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Wyeth has agreed to settle a Nevada case in which two women claimed that its hormone-replacement drugs Prempro and Premarin caused their breast cancer.
Trial was to begin this week.
The company agreed to pay an undisclosed amount to Vesta Woodhouse, 71, and Annie Woods, 61, both of Las Vegas, to resolve allegations that it failed to adequately warn them about the drugs' breast cancer risks.
The settlement leaves a unit of rival drug maker Pfizer Inc. to face trial later this week over similar allegations brought by Woods against its hormone-therapy drug Provera.
Wyeth has said it is facing more than 5,000 such lawsuits.