(Reuters) – Chinese authorities visited a regional office of French drugmaker Sanofi this week in the latest sign of a widening investigation into Western drugmakers.<\/p>\n
Eli Lilly said it had also been visited by officials in the same city of Shenyang as part of a “routine” probe which had started earlier this year, while the CEO of AstraZeneca, which has a sales executive in detention in Shanghai, warned of short-term “turmoil” in the sector.<\/p>\n
The latest developments suggest a series of probes into over-pricing and alleged bribery in the industry may have a broad impact, in a market that has been a particular bright spot for Western pharmaceuticals who face slowing sales at home.<\/p>\n
“In the short term, there could be some ups and downs because this issue will create turmoil. It may well be that the industry experiences more intense price revisions,” AstraZeneca CEO Pascal Soriot told Reuters on Thursday.<\/p>\n
“But even if this happens, in the mid- to long-term China is a growing market – there is no doubt about that in my mind,” Soriot added, stressing his company had no plans to cut back investment in the country.<\/p>\n
Chinese police have detained four Chinese executives of GlaxoSmithKline (GSK) and questioned at least 18 other staff amid allegations the drugmaker funneled up to 3 billion yuan ($489 million) to travel agencies to facilitate bribes to doctors and officials.<\/p>\n
At the same time, the powerful National Development and Reform Commission is examining pricing by 60 local and international pharmaceutical companies.<\/p>\n
Sanofi said its office in Shenyang – one of 11 regional offices in China – had been visited by officials from the State Administration for Industry and Commerce (SAIC) on July 29.<\/p>\n