01:20 PM EST, 11/05/2024 (MT Newswires) -- Astrazeneca's ( AZN ) Nasdaq-listed shares fell nearly 7% in recent Tuesday trading after China's Yicai news agency reported that several senior executives at the company's regional unit were implicated in an ongoing insurance fraud case.

According to the report, Leon Wang, president of AstraZeneca China, was cooperating with Chinese authorities which have now expanded to include the public security bureau, supervisory commission, and other relevant bodies.

AstraZeneca ( AZN ) last week said that Wang was under investigation and cooperating with a probe by Chinese authorities without elaborating.

"Our China operations continue under the leadership of the current General Manager of AstraZeneca China," the company said in a statement at the time, adding it plans to "fully cooperate" with the probe if requested.

According to Yicai, the investigation concerns AstraZeneca's ( AZN ) sales tactics for Tagrisso. The report alleged that AstraZeneca ( AZN ) staff in China faked prescriptions for the lung cancer drug so that patients could buy it through insurance.

Yicai, which is a subsidiary of state-owned Shanghai Media Group, added that the cases amount to one of the largest insurance fraud in China.

AstraZeneca ( AZN ) did not immediately respond to a request for comment from MT Newswires.

The story was later reported by several other news outlets.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: 66.51, Change: -4.92, Percent Change: -6.89