Cohance shares in focus as Telangana site closed after industrial accident

Shares of Cohance Lifesciences (erstwhile Suven Life Sciences Ltd), a contract research services company, are in focus after the company said it received an order from the Telangana Pollution Control Board (TGPCB) directing closure of operations at the company’s manufacturing site at Suryapet, Telangana.

The closure order has been issued following an industrial accident that occurred during the manufacturing process, resulting in exposure to one employee on duty at the facility, Cohance, which offers CDMO, API platform and clinical solutions for bio availability and equivalence studies, informed stock exchanges.

"The employee was immediately provided emergency medical assistance and was subsequently shifted to a specialized hospital in Hyderabad for advanced treatment. Despite receiving the best possible medical care and sustained efforts by the attending medical teams, the employee unfortunately succumbed to his injuries," it said.

Cohance said it has immediately initiated appropriate corrective and preventive measures to address the observations stated in the directions issued by TGPCB and expects to promptly submit the requisite representations and compliances to TBPCB, for seeking cancellation of the closure directions at the earliest and allowing the site to resume operations.

Cohance shares settled at Rs 449 on Thursday. The stock has a 12-monh target of Rs 472, based on six analyst estimates, which suggested a 5.2 per cent potential upside from the prevailing price.

"The company will keep the stock exchanges informed of any material developments in this regard, Cohance said.