Managing Director's Sudden Exit Shakes Cohens Lifesciences, Stock Crashes 10% in a Day

Wednesday turned out to be a tough day for investors of Cohens Lifesciences, as the company’s shares saw a sharp decline following a major management shake-up. The stock opened to heavy selling pressure, slipping over 10 percent during intraday trade. From Tuesday’s close at around ₹854.50, the stock plummeted to ₹767.10, eroding a significant chunk of its market capitalization, which now stands at ₹31,372 crore.

The steep fall sparked panic among investors, raising the question — what triggered this sudden loss of confidence in the pharma major? The answer lies in the unexpected resignation of the company’s Managing Director (MD) and Director, V. Prasad Raju, which rattled market sentiment.

MD’s Resignation Sparks Investor Panic
The company informed the exchanges that Prasad Raju had resigned from his post on October 28, citing “personal reasons.” Since the MD plays a crucial role in steering the company’s growth strategy and day-to-day operations, his abrupt exit raised concerns among investors about the company’s internal stability and future direction.

Such developments often lead to uncertainty in the market, as investors fear deeper issues within the organization. That fear quickly turned into a sell-off, leading to a sharp drop in share prices.

Transition Underway, New Leadership Announced
While Raju has resigned, he will continue to serve the company until a “smooth transition” is completed. This means he will hand over his responsibilities to the next leader and ensure operations run seamlessly before stepping down officially.

To fill the leadership gap, Cohens Lifesciences has appointed Himanshu Agarwal as an Additional and Whole-Time Director, effective October 29.

About Cohens Lifesciences
Cohens Lifesciences is a prominent Contract Development and Manufacturing Organization (CDMO), specializing in developing and manufacturing complex pharmaceutical molecules, active pharmaceutical ingredients (APIs), and specialty chemicals. The company’s growth model focuses heavily on strategic acquisitions and partnerships with leading global pharmaceutical and biotechnology firms.