Church & Dwight Co. (CHD) in a regulatory filing said it entered into a settlement agreement on patent litigation and that Abbott Laboratories (ABT) will pay it $27 million.

Church & Dwight, Abbott Labs and SurModics Inc. (SRDX) entered into a settlement agreement with respect to all outstanding patent litigation between the parties relating to pregnancy diagnostic test kits. According to a regulatory filing, the agreement provides that Abbott will pay $27 million to Church & Dwight.

Church & Dwight, Abbott and SurModics exchanged mutual releases on all claims for past damages related to patents connected to the litigations, and both Abbott and SurModics agreed not to sue Church & Dwight on any intellectual property related to the continued manufacture and sale of the products that were the subject of an infringement action by Abbott and SurModics against Church & Dwight.

Church & Dwight will record the settlement payment, net of legal expenses, in its results of operations for the quarter ended Sept. 25.

-By Anjali Cordeiro, Dow Jones Newswires; 212-416-2200; anjali.cordeiro@dowjones.com