Leon Wang, executive vice president in charge of China and the broader Asian region, is being detained while the Chinese government is probing AstraZeneca employees, the drugmaker says.

Two current and two former senior executives at AstraZeneca Plc are under investigation in China in an ongoing probe into alleged breaches of laws around drug importations and data privacy, the company said.

Key Takeaways AstraZeneca shares declined Tuesday after reports that senior executives in China were potentially implicated in an insurance fraud case.AstraZeneca China President Leon Wang is cooperating with Chinese authorities,

BMO Capital Markets analyst Etzer Darout in a note to investors said the insurance fraud probe represents a “headline risk” to AstraZeneca, but contends that the share selloff is “overdone” and likely a knee-jerk reaction by investors.

An insurance fraud investigation linked to AstraZeneca (AZN) expands in China involving dozens of senior executives. Read more here.

AstraZeneca’s stock price dropped by 8.4% during Tuesday’s trading in London after a report fueled fears of a potentially escalating insurance fraud investigation in China. | AstraZeneca’s stock price dropped by 8.