The agreement will allow Ranbaxy to sell its version of Actos starting 17 August 2012. The agreement grants Ranbaxy a non-exclusive, royalty-free license to its US patents covering Actos.
In 2003, Takeda sued Ranbaxy, Watson Pharmaceuticals and Mylan Laboratories to block the sale of low-cost versions of Actos.
Takeda has since agreed to allow Watson to sell a generic version of Actos from August 2012.
Actos achieved around $3.4bn in branded sales in the US for the 12 months ending in December 2009, according to statistics from IMS Health.