AstraZeneca shares fall after executives in China face fraud probe

Key Findings

AstraZeneca shares fell on Tuesday following reports that top executives in China were potentially implicated in an insurance fraud case.
AstraZeneca China President Leon Wang is cooperating with Chinese authorities, the company said last week.
In September, five current and former AstraZeneca employees were detained by Chinese police in connection with multiple investigations.

AstraZeneca (ADSThe company’s shares fell on Tuesday following a report that dozens of the company’s top executives in China were potentially involved in insurance fraud, according to a report. Guardian citing a financial media company in the country.

The company said Leong Wang, president of AstraZeneca China, was cooperating with the ongoing investigation. “If required, we will cooperate fully with the Chinese authorities,” AstraZeneca said in a statement on Tuesday.

In September, Chinese police detained executives

The report comes after five current and former AstraZeneca employees were detained by police in China in September over alleged violations of data privacy laws and the importation of an unapproved cancer drug, according to a report Bloomberg report.

AstraZeneca reportedly employs about 16,000 people in China and has been there since 1993. The company’s U.S.-listed shares fell more than 7% on Tuesday to close at $66.27 and are down 1.6% in 2024.