Mayne Pharma terminates scheme deed with Cosette Pharmaceuticals

The news: Mayne Pharma has terminated its scheme implementation deed (SID) with former suitor Cosette Pharmaceuticals, a day after rejecting Cosette's own termination notice.

The context: Mayne said Cosette was not entitled to terminate the scheme due to its "material breaches" of the SID, which it claimed were "wilful and intentional" and contributed to preventing the takeover's approval by the Foreign Investment Review Board (FIRB).

ASX-listed Mayne said it is not obligated to pay the break fee due to Cosette's actions and it will continue to consider all options available in connection with Cosette's alleged breaches.

Cosette attempted to terminate its takeover of ASX-listed Mayne earlier this year, before Treasurer Jim Chalmers eventually killed the deal after refusing FIRB approval amid concerns Cosette would close Mayne’s manufacturing facility in Salisbury, South Australia.