AstraZeneca China President Under Investigation as Fraud Scandal Simmers

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AstraZeneca's China president Leon Wang. Photo: File photo

AstraZeneca PLC’s China president is under investigation by the Chinese authorities, the company disclosed this week, as the British pharma giant continues to grapple with allegations involving medical insurance fraud and the importing of unapproved drugs in the country.

Leon Wang is “cooperating with an ongoing investigation,” AstraZeneca said in a Wednesday press release, adding that it will also “fully cooperate” with the probe.

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AstraZeneca's China president, Leon Wang, is under investigation for medical insurance fraud and unapproved drug imports, with Michael Lai temporarily leading operations.
AstraZeneca’s shares dropped by 3% following the announcement, and its China operations, significant to global revenue, face ongoing scandals.
Former AstraZeneca employees, including Eva Yin, are also involved in investigations, linked to past insurance fraud and regulatory violations.

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Who’s Who

AstraZeneca: AstraZeneca PLC is under investigation in China, with China president Leon Wang cooperating in a probe over medical insurance fraud and importing unapproved drugs. The company faces multiple scandals in China, where it employs around 20,000 people and generated 13% of its global revenue in 2023. Michael Lai is temporarily leading the local operations, as several AstraZeneca employees have been implicated in various related investigations.

BeiGene: BeiGene Ltd. is a Beijing-headquartered biotech firm where Eva Yin, a former AstraZeneca executive, currently works as chief commercial officer for BeiGene Greater China. The company confirmed Yin's cooperation with a regulatory investigation but clarified that the probe is unrelated to BeiGene’s business.

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What Happened When

2020：: Several cases of AstraZeneca allegedly tampering with cancer patients' genetic testing results to defraud medical insurance funds in China came to light.

2022：: China's medical insurance regulator, the National Healthcare Security Administration, held talks with AstraZeneca China, and arrests were made.

By September 2024：: Chinese authorities detained five former and current AstraZeneca employees for suspected illegal activities, including potential infringement of China's data privacy regulations and importing a drug that has not been approved for distribution on the Chinese mainland.

Days Before October 30, 2024：: Media reports emerged that Eva Yin, a former general manager of AstraZeneca's oncology unit in China, was taken away by Chinese regulatory authorities.

October 30, 2024：: AstraZeneca disclosed that its China president, Leon Wang, is under investigation by Chinese authorities. Wang is cooperating with the investigation, and Michael Lai will take charge of the company's local operations in his absence. Following the announcement, AstraZeneca's shares fell by around 3%.

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