Cohance Lifesciences shares surge 6% as Jefferies initiates coverage
Cohance Lifesciences, facing destocking pressures in specialty chemicals, is poised for growth, says Jefferies.
- Aug 25, 2025,
- Updated Aug 25, 2025 11:12 AM IST
Shares of Cohance Lifesciences rose nearly 6% on Monday after global brokerage Jefferies initiated coverage on the pharma stock with a buy call. Cohance Lifesciences shares gained 5.68% to Rs 935 against the previous close of Rs 884.70 on BSE. Market cap of the firm rose to Rs 34,622 crore.
Cohance Lifesciences is poised to capitalise on favourable conditions in the Antibody Drug Conjugate (ADC) industry, according to a recent analysis by Jefferies. The brokerage has set a price target of ₹1,150, suggesting a potential 30% upside from Friday's closing price.
Despite facing destocking pressures in its specialty chemicals division—where sales contribution fell from 22% in FY23 to 11% in FY25—Jefferies anticipates an improvement.
"Specialty chemicals are likely to recover from financial year 2026, while Pharma CDMO destocking should resolve within the next one to two quarters," Jefferies stated.
This recovery, coupled with Cohance's robust ADC business and expansion opportunities, is expected to drive sustained high growth. The company's growth will be further supported by its strong ADC pipeline, integrated offerings, and diversification into the Indian market. With multiple growth levers, including new customer and molecule additions, Cohance is well-positioned to overcome current challenges and achieve significant growth in the coming years.
Cohance Lifesciences is a contract development and manufacturing organization (CDMO) that partners with global pharmaceutical and biotechnology companies. It specializes in creating complex molecules, active pharmaceutical ingredients (APIs), specialty chemicals, and formulations. The company's business model is a unified platform built from a series of strategic acquisitions.
Shares of Cohance Lifesciences rose nearly 6% on Monday after global brokerage Jefferies initiated coverage on the pharma stock with a buy call. Cohance Lifesciences shares gained 5.68% to Rs 935 against the previous close of Rs 884.70 on BSE. Market cap of the firm rose to Rs 34,622 crore.
Cohance Lifesciences is poised to capitalise on favourable conditions in the Antibody Drug Conjugate (ADC) industry, according to a recent analysis by Jefferies. The brokerage has set a price target of ₹1,150, suggesting a potential 30% upside from Friday's closing price.
Despite facing destocking pressures in its specialty chemicals division—where sales contribution fell from 22% in FY23 to 11% in FY25—Jefferies anticipates an improvement.
"Specialty chemicals are likely to recover from financial year 2026, while Pharma CDMO destocking should resolve within the next one to two quarters," Jefferies stated.
This recovery, coupled with Cohance's robust ADC business and expansion opportunities, is expected to drive sustained high growth. The company's growth will be further supported by its strong ADC pipeline, integrated offerings, and diversification into the Indian market. With multiple growth levers, including new customer and molecule additions, Cohance is well-positioned to overcome current challenges and achieve significant growth in the coming years.
Cohance Lifesciences is a contract development and manufacturing organization (CDMO) that partners with global pharmaceutical and biotechnology companies. It specializes in creating complex molecules, active pharmaceutical ingredients (APIs), specialty chemicals, and formulations. The company's business model is a unified platform built from a series of strategic acquisitions.