08:07 AM EST, 02/10/2025 (MT Newswires) -- Axsome Therapeutics ( AXSM ) said Monday it has agreed to a settlement with Teva Pharmaceuticals (TEVA) to resolve patent litigation over Auvelity, or dextromethorphan HBr - bupropion HCl.

Under the settlement agreement, Axsome said it will grant Teva a license to sell a generic version of Auvelity no earlier than March 31, 2039, if pediatric exclusivity is granted, or Sept. 30, 2038, if not. The parties also agreed to dismiss all ongoing litigation between them over Auvelity patents in the US District Court for the District of New Jersey.

The settlement will be submitted to the US Federal Trade Commission and the Department of Justice for review.

Axsome shares were more than 15% higher in recent premarket activity, while Teva shares were up more than 1%.