British-Swedish drugmaker Astra Zeneca is considering spinning off its China business. Listing a separate entity in Hong Kong is seen as an option, the newspaper reported Financial Times on Sunday. A spin-off of the China business could protect Astra Zeneca from tensions between the People’s Republic and other countries while the company retains control of the business.
A stock exchange listing in Shanghai is also conceivable. Astra Zeneca said it does not “comment on rumors or speculation about future strategies or mergers”. Vice CEO and President of Chinese Unity Wang Lei said in China in May that Astra Zeneca wants to develop into a patriotic company in China that “loves the Communist Party and the country”.
Astra Zeneca declined to comment on the statements at the time. Last year, Astra Zeneca generated 13 percent of its total sales in the People’s Republic. The company is the largest pharmaceutical manufacturer in China.