Mayne Pharma board backs $672 million takeover bid from Cosette Pharma

Mayne Pharma (ASX: MYX) has received a takeover offer at a price of $7.40 per share from US-based pharmaceutical company Cosette Pharma, valuing the company at $672 million.

Cosette has a portfolio of products in women’s health and dermatology and a long history of manufacturing complex dosage forms including topical creams, ointments, oral liquids/solutions and suppositories.

The US-based firm is backed by healthcare-focused private equity firm Avista Healthcare Partners and funds controlled by private markets investment management firm Hamilton Lane.

Excellent work reflected

Mayne Pharma chief executive officer Shawn Patrick O’Brien said this was a pivotal moment in Mayne’s journey to improve patient access to life-enhancing medications.

“Attracting an offer from a strategic buyer who is active in the US dermatology and women’s health markets, such as Cosette, reflects the excellent work our teams have been doing to strengthen our company over the last year and more,” chair Frank Condella added.

Cosette has corporate and manufacturing facilities in New Jersey and North Carolina and is supported by more than 350 team members across all operations.

Board recommendation

The Mayne Pharma board has unanimously recommended that shareholders vote in favour of the scheme, which is fully funded and subject to limited customary conditions.

“The board believes that the proposed transaction is in line with its priority to deliver value to our shareholders and also provides significant benefits for our broader stakeholders,” Mr Condella said.

The $7.40 offer price represents a premium of 37% to Mayne Pharma’s closing share price as at 20 February 2025 and a 42% premium to the 30-day volume weighted average price.

Expanded global reach

Cosette Pharma chief executive officer Apurva Saraf said the acquisition marked a transformational step for the company, adding patented, high-growth products to solidify its leadership in women’s health in the US while expanding its reach globally.

“By combining Cosette’s strong portfolio with Mayne Pharma’s proven commercial expertise, the combined company will be well-positioned to further invest in innovation, portfolio expansion and better serve our patients,” he said.

“We look forward to a timely closing and welcoming Mayne Pharma to the Cosette family.”