Mayne Pharma launches $18m countersuit against TherapeuticsMD
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The news: Drug company Mayne Pharma is counter-suing TherapeuticsMD (TXMD) on breach of contract and fraud allegations and has also filed a complaint to have the US-based company’s allegations dismissed in their entirety.
The numbers: Mayne Pharma is seeking damages of more than USD11.5 million ($17.8 million) in the US District Court for Delaware on claims that TXMD concealed information about commercialisation assets it sold to Mayne on 4 December 2022.
Mayne's share price was up 0.6% to $4.98 at 10:23am and is down 28.9% over the last month.
The context: TXMD initiated proceedings against Mayne in April, alleging a breach of contract, breach of implied covenant of good faith and fair dealing, fraudulent inducement to settle a prior portion of the net working capital adjustment and unjust enrichment related to the amount Mayne owed TXMD for various net working capital adjustments.
US-based Cosette Pharmaceuticals last month threatened to walk away from a proposed $672 million acquisition of Mayne Pharma, citing a material adverse change, with the two companies still negotiating a path forward.
TXMD’s proceedings against Mayne were flagged as one of the factors contributing to Cosette’s concern.
The source: ASX
