Corruption probe casts cloud over AstraZeneca results

AstraZeneca is in a tricky spot as it prepares to report its quarterly results on Tuesday.

The drugs giant is struggling to contain the fallout from a widening investigation into its practices in China that has seen its top executive in the country arrested.

The FTSE 100 firm confirmed last week that Leon Wang, head of its Chinese arm, was being detained while two other executives, as well as two former bosses, are under investigation. 

This is believed to be connected to allegations the firm imported and sold its cancer drug Imjudo, which is not approved for sale in China.

The news hit AstraZeneca shares, which have lost 15 per cent of their value so far this month, wiping £15 billion off its market value. It will be hoping strong third quarter results will revive some momentum and reassure anxious investors.

Under pressure: AstraZeneca is struggling to contain the fallout from a widening investigation into its practices in China

The firm is forecast to post sales of just over $13 billion (£10 billion) for the three months to September, up from $11.5 billion for the same period last year, according to financial data provider Refinitiv. 

It is also projected to deliver a profit for the quarter of $3.2 billion, nearly double the $1.7 billion of a year ago.

Some analysts have downplayed the issues in China, saying the risk to the company is being overblown.

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