By Jeff Montgomery (January 14, 2022, 8:02 PM EST) — Vanda Pharmaceuticals Inc. announced the settlement Friday of a multiyear patent dispute with MSN Pharmaceuticals and Impax Laboratories, based in part on a future licensing agreement with MSN and Impax covering Vanda’s Hetlioz product, used for some types of sleep-wake disorders.

The agreement settles patent infringement litigation filed by Vanda in the U.S. District Court for Delaware and dating to 2018, targeting MSN’s application for abbreviated new drug approval covering a generic version of Vanda’s Hetlioz, generic name tasimelteon, which represents a major share of Vanda’s revenues.

Under the agreement, both MSN and Impax received a license to manufacture and commercialize…