India's largest drug maker by sales, Ranbaxy Laboratories Ltd, has resolved a U.S. patent dispute over tamsulosin capsules, the company said, sending its shares up as much as 3 percent.

Ranbaxy will launch tamsulosin in the U.S. market in March 2010, eight weeks before the patent expires, under the agreement, it said in a statement on Thursday.

Tamsulosin is a generic equivalent of Flomax, used to treat benign prostatic hyperplasia.

During this time period of pediatric exclusivity, Ranbaxy will be the only generic manufacturer to commercialise this product in the U.S. market, it said.

Last June, Ranbaxy had obtained tentative approval from U.S. authorities for tamsulosin.

At 0734 GMT, Ranbaxy's shares were up 1.8 percent at 435 rupees, while the benchmark index was down 1 percent. (Reporting by Himangshu Watts; Editing by Ranjit Gangadharan)