Sigma share price up after Chemist Warehouse move

Sigma has dropped its legal action against the Chemist Warehouse Group (CWH) over an exclusivity agreement.

The two groups have instead started formal negotiations in a bid to settle their dispute over a plan by CWH to source Sandoz generics from another supplier.

The move provided respite for Sigma's share price, which jumped nearly 10% to reach just under 0.94 cents at the close of trading on Wednesday.

It had plummeted from around $1.20 to a low of under 80 cents when the legal battle was launched.

If a commercial resolution is not reached, the two groups have agreed to “confidential and binding” mediation and arbitration, Sigma said in an ASX announcement.

"As a result of these developments, Sigma will now discontinue legal proceedings."

“Sigma values the long-term relationship with [My Chemist/ Chemist Warehouse] and continues to provide