Watson Reaches Pact to Sell Generic BuSpar

Watson Pharmaceuticals Inc. reached a settlement with Bristol-Myers Squibb Co. that would allow Watson to continue selling a generic version of Bristol-Myers’ lucrative anti-anxiety drug BuSpar.

Corona-based Watson said it would receive a $32-million payment from Bristol-Myers, as well as a nonexclusive license to sell the drug under Bristol-Myers’ patent.

Last year Watson and Mylan Laboratories Inc. won a four-month legal battle that allowed them to begin selling generic versions of BuSpar, but both companies claimed Bristol-Myers unfairly delayed the introduction of copycats. Watson filed an antitrust lawsuit against Bristol-Myers in March of last year.