Immediately after Saburo Kobayashi passed away, the same rumor ran through both Doshomachi and Honcho:

"This will be the end of Kobayashi as a company."

Saburo Kobayashi had been the mainstay of Kobayashi Pharmaceutical after the war, and had exploited every opportunity with his aggressive management, as he acted in the forefront in building and expanding the company. Now he was gone, leaving his wife Teruko entrusted with his affairs. In his absence it seemed as if the collapse of the company was inevitable, but as the management of the new president Teruko Kobayashi began to take effect these malicious rumors were dispelled. In one sense the mere existence of these rumors were a tribute to the significance of Saburo's role in the company, but they also underestimated the many employees who had supported Saburo during his reign, as well as the underlying strength of the company's directors and the organization of Kobayashi Seiyaku itself.

The death of Saburo after the prolonged strike was undoubtedly a severe blow to the company even if it was able to avoid the worst-case scenario of going bankrupt. Nevertheless a review of the subsequent history of Kobayashi Pharmaceutical clearly shows that not only did the company overcome these successive adversities, but it also achieved even further growth. The source of these achievements were the management capabilities of President Teruko Kobayashi, and the unseen efforts of the company officers who united to give her their cooperation, as well as the many employees who exerted their utmost in this most difficult time.

An extraordinary general meeting was held on October 29, 1958 following the death of President Saburo Kobayashi. This meeting installed Teruko Kobayashi as the new president, and also appointed Tokusaburo Fujii, Muneji Kobayashi and Shutaro Horiguchi as directors. Fujii was the president of Ryukakusan, having succeeded Yomejiro Fujii, the younger brother of Chubei Kobayashi who had been adopted into the Fujii family. Muneji Kobayashi was the president of Kobayashi Daiyakubo, while Horiguchi was the older brother of Saburo Kobayashi, the former president. The gossip in Doshomachi at that time was that the Kobayashi family had put together a strong cheerleading team to cope with a crisis in the company.

The new president Teruko Kobayashi was borne in 1916, as the oldest daughter of Kichitaro Kobayashi. While her husband Saburo was still active as the president, she did not have many opportunities to come to the company even though she was a shareholder, and she devoted herself to taking care of her home in order to support her husband. Teruko Kobayashi's management style was different from that which had been the practice during her husband's tenure. She would listen quietly to discussions that took place among directors during the directors meetings, and would make the ultimate decision, delegating much of her authority to her subordinates.

While the efforts of Kobayashi Pharmaceutical as an organization constituted the main factor in the company's ability to overcome a crisis so severe that it led to rumors of bankruptcy, the company also benefited greatly from an environment of prosperity. With the recovery of Japan as a whole, the pharmaceuticals industry achieved tremendous growth in this period.