Exhibit 99


Contact:        Robert A. Hoerr, M.D., Ph.D.    Karen L. Bergman (media)
                President & CEO                 Jonathan M. Nugent (investors)
                GalaGen Inc.                    Burns McClellan, Inc.
                612/481-2105                    212/213-0006    
                                                                
                

FOR IMMEDIATE RELEASE
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         GALAGEN INC. INITIATES PHASE II CLINICAL TRIAL WITH DIFFISTAT-G
                       FOR ANTIBIOTIC-ASSOCIATED DIARRHEA


Arden  Hills,  Minn.  -- August 14, 1997 -- GalaGen  Inc.  (Nasdaq:  GGEN) today
announced  that it has  initiated  a  multi-center  Phase II  clinical  trial of
Diffistat-G,(the  Company's  polyclonal  antibody  drug  for  the  treatment  of
antibiotic-associated   diarrhea,  a  life-threatening  illness  caused  by  the
pathogen,  Clostridium difficile (C. difficile).  Principal investigators in the
study include Ciaran Kelly, M.D., Assistant Professor of Medicine, and J. Thomas
LaMont, M.D., Professor of Medicine and Chief,  Gastroenterology  Division, both
of Beth Israel-Deaconess Medical Center, Harvard Medical School, Boston.

Antibiotic-associated  diarrhea  is  a  major  complication  of  broad  spectrum
antibiotic  therapy,  in which  the  normal  bacterial  flora in the  colon  are
suppressed,  permitting  the bacteria C.  difficile  to colonize  the colon.  In
antibiotic-associated  infections,  C. difficile releases toxins that injure the
lining of the colon, causing painful diarrhea. C. difficile affects an estimated
400,000 patients annually in the U.S. and more than one million globally.

"The  initiation of this Phase II clinical  trial  represents a key milestone in
the advancement of Diffistat-G through the clinical  development  process," said
Robert A. Hoerr, M.D., Ph.D., President and CEO of GalaGen. "We believe that the
results  of  this  trial  will  further  define  the  therapeutic  potential  of
Diffistat-G as an effective treatment for antibiotic-associated diarrhea."

Providing an update on the Sporidin-G(TM) clinical development program,  GalaGen
announced  that it has placed the U.S.  Phase II/III  clinical trial in HIV/AIDS
patients  on hold,  citing a  continued  decline in  Cryptosporidium  parvum (C.
parvum) infections due to the current success of anti-AIDS therapies.

"We remain very  positive  about the  clinical  potential of  Sporidin-G  in the
treatment  of C.  parvum  infections  and will  maintain an active IND in case a
clinical  need  reemerges  in the AIDS  population  or we decide to pursue other
indications for the product," Dr. Hoerr stated.  "In the interim,  we will focus
the Company's  resources on other  pharmaceutical  and  nutritional  products in
development.  These  products offer  significant  market  opportunities  and are
receiving substantial interest from potential corporate partners."



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GalaGen Announces Diffistat-G Phase II Trial Initiation
Page Two

GalaGen Inc. is evaluating the  commercial  potential for Sporidin-G in HIV/AIDS
patients in  developing  countries  where there is an ongoing need for promising
products to address  opportunistic  infections.  The Company is also  evaluating
other  potential  indications,  because C.  parvum  continues  to be targeted by
public  health  officials  as a serious  emerging  pathogen  that  causes  acute
diarrhea in normal individuals, particularly in children.

GalaGen Inc. is developing a portfolio of oral  pharmaceutical  products derived
from  its  platform  technology  that  target   life-threatening   and  emerging
pathogens.  In addition to Diffistat-G,  the Company  currently is advancing two
other  polyclonal  antibody  therapeutics.  Candistat-G(TM)  is an oral antibody
product in early clinical  development  for the treatment of thrush or infection
of the throat and oral cavity with the fungus  Candida.  PylorImune-G(TM)  is in
preclinical   development   with  the  Company's   corporate   partner,   Chiron
Corporation.  The  Company  is  utilizing  its  pharmaceutical  and  nutritional
expertise to actively develop proprietary dietary supplements and medical foods.

EXCEPT FOR HISTORICAL  INFORMATION,  MATTERS DISCUSSED IN THIS PRESS RELEASE ARE
FORWARD-LOOKING  STATEMENTS  THAT INVOLVE  RISKS AND  UNCERTAINTIES,  AND ACTUAL
RESULTS MAY BE MATERIALLY DIFFERENT.  FACTORS THAT COULD CAUSE ACTUAL RESULTS TO
DIFFER INCLUDE: LEVELS OF RESOURCES DEVOTED BY THE COMPANY TO THE DEVELOPMENT OF
ITS MANUFACTURING AND MARKETING  CAPABILITIES,  RISKS GENERALLY  ASSOCIATED WITH
CONSTRUCTION  OF  MANUFACTURING  FACILITIES,  THE ABILITY OF THE COMPANY TO MAKE
TECHNOLOGICAL  ADVANCES,  THE STATUS OF COMPETITIVE  PRODUCTS AND THE ABILITY OF
THE COMPANY TO ESTABLISH STRATEGIC ALLIANCES TO PROVIDE RESEARCH AND DEVELOPMENT
FUNDING TO THE COMPANY.