AstraZeneca Shares Plummet Amid Expanding China Fraud Investigation

The pharmaceutical giant faces scrutiny as its China unit is implicated in a major insurance fraud probe, causing a significant drop in market value.

AstraZeneca's shares fell by over 8%, erasing £14 billion in market value, following reports of a fraud investigation involving its China unit.
The investigation involves dozens of senior executives and has widened to include multiple Chinese authorities, including the public security bureau.
Leon Wang, AstraZeneca's China president, is under investigation and is cooperating with authorities, with Michael Lai now managing the China operations.
The company has invested heavily in China, which accounted for about 13% of its sales in 2023, heightening the impact of the probe.
Analysts described recent data on AstraZeneca's weight loss pill as underwhelming, adding to the pressure on the company's stock.