AstraZeneca Experiences a 10% Drop on the London Stock Exchange
AstraZeneca's shares have fallen nearly 10% following investigations in China into its sales tactics, raising concerns in the market.
AstraZeneca's shares suffered a significant drop on the London Stock Exchange, losing nearly 10% of their value. This sharp decline is due to market concerns following an investigation in China into the aggressive sales tactics employed by the British pharmaceutical company, particularly in relation to two of its oncology drugs: Tagrisso, used for lung cancer treatment, and Imjudo, an immunotherapy drug.
Leon Wang, AstraZeneca's local president, is under investigation and has assured full cooperation with Chinese authorities. His inclusion in the process has been interpreted as a strong commitment from the company to regulation, which could indicate increased scrutiny from Beijing over AstraZeneca's operations on the continent.
Despite these events, AstraZeneca has stated that its operations and drug deliveries in China continue as normal and that it will fully cooperate with authorities if necessary. However, analysts have begun to assess the potential impact that this situation could have on the group's results, given that approximately 13% of its revenue comes from China.
The company, in an effort to continue growing, has presented an ambitious plan to reach total revenues of $80 billion by 2030, compared to the projected $45.8 billion for 2023. This growth will be driven by the launch of 20 new drugs before the end of this decade and the development of its current portfolio of oncology and biopharmaceutical products.
Additionally, AstraZeneca has highlighted its strategic commitment to research and development, aiming to maintain effective profitability and achieve an operating margin of 30% by 2026. This reflects the company's efforts to sustain its growth beyond 2030 by investing in new technologies that will transform the future of medicine.