AstraZeneca’s chief financial officer stated on Friday that geopolitical tensions have no impact on the company’s operations in China, in response to a report suggesting the pharma giant’s potential spin-off of its business in the country.
“As a provider of life-saving medicines, we contribute to improving the health of people in China and worldwide while reducing healthcare costs. Thus, we see ourselves operating in a distinct sector where geopolitics does not hinder business in China,” said Aradhana Sarin during an interview on CNBC’s “Squawk Box Europe.”
A report by the Financial Times on June 18 indicated that AstraZeneca had developed plans to spin off its China business and potentially list it in Hong Kong as a measure to protect it from China’s strained relationship with the U.S. and Europe. However, the report also pointed out that the plans were not definite and a Shanghai listing was another possibility.
Sarin refrained from commenting on rumors regarding a potential separation of AstraZeneca’s China business.
Furthermore, she emphasized that AstraZeneca has been successfully operating in China for ten years and happens to be the largest pharmaceutical company in the country.
“China has proven to be a highly profitable market for us,” Sarin noted, reflecting on the company’s four consecutive quarters of growth in its China branch.
Sarin continued, “What is truly fascinating about China is not only its thriving commercial business but also the remarkable innovation that stems from ongoing global clinical studies. Many of these studies are conducted in China.”
“In addition, China offers opportunities to tap into local innovation. It’s not just us—many of our counterparts have partnered with innovative biotech companies in China through licensing deals,” she added. “So it’s not only about commercial interests; it’s also about leveraging that innovation.”
In its recent earnings report, AstraZeneca announced revenue growth of 6% in the second quarter, surpassing estimates. This follows 1% growth in the first half of the year. Core earnings per share also saw a notable increase of 25% to $2.15.
While the company’s China revenues expanded by 7%, slightly surpassing the 6% growth in Europe, it fell short of the 10% growth in the U.S., which includes figures related to the COVID-19 pandemic.
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