UPDATE 1-Bayer's Yasmin patent infringement claim dismissed

* Judge rules that patent use not included in FDA approval

* Claim dismissed “with prejudice”

LOS ANGELES, Sept 28 (Reuters) - A U.S. judge on Tuesday dismissed Bayer AG's BAYGn.DE patent lawsuit against Watson Pharmaceuticals Inc WPI.N and Novartis AG's NOVN.VX Sandoz unit, which are seeking to market generic versions of Bayer's Yasmin birth control pills.

Bayer had alleged that the defendants infringed its patent by seeking U.S. approval to market generic versions of the oral contraceptive.

The judge said that Bayer’s patent does not claim a use for Yasmin that has been approved by the U.S. Food and Drug Administration.

The company’s claim was dismissed “with prejudice,” meaning it cannot be brought again.

The case is Bayer Schera Pharma AG and Bayer Healthcare Pharmaceuticals Inc v. Sandoz Inc, Watson Pharmaceuticals Inc and Watson Laboratories Inc, U.S. District Court, Southern District of New York, No. 08-03710. (Reporting by Deena Beasley; Editing by Richard Chang)