MORRISTOWN, N.J. (AP) -- Generic drugmaker Watson Pharmaceuticals Inc. said Wednesday it has agreed to settle patent litigation with Takeda Pharmaceutical Co. Ltd. tied to Watson's version of the diabetes treatment Actos.
Watson, which is based in Morristown, N.J., said in a statement it will be allowed to launch a generic version of Actos on Aug. 17, 2012 or earlier under certain circumstances.
Japan's Takeda gave Watson a non-exclusive royalty free license to its U.S. patents covering the drug.
Actos treats type 2 diabetes. It had about $3.4 billion in sales last year, according to IMS Health.
Watson shares rose 5 cents to $40.23 in morning trading Wednesday.