Anti-graft probe hits shares of Chinese drug firm
Shares in Hong Kong-listed Sino Biopharmaceutical plunged nearly 17 per cent yesterday on news that it had become the first major listed Chinese drug company to be probed in the central government's anti-corruption investigation of the pharmaceutical industry.
Shares in Hong Kong-listed Sino Biopharmaceutical plunged nearly 17 per cent yesterday on news that it had become the first major listed Chinese drug company to be probed in the central government's anti-corruption investigation of the pharmaceutical industry.
In an announcement, Sino Biopharmaceutical said it was not aware of any of its executive being investigated by the Chinese authorities. Its management said the crackdown would hurt staff morale, sales and profits. The company is the first big Chinese name in an industrywide probe that has so far featured multinationals like GlaxoSmithKline (GSK).
Sino Biopharmaceutical said it expected the campaign against the drug sector to last longer than previously thought.
A Deutsche Bank report also said: "In the near term, we expect the impact [of the Chinese government investigation] could be larger than expected and the duration could last into 2014."
We expect the impact [of the investigation] could be larger than expected
An unlisted Beijing drug company, Gan & Lee Pharmaceutical, said on Wednesday that it was investigating allegations that it had spent about 800 million yuan (HK$1 billion) to bribe doctors.