** Shares of drugmaker Axsome Therapeutics AXSM.O rise 13.5% to $119.99 premarket

** Co says it has entered into a settlement agreement with Teva Pharmaceuticals TEVA.TA, resolving all patent litigation related to AXSM's depression drug Auvelity

** Under terms of agreement, AXSM to grant Teva license to sell generic version of Auvelity beginning on or after March 31, 2039, if pediatric exclusivity is granted for Auvelity

** If no pediatric exclusivity is granted, AXSM to grant Teva license six months earlier - on or after September 30, 2038

** "This outcome is better than our base case, which assumed exclusivity through 2037"- brokerage Truist Securities

** Litigation resulted from regulatory submission by Teva to FDA seeking approval to market a generic version of Auvelity in the U.S. before expiration of applicable Axsome patents

** Stock had risen 6.3% in 2024

(Reporting by Sneha S K)

((Sneha.SK@thomsonreuters.com;))