AstraZeneca PLC (AZN.LN), a biopharmaceutical company, said Tuesday it has entered into an agreement with Teva Pharmaceuticals U.S.A, Inc. (TEVA) to settle patent litigation regarding Teva's proposed generic version of AstraZeneca's Entocort EC (budesonide) capsules.

MAIN FACTS:

-Under the terms of the settlement agreement, AstraZeneca has granted Teva a license to enter the U.S. market with its generic version of oral budesonide on Feb. 15, 2012, subject to regulatory approval, or earlier in certain circumstances.

-Teva has conceded that both patents-in-suit in Teva's U.S. Entocort patent litigation are valid and enforceable.

-Teva has also conceded that both Entocort patents-in-suit would be infringed by the manufacture or sale of Teva's generic version of oral budesonide.

-The U.S. District Court for the District of Delaware will enter a Consent Judgment and the corresponding patent litigation will be dismissed.

-Other terms of the settlement are confidential.

-Shares closed Monday at 2905.5 pence.

-By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268; tommy.stubbington@dowjones.com