Mayne Pharma Group Limited (ASX: MYX) is facing headwinds in its proposed acquisition by Cosette Pharmaceuticals, Inc. The company, which is focused on commercialising novel pharmaceuticals and providing contract development and manufacturing services, announced that it has received a letter indicating the Treasurer’s preliminary view that the acquisition would be contrary to the national interest, citing a negative impact on the Australian economy and community.
The Treasurer’s concerns stem from Cosette’s re-evaluation of its intentions regarding Mayne Pharma’s Adelaide manufacturing site. Cosette reportedly intends to dispose of or close the site if the acquisition proceeds. Mayne Pharma agrees with the Treasurer regarding the importance of the site, highlighting its TGA and FDA approval, as well as a recent $18 million investment supported by a $4.8 million Commonwealth Government grant. Mayne Pharma has been unable to directly engage with FIRB regarding Cosette’s communications. The company has consistently communicated to Cosette that closing the site would not be commercially rational.
FIRB has requested an extension to the statutory deadline for a decision to 1 December 2025. Mayne Pharma has urged Cosette to seek a shorter extension, as the current timeframe exceeds the End Date under the Scheme Implementation Deed (SID). Cosette has advised it plans to request a final decision from FIRB by 7 November 2025. Mayne Pharma will reschedule the second court hearing related to the Scheme pending resolution of this matter and continues to enforce the SID provisions.
The Scheme remains subject to court approval and other conditions. Mayne Pharma has assured shareholders that they will be kept informed of all relevant updates, which will be announced to the ASX and on the company’s website.
