Chinese drugmakers caught using endangered animals in products | Japan investigates Google | Investors sue Rolls-Royce

In today's Portfolio Intelligence Daily, where we highlight under the radar investment themes and idiosyncratic company risks:

• Chinese drugmakers caught using endangered animals in products
• Japan investigates Google over antitrust violations
• Investors sue Rolls-Royce over corruption scandal handling

Auquan’s analyst team curates these summaries from our intelligence engine, which uses retrieval augmented generation (RAG AI) to uncover unique insights at scale, typically involving emerging markets, supply chains, financially-material ESG risks, and the impact of regulatory changes.

Last week Auquan announced it raised a $3.5m seed round. Read about it in Silicon Angle.

Chinese drugmakers caught using endangered animals in products

Three Chinese drugmakers, backed by major global banks, have been found to include endangered animals in their products, according to a report published today by The London-based Environmental Investigation Agency (EIA).

• The three Chinese pharmaceutical companies are Beijing Tong Ren Tang group, Tianjin Pharmaceutical group, and Jilin Aodong Pharmaceutical Group.
• There are 72 firms identified by the EIA that have been found to use body parts of threatened leopards and pangolins in traditional Chinese medicine (TCM) products — the EIA specifically called out the three companies because they are publically listed and openly display these products on their websites.

"It's particularly disappointing to see so many major banks and financial institutions effectively endorsing this damaging exploitation. They need to divest from TCM manufacturers using threatened species at the soonest opportunity." — Avinash Basker, a legal and policy specialist for EIA, said in a media release. (source)

Select timeline

• October 23, 2023 | Chinese listed firms used endangered animal parts as ingredients -report (Reuters)
• October 23, 2023 | Investing in Extinction: How the global financial sector profits from traditional medicine firms using threatened species (Environmental Investigation Agency)

Japan investigates Google over antitrust violations

The Japan Free Trade Commission announced an antitrust investigation into Google based on allegations that Google violated the country's antitrust rules by making deals with Android device manufacturers that encouraged them to prioritize its search engine, Chrome browser, and Play app store.

• According to the Japan Free Trade Commission, Google has been accused of providing instructions to manufacturers regarding the placement of icons on their device screens.
• The probe is investigating if Google made agreements to share advertising revenue with manufacturers that don’t pre-install competing search applications on their devices.
• Google is also facing an antitrust trial in the US over whether the company is using its size and reach to restrict competition.?

Select timeline

• October 23, 2023 | Japan Investigates Google Over Alleged Antitrust Violations (Bloomberg)
• October 23, 2023 | Japan probes Google for alleged antitrust violations in search practices (CNBC)
• October 23, 2023 | Japan opens antitrust probe into Google over deals to prioritize its search engine (UPI)

Investors sue Rolls-Royce over corruption scandal handling

Investors are suing Rolls-Royce Holdings PLC for losses related to a corruption scandal in 2017

• Investors are seeking ￡350 million after the scandal, for which Rolls-Royce agreed to pay ￡497 million to settle allegations in the UK, according to The Telegraph.?
• The original accusations against the carmaker involved bribery of officials in Indonesia to win contracts and conceal commissions paid in India.

Select timeline

• October 23, 2023 | Rolls-Royce facing lawsuit from investors over bribery scandal hit
• October 23, 2023 | Rolls-Royce facing ?￡350m class action lawsuit from investors (The Telegraph)

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