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              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Section
      1</font></div>
            </td>
            <td>
              <div align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant&#8217;s
      Business and Operations</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Item
1.01</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; FONT-WEIGHT: bold">Entry into a Material Definitive
Agreement</font>.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
December 21, 2009, the Registrant signed an amendment to increase the scope of
its collaboration agreement with Eli Lilly and Company (&#8220;Lilly&#8221;) to develop
therapeutics to treat Alzheimer&#8217;s disease (&#8220;AD&#8221;), originally announced in
2006.&#160;&#160;In addition to the financial terms from the original
collaboration agreement with Lilly, the Registrant will receive an up-front cash
payment of $750,000 and may receive up to $25.5 million based on achievement of
identified milestones.&#160;&#160;Royalties would be paid to the Registrant for
any AD therapies brought to market that result from this addition to the
original collaboration agreement.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A copy of
the Registrant&#8217;s press release regarding the agreement is attached as Exhibit
99.1.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; TEXT-DECORATION: underline">Exhibits.</font></font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Press
release dated December 22, 2009</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized on this 23rd day of December 2009.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 216pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">APPLIED
NEUROSOLUTIONS, INC.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 216pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;<font style="DISPLAY: inline; TEXT-DECORATION: underline">&#160;&#160;&#160;&#160;/s/David
Ellison</font>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 252pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Name:&#160;&#160;David
Ellison</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 252pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Title:&#160;&#160;&#160;&#160;Chief
Financial Officer</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
99.1</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Applied
NeuroSolutions Announces Increased Scope of Alzheimer&#8217;s Disease Drug Discovery
Collaboration with Eli Lilly and Company</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Vernon
Hills, IL December 22, 2009 - Applied NeuroSolutions, Inc. (OTCBB:APSN, <font style="DISPLAY: inline; TEXT-DECORATION: underline">www.AppliedNeuroSolutions.com</font>),
a biotechnology company focused on the development of products for the early
diagnosis and treatment of Alzheimer's disease ("AD"), today announced that it
has reached agreement with Eli Lilly and Company (NYSE:LLY) to increase the
scope of its drug discovery collaboration.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
addition to the financial terms from the original collaboration agreement with
Lilly announced in 2006, Applied NeuroSolutions will receive an up-front cash
payment of $750,000 and may receive up to $25.5 million based on achievement of
identified milestones.&#160;&#160;Royalties would be paid to Applied
NeuroSolutions for any AD therapies brought to market that result from this
addition to the original collaboration agreement.</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;We are
expanding our collaboration with Eli Lilly and Company focused on the
development of new treatments for patients suffering from Alzheimer&#8217;s disease,&#8221;
commented Craig S. Taylor, Ph.D., Applied NeuroSolutions&#8217; President and
CEO.&#160;&#160;&#8220;Lilly continues to see the value in collaborating with Applied
NeuroSolutions and our founding scientist, Dr. Peter Davies, a world renowned
leader in Alzheimer&#8217;s disease research.&#160;&#160;In total, our collaboration
has the potential to produce multiple drug candidates, each targeting unique
mechanisms.&#8221;</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;APNS has
developed valuable reagents for understanding tau biology. We look forward to
utilizing these tools, along with Professor Davies&#8217; expertise, to accelerate
development of therapies that target tau in Alzheimer&#8217;s disease,&#8221; said Dr.
Michael Hutton, Chief Scientific Officer of the Neurodegeneration Drug Hunting
Team at Lilly.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: -27pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">About
Applied NeuroSolutions:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Applied
NeuroSolutions, Inc. (OTC BB:<font style="DISPLAY: inline; TEXT-DECORATION: underline">APSN</font> - <font style="DISPLAY: inline; TEXT-DECORATION: underline">News</font>) is developing
diagnostics and therapeutics to detect and treat Alzheimer's disease (AD)
building on discoveries originating from the Albert Einstein College of
Medicine.&#160;&#160;Applied NeuroSolutions is in a collaboration with Eli Lilly
and Company to develop novel therapeutic compounds to treat the progression of
AD.&#160;&#160;For its diagnostic pipeline, Applied NeuroSolutions is focused on
both serum and cerebrospinal fluid (CSF) tests to detect AD at a very early
stage.&#160;&#160;The CSF based P-Tau 231 test now being offered for use in
clinical trials can effectively differentiate AD patients from those with other
neurological diseases that have similar symptoms. There is currently no FDA
approved diagnostic test to detect AD.&#160;&#160;Alzheimer's disease currently
afflicts over five million Americans, and the world market for AD therapy is
currently estimated to be nearly 35 million patients.&#160;&#160;For more
information, visit <font style="DISPLAY: inline; TEXT-DECORATION: underline">www.AppliedNeuroSolutions.com</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
press release contains forward-looking statements about Applied NeuroSolutions.
The company wishes to caution the readers of this press release that actual
results may differ from those discussed in the forward-looking statements and
may be adversely affected by, among other things, the risks associated with new
product development and commercialization, clinical trials, intellectual
property, regulatory approvals, potential competitive offerings, and access to
capital. For further information, please visit the company's website at <font style="DISPLAY: inline; TEXT-DECORATION: underline">www.AppliedNeuroSolutions.com</font>,
and review the company's filings with the Securities and Exchange
Commission.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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NeuroSolutions, Inc. 847-573-8000</font></div>
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lillyincreaseinagreemntscope.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C.  20549
FORM
8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date
of Report (Date of earliest event reported)
December
21, 2009
APPLIED
NEUROSOLUTIONS, INC.
(Exact
name of Registrant as Specified in its Charter)
Delaware                                   001-13835                                  39-1661164
(State
or Other Jurisdiction     (Commission file
Number)    (IRS Employer
of  Incorporation)                                                           Identification
No.)
50
Lakeview Parkway, Suite 111, Vernon Hills,
IL                               60061
(Address
of Principal Executive
Offices)                                             (Zip
Code)
Registrant's
telephone number, including area code
(847)
573-8000
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
|_|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|_|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
|_|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Section
      1
Registrant's
      Business and Operations
Item
1.01
Entry into a Material Definitive
Agreement
.
On
December 21, 2009, the Registrant signed an amendment to increase the scope of
its collaboration agreement with Eli Lilly and Company ("Lilly") to develop
therapeutics to treat Alzheimer's disease ("AD"), originally announced in
2006.  In addition to the financial terms from the original
collaboration agreement with Lilly, the Registrant will receive an up-front cash
payment of $750,000 and may receive up to $25.5 million based on achievement of
identified milestones.  Royalties would be paid to the Registrant for
any AD therapies brought to market that result from this addition to the
original collaboration agreement.
A copy of
the Registrant's press release regarding the agreement is attached as Exhibit
99.1.
Exhibits.
99.1           Press
release dated December 22, 2009
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized on this 23rd day of December 2009.
APPLIED
NEUROSOLUTIONS, INC.
By:
/s/David
Ellison
Name:  David
Ellison
Title:    Chief
Financial Officer
Exhibit
99.1
Applied
NeuroSolutions Announces Increased Scope of Alzheimer's Disease Drug Discovery
Collaboration with Eli Lilly and Company
Vernon
Hills, IL December 22, 2009 - Applied NeuroSolutions, Inc. (OTCBB:APSN,
www.AppliedNeuroSolutions.com
),
a biotechnology company focused on the development of products for the early
diagnosis and treatment of Alzheimer's disease ("AD"), today announced that it
has reached agreement with Eli Lilly and Company (NYSE:LLY) to increase the
scope of its drug discovery collaboration.
In
addition to the financial terms from the original collaboration agreement with
Lilly announced in 2006, Applied NeuroSolutions will receive an up-front cash
payment of $750,000 and may receive up to $25.5 million based on achievement of
identified milestones.  Royalties would be paid to Applied
NeuroSolutions for any AD therapies brought to market that result from this
addition to the original collaboration agreement.
"We are
expanding our collaboration with Eli Lilly and Company focused on the
development of new treatments for patients suffering from Alzheimer's disease,"
commented Craig S. Taylor, Ph.D., Applied NeuroSolutions' President and
CEO.  "Lilly continues to see the value in collaborating with Applied
NeuroSolutions and our founding scientist, Dr. Peter Davies, a world renowned
leader in Alzheimer's disease research.  In total, our collaboration
has the potential to produce multiple drug candidates, each targeting unique
mechanisms."
"APNS has
developed valuable reagents for understanding tau biology. We look forward to
utilizing these tools, along with Professor Davies' expertise, to accelerate
development of therapies that target tau in Alzheimer's disease," said Dr.
Michael Hutton, Chief Scientific Officer of the Neurodegeneration Drug Hunting
Team at Lilly.
About
Applied NeuroSolutions:
Applied
NeuroSolutions, Inc. (OTC BB:
APSN
-
News
) is developing
diagnostics and therapeutics to detect and treat Alzheimer's disease (AD)
building on discoveries originating from the Albert Einstein College of
Medicine.  Applied NeuroSolutions is in a collaboration with Eli Lilly
and Company to develop novel therapeutic compounds to treat the progression of
AD.  For its diagnostic pipeline, Applied NeuroSolutions is focused on
both serum and cerebrospinal fluid (CSF) tests to detect AD at a very early
stage.  The CSF based P-Tau 231 test now being offered for use in
clinical trials can effectively differentiate AD patients from those with other
neurological diseases that have similar symptoms. There is currently no FDA
approved diagnostic test to detect AD.  Alzheimer's disease currently
afflicts over five million Americans, and the world market for AD therapy is
currently estimated to be nearly 35 million patients.  For more
information, visit
www.AppliedNeuroSolutions.com
This
press release contains forward-looking statements about Applied NeuroSolutions.
The company wishes to caution the readers of this press release that actual
results may differ from those discussed in the forward-looking statements and
may be adversely affected by, among other things, the risks associated with new
product development and commercialization, clinical trials, intellectual
property, regulatory approvals, potential competitive offerings, and access to
capital. For further information, please visit the company's website at
www.AppliedNeuroSolutions.com
,
and review the company's filings with the Securities and Exchange
Commission.
Contact:
Applied
NeuroSolutions, Inc. 847-573-8000
Craig
Taylor, President and CEO
David
Ellison, CFO