Terms of the settlement weren't disclosed by the drug company or the Mormon Church-owned university in Utah. The settlement was announced Tuesday in a confidential agreement.
BYU's lawsuit says a chemistry professor, Daniel Simmons, discovered the genetic workings of the drug in the early 1990s. It accused Pfizer of violating a research agreement the school made with predecessor companies.
As part of the settlement, BYU plans to endow a Dan Simmons Chair in recognition of his lifelong work advancing human health.
BYU says Simmons' research for Celebrex was among the most important pharmacological discoveries of the past two decades.