Sun Pharmaceutical Industries and its subsidiary, Caraco Pharmaceutical Laboratories, have reached a settlement agreement with drugmaker Forest Laboratories and licensing partner H Lundbeck AS, over a pending patent infringement dispute over Forest's blockbuster antidepressant, Lexapro.

Caraco had filed an application with the US Food and Drug Administration (USFDA) to launch a cheaper version of Lexapro, but Forest and H Lundbeck AS moved to block the drug, alleging it infringed the company's patents.

Under the agreement announced by the companies, Forest will give Caraco patents to Lexapro, when other generic versions of the drug become available. Caraco will also take over sales of certain Forest products.