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UPDATE 1-Forest, Lundbeck settle patent row over Lexapro

Fri Jul 10, 2009 10:15am EDT

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* Settlement with Caraco, Sun Pharma

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* Forest has U.S. rights to Lexapro

* Forest shares unchanged; Lundbeck and Caraco up

NEW YORK, July 10 (Reuters) - Forest Laboratories Inc (FRX.N) and H Lundbeck A/S (LUN.CO) have settled patent infringement litigation with two generic drugmakers on their blockbuster Lexapro anti-depressant, the companies said on Friday.

The settlement was struck with Caraco Pharmaceutical Laboratories (CPD.A) and Sun Pharmaceuticals (SUN.BO) over Lexapro, which Forest sells in the United States through a license from Lundbeck.

Under the settlement, Forest and Lundbeck will provide Lexapro patent licenses that would pave the way for Caraco to sell a generic version once other companies have begun to do so.

Caraco will also assume the sale of several unspecified Forest products in exchange for an advance payment. Lundbeck will also pay Sun to license patents on the synthesis of Lexapro.

The settlement is subject to review by the U.S. Federal Trade Commission.

Lexapro, Forest's biggest-selling product, is expected to lose U.S. patent protection in early 2012.

Forest shares were unchanged at $23.68 in morning trading, while Caraco gained 2.5 percent to $2.92. Lundbeck was up 0.2 percent in Denmark.

Before the news, Sun had closed in India down 4.2 percent. (Reporting by Lewis Krauskopf; Editing by Lisa Von Ahn)

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