UPDATE 1-Watson, Barr settle patent dispute over Oxytrol

CHICAGO Oct 28 (Reuters) - Watson Pharmaceuticals (WPI.N: 行情)said it has reached an agreement to settle a patent dispute with Barr Pharmaceuticals over Watson's Oxytrol, or Oxybutynin Transdermal System product.

Under terms of the settlement agreement, Watson has granted Barr a royalty-bearing license to the U.S. patents covering Oxytrol to start marketing a generic equivalent product on April 26, 2015, or earlier in certain circumstances.

Barr is owned by Teva Pharmaceutical Industries Ltd of Israel. (Reporting by Debra Sherman, Editing by Maureen Bavdek)