GlaxoSmithKline plc (ADR) (GSK), Novo Nordisk A/S (ADR) (NVO): China’s Growth Crisis Swings Into High Gear

That won’t help Chinese stocks right now, however, but the biggest news for multinations in China is coming out of the pharmaceutical sector. Beijing regulators have accused GlaxoSmithKline plc (ADR) (NYSE:GSK) of bribery and other corruption as the government cracks down on Big Pharma’s Chinese incursion. GlaxoSmithKline plc (ADR) (NYSE:GSK)’s sent executives to China in an effort to mitigate the crisis, but it’s a big threat to the company’s hopes in the world’s third-largest pharmaceutical market, one that’s expected to eclipse $350 billion by 2020.

While Big Pharma’s facing increased scrutiny from regulators, investors looking for one of the best pharmaceutical stocks in this growing market could do worse than looking into Novo Nordisk A/S (ADR) (NYSE:NVO). The Danish pharmaceutical power has carved out a lucrative niche in China’s growing diabetes market, becoming the market leader in this industry with a 37% market share. If Novo Nordisk A/S (ADR) (NYSE:NVO) can avoid any Chinese crises of its own in the difficult-to-maneuver market, its sharp Chinese sales growth — 28% last year — could continue and fuel this stock’s future.

The article China’s Growth Crisis Swings Into High Gear originally appeared on Fool.com is written by Dan Carroll.

Fool contributor Dan Carroll has no position in any stocks mentioned, and neither does The Motley Fool.

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