Sun Pharmaceutical Industries, along with Caraco Pharmaceutical Laboratories, and Forest Laboratories, Inc, Forest Laboratories Holdings, Ltd, and H Lundbeck A/S (collectively, 'Forest') have decided to settle the legal proceedings related to Lexapro (escitalopram oxalate) tablets. However, agreements will be subject to review by the US Federal Trade Commission.

As per the agreement, Sun Pharma will license to Lundbeck on a worldwide basis certain patent applications related to the synthesis of escitalopram and citalopram in exchange for an upfront payment and, if the technology is used, royalties on sales.

Forest will provide licenses to Caraco for any patents related to Lexapro and with respect to the marketing of Caraco's generic version of the product as of the date that any third party generic that has received final approval from the FDA enters the market other than an authorized generic or the first filer with Hatch-Waxman related exclusivity.

Caraco will take over the commercialization and sale of several products from Forest's Inwood business. Caraco will pay Forest an undisclosed advance against royalties and royalties on net sales of these products. Forest will reimburse Caraco for a portion of their costs related to this litigation.