UNITED KINGDOM —AstraZeneca is reportedly exploring the possibility of separating its Chinese operation and listing it in either Hong Kong or Shanghai.
The move aims to shield the business from the escalating geopolitical tensions, as stated in a report by the Financial Times.
The Chinese market has become increasingly vital for AstraZeneca, with its Chief Executive Officer, Pascal Soriot, emphasizing its strategic importance.
In the first quarter of this year, the Chinese business accounted for US$1.6 billion of the company’s total sales of US$10.6 billion.
China has experienced rapid expansion in recent years and is now the second-largest pharmaceutical market globally, following the United States.
This growth can be attributed to an aging population with increased purchasing power, as well as efforts by state and regional governments to expedite access to innovative therapies, particularly in the field of oncology where AstraZeneca has a strong presence.
Despite a recent global economic downturn affecting growth rates, China remains a key market for new drug launches and partnerships aimed at bolstering pipelines for AstraZeneca and other major pharmaceutical companies.
In recent weeks, AstraZeneca has obtained regulatory approvals in China for Soliris (eculizumab) for generalized myasthenia gravis, Koselugo (selumetinib) for neurofibromatosis, and Calquence (acalabrutinib) as a lymphoma therapy.
Additionally, the company recently entered into a partnership with Chinese biotech firm Cholesgen to collaborate on the discovery of new cholesterol-lowering drugs.
The Financial Times, citing sources familiar with the matter, reported that AstraZeneca has been in discussions with bankers for several months regarding this potential separation.
The company is among a growing number of multinational corporations considering similar moves. If implemented, the new listed entity would remain under AstraZeneca’s direct control.
This development coincides with bilateral talks between the United States and China aimed at stabilizing their increasingly strained relationship.
Tensions have escalated over differing perspectives on the status of Taiwan, with Beijing advocating for its inclusion in greater China, as well as disputes over territorial expansion in the Pacific region.
The United States has pledged to defend Taiwan in the event of a military takeover.
Furthermore, the European Union and the United States have accused China of offering tacit support to Russia during its invasion of Ukraine.
Reciprocal actions, such as banning the use of electronic technologies in critical infrastructure, have intensified the threat of a trade war.
The Financial Times also noted that while there is no guarantee that the separation will materialize, such a move could protect AstraZeneca from potential crackdowns on foreign companies by China, while also providing an additional source of funding.
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