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  <TITLE> AVALON PHARMACEUTICALS, INC. (Form: 8-K) </TITLE>
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  		UNITED STATES<BR>
  	SECURITIES AND EXCHANGE COMMISSION
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  	WASHINGTON, D.C. 20549
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  	FORM 8-K
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  	CURRENT REPORT
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  	Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934
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  	Date of Report (Date of Earliest Event Reported):
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  	&nbsp;
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  	February 27, 2006
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  	AVALON PHARMACEUTICALS, INC.
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  <BR>__________________________________________<BR>
  	(Exact name of registrant as specified in its charter)
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  	Delaware
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  	001-32629
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  	52-2209310
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  _____________________<BR>
  	(State or other jurisdiction
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  _____________<BR>
  	(Commission
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  ______________<BR>
  	(I.R.S. Employer
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  	of incorporation)
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  	File Number)
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  	Identification No.)
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  	20358 Seneca Meadows Parkway, Germantown, Maryland
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  	20876
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  _________________________________<BR>
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  ___________<BR>
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  	Registrant&#146;s telephone number, including area code:
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  	301-556-9900
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  	Not Applicable
  <BR>______________________________________________<BR>
  	Former name or former address, if changed since last report
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  	&nbsp;
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  <!-- CoverPageRegistrant END --><P><FONT SIZE="2">
  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:</FONT>
  </P>
  <P><FONT SIZE="2">
  [&nbsp;&nbsp;]&nbsp;&nbsp;Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<br>
  [&nbsp;&nbsp;]&nbsp;&nbsp;Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<br>
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  <B>
  	Item 1.01 Entry into a Material Definitive Agreement.
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  On February 27, 2006, Avalon Pharmaceuticals, Inc. ("Avalon") entered into a Purchase Agreement (the "Purchase Agreement") with nine accredited investors (the "Investors") for the sale of common stock in a private placement for a total purchase price of $7.25 million, all of which was purchased on February 27, 2006 by the Investors.  Pursuant to the Purchase Agreement, the Investors purchased a total of 1,666,666 shares of common stock at a purchase price of $4.35 per share.  A copy of the press release announcing the private placement and of the Purchase Agreement are attached hereto as Exhibits 99.1 and 10.1, respectively, and incorporated herein by reference.  <br><br>The shares of common stock were issued in a private placement, were not registered under the Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act.  Pursuant to a registration rights agreement (the "Registration Rights Agreement," and together with the Purchase Agreement, the "Transaction Documents") between Avalon and the Investors, also entered into on February 27, 2006, Avalon agreed to register the shares of common stock for resale under the Securities Act.  The Registration Rights Agreement also provides indemnification and contribution remedies to the Investors in connection with the resale of the shares pursuant to such registration statement.  A copy of the Registration Rights Agreement is attached hereto as Exhibit 10.2 and incorporated herein by reference.<br><br>In addition, the Transaction Documents provide for specified liquidated damages in the event Avalon has not filed a registration statement with respect to the resale of the shares within five business days after the filing of Avalon&#x2019;s Annual Report on Form 10-K for its fiscal year ended December 31, 2005, and in certain other situations specified in the Transaction Documents.
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  	Item 3.02 Unregistered Sales of Equity Securities.
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  The information set forth under Item 1.01 is incorporated herein by reference.<br><br>The 1,666,666 shares of Avalon common stock issued to the Investors in the private placement were issued in reliance on Section 4(2) under the Securities Act and Regulation D promulgated thereunder in a transaction not involving a public offering.
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  	Item 9.01 Financial Statements and Exhibits.
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  10.1 - Purchase Agreement, dated February 27, 2006.*<br>10.2 - Registration Rights Agreement, dated February 27, 2006.<br>99.1 - Press Release dated February 27, 2006.<br><br>* Confidential treatment has been requested for portions of this exhibit. These confidential portions have been omitted and were filed separately with the Securities and Exchange Commission.
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  	SIGNATURES
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  	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.
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  	AVALON PHARMACEUTICALS, INC.
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  <I>
  	March 3, 2006
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  <I>
  	/s/ Thomas G. David, Esq.
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  	Name: Thomas G. David, Esq.
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  	Title: General Counsel
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  	Exhibit&nbsp;Index
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  	Exhibit No.
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  	10.1
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  	&nbsp;
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  Purchase Agreement, dated February 27, 2006.*
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  	10.2
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  Registration Rights Agreement, dated February 27, 2006.
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  	99.1
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  Press Release dated February 27, 2006.
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "htm_10713.htm", "description": "LIVE FILING", "secsgml_size_bytes": 13211}]
metadata_filer: {"company-data": {"conformed-name": "AVALON PHARMACEUTICALS INC", "cik": "0001162192", "assigned-sic": "2834", "irs-number": "522209310"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-32629", "film-number": "06662342"}, "business-address": {"street1": "20358 SENECA MEADOWS PARKWAY", "city": "GERMANTOWN", "state": "MD", "zip": "20876", "phone": "3015569900"}, "mail-address": {"street1": "20358 SENECA MEADOWS PARKWAY", "city": "GERMANTOWN", "state": "MD", "zip": "20876"}}
text: AVALON PHARMACEUTICALS, INC. (Form: 8-K)
  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):
  February 27, 2006
  AVALON PHARMACEUTICALS, INC.
  __________________________________________
  (Exact name of registrant as specified in its charter)
  Delaware
  001-32629
  52-2209310
  _____________________
  (State or other jurisdiction
  _____________
  (Commission
  ______________
  (I.R.S. Employer
  of incorporation)
  File Number)
  Identification No.)
  20358 Seneca Meadows Parkway, Germantown, Maryland
  20876
  _________________________________
  (Address of principal executive offices)
  ___________
  (Zip Code)
  Registrant's telephone number, including area code:
  301-556-9900
  Not Applicable
  ______________________________________________
  Former name or former address, if changed since last report
  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:
  [  ]  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))
  Top of the Form
  Item 1.01 Entry into a Material Definitive Agreement.
  On February 27, 2006, Avalon Pharmaceuticals, Inc. ("Avalon") entered into a Purchase Agreement (the "Purchase Agreement") with nine accredited investors (the "Investors") for the sale of common stock in a private placement for a total purchase price of $7.25 million, all of which was purchased on February 27, 2006 by the Investors.  Pursuant to the Purchase Agreement, the Investors purchased a total of 1,666,666 shares of common stock at a purchase price of $4.35 per share.  A copy of the press release announcing the private placement and of the Purchase Agreement are attached hereto as Exhibits 99.1 and 10.1, respectively, and incorporated herein by reference.
  The shares of common stock were issued in a private placement, were not registered under the Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act.  Pursuant to a registration rights agreement (the "Registration Rights Agreement," and together with the Purchase Agreement, the "Transaction Documents") between Avalon and the Investors, also entered into on February 27, 2006, Avalon agreed to register the shares of common stock for resale under the Securities Act.  The Registration Rights Agreement also provides indemnification and contribution remedies to the Investors in connection with the resale of the shares pursuant to such registration statement.  A copy of the Registration Rights Agreement is attached hereto as Exhibit 10.2 and incorporated herein by reference.
  In addition, the Transaction Documents provide for specified liquidated damages in the event Avalon has not filed a registration statement with respect to the resale of the shares within five business days after the filing of Avalon's Annual Report on Form 10-K for its fiscal year ended December 31, 2005, and in certain other situations specified in the Transaction Documents.
  Item 3.02 Unregistered Sales of Equity Securities.
  The information set forth under Item 1.01 is incorporated herein by reference.
  The 1,666,666 shares of Avalon common stock issued to the Investors in the private placement were issued in reliance on Section 4(2) under the Securities Act and Regulation D promulgated thereunder in a transaction not involving a public offering.
  Item 9.01 Financial Statements and Exhibits.
  10.1 - Purchase Agreement, dated February 27, 2006.*
  10.2 - Registration Rights Agreement, dated February 27, 2006.
  99.1 - Press Release dated February 27, 2006.
  * Confidential treatment has been requested for portions of this exhibit. These confidential portions have been omitted and were filed separately with the Securities and Exchange Commission.
  Top of the Form
  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.
  AVALON PHARMACEUTICALS, INC.
  March 3, 2006
  By:
  /s/ Thomas G. David, Esq.
  Name: Thomas G. David, Esq.
  Title: General Counsel
  Top of the Form
  Exhibit Index
  Exhibit No.
  Description
  10.1
  Purchase Agreement, dated February 27, 2006.*
  10.2
  Registration Rights Agreement, dated February 27, 2006.
  99.1
  Press Release dated February 27, 2006.