Mayne Pharma, currently embroiled in a legal dispute with former US suitor Cosette Pharma, has announced a reduced annual net loss of $93.8 million. The pharmaceutical company, which develops and sells products in Australia and the US focusing on birth control and menopause treatments, saw increased revenue from the sale of goods and services. However, ongoing expenses, particularly in marketing, impacted overall profitability. This marks a notable improvement from the previous year’s net loss of $173.3 million.
Despite the narrowed loss, the financial results are under scrutiny due to the ongoing legal battle with Cosette Pharma. Adjusted earnings before interest and tax for the full year more than doubled to $47 million, although this figure sits at the lower end of the company’s projected range of $47 million to $51 million. Cosette alleges a “material adverse change” in Mayne Pharma’s financial performance since their $672 million takeover deal was initially agreed upon in February.
The US-based group terminated its takeover bid in June, leading to the current legal standoff. Mayne Pharma has refuted Cosette’s claims and challenged the validity of the termination notice in the NSW Supreme Court. The trial is scheduled to commence in mid-September, adding further complexity to the company’s financial outlook.
Mayne Pharma has stated they did not pay a final dividend. The outcome of the Supreme Court case will likely have significant implications for the future of the company and its relationship with Cosette Pharma, as well as impact shareholder confidence.
