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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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  	August 1, 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>
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  	of incorporation)
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  	File Number)
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  	Identification No.)
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  	&nbsp;&nbsp;
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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>
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  <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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  	Item 1.01 Entry into a Material Definitive Agreement.
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  Effective August 1, 2006, J. Michael Hamilton, M.D. became the Chief Medical Officer of Avalon Pharmaceuticals, Inc. (the "Company").  Pursuant to an offer letter with Dr. Hamilton, Dr. Hamilton is entitled to receive an annual base salary of $280,000 and is eligible for an annual target bonus of up to 35% of his base salary based on the achievement of corporate and individual objectives.   The offer letter also provides for a sign-on bonus in the amount of $15,000 and a grant of stock options to purchase 60,000 shares of the Company's common stock at an exercise price equal to the fair market value on the grant date, with these options vesting over a five year period.  In addition, the offer letter provides that beginning 90 days after the commencement of Dr. Hamilton's employment, if Dr. Hamilton is terminated by the Company without "Cause" or terminates his employment for "Good Reason," he will be entitled to receive his bi-weekly salary and health insurance benefits for a period of six months thereafter.  Good Reason includes termination by Dr. Hamilton of his employment within 18 months of a change in control of the Company.<br><br>The above summary of the offer letter does not purport to be complete and is qualified in its entirety by reference to Dr. Hamilton's offer letter, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated in this Item 1.01 by reference.<br>
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  	Item 9.01 Financial Statements and Exhibits.
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  (d) 	Exhibits<br><br>10.1 - Offer letter between Avalon Pharmaceuticals, Inc. and J. Michael Hamilton, dated April 20, 2006. <br>
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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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  	&nbsp;&nbsp;
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  <I>
  	August 2, 2006
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  	By:
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  <I>
  	/s/ Thomas G. David, Esq.
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  <I>
  	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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  Offer letter between Avalon Pharmaceuticals, Inc. and J. Michael Hamilton, dated April 20, 2006.
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "htm_14107.htm", "description": "LIVE FILING", "secsgml_size_bytes": 11279}]
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": "06997987"}, "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):
  August 1, 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.
  Effective August 1, 2006, J. Michael Hamilton, M.D. became the Chief Medical Officer of Avalon Pharmaceuticals, Inc. (the "Company").  Pursuant to an offer letter with Dr. Hamilton, Dr. Hamilton is entitled to receive an annual base salary of $280,000 and is eligible for an annual target bonus of up to 35% of his base salary based on the achievement of corporate and individual objectives.   The offer letter also provides for a sign-on bonus in the amount of $15,000 and a grant of stock options to purchase 60,000 shares of the Company's common stock at an exercise price equal to the fair market value on the grant date, with these options vesting over a five year period.  In addition, the offer letter provides that beginning 90 days after the commencement of Dr. Hamilton's employment, if Dr. Hamilton is terminated by the Company without "Cause" or terminates his employment for "Good Reason," he will be entitled to receive his bi-weekly salary and health insurance benefits for a period of six months thereafter.  Good Reason includes termination by Dr. Hamilton of his employment within 18 months of a change in control of the Company.
  The above summary of the offer letter does not purport to be complete and is qualified in its entirety by reference to Dr. Hamilton's offer letter, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated in this Item 1.01 by reference.
  Item 9.01 Financial Statements and Exhibits.
  (d) 	Exhibits
  10.1 - Offer letter between Avalon Pharmaceuticals, Inc. and J. Michael Hamilton, dated April 20, 2006.
  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.
  August 2, 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
  Offer letter between Avalon Pharmaceuticals, Inc. and J. Michael Hamilton, dated April 20, 2006.