Shionogi Drops to 12-Year Low on Corporate Governance Questions
Shionogi & Co., the Japanese maker of the Crestor cholesterol pill, plunged to a 12-year low in Tokyo trading after Credit Suisse AG said disruptions to the drugmaker’s U.S. operations raise questions about corporate governance.
The distruptions relate to Shionogi’s acquisition of Alpharetta, Georgia-based Sciele Pharma Inc., Credit Suisse health-care analysts Fumiyoshi Sakai and Toshiyuki Tateno said in an Oct. 31 report.
“Corporate governance issues arise after significant reduction in guidance due to a downturn in its U.S. business,” the analysts said. “The company says it has now dealt with problems with accounting and product returns in the U.S., but the disruption to U.S. operations triggered by the Sciele acquisition raises questions about Shionogi’s corporate governance.”
Shionogi slumped as much as 6.3 percent to 1,007 yen in Tokyo trading. The shares declined 5.8 percent to 1,013 yen at 10:27 a.m. local time, the lowest since Nov. 9, 1999.
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