Cosette Pharmaceuticals to appeal Mayne Pharma court ruling
Make us a preferred source
Make us a preferred source on Google
The news: Cosette Pharmaceuticals has moved to appeal a NSW Supreme Court ruling from October, which prevented the US biotech from terminating its $600 million acquisition of ASX-listed Mayne Pharma, which was ultimately blocked by Treasurer Jim Chalmers a month later.
Mayne said today that it intends to "vigorously defend" the appeal, which comes as the two companies gear up for a potential battle over the payment of a $6.72 million break fee.
The context: Cosette alleges Mayne undertook "misleading and deceptive conduct" in relation to its FY25 earnings, and that a material adverse change had occurred in relation to Mayne's Q3 FY25 sales performance.
Justice Ashley Black ruled in favour of Mayne on both claims last year, preventing Cosette from backing out of the agreed buyout.
However, Chalmers eventually killed the deal after refusing Foreign Investment Review Board (FIRB) approval amid concerns Cosette would close Mayne’s manufacturing facility in Salisbury, South Australia.
Mayne has accused Cosette of "material breaches" of the scheme implementation deed, which it claimed were "wilful and intentional" and contributed to preventing the takeover's FIRB approval.
The source: ASX
