AstraZeneca boss says firm takes China probe ‘very seriously’
The boss of AstraZeneca has said the group takes the probe in China that saw the detention of its president in the country “very seriously” as the drugs giant hiked its financial outlook once again.
AstraZeneca’s shares have been sent reeling after it emerged that Chinese authorities had deepened their investigation into the business.
The group revealed last week that its China president, Leon Wang, has been detained and that two former and two current executives were under investigation in the country over allegations of illegally importing cancer drugs.
Shares in the FTSE 100 listed firm have plunged 10% in the past week on the revelations, with the group quickly losing its coveted £200 billion stock market valuation that it achieved just three months ago.
In its third quarter update on Tuesday, chief executive Pascal Soriot said: “We take the matters in China very seriously.
“If requested we will fully co-operate with the authorities.
“We remain committed to delivering innovative life-changing medicines to patients in China.”
AstraZeneca added that “to the best of the company’s knowledge, the investigations include allegations of medical insurance fraud, illegal drug importation and personal information breaches”, but said it had not received notification that the company itself was being investigated.
The investigation has overshadowed a strong financial performance from the group, which has now upgraded its outlook for second time this year.
The company said it now expects a “high teens” percentage growth in revenue and earnings per share, up from previous guidance for “mid teens”, thanks to booming demand for its blockbuster cancer medicines.
It also revealed a plan to invest 3.5 billion US dollars (£2.7 billion) in research and development and manufacturing in the US business by the end of 2026.
This includes two billion dollars (£1.6 billion) of new investment, with the group ramping up expansion of its US business, which made up 44% of global revenues in the third quarter.
The guidance hike followed forecast-beating third quarter results, with revenues up 21% on a constant currency basis to 13.57 billion dollars (£10.59 billion), boosted by demand for its cancer drugs Imfinzi, Tagrisso and Calquence.
