The board of Adelaide-based Mayne Pharma (ASX: MYX) has thrown its full support behind a $672 million takeover bid from US-based Cosette Pharmaceuticals in a deal that would see its 400-strong team absorbed into the women’s health giant.

The offer of $7.40 per share reflects a 37 per cent premium to the last closing share price of $5.41, but is well below the company’s peak of $42 per share nine years ago.

If no superior offer is put forward, the board of Mayne Pharma has announced it will back the proposal.

The company’s largest shareholders - Viburnum Funds and billionaire pub baron Bruce Mathieson - collectively own 14.1 per cent of the issued ordinary shares and have notified the pharmaceutical giant that they both intend to vote in favour of the deal.

“Today marks a pivotal moment in Mayne’s journey to improve patient access to life-enhancing medications,” Mayne Pharma CEO Shawn Patrick O’Brien said.

“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.

“Having broadened our portfolio in Dermatology and Women’s Health, and improved patient access through a refined US channel strategy, we have executed against our corporate strategies with precision. As we enter this new chapter, we do so as a stronger, more agile company.”

Mayne Pharma, which began as FH Faulding & Co Ltd in 1845, specialises in complex oral and topical dose medications, including highly potent compounds, modified release products and poorly soluble compounds.

Medicines sold in Australia include Aspirin tablets, Doryx capsules, Lozanoc capsules, Percutane pain relief cream and more, while US offerings feature the birth control Annovera, Bijuva capsules, Fabior cream and Lextte topical foam.

The company posted a net loss of $168.6 million for FY24 – a marked improvement from the previous loss of $317.4 million a year prior. Revenue soared from $183.6 million to $388.4 million year-on-year, with gross profit doubling to generate $218.8 million.

Revenue for the US women’s health segment shot up to $142.8 million, reflecting a 131 per cent increase. While the company’s EBITDA was a $92.5 million loss, it was a 9 per cent lift on the previous loss of $102 million.

If the deal is successful, Mayne will join US-based Cosette Pharmaceuticals, which has a portfolio of products in women’s health and dermatology. The firm has a history in the manufacturing of complex dosage forms including topical creams, ointments, oral liquids or solutions and suppositories.

Cosette has corporate and manufacturing facilities in New Jersey and North Carolina that is supported by 350-plus team members.

Shareholders will be given the chance to vote on the takeover in a meeting that is expected to be held in late April to early May 2025.

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