In a significant development for the global pharmaceutical sector, AstraZeneca’s leading executive in China, Leon Wang, has been detained by Chinese authorities, marking an escalation in the ongoing probe into the company’s operations in the region.
The FTSE 100 pharmaceutical giant has confirmed that alongside Wang’s detention, two current executives and two former executives are under investigation. The probe centres on allegations regarding the illegal importation and sale of the cancer drug Imjudo, which lacks regulatory approval in China.
Sources close to the matter indicate that authorities are scrutinising the alleged illegal importation channels, particularly through Hong Kong into mainland China. Imjudo, typically prescribed in conjunction with AstraZeneca’s Imfinzi, serves as a combination therapy for advanced liver cancer patients.
The company’s market value took a substantial hit, shedding £15 billion after Chinese media reported dozens of executives were implicated in medical insurance fraud. During an investor call, AstraZeneca’s chief financial officer Aradhana Sarin clarified that these reports had incorrectly merged the current investigation with previous cases involving sales personnel.
Historical records reveal approximately 100 AstraZeneca sales representatives in China received sentences between 2020 and 2021 for falsifying genetic test results to secure state insurance coverage for patients seeking the lung cancer drug Tagrisso.
Michael Lai, the company’s general manager in China since 2019, has assumed leadership of the regional operations during Wang’s absence. The pharmaceutical giant’s shares continued their downward trajectory, closing at 9,919p in London trading, representing a 1.9 per cent decline.
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