A vaccine scandal in China, which has hit a nerve in the country and prompted quick reactions from leaders in Beijing, is sending ripples across the wider domestic drug market while threatening to dent Chinese ambitions to play a larger global role.
Shares in Chinese vaccine makers and biotech firms fell across the board Monday after Premier Li Keqiang slammed Changsheng Biotechnology Co. for having crossed a moral red line and called for swift action.
The case erupted a week ago when Changsheng was found to have violated standards in making rabies vaccine.