Mayne Pharma Wins $14.4M Cost Recovery as Cosette Pays Up Pending Appeal
Mayne Pharma has received $14,410,714.49 from Cosette Pharmaceuticals following Supreme Court of NSW orders made on 29 May 2026. The payment, received on 5 June 2026, comprises recovery of the company’s legal costs, costs associated with the costs application, and interest stemming from the October 2025 judgment delivered in Mayne Pharma’s favour.
Mayne Pharma secures $14.4 million legal cost recovery from Cosette
The $14.4 million payment represents a material vindication of Mayne Pharma’s legal position in proceedings commenced against Cosette in June 2025. The dispute centred on Cosette’s purported termination of the Scheme Implementation Deed signed by both parties in February 2025.
In October 2025, the Court delivered judgment in favour of Mayne Pharma, dismissing all of Cosette’s claims. The Court also made an adverse costs order against Cosette, requiring Cosette to pay Mayne Pharma’s costs of the proceedings as agreed or assessed. The $14,410,714.49 received comprises recovery of Mayne Pharma’s legal costs, costs associated with Mayne Pharma’s application for costs, and interest.
This cash inflow strengthens Mayne Pharma’s balance sheet whilst the broader dispute remains subject to appeal proceedings.
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Timeline of the Cosette legal dispute
The legal matter has progressed through several stages since early 2025:
- February 2025: Mayne Pharma and Cosette sign Scheme Implementation Deed
- June 2025: Mayne Pharma commences proceedings against Cosette over purported termination of the Deed
- October 2025: Supreme Court of NSW delivers judgment in favour of Mayne Pharma, dismissing all of Cosette’s claims; adverse costs order made against Cosette
- January 2026: Cosette appeals the October 2025 judgment
- 29 May 2026: Supreme Court of NSW makes orders under which Cosette’s payment of Mayne Pharma’s costs is to be made
- 2-3 June 2026: Appeal heard in Court of Appeal; decision reserved
- 5 June 2026: Mayne Pharma receives $14.4 million payment
The timeline provides clarity on where the dispute currently stands and what remains unresolved whilst appeal proceedings continue.
The prior costs order against Cosette, which established the $13.27 million base award in May 2026, was subsequently supplemented by the interest component and costs of the costs application, bringing the total received to $14,410,714.49.
What are adverse costs orders in Australian litigation?
In Australian civil litigation, the losing party typically pays the winning party’s legal costs under the “costs follow the event” principle. The Court’s adverse costs order against Cosette required Cosette to pay Mayne Pharma’s costs “as agreed or assessed,” with the $14.4 million representing the agreed or assessed amount determined following the October 2025 judgment.
Appeal outcome still pending
Cosette lodged an appeal in January 2026 against the October 2025 judgment. The appeal was heard on 2 and 3 June 2026 in the Supreme Court of NSW, Court of Appeal, with a decision reserved.
The $14.4 million costs recovery is a separate matter from the appeal outcome. The costs payment has been made regardless of the pending appeal decision, providing immediate cash benefit to Mayne Pharma whilst the broader legal questions remain before the Court of Appeal.
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What this means for Mayne Pharma shareholders
Shareholders have seen a $14.4 million cash inflow received on 5 June 2026, following multiple legal victories in the proceedings to date. The payment provides tangible financial benefit from the Court’s October 2025 judgment in the company’s favour.
The appeal decision remains pending and will be a key event to monitor, as the outcome could have further implications for the dispute resolution. Mayne Pharma continues to operate its specialty pharmaceutical business across dermatology and women’s health in the US whilst the legal matter progresses through the appeals process.
The DistributeRx pharmacy platform, launched in March 2026, is building direct-to-patient prescription fulfilment capacity across Mayne Pharma’s Women’s Health and Dermatology segments, representing the company’s primary commercial growth initiative running in parallel to the Cosette proceedings.
The company’s 40-year track record in developing oral drug delivery systems and contract development and manufacturing services remains its core operational focus, with the Cosette matter representing a discrete legal and financial event rather than an operational distraction.
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