Why Is AstraZeneca Stock Sinking On Tuesday?

In September, Chinese authorities detained five current and former employees of AstraZeneca Plc (NASDAQ:AZN) as part of a broader investigation into alleged illegal activities in the pharmaceutical sector.

The investigation focuses on potential breaches of data privacy laws and the importation of unlicensed cancer medications.

CEO Pascal Soriot said AstraZeneca complies with Chinese policies and works closely with authorities following the detention.

As per a financial media company Yicai report, senior executives at AstraZeneca China are embroiled in a significant insurance fraud case, marking one of the most extensive scandals in China’s pharmaceutical industry in recent years.

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