Shares of Aurinia Pharmaceuticals rose after the company entered a settlement agreement with Teva Pharmaceuticals to resolve a patent infringement lawsuit it filed against Teva.

The stock gained 6.2% to $17.17 Thursday. Shares are up 7.6% year to date.

Under the terms of the settlement, Teva stipulated that Aurinia's patents for its flagship drug Lupkynis, which expire in 2037, are enforceable, and would be infringed if Teva sold a generic version of the drug in the U.S., Aurinia said.

Under the settlement, Teva can't launch its generic voclosporin product earlier than Dec. 7, 2036. Teva's ability to market its generic voclosporin product in the U.S. also would depend on obtaining approval from the Food and Drug Administration.

Teva had filed an abbreviated new drug application with the FDA seeking to market its generic voclosporin oral capsules in the U.S., and Aurinia sued Teva for patent infringement in response to defend its drug, which treats active lupus nephritis.