Azzet reports on three ASX with notable trading updates today.
Mayne rises after threatening to sue US suitor
Shares in Mayne Pharma Group (ASX: MYX) were up around 2.5% on the revelations the Adelaide-headquartered drug company plans to fight yesterday’s decision by American pharmaceutical giant Cosette to renege on a $672 million takeover bid.
It’s understood that Cosette’s decision to terminate the $7.40 per share offer yesterday – which saw Mayne shares tumble 7% - has set the stage for a potential legal battle.
What the legal battle will contest is Cosette’s claim that a “material adverse change” in the company’s financial performance since it made its offer in February, has led it to a terminated takeover bid.
Cracks appeared in Cosette’s offer in early May after it questioned Mayne’s 22 April trading update.
What also appears to have spooked Cosette is a letter from the U.S. Food and Drug Administration (FDA) accusing Mayne of making misleading claims about its contraceptive pill, Nextstellis.
Mayne plans to vigorously deny these suggestions.
Given that a termination notice in an Australian takeover deal is uncommon, Cosette was expected to low-ball its original offer. However, the U.S. company has decided to walk instead.
Meanwhile, Mayne plans to enforce its rights, including approaching the Supreme Court, to challenge Cosette’s position.
“Mayne Pharma remains committed to the successful completion of the scheme in the interests of all shareholders and maintains its position that all information relevant to the financial position of Mayne Pharma has been disclosed to the market,” Mayne told investors.
Prior to yesterday’s official termination notice, Mayne shareholders were set to vote on Cosette’s offer on 18 June.
Mayne Pharma has a market cap of $372 million; the share price is down around 7% over one year and down around 34% in the last month.
The stock’s shares are in a downtrend that has been confirmed over multiple periods.
Consensus is Hold.
Lynas jumps after automaker manoeuvres to dial-down China reliance
Shares in Lynas Rare Earths (ASX: LYC) were up around 8% following revelations that major European car makers said China’s rare earths export controls were disrupting its supplier networks.
It’s understood that while some European auto parts plants have suspended output, Mercedes-Benz and BMW AG are in talks with suppliers to protect against shortages of rare earths.
This is a major about-face by carmakers that typically don’t purchase rare earth metals directly.
This also bodes well for Lynas given its position as one of only two global rare earth supply producers outside China.
In the meantime, Lynas also benefits from broker upgrades.
Today Ord Minnett raised its recommendation to Accumulate ($8.70 price target), while analysts at Morgan Stanley recently retained their overweight rating and $10.00 price target.
Brokers expect the miner to increase production courtesy of a new Kalgoorlie facility.
Three days ago Lynas secured additional feedstock for its advanced materials plant in Malaysia by signing a memorandum of understanding (MoU) with Menteri Besar (MB), the strategic investment arm of Malaysia’s Kelantan state government.
Lynas’ market cap is $8.3 billion; the share price is up 33% over one year and up 38% year to date.
The stock appears to be in a long-term uptrend confirmed by multiple indicators.
Consensus is Hold.
IperionX rockets on next US defence contract
Shares in IperionX (ASX: IPX) (NASDAQ: IPX) were up around 22% heading into lunch after the titanium alloy manufacturer announced a watershed defence contract with the U.S. Department of Defense (DoD).
A Small Business Innovation Research (SBIR) Phase III contract awarded by the DoD’s Army Research Laboratory allows IperionX to receive task order funding for its titanium components and parts up to a total of US$99 million ($152 million).
Given that Phase III SBIR contracts are reserved for proven technologies ready to scale from R&D into full commercial production, today’s funding is seen as a major vote of confidence in the stock.
It’s understood that initial task orders under the contract will focus on producing high-performance titanium fasteners using its proprietary manufacturing and forging technologies.
These will be made at the company's Virginia-based Titanium Manufacturing Campus.
Equally encouraging, management flagged future orders could expand to include higher-value aerospace components, positioning IperionX as a partner in DoD’s drive for secure, American-made and cost-competitive titanium.
Commenting on today’s update, CEO, Anastasios (Taso) Arima noted:
“Securing this Phase III contract is a pivotal milestone for IperionX. It validates the performance of our technologies and underscores the Department of Defence’s commitment to reshore an all-American titanium supply chain,” he said.
“We look forward to delivering mission-critical components that are lighter, stronger and more cost-effective while reducing reliance on international supply chains.”
While IperionX is an ASX300 stock, its business is unclear.
The company uses patented metal technologies to produce high-performance titanium alloys from minerals or scrap metal consuming less energy at a lower cost and with fewer carbon emissions.
Critical minerals are essential for space, aerospace, defence, consumer electronics, hydrogen, automotive and additive manufacturing.
At March 31, 2025, IperionX held US$66.1 million in cash.
IperionX (formerly Hyperion Metals Limited) has a market cap of $1.4 billion; the share price is up 104% over one year and down 15% year to date.
The stock appears to be in a medium-term rally confirmed by multiple indicators.
Consensus is Strong Buy.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
