Legal Battle Looms After Mayne Pharma’s Shareholders Back Cosette Deal
Mayne Pharma shareholders have overwhelmingly approved a scheme for Cosette Pharmaceuticals to acquire the company, setting the stage for a pivotal court hearing later this year.
- 99.06% of votes cast in favor of Cosette's acquisition scheme
- 89.64% of shareholders present supported the resolution
- Acquisition subject to Supreme Court approval in September
- Mayne Pharma challenges Cosette's termination of the Scheme Implementation Deed
- Deal marks a significant shift for Mayne Pharma's strategic future
Shareholder Approval Signals Strong Support
In a decisive vote held on 18 June 2025, Mayne Pharma Group Limited's shareholders overwhelmingly endorsed the proposed Scheme of Arrangement that will see Cosette Pharmaceuticals, Inc. acquire 100% ownership of the specialty pharmaceutical company. With over 99% of votes cast in favor, the resolution reflects strong investor confidence in the transaction despite some underlying legal complexities.
The Road Ahead, Legal Challenges and Court Approval
While the shareholder vote is a critical milestone, the acquisition is not yet complete. Mayne Pharma is currently contesting Cosette's purported termination of the Scheme Implementation Deed, a move that injects uncertainty into the process. The next major event is a scheduled hearing before the Supreme Court of New South Wales on 18 September 2025, where the court will consider whether to approve the Scheme. The outcome of this hearing will be pivotal in determining whether the acquisition proceeds as planned.
Strategic Implications for Mayne Pharma
The acquisition by Cosette represents a significant strategic shift for Mayne Pharma, a company with a 40-year legacy of innovation in dermatology, women’s health, and oral drug delivery technologies. Under Cosette’s ownership, Mayne Pharma’s portfolio and global reach could be expanded, potentially accelerating the commercialisation of its novel pharmaceuticals. However, the legal dispute and court approval process underscore the complexities often inherent in major corporate transactions.
Market and Investor Sentiment
The near-unanimous shareholder support suggests that investors are largely optimistic about the benefits of the deal, including potential value creation and enhanced market positioning. Yet, the pending legal challenge and court decision mean that market participants will be watching closely for any developments that could delay or derail the acquisition. The resolution of these issues will likely influence Mayne Pharma’s share price and investor confidence in the near term.
Looking Forward
As the September court hearing approaches, all eyes will be on how the legal dispute unfolds and whether the Scheme receives final approval. This phase will be critical not only for Mayne Pharma’s shareholders but also for the broader pharmaceutical sector, as it highlights the challenges and opportunities in consolidating specialty pharmaceutical assets.
Bottom Line?
The court’s decision in September will be the true test of this landmark acquisition’s viability.
Questions in the middle?
- Will the Supreme Court uphold or reject Mayne Pharma’s challenge to Cosette’s termination?
- How might the acquisition reshape Mayne Pharma’s product development and market strategy?
- What are the potential financial impacts if the Scheme is delayed or blocked?
