Cosette Issues Second Termination Notice; Mayne Pharma Stands Firm
Mayne Pharma has dismissed a fresh termination notice from Cosette Pharmaceuticals, reaffirming its commitment to proceed with the upcoming Scheme Meeting on 18 June 2025. The dispute centers on the validity of the Scheme Implementation Deed termination claims.
- Cosette issues further purported termination notice over Scheme Implementation Deed
- Mayne Pharma rejects notice as invalid, citing no lawful grounds for termination
- Legal proceedings underway to enforce Mayne Pharma’s rights under the agreement
- Scheme Meeting scheduled for 18 June 2025 to proceed as planned
- Mayne Pharma directors unanimously recommend voting in favor of the Scheme
Background of the Dispute
Mayne Pharma Group Limited (ASX, MYX) finds itself entrenched in a legal tussle with Cosette Pharmaceuticals, Inc. over the proposed acquisition outlined in their Scheme Implementation Deed (SID) signed earlier this year. On 4 June 2025, Cosette issued a notice purporting to terminate the SID, citing alleged breaches by Mayne Pharma. This latest development, a further termination notice received on 13 June, reiterates Cosette’s position but adds no new grounds.
Mayne Pharma’s Firm Rejection
Mayne Pharma has categorically rejected the further termination notice as invalid, maintaining that Cosette lacks any lawful basis to terminate the agreement. The company, supported by its advisors, continues to assert its rights under the SID and has initiated court proceedings to enforce these rights. This stance signals Mayne Pharma’s confidence in the legal robustness of the deal and its determination to see the acquisition through.
Implications for Shareholders and the Scheme Meeting
Despite the ongoing dispute, Mayne Pharma has confirmed that the Scheme Meeting will proceed as scheduled on 18 June 2025. The board unanimously recommends shareholders vote in favor of the Scheme Resolution, provided no superior proposal emerges and the Independent Expert maintains a positive assessment. Directors who hold shares have also pledged to support the Scheme, underscoring their commitment to the transaction.
What This Means for the Acquisition
The repeated termination attempts by Cosette introduce uncertainty but have not derailed the process. The legal contest over the SID’s validity will likely continue to unfold in court, potentially influencing shareholder sentiment and market dynamics. Mayne Pharma’s insistence on moving forward suggests it views the deal as strategically important and legally defensible.
Looking Ahead
Shareholders are encouraged to review all Scheme documentation carefully and participate in the upcoming vote. The outcome of this meeting, combined with the ongoing legal proceedings, will be pivotal in determining the future ownership and strategic direction of Mayne Pharma.
Bottom Line?
As legal battles intensify, all eyes turn to the June 18 Scheme Meeting for clarity on Mayne Pharma’s fate.
Questions in the middle?
- Will the court uphold Mayne Pharma’s position against Cosette’s termination claims?
- Could a superior proposal emerge that alters shareholder support for the Scheme?
- How will ongoing legal uncertainty impact Mayne Pharma’s share price and investor confidence?
