AstraZeneca Drops 3.26% Amid China Restructuring

Mover TrackerTuesday, Apr 29, 2025 4:32 am ET
1min read

On April 29, 2025, AstraZeneca's stock experienced a 3.26% drop in pre-market trading.

In a significant organizational overhaul,

China has established two new business units focused on biopharmaceuticals. The Respiratory and Autoimmune Business Unit (R&I) aims to strengthen the market position of inhaled products while accelerating the transition to biologic therapies. The Vaccines and Immunotherapy Business Unit (V&I) will drive the development of the "Lecembi" vaccine in collaboration with and manage a joint venture with Kintai Biologicals.

The company has also announced several key leadership changes. Hua Guo has been promoted to Assistant Vice President, overseeing the "Flying Eagle" business and additional responsibilities. Meanwhile, three high-level executives, including Liu Qian, Chen Xi, and Zhang Jing, have announced their departures.

This restructuring is part of AstraZeneca's broader strategy to enhance its market competitiveness and align with global business frameworks. The company has set ambitious goals, including the launch of 20 breakthrough innovative drugs by 2030, with 10 of these coming from its biopharmaceutical division.

Despite facing potential fines of up to $8 million in China due to suspected unpaid import taxes related to its breast cancer drug Enhertu, AstraZeneca remains optimistic about its future in the Chinese market. The company has reported strong financial performance, with a 21% increase in annual revenue to $540.73 billion, driven by robust growth in China, where revenue reached a record high of $64.13 billion, accounting for 12% of total revenue.