UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549


                                  SCHEDULE 13G
                    Under the Securities Exchange Act of 1934
                                Amendment No. 2

                          AVALON PHARMACEUTICALS, INC.
- --------------------------------------------------------------------------------
                                (Name of Issuer)


                     Common Stock, $.01 par value per share
- --------------------------------------------------------------------------------
                         (Title of Class of Securities)

                                   05346P106
                  ---------------------------------------------
                                 (CUSIP Number)

                               December 31, 2009
- --------------------------------------------------------------------------------
            (Date of Event Which Requires Filing of this Statement)

Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:

     [X] Rule 13d-1(b)

     [ ] Rule 13d-1(c)

     [ ] Rule 13d-1(d)


         *The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter disclosure provided in a prior cover page.


         The information required on the remainder of this cover page shall not
be deemed to be filed for the purpose of Section 18 of the Securities Exchange
Act of 1934, as amended ("Act"), or otherwise subject to the liabilities of that
section of the Act but shall be subject to all other provisions of the Act
(however, see the Notes).


                               Page 1 of 9 pages



CUSIP NO. 05346P106
- --------------------------------------------------------------------------------
1.      NAME OF REPORTING PERSONS
       S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

       American International Group, Inc.
       I.R.S. Identification No. 13-2592361
- --------------------------------------------------------------------------------
2.    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

                                                    (a)      [ ]
                                                    (b)      [ ]
- --------------------------------------------------------------------------------
3.    SEC USE ONLY

- --------------------------------------------------------------------------------
4.    CITIZENSHIP OR PLACE OF ORGANIZATION

      Incorporated under the laws of the State of Delaware
- --------------------------------------------------------------------------------
                        5.    SOLE VOTING POWER
  NUMBER OF                            0
   SHARES                     --------------------------------------------------
BENEFICIALLY            6.    SHARED VOTING POWER
  OWNED BY                             0
    EACH                      --------------------------------------------------
 REPORTING              7.    SOLE DISPOSITIVE POWER
   PERSON                              0
    WITH                      --------------------------------------------------
                        8.    SHARED DISPOSITIVE POWER
                                       0
- --------------------------------------------------------------------------------
  9.  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
       PERSON
                                           0
- --------------------------------------------------------------------------------
10.   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
      CERTAIN SHARES
                                                     [ ]
- --------------------------------------------------------------------------------
11.   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW  (9)
                                             0%
- --------------------------------------------------------------------------------
12.   TYPE OF REPORTING PERSON

                                       HC


                                  Page 2 of 9



CUSIP NO. 05346P106
- --------------------------------------------------------------------------------
1.      NAME OF REPORTING PERSONS
       S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON


       AIG Global Asset Management Holdings Corp.
       I.R.S. Identification No. 13-3870953
- --------------------------------------------------------------------------------
2.    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

                                             (a)      [ ]
                                             (b)      [ ]
- --------------------------------------------------------------------------------
3.    SEC USE ONLY

- --------------------------------------------------------------------------------
4.    CITIZENSHIP OR PLACE OF ORGANIZATION

       Organized under the laws of the State of Delaware
- --------------------------------------------------------------------------------
                        5.    SOLE VOTING POWER
  NUMBER OF                            0
   SHARES                     --------------------------------------------------
BENEFICIALLY            6.    SHARED VOTING POWER
  OWNED BY                             0
    EACH                      --------------------------------------------------
 REPORTING              7.    SOLE DISPOSITIVE POWER
   PERSON                              0
    WITH                      --------------------------------------------------
                        8.    SHARED DISPOSITIVE POWER
                                       0
- --------------------------------------------------------------------------------
  9.  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
       PERSON
                                          0
- --------------------------------------------------------------------------------
10.   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
      CERTAIN SHARES
                                                     [ ]
- --------------------------------------------------------------------------------
11.   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW  (9)
                                             0%
- --------------------------------------------------------------------------------
12.   TYPE OF REPORTING PERSON
                                       HC


                                  Page 3 of 9



CUSIP NO. 05346P106
- --------------------------------------------------------------------------------
1.      NAME OF REPORTING PERSONS
       S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON

       AIG Global Investment Corp. (now known as PineBridge Investments LLC)
       I.R.S. Identification No. 06-1078320
- --------------------------------------------------------------------------------
2.    CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

                                                    (a)      [ ]
                                                    (b)      [ ]
- --------------------------------------------------------------------------------
3.    SEC USE ONLY

- --------------------------------------------------------------------------------
4.    CITIZENSHIP OR PLACE OF ORGANIZATION

      Organized under the laws of the State of Delaware
- --------------------------------------------------------------------------------
                        5.    SOLE VOTING POWER
  NUMBER OF                            0
   SHARES                     --------------------------------------------------
BENEFICIALLY            6.    SHARED VOTING POWER
  OWNED BY                             0
    EACH                      --------------------------------------------------
 REPORTING              7.    SOLE DISPOSITIVE POWER
   PERSON                              0
    WITH                      --------------------------------------------------
                        8.    SHARED DISPOSITIVE POWER
                                       0
- --------------------------------------------------------------------------------
  9.  AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
       PERSON
                                          0
- --------------------------------------------------------------------------------
10.   CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES
      CERTAIN SHARES
                                                     [ ]
- --------------------------------------------------------------------------------
11.   PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW  (9)
                                             0%
- --------------------------------------------------------------------------------
12.   TYPE OF REPORTING PERSON

                                       IA


                                  Page 4 of 9




ITEM 1 (a).       NAME OF ISSUER:

                  Avalon Pharmaceuticals, Inc.

ITEM 1 (b).       ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:

                  20358 Seneca Meadows Parkway
                  Germantown, MD 20876

ITEM 2 (a).       NAME OF PERSON(S) FILING:

                  American International Group, Inc.

                  AIG Global Asset Management Holdings Corp.

                  AIG Global Investment Corp.
                  (now known as PineBridge Investments LLC)


ITEM 2 (b).       ADDRESS OF PRINCIPAL BUSINESS OFFICE(S):

                  American International Group, Inc.
                  70 Pine Street
                  New York, New York  10270

                  AIG Global Asset Management Holdings Corp.
                  70 Pine Street
                  New York, New York 10270

                  AIG Global Investment Corp.
                  (now known as PineBridge Investments LLC)
                  70 Pine Street
                  New York, New York 10270

ITEM 2 (c).       CITIZENSHIP:

                  The information requested hereunder is set forth
                  under Item 4 of the cover pages to this Schedule 13G.

ITEM 2 (d).       TITLE OF CLASS OF SECURITIES:

                  Common Stock, $.01 par value
                  per share

ITEM 2 (e).       CUSIP NUMBER:
                  05346P106

                                  Page 5 of 9


ITEM 3.       TYPE OF PERSONS FILING:

                       American International Group, Inc.:

                       (g)      Parent Holding Company, in accordance with
                                Rule 13d-1(b) (ii) (G) promulgated under the
                                Securities Exchange Act of 1934, as amended
                                (the "Act")

                       AIG Global Asset Management Holdings Corp.:

                       (g)      Parent Holding Company, in accordance with Rule
                                13d-1(b)(ii)(G) promulgated under the Act

                       AIG Global Investment Corp.
                       (now known as PineBridge Investments LLC)

                       (e)      Investment Adviser, in accordance with Rule
                                13d-1(b)(ii)(E) promulgated under the Act

 ITEM 4.               OWNERSHIP.

                       (a) through (c). The information requested hereunder is
                       set forth under Items 5 through 9 and Item 11 of the
                       cover pages to this Schedule 13G.

ITEM 5.       OWNERSHIP OF FIVE PERCENT OR LESS OF CLASS.

                       If this statement is being filed to report the fact that
                       as of the date hereof the reporting person has ceased to
                       be beneficial owner of more than five percent of the
                       class of securities, check the following: [X].


ITEM 6.       OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF
                       ANOTHER PERSON.

                       Not applicable.

ITEM 7.       IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY
                       WHICH ACQUIRED THE SECURITY BEING REPORTED ON BY
                       THE PARENT HOLDING COMPANY.

                       See Exhibit 1 attached hereto for the information
                       requested hereunder with respect to the relevant
                       subsidiaries of American International Group, Inc.

ITEM 8.       IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE
                       GROUP.

                       Not applicable.

ITEM 9.       NOTICE OF DISSOLUTION OF GROUP.

                       Not applicable.


                                  Page 6 of 9



ITEM 10.      CERTIFICATION.

                  By signing below I certify that, to the best of my
knowledge and belief, the securities referred to above were acquired and are
held in the ordinary course of business and were not acquired and are not held
for the purpose of or with the effect of changing or influencing the control of
the issuer of the securities and were not acquired and are not held in
connection with or as a participant in any transaction having such purpose or
effect.


                                    SIGNATURE

                  After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.

Date:  February 12, 2010

                          AMERICAN INTERNATIONAL GROUP, INC.


                          By /s/ Monika M. Machon
                          -------------------------------------------
                          Name:  Monika M. Machon
                          Title: Senior Vice President and
                                 Chief Investment Officer


                          AIG GLOBAL ASSET MANAGEMENT HOLDINGS CORP.


                          By /s/ Monika M. Machon
                          -------------------------------------------
                          Name:  Monika M. Machon
                          Title: Director


                          AIG GLOBAL INVESTMENT CORP.
                          (now known as PineBridge Investments LLC)


                          By /s/ Win J. Neuger
                          -------------------------------------------
                          Name:  Win J. Neuger
                          Title: Chairman and Chief Executive Officer




                                  Page 7 of 9



                                  EXHIBIT INDEX



Exhibit 1     Identification and Classification of the Subsidiaries Which
              Acquired the Security Being Reported on by the Parent Holding
              Company



                                  Page 8 of 9



                                                                       Exhibit 1

IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED THE SECURITY
BEING REPORTED ON BY THE PARENT HOLDING COMPANY.


          American International Group, Inc. -- Subsidiary Information


AIG Global Asset Management Holdings Corp.:

          Parent Holding Company or Control Person pursuant to Rule
          13d-1(b)(ii)(G)

           Category Symbol:           HC



AIG Global Investment Corp. (now known as PineBridge Investments LLC):

          Investment Adviser pursuant to Rule 13d-1(b)(ii)(E)

           Category Symbol:           IA




                                  Page 9 of 9