Sun Pharmaceutical has informed that it has entered into agreements with Forest Laboratories Inc., Forest Laboratories Holdings Ltd., and H. Lundbeck A/S to settle legal proceedings related to Lexapro (escitalopram oxalate) tablets.

The deal has been formalized between Sun Pharma and its subsidiaries along with Caraco Pharmaceutical (also Sun's US-based subsidiary), and Forest Laboratories, Forest Laboratories Holdings and H. Lundbeck.

However, these agreements will be subject to review by the US Federal Trade Commission.

Under the arrangement, Sun Pharma will license to Lundbeck on a global basis certain patent applications related to the synthesis of escitalopram and citalopram for an upfront payment and if the technology is used, royalties on sales.

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

Further, Caraco will take over the commercialization and sale of several products from Forest's Inwood business. But in addition, Caraco will also pay Forest an undisclosed advance against royalties and royalties on net sales of these products.

Apart from these, Forest will reimburse Caraco for a portion of their costs related to this litigation.