AstraZeneca Eyes Hong Kong Listing for Its China Business: A Smart Move or a Risky Bet?

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AstraZeneca Mulls Spinning Off Its China Business and Listing It in Hong Kong
AstraZeneca, the global pharmaceutical giant, is reportedly considering a plan to spin off its China business and list it as a separate entity in Hong Kong, according to the Financial Times. The move could help the company navigate the complex and competitive Chinese market, while avoiding potential geopolitical risks.

AstraZeneca is one of the leading drugmakers in China, with a 13% share of its total sales in 2020. The company has a strong presence in the fields of oncology, cardiovascular, renal and metabolism, respiratory and immunology. It has also been involved in the development and distribution of COVID-19 vaccines in collaboration with Oxford University.

However, the company also faces challenges in China, such as regulatory hurdles, pricing pressures, local competition and political tensions. A spin off could allow AstraZeneca to retain control of its China business, while giving it more flexibility and autonomy to adapt to the local market conditions and customer preferences.

According to the FT report, AstraZeneca is drafting a plan to spin off its China business, and listing it in Hong Kong is being viewed as an option. The report cited people familiar with the matter, who said that a separation might not ultimately take place, and that listing the entity in Shanghai was also possible.

The report also said that the idea has been around for years, but was recently sidelined by a global biotech downturn. It added that AstraZeneca would seek to be a patriotic company in China that “loves the Communist Party”, as its China president said in May.

AstraZeneca declined to comment on the report, saying that it did not comment on “rumours or speculations around future strategy or M&A.”

Keywords: AstraZeneca, China, spin off, listing, Hong Kong

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