AstraZeneca shares fell after it revealed the president of its business in China is under investigation by regulators in the People’s Republic.
A spokesman for the FTSE 100 drugmaker said Leon Wang, who is also executive vice president of its international division, is co-operating with the probe by Chinese authorities.
If requested, AstraZeneca added, it will fully co-operate with the investigation. The firm said operations in the country are under the leadership of the general manager of AstraZeneca China.
Probe: A spokesman for Astrazeneca said the president of its China business Leon Wang is co-operating with an investigation by Chinese authorities
Last month, China detained five of AstraZeneca’s current and former employees, reportedly for questioning over possible infringement of data privacy laws and importing unlicensed medications.
The drugs giant has been investing heavily in the country, announcing plans last year to build a £350million factory and recently signing a number of licensing deals with Chinese companies.
AstraZeneca shares slid 2.8 per cent, or 328p, to 11206p.
Weakness in the pharma sector weighed on the FTSE 100 index, which closed down 0.7 per cent, or 59.98 points, at 8159.63 while the FTSE 250 added 0.4 per cent, or 71.33 points, to 20,694.12 as investors digested the Budget.
Among those on the rise was Ladbrokes and Coral owner Entain (up 8.6 per cent, or 61.6p, to 774.8p) amid relief that Chancellor Rachel Reeves did not launch the tax raid on gambling firms rumoured before the Budget.
Stock Watch – Eckoh
AIM is losing another firm to a takeover.
Payment solutions provider Eckoh has accepted a bid from private equity firm Bridgepoint. Eckoh has been considering the offer since August.
The bid values the company at £169.3million, with the buyer offering 54p per share in cash.
That is an 11 per cent premium to Eckoh’s closing price before the deal was announced.
Eckoh shares leapt 25 per cent, or 10.5p, to 52.5p.
Heading in the other direction, defence firm BAE Systems shed 0.8 per cent, or 10.5p to 1269p in reaction to news of a major fire at its Barrow-in-Furness shipyard in Cumbria that builds Britain’s nuclear submarines.
Miner Anglo American lost 3.9 per cent, or 97.5p, to 2385.5p amid reports that former suitor BHP (down 1.3 per cent, or 29p, to 2181p) has moved on and intends to focus on other growth opportunities.
But mining peer Glencore added 1.2 per cent, or 5p to 409.6p following a mixed production performance for the first three quarters of the year, with copper, cobalt, zinc, and nickel output generally lower year-on-year, while steelmaking coal saw a significant increase.
Asia-focused lender Standard Chartered was a blue-chip gainer after results, gaining 4.1 per cent, or 36.2p, at 912.6p as it upgraded its income guidance for the current financial year on the back of record quarterly growth from its Wealth Solutions and Global Markets segments.
StanChart also said it hopes to return at least £6.1billion to shareholders between 2024 and 2026, representing an upgrade from previous guidance of at least £3.85billion.
Payment processor CAB Payments lost 5.2 per cent, or 6.2p, at 114.2p as a weak third-quarter trading update countered news it is still in talks with US payments firm Stone X about a possible takeover.
On AIM, financial services firm Equals Group found support from takeover hopes, rising 10.7 per cent, or 12p, to 124p after revealing that it has received an improved proposal from an interested consortium.
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