** 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;))
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