AstraZeneca's Chief Financial Officer, Aradhana Sarin, met with investors to address their concerns about the company's current situation. The meeting followed reports that Wang Lei, the President of AstraZeneca's China operations, is "in detention." This update came after AstraZeneca China had previously announced that Wang was "assisting in an investigation."
The detention of the China executive has led to a significant drop in AstraZeneca's stock price, which plummeted nearly 8%, erasing over £15 billion in market value. The CFO's address was aimed at calming investors amidst these developments.
A recent investor meeting revealed that a large-scale insurance fraud investigation had been initiated three years ago, involving over 100 former AstraZeneca employees. The investigation primarily targets the company's flagship lung cancer drug, Tagrisso, but does not currently involve any of the current executives.
The company disclosed that two other current executives and two former executives are under investigation for illegal import and sale of drugs from Hong Kong into mainland China. AstraZeneca has approximately 12,000 employees in China, and the country accounts for about 13% of the company’s global sales. China remains a crucial market for AstraZeneca, with substantial investments made over the past decade.
