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WALTHAM, Mass. (AP) -- Repligen Corp. said Tuesday that Bristol-Myers Squibb Co. agreed to pay $5 million plus royalties to settle a patent infringement lawsuit for a rheumatoid arthritis treatment.

Repligen's suit, filed in Texas in January 2006, accused Bristol-Myers of infringement based on the sale of its Orencia rheumatoid arthritis treatment.

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Bristol-Myers, which confirmed the settlement, also agreed to pay royalties on the U.S. net sales of Orencia for any clinical indication at a rate of 1.8 percent for the first $500 million of annual sales, 2 percent for the next $500 million of annual sales and 4 percent of U.S. annual sales in excess of $1 billion for each year from Jan. 1, 2008, until Dec. 31, 2013.

Analysts have estimated Orencia sales could eventually reach $1 billion per year.