Probe intensifies spotlight on AstraZeneca in China

An investigation into AstraZeneca’s highly regarded president of China adds a new worry for a biopharma sector already grappling with a years-long bear market, an unforgiving reimbursement regime and geopolitical tensions exacerbated by the Biosecure Act. It also puts the spotlight on China’s top Western biopharma, a company that delivers dozens of new medicines to Chinese patients and has crafted a new model to engage local talent and support innovation in the country.

The investigation comes as China’s biopharma industry continues to sprout biomedical innovation at “China speed” even as it is mired in its first downturn. Since its announcement last week, AstraZeneca plc (LSE:AZN; NASDAQ:AZN) has seen billions shaved in market cap, while the probe has prompted industry watchers to wonder how wide-ranging its impact will be for the company and MNCs more generally, and what it means for them. ...