United Therapeutics Corp. agreed to settle a patent litigation with California's Watson Laboratories Inc.

The case involved United Therapeutics' hypertension drug Tyvaso. The Silver Spring, Md.-based company sued Watson Laboratories, which sought to market a generic version of Tyvaso.

Under the settlement, United will allow Watson to market its product starting Jan. 1, 2026. The license only covers the generic version of Tyvaso.

Further, the companies will drop pending litigation over patents related to Watson's abbreviated new drug application for the generic medicine.

The agreement is subject to review by the U.S. Federal Trade Commission and the U.S. Department of Justice

Watson Laboratories is a privately held unit of Israel's Teva Pharmaceutical Industries Ltd.