Highlights

  • Mayne Pharma shares traded at AUD 2.91, up 9.40%, at the time of writing on 3 August 2026.
  • FY25 Revenue increased 5% to $408.1 million, while underlying EBITDA more than doubled to $47.0 million.
  • The company continues to manage litigation linked to the collapsed $672 million Cosette Takeover .
  • Investors are watching the strategic review, digital platform launch and performance of the branded portfolio.

Mayne Pharma's shares have been under pressure since a proposed $672 million takeover by US group Cosette Pharmaceuticals collapsed in late 2025. With litigation ongoing, a strategic review under way and mixed Earnings , the latest share-price recovery has brought renewed attention to the healthcare company.

A sharp bounce in a battered share price

Mayne Pharma shares traded at AUD 2.91, up 9.40%, at the time of writing on 3 August 2026.

The company has spent much of the past year in an unusual position for an ASX-listed drugmaker, with investor attention focused heavily on legal proceedings rather than product development.

Following the collapse of the proposed Cosette Acquisition , Mayne Pharma's Investment case has remained shaped by litigation, strategic uncertainty and the underlying performance of its pharmaceutical portfolio. The recent share-price recovery should therefore be viewed within a broader and still unresolved restructuring and legal process.

What Mayne Pharma actually does

Mayne Pharma is an Adelaide-based speciality pharmaceutical company with a significant US market presence. It develops, manufactures and markets branded and generic medicines through three reporting divisions.

Women's Health, its fastest-growing segment, includes the NEXTSTELLIS oral contraceptive and the BIJUVA menopause therapy.

Dermatology includes products such as RHOFADE, TWYNEO and EPSOLAY, which are increasingly distributed through a direct-to-patient model using the group's Adelaide Apothecary platform.

The International division includes generics distribution and the company's Salisbury Manufacturing Facility in South Australia.

Generic medicines are lower-cost alternatives to off-patent drugs, while branded products generally offer higher margins but carry greater development and commercialisation risk.

The Cosette deal: from $672 million offer to courtroom

The defining event was the February 2025 scheme implementation deed under which Cosette agreed to acquire Mayne Pharma for $7.40 per share, valuing the company at approximately $672 million.

A scheme of arrangement is a court-approved takeover structure requiring Shareholder and judicial approval. The transaction also required Foreign Investment Review Board clearance.

The parties amended the agreement in April 2025, and Cosette executed a deed poll in May. Later in 2025, Cosette sought to withdraw from the transaction, alleging a material adverse change, or MAC.

A MAC clause may allow a buyer to exit a transaction if the target company's Business deteriorates beyond an agreed threshold.

Cosette cited a shortfall in third-quarter FY25 sales relative to Mayne Pharma's internal forecast and an FDA letter relating to NEXTSTELLIS Marketing .

On 15 October 2025, the NSW Supreme Court rejected the attempted termination, finding that the MAC threshold had not been met and that Cosette's prior conduct amounted to an election to proceed.

In November 2025, Treasurer Jim Chalmers blocked the transaction on national-interest grounds. In December, both parties issued termination notices, formally ending the proposed acquisition.

Mayne Pharma subsequently commenced a damages claim. In May 2026, the court quantified a costs award of approximately $13.27 million, with around $14.4 million including interest received in June 2026. Cosette has indicated that it may appeal.

Recent financial performance

For FY25, the year ended 30 June 2025, Mayne Pharma reported revenue of $408.1 million, up 5%, and Gross Profit of $247.3 million.

Underlying EBITDA, which excludes certain one-off items, more than doubled to $47.0 million.

Reported EBITDA improved to $18.4 million, compared with a loss of $92.5 million in the prior period.

The company still reported a net loss after tax of $90.1 million, although this represented an improvement of approximately 47%.

Divisionally:

  • Women's Health revenue rose 25% to $178.4 million, with NEXTSTELLIS sales increasing 41%.
  • Dermatology revenue declined 12% to $154.1 million, although RHOFADE sales increased 28%.
  • International revenue rose 7% to $75.6 million.

The half-year ended 31 December 2025, or 1H FY26, presented a more cautious picture.

Revenue was broadly flat at $212.1 million, while gross Margin increased to 65.3%. Underlying EBITDA declined 8% to $28.6 million, and the net loss narrowed to $12.1 million.

Reported EBITDA of $63.0 million included scheme-related items and should therefore not be treated as a direct measure of operating performance.

Encouragingly, Dermatology's direct contribution increased 35% due to an improved product mix, while direct-to-patient revenue through Adelaide Apothecary rose 63%. BIJUVA net sales also increased 23%.

Balance Sheet , funding and strategic review

The balance sheet reflects the financial impact of the prolonged transaction and litigation process.

Cash and marketable securities declined to $67.3 million as at 31 December 2025, from $100.4 million six months earlier.

Scheme-related legal and Transaction Costs consumed approximately $20.7 million in cash during the half.

Management has since commenced a strategic review. Options under consideration include a possible sale or separation of the US operations, a share buy-back, a smaller board and selective capital-efficient acquisitions.

None of these options has been confirmed.

The company also underwent a Leadership change in February 2026, with Chief Financial Officer Aaron Gray appointed Chief Executive following the departure of Shawn Patrick O'Brien.

Industry backdrop and growth drivers

The pharmaceutical industry backdrop remains mixed.

US drug pricing continues to face structural pressure, while potential future tariffs on imported generic medicines could reshape global pharmaceutical Supply chains for manufacturers operating outside the United States.

For Mayne Pharma, the primary growth drivers remain its branded Women's Health portfolio, the higher-margin direct-to-patient dermatology model and a planned digital platform using partnerships with GoodRx and Adelaide Apothecary.

The platform was expected to launch late in the third quarter of FY26 and may support broader patient access and increased direct sales.

Risks and what to watch

The risks remain significant.

Litigation with Cosette is unresolved, with a potential appeal and uncertainty surrounding the final outcome of any damages claim.

The generics business continues to face pricing pressure, while a large proportion of group revenue is denominated in US dollars, exposing earnings to currency movements.

Cash reserves have declined, and the strategic review may not necessarily result in a transaction or other value-enhancing outcome.

Key milestones include progress on the digital platform, clarity regarding the future of the US operations, further legal developments and evidence of sustained growth across the branded portfolio.

Mayne Pharma retains a valuable Women's Health and Dermatology portfolio, improving gross margins and a legal position that has so far been favourable.

However, these factors must be weighed against recurring net losses, lower cash balances and the unresolved Cosette dispute. Whether the latest share-price recovery marks a more sustained improvement or continued Volatility remains uncertain.