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Highlights
Mayne Pharma's share price climbs as Cosette Pharmaceuticals has not formally withdrawn its takeover proposal
FDA issues letter indicating prior concerns around Nextstellis have been resolved
Mayne Pharma reiterates its position on material adverse change provisions under the scheme agreement
ASX-listed drug manufacturer Mayne Pharma Group Ltd (ASX:MYX), part of the health care sector and listed on the ASX 200, saw upward movement in its share price following a corporate update regarding a proposed acquisition by US-based Cosette Pharmaceuticals. The recent development comes as Cosette has not yet issued a termination notice related to its earlier bid to acquire the Australian company.
Mayne Pharma clarified that the acquirer has not formally revoked its takeover offer despite previously raising concerns that triggered a mandatory consultation period. The pharmaceutical company confirmed that it had received no formal withdrawal documentation at the conclusion of the required engagement window under the scheme implementation deed.
FDA clears Mayne Pharma on promotional claims
In the same market update, Mayne Pharma addressed one of the key issues highlighted by Cosette—concerns from the US Food and Drug Administration over promotional statements made regarding its contraceptive treatment, Nextstellis. The company stated it had received a communication from the FDA indicating the earlier matters had been resolved.
This follows an initial correspondence from the FDA asserting that Mayne Pharma had mischaracterised the risk profile of its birth control medication during a marketing presentation. Mayne maintained that the regulator’s claims were not materially significant and has now confirmed that the FDA has closed the issue after Mayne’s response.
Legal framework and deal status
The deal between Mayne Pharma and Cosette remains governed by a binding scheme implementation deed. Under this agreement, Cosette retains the right to withdraw before the second court date. However, Mayne Pharma reiterated its stance that the material adverse change concerns cited previously are without merit.
In its latest statement, Mayne highlighted that it has reminded Cosette of its obligations under the agreement, including moving forward with obtaining Foreign Investment Review Board approval. The Australian pharmaceutical group has affirmed it intends to take reasonable steps to ensure enforcement of its rights as per the agreement.
Share performance and market reaction
Following the announcement, Mayne Pharma’s share price saw upward movement but continues to trade below the previously proposed offer price by Cosette Pharmaceuticals. Despite the share price increase, the market remains attentive to whether Cosette will proceed or formally exit the transaction.
Mayne Pharma Group Ltd, traded under the ticker ASX: MYX, continues to be monitored closely amid ongoing merger and acquisition discussions. The outcome of the proposed scheme will likely hinge on Cosette’s next steps under the legal framework of the existing agreement.
