Mayne Pharma collects $14.4 million from Cosette following court-ordered cost recovery
Mayne Pharma Group has received $14,410,714.49 from Cosette Pharmaceuticals as of 5 June 2026, paid in accordance with Supreme Court of New South Wales orders dated 29 May 2026. The payment comprises legal costs, costs associated with Mayne Pharma’s application for costs, and interest, representing a tangible cash inflow following successful litigation against Cosette.
The funds are now with the company, providing a real balance sheet benefit from the cost recovery order.
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Timeline of the Cosette dispute
The chronological sequence of events in the Cosette litigation:
- February 2025: Mayne Pharma and Cosette sign Scheme Implementation Deed
- June 2025: Mayne Pharma commences proceedings against Cosette following purported termination of the deed
- October 2025: Supreme Court of NSW delivers judgment in favour of Mayne Pharma, dismissing all Cosette claims and ordering adverse costs against Cosette
- January 2026: Cosette lodges appeal against the October 2025 judgment
- 29 May 2026: Court orders Cosette to pay Mayne Pharma’s legal costs
- 2-3 June 2026: Appeal hearing held in Supreme Court of NSW, Court of Appeal; decision reserved
- 5 June 2026: Mayne Pharma confirms receipt of $14.4 million payment
The litigation has progressed through multiple stages with Mayne Pharma prevailing at first instance, though an appeal decision remains outstanding.
| Date | Event | Outcome |
|---|---|---|
| October 2025 | Supreme Court judgment | Mayne Pharma successful; Cosette claims dismissed |
| 29 May 2026 | Cost order made | Cosette ordered to pay Mayne Pharma’s legal costs |
| 5 June 2026 | Payment received | $14,410,714.49 confirmed received |
What adverse costs orders mean for investors
When a court makes an adverse costs order in Australian litigation, the losing party must pay the winning party’s reasonable legal expenses. This is distinct from damages, representing cost recovery rather than compensation.
Costs can be determined “as agreed or assessed,” meaning parties negotiate the quantum or a court assesses it. The $14.4 million payment consists of three components:
- Legal costs incurred by Mayne Pharma in defending the proceedings
- Costs associated with Mayne Pharma’s application for costs
- Interest on the outstanding amounts
The payment represents a real balance sheet benefit: Mayne Pharma has been reimbursed for the costs it incurred in bringing and prosecuting the proceedings against Cosette rather than absorbing those costs as an expense. The funds are now available to the company regardless of the appeal outcome.
Appeal outcome still pending
Cosette’s appeal was heard on 2 and 3 June 2026 in the Supreme Court of New South Wales, Court of Appeal. The decision has been reserved, meaning no ruling has been handed down yet.
The cost recovery payment of $14.4 million has been received as confirmed on 5 June 2026. The appeal decision could have further implications for the parties depending on the ruling, though the immediate financial benefit to Mayne Pharma from the cost recovery is now realised.
About Mayne Pharma
Mayne Pharma is an ASX-listed specialty pharmaceutical company focused on commercialising pharmaceuticals in dermatology and women’s health in the United States. The company also provides contract development and manufacturing services to clients worldwide.
Mayne Pharma has a 40-year track record in developing oral drug delivery systems, with technologies successfully commercialised in products marketed globally.
What Does This $14.4 Million Cost Recovery Mean for Mayne Pharma’s Future?
Mayne Pharma has secured tangible cash inflow from its successful litigation against Cosette, strengthening its balance sheet with immediate financial benefit. The payment represents a real recovery of legal expenses rather than absorbed costs, providing the company with additional capital regardless of the pending appeal outcome.
To stay updated on Mayne Pharma’s litigation progress and strategic developments, visit the Mayne Pharma investor centre for the latest announcements and financial updates.