27 January 2012 - Watson Pharmaceuticals Inc (NYSE:WPI) said on Thursday that its Florida-based subsidiary Watson Laboratories Inc had signed an agreement with Mallinckrodt Inc to settle an outstanding patent litigation linked to Watson's generic versions of Mallinckrodt's Exalgo (Hydromorphone Hydrochloride Extended-Release).

Mallinckrodt's lawsuit was filed on 10 December 2010 after Watson filed for an US Food and Drug Administration (FDA) approval to market its product in the 8 mg, 12 mg, and 16 mg dosage strengths.

Under terms of the deal, Mallinckrodt has agreed to grant Watson a licence to US patents relating to Exalgo without the payment of any royalties. Watson will be allowed to offer its generic products on 15 November 2013.

No further details of the settlement were disclosed.