The Rising Influence of Rising Affluence

[DewDiligence]

AZN considering separating China business, according to sources:

https://www.fiercepharma.com/pharma/misinformation-astrazenecas-china-head-refutes-spinoff-report

AstraZeneca, the largest multinational pharma company in China, has reportedly made plans to separate its local business there in case geopolitical tensions worsen.

With the help of bankers, the British drugmaker has worked out a plan to potentially spin its China business into a separate entity listed in Hong Kong while retaining control, the Financial Times reports, citing people familiar with the discussions.

…“Every multinational with a strong China business” seems to have considered a similar move, one senior Asia-based banker told the FT. “Even if it’s just the option to give you flexibility in the future, it’s worth thinking about.”

…AZ is the largest Western pharma in China by sales and has the most business exposure to the country. Despite mounting pricing pressure, the China outfit generated $1.6 billion in sales for AZ in the first quarter, representing 15% of the company’s total revenue during the period.