Mylan said Sunovion has acknowledged that its Brovana infringes two of Mylan's patents that expire on June 22, 2021.
The settlement, terms of which were not disclosed, comes two months after a U.S. federal court had ruled against Mylan and granted one of Sunovion's motions for defense and its request to limit damages related to the patent.
Mylan's unit Dey Pharma had sued Sunovion back in 2007, alleging that its drug Brovana infringes seven of Dey's patents.
Brovana gained U.S. approval in 2006 as a treatment for bronchoconstriction in patients with chronic obstructive pulmonary disease, including chronic bronchitis and emphysema.
(Reporting by Zeba Siddiqui in Bangalore; Editing by Viraj Nair)
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