12:37 PM EST, 01/10/2025 (MT Newswires) -- (Updates with recent stock movement in the final paragraph.)

Intra-Cellular Therapies ( ITCI ) said Friday it reached a settlement with Sandoz to resolve patent litigation over its central nervous system disorder drug CAPLYTA.

The settlement allows Sandoz to sell generic versions of CAPLYTA starting July 1, 2040, or earlier under specific conditions, the company said.

The litigation stemmed from Sandoz's Abbreviated New Drug Application to the US Food and Drug Administration, seeking approval for a generic version of CAPLYTA, Intra-Cellular Therapies ( ITCI ) added.

The agreement will be submitted to the US Federal Trade Commission and the US Department of Justice, as required by law, the company said.

Similar patent litigation involving other parties remains ongoing in the US District Court for the District of New Jersey, Intra-Cellular Therapies ( ITCI ) added.

ITCI shares were up nearly 14% in recent trading.

Price: 94.01, Change: +11.45, Percent Change: +13.87