PROSPECTUS SUPPLEMENT                           Filed Pursuant to Rule 424(b)(3)
To Prospectus Dated May 3, 1996                        Registration No. 333-2253

                                  $80,500,000

                                     NABI

                6 1/2% Convertible Subordinated Notes due 2003
                                      and
               Shares of Common Stock, Par Value $.10 Per Share,
                       Issuable Upon Conversion Thereof

    This Prospectus Supplement (the "Supplement") relates to the resale by 
Raymond James & Associates, Inc. ("Raymond James") of (i) up to $500,000 
aggregate principal amount of 6 1/2% Convertible Subordinated Notes due 2003 
(the "Notes") of NABI, a Delaware corporation (the "Company"), originally issued
in private placements consummated on February 7 and March 6, 1996 (the "Debt 
Offering"), and (ii) up to 35,714 shares of the Common Stock, par value $.10 per
share (the "Common Stock"), of the Company which are initially issuable upon 
conversion of the Notes, pursuant to NABI's Registration Statement on Form S-3 
(No. 333-2253) (the "Registration Statement"). This Supplement should be read in
conjunction with the Prospectus dated May 3, 1996 (the "Prospectus"), to be 
delivered with this Supplement. All capitalized terms used but not defined in 
this Supplement shall have the meanings given them in the Prospectus.

    Based on information provided to the Company, the aggregate principal amount
of the Notes that are currently beneficially owned by Raymond James is $500,000,
all of which amount may be sold at this time pursuant to the Prospectus as 
supplemented hereby. Raymond James was an initial purchaser of the Notes in the
Debt Offering and also was the managing underwriter in the Company's October 
1994 public offering of 4,200,000 shares of Common Stock. In connection with 
both such offerings, Raymond James received customary compensation for its 
services. Additional information concerning the Selling Securityholders 
(including Raymond James) may be set forth from time to time in additional 
supplements to the Prospectus. The total outstanding aggregate principal amount 
of the Notes is $80,500,000.

    The closing price of the Company's Common Stock as reported on the Nasdaq 
National Market on August 7, 1996 was $9.625 per share.

    The Notes will be subordinated to all existing and future Senior 
Indebtedness of the Company. At June 30, 1996, Senior Indebtedness was 
approximately $6,300,000. The Indenture contains no limitations on the 
incurrence of additional indebtedness or other liabilities by the Company.

    Prior to this offering, there has been no public market for the Notes. 
However, the Notes are eligible for trading in the Private Offerings, Resales 
and Trading through Automated Linkages ("PORTAL") Market. Notes sold pursuant to
the Registration Statement will no longer be eligible for trading in the PORTAL 
Market.

           The date of this Prospectus Supplement is August 8, 1996.