Mayne Pharma escapes shareholder strike at AGM
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The news: Mayne Pharma escaped a shareholder strike at its annual general meeting (AGM) as its recently appointed chair acknowledged “none or you would be happy with our current share price” following the collapse of a more than $600 million takeover proposal.
The numbers: Only 21.98% of votes cast were against the adoption of the Mayne remuneration report, just shy of the 25% threshold to register a formal strike.
Two remuneration report strikes in consecutive AGMs would trigger a vote to spill a company’s board.
At 12:22pm AEDT, shares in Mayne Pharma traded flat at $2.80. This is a far cry from the more than $7.20 it hit in early 2025 following the announcement of Cosette Pharmaceuticals’ $7.40 per share all cash takeover offer.
In a trading update, Mayne flagged that underlying unaudited EBITDA for the first half of FY26 fell 8% to $28.6 million compared to the previous corresponding period.
This included the impact of a $54.5 million hit following a non-cash earn-out reassessment for the women’s health portfolio.
The context: Cosette sought to terminate the deal following weaker than expected revenue figures in April 2025 but was rebuked in court.
Treasurer Jim Chalmers eventually blocked the deal on national interest grounds after Cosette told the Foreign Investment Review Board it could shutter Mayne’s Salisbury manufacturing facility if the deal went through.
Before the annual general meeting, Mayne chair Bruce Robinson said he is “aware that none of you would be happy with our current share price” and stressed that “the decision of the Treasurer and Cosette’s conduct in relation to the FIRB approval, was unfortunately, not in the control of Mayne Pharma”.
While the company is considering its legal options against Cosette, Robinson said he is not in a position to provide any updates and would not address questions from shareholders on this matter.
What they said: “Now that Mayne Pharma is no longer subject to the constraints and distraction associated with the Scheme, I want to emphasise that the Board’s objective is straightforward: to ensure Mayne Pharma is led effectively, governed well, and positioned to deliver sustainable performance for shareholders,” Robinson said.
“The Board and management are focused on running the business, supporting our employees and customers, and executing our strategy, while ensuring that Mayne Pharma retains the full benefit of its contractual and legal rights.”
