Mayne Pharma Disputes Claims of Potential Salisbury Facility Closure,Expresses Surprise at Premier’s FIRB Request
Mayne Pharma is challenging reports that it alerted the Foreign Investment Review Board (FIRB) to the possibility of closing its manufacturing facility in Salisbury,South Australia,due to financial concerns. The company also stated it was unaware of direct communication between South Australian Premier Peter Malinauskas and either Cosette Pharmaceuticals, the US firm attempting a takeover, or FIRB itself.The dispute arises following reports in The Advertiser and the Financial Review that Premier Malinauskas requested FIRB block Cosette’s proposed $672 million buyout, fearing a closure of the Salisbury site. Mayne Pharma asserts it “was not previously made aware of any dialog or communications” regarding these interactions.
The Financial Review reported Mayne Pharma had advised FIRB in July of potential closure plans linked to its financial position. however, Mayne Pharma vehemently denies this, emphasizing it has no intention of closing the facility. The company highlighted a 7% year-on-year revenue increase in its recent full-year results and a recent $18 million upgrade to the Salisbury site as evidence of its commitment.
Mayne Pharma acknowledges Cosette has corresponded with FIRB following its attempt to terminate the scheme implementation deed for the takeover – a termination currently being contested in the Supreme Court. However, the company states that correspondence it has reviewed does not indicate any plans to close the Salisbury facility.
Furthermore, Mayne Pharma noted it provided data to Cosette, but Cosette has not permitted Mayne to directly engage with FIRB regarding Cosette’s communications. Mayne Pharma confirms it has not had direct contact with either FIRB or the South Australian government concerning the proposed transaction and is actively seeking further information on the matter.