AstraZeneca PLC (LSE:AZN) has confirmed that the president of its China division has been placed under investigation by local police as part of an anti-corruption drive.
Leon Wang is cooperating with an investigation by Chinese authorities said a statement yesterday from the pharma group released during the Budget speech and without any further details.
Wang’s investigation is seen as part of a widespread crackdown in China on healthcare corruption and how patient information is disseminated outside of the country.
Earlier this year, five other Chinese employees in AZ's oncology division were detained as part of an investigation into alleged breaches of data privacy laws
Shares in AstraZeneca fell sharply on the news and were down a further 1% today at 11,108p.
Since August, when the UK's largest company was worth more than £200 billion, its value has dropped by more than £25 billion after disappointment with a cancer trial for its Dato-DXd drug.
The Anglo-Swedish giant is the biggest foreign pharmaceutical company in China with around 12,000 employees. Around 12% of its revenues come from the country.