Drugmaker Mayne Pharma has slumped to the bottom of the ASX in early afternoon trade, sliding 16.2% to $3.73 as the company “assesses its options” after Treasurer Jim Chalmers handed reluctant US bidder Cosette a way out of its $670 million takeover on Friday. Shares in small-cap Mayne (ASX: MYX) are now down more than 20% year to date.
Dr Chalmers blocked the deal on the advice of the Foreign Investment Review Board, saying: “This is about doing what is necessary to protect Australia’s national interest, the security of our critical medical supply chains, local jobs and the local community.”
Mayne is focused on the US market but owns a manufacturing site at Salisbury in South Australia that employs more than 200 people. Cosette had warned it may close the facility if the takeover – agreed in February and the subject of a court battle since June – went ahead. The NSW Supreme Court had previously found in Mayne’s favour.
The company went into a trading halt on Friday morning and later updated the market after the close.
“Mayne Pharma is disappointed to inform shareholders that the FIRB condition precedent to the scheme will not be satisfied such that the scheme is unlikely to proceed,” it said, adding that Cosette has issued a notice asking the parties to “consult in good faith” on possible alternatives.
“Mayne Pharma is currently assessing its options and next steps.”