AstraZeneca's China Turmoil: Investigation Shakes Pharma Giant

AstraZeneca's China president is under investigation, leading to a significant drop in the company's share value. The pharma giant, with a strong market presence in China, remains tight-lipped about the details, while cooperating with authorities amid broader anti-graft probes in the sector.

AstraZeneca's China president has become the focal point of an investigation by Chinese authorities, the company disclosed on Wednesday. This revelation sent shockwaves through the market, causing the company's shares to plummet by as much as 5.3%, positioning AstraZeneca as the biggest loser on London's FTSE 100 index.

The company holds one of the most robust market positions among Western pharmaceutical giants in China, the world's second-largest pharmaceuticals market. Despite significant investments, including a planned $450 million factory, AstraZeneca has faced scrutiny amid ongoing anti-corruption investigations targeting foreign drugmakers.

Earlier in September, five of AstraZeneca's employees were detained in China for questioning over alleged illegal activities. This adds to the challenges faced by multinational pharma companies, which have seen business disruptions due to increased regulatory scrutiny in China's healthcare sector.

(With inputs from agencies.)