Cosette confirms review of $672m Mayne Pharma acquisition
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More news: In a statement to Capital Brief, Cosette Pharmaceuticals confirmed it had initiated a review of its planned $672 million acquisition of Mayne Pharma over a "material adverse change" in the Australian company's financial situation.
What they said: “Cosette Pharmaceuticals confirms it has notified Mayne Pharma Group Limited of a Material Adverse Change (MAC) pursuant to the terms of the Scheme Implementation Deed between the parties dated 20 February 2025,” a Cosette spokesperson said.
“There have been a series of events, including Mayne Pharma’s FY25 trading update in April and the receipt and disclosure of a letter from the FDA referenced in Mayne Pharma’s announcement to the ASX on 14 May, which have caused Cosette to form a view that a MAC has occurred.”
Mayne Pharma plummets after Cosette concerns put takeover deal at risk
The news: Shares in Mayne Pharma have plunged after its suitor, US-based Cosette Pharmaceuticals, detailed concerns about a "material adverse change" in Mayne's financial position, which could be grounds for scrapping Cosette's planned $672 million acquisition of the Adelaide-based company.
The numbers: Mayne’s share price was 29.78% lower at $4.55 at 10:38am AEST.
The context: In a statement, Mayne said it had received correspondence from Cosette on 17 May outlining its belief that a material adverse change had occurred. Mayne rejected the assertions in a response sent on 20 May.
Cosette’s notice did not quantify the financial impact but said it is concerned by the cumulative effect of poor trading performance relating to Mayne’s April earnings update, litigation with US-based women’s healthcare company TherapeuticsMD, and a United States Food and Drug Administration (FDA) letter alleging Mayne misrepresented the risks of its oral birth control product in advertising material.
The two companies are obliged to consult with one another over 10 business days from Cosette’s first notice, with the US-based pharmaceutical company intending to terminate the scheme implementation deed that began in February should a satisfactory outcome not be reached.
The source: ASX
