AstraZeneca said on Wednesday its China president Leon Wang had been detained by Chinese authorities and, although it did not know the reason, it did not believe it was linked to a large health insurance fraud case involving the company.

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,

AstraZeneca shares recorded their biggest one-day drop since March 2020 on Tuesday following a report that dozens of senior executives at its China unit could be implicated in the largest insurance fraud case in the country's pharma sector in years.

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.

AstraZeneca Plc shares plunged in London, erasing about £14 billion ($18 billion) of market value, amid escalating concerns over a Chinese probe into the UK drugmaker.

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

China's investigation of AstraZeneca's top executive in the country is raising questions about the company's tactics there.