The drug is first seen by Neil Gordon when he picked it up for Nancy Thompson after she accidentally dropped her purse. It is then shown while Neil Gordon was researching about it on his computer.
Info from the computer:
FDA CLASSIFICATION: Experimental Effective for management of psychotic disorders. For sedation where dreamless sleep is considered optional: suppression of night terror. Warning side effects: may bring addiction, hallucinations, increase of blood pressure, high cholesterol, stroke or death if not properly use. Do not give to children under the age 13 years old or to women that may be or become pregnant.
Jason Voorhees' Killing Spree
Although it was not approved by the FDA, that didn't stop a local hospital from using it to test on other human beings. The cast in Freddy Vs. Jason wanted to get a hold of these pills to stop Freddy from stalking them in their dreams.
While in the hospital, the kids found the room but it was locked from the inside by their friend who snuck off to get stoned. Freddy found out where he was hiding and turned into a caterpillar like creature and possessed him. While he was in control of him, he locked the doors and dumped all the Hypnocil down the drain.