By Mark Chael

Eli Lilly and Co. (NYSE: LLY) announced today that it will acquire Hypnion, Inc. of Lexington, MA., a privately held CNS drug discovery company investigating sleep and wakefulness-alertness disorders as well as circadian rhythm abnormalities.  Financial terms of the deal, which is expected to close in 2007, were not disclosed.

Hypnion is listed as the assignee on at least three published U.S. patent applications, all dealing with CNS disorders and CNS target modulators.  In addition, about fifteen published U.S. patent applications list Dale Edgar, one of Hypnion’s founders, as an inventor.

On January 5, 2007, Hypnion announced positive results from a Phase II trial for its proprietary insomnia drug, HY10275.  According to Hypnion, the drug was well tolerated by the trial’s participants, it achieved its primary and secondary efficacy endpoints with statistically significant results, and the drug’s novel H1/5HT2a mechanisms of action were validated.  Additional information about the histamine H1 receptor can be found here and here, while information about the serotonin 5-HT2a receptor can be found here and here.