AstraZeneca Chief Executive Reveals Staff Compliance Breaches in China as Investigations Deepen

AstraZeneca’s chief executive, Sir Pascal Soriot, has disclosed that former employees in China breached company protocols by using WeChat messaging services, amidst ongoing investigations by Chinese authorities. The revelation comes as the pharmaceutical giant faces scrutiny over various compliance issues in its second-largest market.

The FTSE 100 company, which employs 16,000 staff in China, experienced a significant setback last week when £17 billion was wiped from its market value, leading to Shell overtaking its position as the UK’s most valuable listed company. The situation intensified following the detention of Leon Wang, AstraZeneca’s executive vice-president for international and China president, in Shenzhen.

Sir Pascal defended the company’s compliance systems, highlighting that more than 200 staff are dedicated to maintaining regulatory standards. He emphasised the integrated nature of their Chinese operations with global oversight, noting that regional heads report directly to their global counterparts.

The company faces multiple challenges in China, including an investigation into alleged medical insurance fraud involving approximately 100 former employees. The case centres on claims that patient test results were falsified to secure reimbursement for their cancer drug, Tagrisso. Chinese authorities are also examining potential illegal importation of unapproved medicines from Hong Kong.

Despite these challenges, Sir Pascal remains steadfast in his commitment to the Chinese market, though he acknowledged the complexities of operating within the country’s unique regulatory environment. The company has responded by implementing additional compliance measures, including field-based compliance officers and regular rotation of regional sales directors.

The pharmaceutical giant maintains that it has not been directly implicated in the investigations, distinguishing its situation from the more severe bribery scandal that engulfed GSK a decade ago. AstraZeneca has expressed its willingness to cooperate fully with Chinese authorities as investigations continue.

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