Chinese authorities have formally indicted AstraZeneca’s former regional head Leon Wang for medical insurance fraud, among other charges.
FILE PHOTO: A woman poses with a needle and syringe in front of the AstraZeneca logo in this picture taken on Dec. 11, 2021. REUTERS/Dado Ruvic/Illustration//File Photo (REUTERS)Wang was detained by Chinese authorities more than a year ago to investigate AstraZeneca’s business.
The drugmaker confirmed Wang’s charges on Wednesday, a day after it was revealed that Chinese prosecutors had unnamed a former executive vice president and a former senior employee in November, according to a report by news agency Reuters.
The agency said on Tuesday that the two executives have been charged with “illegal collection of personal information, illegal trading and medical insurance fraud”.
AstraZeneca shares fell sharply after Wang’s arrest was announced in October 2024, following a Chinese investigation into company executives and allegations of medical insurance fraud and importing cancer drugs from Hong Kong.
The stock has recovered, after signs that the probe’s impact may be small and a series of strong results.
AstraZeneca’s overhaul in ChinaAstraZeneca has already overhauled its local leadership in China after an investigation into irregularities in the country began. The drugmaker named a new international executive vice president to replace Leon Wang in December 2024.
The company said in November last year that it had prepaid about $3.5 million as compensation for unpaid import taxes. But it warned it could face additional fines.
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AstraZeneca shares rose 4 percent to a record high of 147.32, or $201.21, on Wednesday, after the company forecast steady profit growth in 2026.
The company has been investing heavily in China in recent years, especially after the COVID-19 pandemic. Last month, it pledged $15 billion in pledges and signed a multi-billion dollar licensing deal with CSPC for a weight-loss drug.
