UPDATE 1-Santarus, Depomed settle dispute with Lupin

Feb 22 (Reuters) - Santarus Inc and Depomed Inc said they settled a patent dispute with generic drugmaker Lupin Ltd that will allow the Indian company to launch copycat version of their diabetes drug Glumetza by 2016.

Lupin could start selling the generic drug on Feb. 1, 2016, or earlier under certain circumstances.

Last month, Lupin said it received tentative approval from the U.S. Food and Drug Administration for generic Glumetza.

Santarus shares were up 2.45 percent at $4.60 in extended trade. They closed at $4.50 on Wednesday on the Nasdaq. Depomed shares closed at $6.38.