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AstraZeneca commits to cooperting with China fraud probe after billions wiped from valuation

Published 06/11/2024, 09:12
Updated 06/11/2024, 09:40
© Reuters.  AstraZeneca commits to cooperting with China fraud probe after billions wiped from valuation
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Proactive Investors - AstraZeneca PLC (LSE:LON:AZN) has committed to working with Chinese authorities after reports several executives were implicated in a fraud case that wiped billions off its valuation on Tuesday.

Financial media firm Yicai reported dozens of AstraZeneca China senior executives were involved in the country’s largest pharmaceutical insurance fraud case for years.

The company said in a statement on Tuesday evening: “As a matter of policy, we do not comment on speculative media reports including those related to ongoing investigations in China.

“If requested, we will fully cooperate with the Chinese authorities.

“We continue to deliver our life-changing medicines to patients in China and our operations are ongoing.”

It comes after AZ confirmed the president of its China division, Leon Wang, was under investigation by Chinese police late last month as part of an anti-corruption drive.

Wang was said to be cooperating with an investigation by authorities, which follows a widespread crackdown in China on healthcare corruption and how patient information is disseminated outside of the country.

Five other Chinese employees in the firm's oncology division were detained as part of an investigation into alleged breaches of data privacy laws earlier this year.

The Anglo-Swedish drugs giant has been pushing for market share in China in recent years, with the country accounting for 20% of its revenue in 2019.

Read more on Proactive Investors UK

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