Key Highlights:

  • Mayne Pharma closed at A$2.87 on 22 September, far below the A$7.40 per share Cosette had agreed to pay before the Treasurer blocked the deal in November 2025.
  • Orthocell's FY26 Revenue rose about 44% to A$13.2 million, but its net loss widened, and its shares are about half their 52-week high.
  • Upcoming catalysts include Mayne's pending appeal judgment and strategy decisions, and Orthocell's US hospital uptake and cash burn.
  • Upcoming company updates and execution against stated plans remain central to the next phase for both stocks.

Mayne Pharma and Orthocell are both small-cap healthcare companies trading well below their highs. Their next moves are likely to depend on very different things. For Mayne, the question is what the board does next after its Takeover collapsed, and how the Cosette litigation ends. For Orthocell, it is whether US sales of its Remplir nerve repair device can grow fast enough to justify its valuation.

A healthcare rebound that has not reached everyone

Large-cap healthcare had a strong August. the S&P/ASX 200 Health Care index rose 13% during the month, led by CSL, but was still down 18% over 12 months.

The broader market has also turned cautious. On 24 September the S&P/ASX 200 fell 0.72% to 8,702 points, as rising Global Bond yields hit equities and markets priced in a likely Reserve Bank rate hike. Higher rates tend to weigh most on smaller, loss-making or turnaround stocks.

On index status, Mayne Pharma was removed from the S&P/ASX 300 in the March 2026 quarterly rebalance. It did not appear among the All Ordinaries removals in the March, June or September 2026 rebalances. Orthocell was not named in any 2026 rebalance announcement.

Mayne Pharma (ASX:MYX): a turnaround after a failed takeover

Mayne Pharma is an Adelaide-based specialty pharmaceutical company. Most of its sales come from the US, through its women's health brands (including NEXTSTELLIS, BIJUVA and IMVEXXY) and its dermatology portfolio. In February 2025 it agreed to a scheme of arrangement with US-based Cosette Pharmaceuticals at A$7.40 per share, valuing the company at about A$672 million. Cosette later tried to walk away from the deal. The NSW Supreme Court ruled in October 2025 that Cosette's termination was invalid, but Treasurer Jim Chalmers then blocked the Acquisition in November 2025 on national interest grounds.

The litigation has since brought in some cash. Mayne said on 5 June 2026 that it had received about A$14.4 million from Cosette for legal costs and interest. It noted that Cosette's appeal of the October 2025 judgment was heard on 2–3 June and that a decision was pending. Mayne has also lodged a broader damages claim against Cosette and its affiliates.

Operationally, the FY26 result released on 26 August was mixed. Group revenue fell 6% to A$383.7 million. Gross Margin rose 411 basis points to 64.7% as the company moved further towards branded products. Underlying EBITDA fell 27% to A$34.2 million. Cash dropped from A$100.4 million to about A$80 million, which management linked partly to litigation costs and earn-out payments. The shares were little changed on the day at about A$3.17.

Shareholders have grown restless. In August, some investors were pushing for asset sales, a separation of the US operations, Buybacks or board changes. Around the same time, Jacob Ma-Weaver, whose funds hold 9.9% of the company, joined the board. The stock closed at A$2.87 on 22 September, which puts at a Market Value of about A$233 million. That is well below its 52-week high of A$6.50.

Orthocell (ASX:OCC): a commercial-stage MedTech still scaling

Orthocell is a Perth-based regenerative medicine company. Its main product is Remplir, a collagen wrap used in peripheral nerve repair, and it raised about A$25 million in late 2025 to fund Remplir's US rollout.

The FY26 numbers show both progress and cost. revenue rose about 45% to A$13.2 million, while the net loss widened 59% to A$13.6 million. The June quarter update reported fourth-quarter revenue of A$3.8 million. US Remplir sales in that quarter were A$330,000, with 70 US hospitals buying the product and 44 hospital value analysis committee approvals. Available funds at 30 June were about A$44.1 million. Earlier in 2026 the company also announced approval for Remplir to be used across US Department of Defense hospital facilities.

kept a speculative buy rating on 3 September but cut its price target from A$1.19 to A$1.13, when the shares were about 72.5 cents. The broker said the key thing to watch now is repeat use of Remplir and how much of that turns into revenue. The stock closed at 77 cents on 23 September, up 8.4% that day . That is still far below its 52-week high of A$1.60.

What links the two, and where they differ

Both stocks are well down from their highs and have missed most of the large-cap rally. Beyond that, the stories are quite different.

Mayne is a profitable Business with shrinking revenue and cash. Its share price now depends more on corporate events than on product growth: the appeal ruling, any damages outcome, and whether the board agrees to sell or separate assets. Orthocell is still investing ahead of revenue. The market is judging it on whether US uptake of Remplir picks up, and on how long its cash lasts.

What investors could watch next

For Mayne Pharma, the most direct catalyst is the NSW Court of Appeal's decision on Cosette's appeal, followed by any progress on the damages claim. Investors will also watch the annual general meeting, which Mayne usually holds late in the calendar year, for any strategy announcement or pressure from shareholders. Beyond that, the watch points are growth in women's health prescriptions and gross margin, and whether cash holds up.

For Orthocell, the September quarter activity report due in October should show whether US hospital approvals and repeat Remplir orders are rising, and how fast cash is being used against the A$44.1 million balance at 30 June. For both companies, the RBA's rate decision and the direction of bond yields will affect how much investors are willing to pay for small-cap healthcare stocks.

The bottom line

Mayne Pharma's next move is likely to depend on litigation and on whether the board makes corporate changes. Orthocell's will depend on whether its US sales keep growing. For both, company-specific catalysts are likely to matter more than sector sentiment.