CHINA

How AstraZeneca Bilked China’s Insurance Program Out of Millions of Yuan

By Cui Xiaotian, Huang Ang, Jiang Moting, Chen Xi and Kelly Wang

Published: Nov. 1, 2024 8:51 p.m. GMT+8

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AstraZeneca Business Innovation Center. Photo: AstraZeneca

China’s investigation into medical insurance fraud allegations at pharmaceutical giant AstraZeneca PLC’s China branch has reached the firm’s highest level of executive — Leon Wang, the division’s president, was confirmed to be under investigation this week.

Following a three-year probe, dozens of current and former AstraZeneca China executives, regional sales heads and pharmaceutical representatives have been investigated, with court files showing that millions of yuan could be involved in the fraud case.

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A high-level investigation into AstraZeneca's China branch found millions in medical insurance fraud, implicating top executives including the company's China president, Leon Wang.
The fraud focused on AstraZeneca's lung cancer drug, Tagrisso, involving the falsification of genetic test results for insurance reimbursements, resulting in over 3.56 million yuan in losses.
Several AstraZeneca salespeople and executives across China have been sentenced to prison, with ongoing investigations involving more high-ranking staff.

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Who’s Who

AstraZeneca PLC: AstraZeneca PLC, a British pharmaceutical giant, is under investigation in China for medical insurance fraud involving its lung cancer drug, Tagrisso. Allegations include falsifying genetic test results to qualify for insurance coverage. This investigation has implicated top executives, including AstraZeneca China's president, Leon Wang. Initial fraud began in mid-2019 and has resulted in several detentions and convictions. The investigation has extended across China, affecting regional sales directors and employees.

Amoy Diagnostics Co. Ltd.: Amoy Diagnostics Co. Ltd. (AmoyDx) is a Xiamen, Fujian-based testing company implicated in the AstraZeneca insurance fraud investigation. An employee from AmoyDx was detained for allegedly helping alter genetic test reports of lung cancer patients, enabling insurance reimbursement for those not meeting criteria. This misconduct started around mid-2019, contributing to a loss of over 3.56 million yuan in insurance funds.

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