's financial statements.

We have reviewed and discussed with management the Company's  audited  financial
statements as of and for the year ended December 31, 2005.2006.

We have discussed with the  independent  auditors,  Amper,  Politziner & Mattia,
P.C.,  the matters  required to be discussed by Statement on Auditing  Standards
No. 61,  Communication  with  Audit  Committees,  as  amended,  by the  Auditing
Standards Board of the American Institute of Certified Public Accountants.

Additionally,  audit fees,  audit related  fees,  tax fees and all other service
fees  that  were  paid or  payable  to Amper,  Politziner  &  Mattia,  P.C.  and
PricewaterhouseCoopers  LLP, which reflect additional costs due to the change in
the  Company's  independent  registered  public  accounting  firm in  2004  were
discussed and amounted to:

         Description            2006         2005         2005*
      2004           2004*
       ------------------------------    ------------    ------------    ------------    -----------------------------     ---------     --------     --------

      Audit fees             $603,118      $152,600     $13,500         $99,000         $52,500$ 13,500

      Audit related fees       12,600        31,500         -             41,837             ---

      Tax  fees                32,290        23,600         -             23,785             ---

      All other fees             ---            --          2,000
                             4,996          67,200
                                         ------------    ------------    ------------    -------------------      --------     --------
      Total                  $648,008      $207,700     $15,500        $169,618        $119,700
                                         ------------    ------------    ------------    -----------$ 15,500
                             ========      ========     ========

            *PricewaterhouseCoopers LLP

The  Company's  Audit  Committee  shall  review  and  pre-approve  all audit and
non-audit  services to be provided by the  independent  auditor (other than with
respect to the de minimis  exceptions  permitted  by the Act).  This duty may be
delegated to one or more designated members of the Audit Committee with any such
pre-approval  reported to the Audit  Committee at its next  regularly  scheduled
meeting.

We have  received and reviewed  written  disclosures  and the letter from Amper,
Politziner & Mattia, P.C., required by Independent Standards No. 1, Independence
Discussions with Audit  Committees,  as amended,  by the Independence  Standards
Board, and have discussed with the auditors, the auditor's independence.

Based on the reviews and  discussions  referred to above,  we  recommend  to the
Board of Directors that the financial  statements  referred to above be included
in the Company's  Annual Report on Form 10-K for the fiscal year ended  December
31, 20052006 for filing with the Securities and Exchange Commission.

On July 8, 2004, the Company dismissed PricewaterhouseCoopers LLP ("PwC") as its
independent  registered  public  accounting  firm. On the same date, the Company
engaged Amper, Politziner & Mattia, P.C. ("APM") as independent accountants. The
dismissal of PwC and  engagement of APM were approved by the Audit  Committee of
the Company.

The reports of PwC on the  Company's  financial  statements  for the 2003 fiscal
year did not contain an adverse  opinion or a disclaimer of opinion and were not
qualified or modified as to uncertainty, audit scope or accounting principle and
there were no reportable  events (as defined in Item  304(a)(1)(v) of Regulation
S-K).

AUDIT COMMITTEE

Rounsevelle W. Schaum, Chairman
Jacqueline F. Lewis
Stephen W. Wouch


                                      -9-



REPORT ON EXECUTIVE COMPENSATION

GENERAL

The  Compensation  Committee  reviews and,  along with other outside  directors,
approves the salary and other  compensation of officers and key employees of the
Company.  The  Compensation  Committee also administers the Company's 1997 Stock
Option Plan and  recommends the terms of grants of stock options and the persons
to whom such options  shall be granted in accordance  with such plan,  which are
subject to approval by the full Board of Directors.

COMPENSATION PHILOSOPHY

In  reaching  decisions  regarding  executive  compensation,   the  Compensation
Committee balances the total compensation  package for each executive with sales
and  profits  attained as well as  achievement  of annual and  long-term  goals.
Competitive  levels of  compensation  are  necessary in  attracting,  rewarding,
motivating,  and retaining qualified management. The Compensation Committee also
believes that the potential for equity  ownership by management is beneficial in
aligning  management's  and  stockholders'   interests  in  the  enhancement  of
stockholder  value.  Section  162(m) of the Internal  Revenue  Code of 1986,  as
amended (the "Code"), places a limit of $1,000,000 on the amount of compensation
that may be deducted  by the Company in any year with  respect to certain of the
Company's highest paid executives.  Certain performance-based  compensation that
has been  approved by  stockholders  is not subject to the deduction  limit.  If
necessary,  the  Company  may attempt to qualify  certain  compensation  paid to
executive officers for deductibility  under the Code,  including Section 162(m).
However,  the Company may from time to time pay  compensation  to its  executive
officers that may not be deductible.

COMPENSATION PROGRAM

The Company has a  comprehensive  compensation  program,  which consists of cash
compensation,  both fixed and variable, and equity-based  compensation.  Overall
compensation  is  predicated  on  industry  and peer  group  comparisons  and on
performance  judgments  as to past  and  expected  future  contributions  of the
individual  executive  officer.  Specific  compensation  for each  executive  is
designed to fairly  remunerate  that  employee of the Company for the  effective
exercise of their  responsibilities,  their management of the business functions
for which they are responsible,  their extended period of service to the Company
and their  dedication and diligence in carrying out their  responsibilities  for
the Company.

The  fixed  aspect  is  intended  to meet  the  requirements  of the  employment
contracts  in  effect  for  all  of  the  Company's  officers.   See  "Executive
Compensation  - Employment  Agreements."  Employment  agreements are in place to
insure the Company of  consistency  of leadership and the retention of qualified
executives  and to  foster  a  spirit  of  employment  security,  which  thereby
encourages  decisions  that  will  benefit  long-term   stockholders.   Variable
compensation  is based upon the  Compensation  Committee  adopting and approving
sales and profit goals annualy to be attained for the ensuing year.

Equity-based compensation is through options periodically granted under the 1997
Stock  Option Plan.  These  grants are designed to directly  reward and create a
proprietary interest,  among the executive officers and other employees,  in the
Company,  which will be an incentive for these employees to work to maximize the
long-term total return to stockholders.

COMPENSATION OF THE CHIEF EXECUTIVE OFFICER

Mr. Quigley's compensation was $1,682,239 in 2005. Mr. Quigley's compensation is
based upon the factors described in the compensation  program section paragraphs
above and as set forth in his employment contract.

COMPENSATION COMMITTEE

Rounsevelle W. Schaum, Chairman
Jacqueline F. Lewis
Stephen W. Wouch

                                      -10-



PERFORMANCE GRAPH

The following  graph reflects a five-year  comparison,  calculated on a dividend
reinvested basis, of the cumulative total stockholder return on the Common Stock
of the  Company,  a "peer group" index  classified  as drug related  products by
CoreData,  Inc.  ("Coredata  Group  Index")  and the NASDAQ  Market  Index.  The
comparisons  utilize an  investment of $100 on December 31, 2000 for the Company
and the  comparative  indices,  which then  measure the values for each group at
December 31 of each year presented. There can be no assurance that the Company's
stock  performance will continue with the same or similar trends depicted in the
following performance graph.

[OBJECT OMITTED]]


                                 COMPARISON OF CUMULATIVE TOTAL RETURN OF ONE OR MORE
                             COMPANIES, PEER GROUPS, INDUSTRY INDEXES AND/OR BROAD MARKETS


                              ------------------------ FISCAL YEAR ENDING ---------------------
COMPANY/INDEX/MARKET          12/29/2000 12/31/2001 12/31/2002 12/31/2003 12/31/2004 12/30/2005

Quigley Corporation, The          100.00     282.90     676.51   1,308.73   1,036.65   1,699.88
Drug Related Products             100.00     146.19     146.46     270.71     298.32     238.19
Nasdaq Market Index               100.00      79.71      55.60      83.60      90.63      92.62




                                      -11--15-


PROPOSAL 2. RATIFICATION OF APPOINTMENT OF INDEPENDENT AUDITORS

The Board of Directors has  appointed  Amper,  Politziner & Mattia,  P.C. as the
Company's  independent  public  auditor for the fiscal year ending  December 31,
2006.2007.  Although the  selection of auditors  does not require  ratification,  the
Board of Directors  has directed  that the  appointment  of Amper,  Politziner &
Mattia,   P.C.  be  submitted  to  stockholders  for  ratification  due  to  the
significance of their  appointment to the Company.  A  representative  of Amper,
Politziner  & Mattia,  P.C.  is  expected  to be  present at the  Meeting.  Such
representative  will have an  opportunity  to make a statement if so desired and
will be available to respond to appropriate questions from stockholders.

REQUIRED VOTE

The affirmative  vote of the holders of a majority of the shares of Common Stock
present,  in person or by Proxy is required for  ratification of the appointment
of Amper,  Politziner  & Mattia,  P.C. as  independent  auditors of the Company.
Abstentions  will have the effect of a vote against this proposal,  while broker
non-votes will have no effect on the outcome of this proposal.proposal

RECOMMENDATION OF THE BOARD OF DIRECTORS

The Board of Directors of the Company  recommends a vote "FOR" the  ratification
of the  appointment  of  Amper,  Politziner  &  Mattia,  P.C.  as the  Company's
independent auditors for the year ending December 31, 2006.2007.

                              STOCKHOLDER PROPOSALS

Proposals of  stockholders  intended for inclusion in the Proxy  Statement to be
furnished  to all  stockholders  entitled to vote at the next Annual  Meeting of
Stockholders of the Company must be submitted by Certified Mail - Return Receipt
Requested and be received at the Company's principal executive offices not later
than January 26,December 21, 2007. If the Company is not notified of a stockholder proposal
by March 6, 2008, then its Board of Directors will have discretionary  authority
to vote on the stockholder proposal, even though the stockholder proposal is not
discussed in the proxy statement.

                            EXPENSES AND SOLICITATION

All expenses in connection with this  solicitation will be borne by the Company.
In addition to the use of the mail, proxy solicitation may be made by telephone,
telegraph  and personal  interview by officers,  directors  and employees of the
Company. The Company will, upon request,  reimburse brokerage houses and persons
holding shares in the names of their nominees for their  reasonable  expenses in
sending soliciting material to their principals.

                                 OTHER BUSINESS

The  Board  of  Directors  knows  of no  business  that  will be  presented  for
consideration  at the Meeting other than those items stated above.  If any other
business should come before the Meeting, votes may be cast, pursuant to proxies,
in respect to any such  business  in the best  judgment of the person or persons
acting under the proxies.

Dated: May 26, 2006April 20, 2007                       THE QUIGLEY CORPORATION

                                            By:/s/ /s/ Charles A. Phillips
                                                --------------------------------
                                                CHARLES A. PHILLIPS, Secretary


                                      -12--16-


         THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS OF
                             THE QUIGLEY CORPORATION

                     PROXY -- ANNUAL MEETING OF STOCKHOLDERS
                                  JUNE 27, 2006MAY 22, 2007

            The undersigned,  a stockholder of The Quigley Corporation, a Nevada
corporation (the  "Company"),  does hereby appoint Guy J. Quigley and Charles A.
Phillips and each of them,  the true and lawful  attorneys and proxies with full
power of substitution,  for and in the name, place and stead of the undersigned,
to vote all of the shares of Common Stock of the Company  which the  undersigned
would be  entitled  to vote if  personally  present  at the  Annual  Meeting  of
Stockholders  of the Company to be held at the  Doylestown  Country Club,  Green
Street, P.O. Box 417, Doylestown,  Pennsylvania 18901, on Tuesday, June 27, 2006,May 22, 2007,
at 4:00 P.M., local time, or at any adjournment thereof.

       THE UNDERSIGNED HEREBY INSTRUCTS SAID PROXIES OR THEIR SUBSTITUTES:
PLEASE SIGN, DATE AND RETURN PROMPTLY IN THE ENCLOSED ENVELOPE. PLEASE MARK YOUR
VOTE IN BLUE OR BLACK INK AS SHOWN HERE /X/|X|.

1.    ELECTION OF DIRECTORS.  The Election of the  following  directors to serve
      until the next annual meeting of stockholders  and until their  successors
      have been duly elected and qualified.

                                    NOMINEES:

      /_/| |   FOR ALL NOMINEES                   O0   GUY J. QUIGLEY
                                               O0   CHARLES A. PHILIPS
     /_/PHILLIPS
      | |   WITHHOLD OAUTHORITY FOR             0   GEORGE J. LONGO
            AUTHORITY FOR ALL ONOMINEES                       0   JACQUELINE F. LEWIS
                                               NOMINEES                  O0   ROUNSEVELLE W. SCHAUM
      O| |   FOR ALL EXCEPT                     0   STEPHEN W. WOUCH
            /_/  FOR ALL EXCEPT            O(SEE INSTRUCTION BELOW)            0   TERRENCE O. TORMEY
          (SEE INSTRUCTION BELOW)

INSTRUCTION:  TO WITHHOLD AUTHORITY TO VOTE FOR ANY INDIVIDUAL NOMINEE(S),  MARK
"FOR  ALL  EXCEPT"  AND  FILL IN THE  CIRCLE  NEXT TO EACH  NOMINEE  YOU WISH TO
WITHHOLD, AS SHOWN HERE /X/.HERE. •

2.    RATIFICATION   OF   APPOINTMENT   OF          FOR      AGAINST     ABSTAIN  AMPER,
      POLITZINER & MATTIA,  P.C. AS /_/        /_/         /_/
     THE  COMPANY'S    FOR    AGAINST   ABSTAIN
      INDEPENDENT  PUBLIC  AUDITORS  FOR THE  YEAR    | |      | |       | |
      ENDING DECEMBER 31, 2006.2007.

THIS PROXY WILL BE VOTED IN ACCORDANCE WITH ANY DIRECTIONS  HEREINBEFORE  GIVEN.
UNLESS OTHERWISE SPECIFIED,  THIS PROXY WILL BE VOTED TO ELECT THE DIRECTORS AND
TO RATIFY THE APPOINTMENT OF AMPER,  POLITZINER & MATTIA,  P.C. AS THE COMPANY'S
INDEPENDENT  PUBLIC  AUDITORS AND IN ACCORDANCE WITH THE DISCRETION OF THE PROXY
OR PROXIES WITH RESPECT TO ANY OTHER BUSINESS TRANSACTED AT THE MEETING.

The  undersigned  hereby  revokes  any  proxy or  proxies  heretofore  given and
acknowledges  receipt  of a copy of the  Notice  of  Annual  Meeting  and  Proxy
Statement,  both dated May 26, 2006,April 20, 2007, and a copy of the Company's Annual Report
to stockholders for the fiscal year ended December 31, 2005.2006.


                                        1


TO CHANGE YOUR ADDRESS ON YOUR ACCOUNT, PLEASE
CHECK THE BOX AT RIGHT AND INDICATE YOUR NEW
ADDRESS IN THE ADDRESS SPACE ABOVE.  /_/
PLEASE NOTE        | |
THAT CHANGES TO THE REGISTERED NAME(S) ON THE
ACCOUNT MAY NOT BE SUBMITTED VIA THIS METHOD.

Signature:                ______________  Date:           __________  Signature:___________               Date:
           _______------------        --------             ------------         -------

NOTE:  Please sign  exactly as your name or names  appears on this  Proxy.  When
shares are held  jointly,  each holder  should  sign.  When signing as executor,
administrator,  attorney,  trustee or guardian, please give full titles as such.
If the  signer  is a  corporation,  please  sign  full  corporate  name  by duly
authorized  officer,  giving  full  title as such.  If signer is a  partnership,
please sign in partnership name by authorized person.


                                       2