Two more staffs from AstraZeneca plc (NYSE:AZN) (LON:AZN) have been interrogated by authorities in China in connection with an ongoing investigation regarding the business practices of western pharmaceutical companies in the country according to report from the Financial Times.
According to the spokesperson of AstraZeneca plc (NYSE:AZN) (LON:AZN), the two staffs who were being questioned by the police are line managers of the sales representative who was incarcerated last Friday. The second largest pharmaceutical company in the United Kingdom said one of the line managers is cooperating with the investigation of the Shanghai Public Security Bureau.
“The PSB is describing this as an individual case. We have no reason to believe it is related to other investigations,” stated by the spokesperson of AstraZeneca plc (NYSE:AZN) (LON:AZN).
AstraZeneca has no reason to believe connected to a wider investigation
The spokesperson added that the company has no reason to believe that the interrogation is connected to a wider investigation. The company previously stated that the investigations against its sales representative involves a local police matter and it is not related to the bribery and corruption allegations against GlaxoSmithKline plc (NYSE:GSK) (LON:GSK).
Yesterday, Abbas Hussais, president international- Europe, Japan, Emerging Markets & Asia Pacific at GlaxoSmithKline plc (NYSE:GSK) (LON:GSK) stated that some of the executives of the pharmaceutical company in its business operations in China may have broken the law in the country after a meeting with the Ministry of Public Security. According to him, the company is taking the allegations against the company “extremely seriously” and it supports the initiatives of authorities in China to reform the medical sector.
Five executives have been detained
Five executives from GlaxoSmithKline plc (NYSE:GSK) (LON:GSK) were detained by Chinese Police in connection with the bribery and corruption allegations. Authorities started their investigation regarding the issue in June.
American detained in Shanghai
The Financial Times also reported that authorities detained an American in Shanghai in connection with their investigations regarding the corruption in the pharmaceutical industry in the country. The U.S. Embassy confirmed the detention of the American and consular assistance is provided for the person, but it did not reveal which company the person is working for.
The stock price of AstraZeneca plc (NYSE:AZN) (LON:AZN) is trading around $50.64 per share, slightly up in the afternoon trading on Tuesday in New York.
