Cover Story: The Insurance Fraud That Boosted Sales of AstraZeneca China’s Cancer Drug (AI Translation)
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文｜财新周刊 黄晏浩
By Caixin Weekly's Huang Yanhao
知名跨国药企阿斯利康（AstraZeneca）在中国的最高负责人王磊正配合调查，三年多来一系列员工在华陷入刑事麻烦的阿斯利康被抛上浪头。
Wang Lei, the top executive of well-known multinational pharmaceutical company AstraZeneca in China, is currently cooperating with an investigation. Over the past three years, the company has faced a series of criminal issues involving its employees in China, which has brought AstraZeneca into the spotlight.
10月30日，阿斯利康发布公告称，阿斯利康全球执行副总裁、国际业务主席及中国总裁王磊正在中国配合调查。公告表示，如有要求，阿斯利康将全力配合调查。
On October 30, AstraZeneca issued a statement announcing that Leon Wang, Executive Vice President for International and President of AstraZeneca China, is cooperating with an investigation in China. The statement indicated that AstraZeneca will fully cooperate with the investigation if requested.
此前的10月25日，知名创新药企百济神州有限公司（688235.SH）大中华区首席商务官殷敏被调查的消息传出。当日下午4时，百济神州发表声明证实“一名员工正在配合相关调查工作”，但强调“该员工所涉事件与百济神州无关”。业内猜测，殷敏被查或与阿斯利康所涉“骗保”案有关——殷敏在阿斯利康任职长达15年，2018—2021年她任阿斯利康投资（中国）有限公司肿瘤业务部总经理，是肿瘤业务最高负责人，向王磊汇报。
On October 25, news broke that Yin Min, Chief Commercial Officer for Greater China at the renowned innovative pharmaceutical company BeiGene Ltd. (688235.SH), was under investigation. At 4 p.m. the same day, BeiGene released a statement confirming that "an employee is cooperating with the relevant investigation," but emphasized that "the incident related to this employee is not connected to BeiGene." Industry speculation suggests that Yin Min's investigation may be linked to AstraZeneca's "insurance fraud" case—Yin Min worked at AstraZeneca for 15 years, and from 2018 to 2021, served as General Manager of the Oncology Business Unit at AstraZeneca Investment (China) Co., Ltd., reporting to Wang Lei.
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- Leon Wang, AstraZeneca's executive in China, is cooperating with authorities amid investigations into employee-related criminal issues, including a notable "insurance fraud" case involving fabricated genetic test reports for cancer drug reimbursements.
- The fraud involved falsifying test reports to secure insurance funds for the drug Tagrisso, leading to legal charges against numerous AstraZeneca employees, with ongoing investigations in multiple Chinese provinces.
- Despite these challenges and detentions of staff, AstraZeneca continued its investments in China, with total investments amounting to $1.175 billion between 2023 and 2024.
The top executive of multinational pharmaceutical company AstraZeneca in China, Wang Lei, is currently involved in an official investigation by Chinese authorities. This situation has been unfolding over several years, with the company facing criminal allegations related to insurance fraud involving its employees in China, marking a consequential moment for the organization. [para. 1][para. 3]
On October 30, AstraZeneca was in the news due to a statement they issued about Leon Wang, Executive Vice President for International and President of AstraZeneca China, who is cooperating with an ongoing legal investigation in China. [para. 2] Around the same time, word spread about Yin Min, a Chief Commercial Officer of BeiGene Ltd., being under some form of investigation potentially linked to AstraZeneca due to her prior long-term involvement with the company. [para. 3]
Wang Lei, who started in the pharmaceutical industry back in 1996, has risen through the ranks within AstraZeneca to become a pivotal figure, responsible for significant global business operations. His involvement brings to light the serious challenges the company faces amid this insurance fraud scandal. [para. 4][para. 5] AstraZeneca, a major player in the pharmaceutical market in China, has seen substantial revenue streams from the country, emphasizing the gravity of the situation. [para. 6]
The crux of the problems revolves around an insurance fraud scam that was discovered in 2021, where certain AstraZeneca employees allegedly manipulated patient data to let patients claim reimbursement for drugs not covered by their insurance. Particularly implicated is AstraZeneca’s cancer medication, “Tagrisso.” [para. 7][para. 8]
The company's current or former staff, spread across numerous Chinese provinces, have been drawn into this scandal, facing serious judicial consequences. The Shenzhen case involving AstraZeneca highlights significant legal repercussions for employees like Zuo Yingquan, who was sentenced to over eleven years in prison. [para. 9][para. 10] Despite the allegations and prosecutions, AstraZeneca continued to expand their investment ventures in China considerably, emphasizing their commitment to growth in the region despite the hurdles faced. [para. 12][para. 13]
Further developments unfolded as the investigation broadened, implicating AstraZeneca's company practices and partner organizations like Ricongene in genetic testing collaborations tied to fraudulent activities. [para. 14][para. 15] This complex web reflects broader issues within AstraZeneca's operational procedures and partnership management, particularly concerning their high-stakes oncology business. [para. 16][para. 17]
Even amid the ongoing investigation, AstraZeneca has been clear in its stance on strict adherence to compliance policies, distancing the organization's broader reputation from these allegations. The scandal highlights systemic issues within the pharmaceutical industry’s practices, particularly around the pressures that lead employees to undertake fraudulent activities. [para. 18][para. 19]
Legal proceedings and testimonies from involved employees shed light on the internal pressures driving fraud within AstraZeneca's operations. Employees cited profound performance pressures and complex organizational systems as factors contributing to this fraudulent activity. The systemic pressure and cultural influences within AstraZeneca depict the challenging environment these employees faced, which became a catalyst for their indulgent actions in the fraud. [para. 20][para. 22]
Ultimately, the case against AstraZeneca resonates as an emblematic representation of the challenges multinational corporations face within regional contexts, emphasizing the critical balance required between aggressive commercial strategies and ethical business practices. The ongoing investigation is not just an isolated incident for AstraZeneca but echoes broader implications for industry-wide practices in pharmaceutical sales and compliance frameworks globally. [para. 23][para. 25]
- AstraZeneca
阿斯利康 - AstraZeneca is a well-known multinational pharmaceutical company involved in a "fraudulent insurance claims" case in China. The company's top executive in China, Wang Lei, is currently under investigation. Allegations involve manipulation of patient gene tests for insurance reimbursement, notably concerning the cancer drug Tagrisso. The scandal has led to significant legal repercussions for employees, but AstraZeneca continues its substantial investment in China, viewing it as a strategic market.
- BeiGene Ltd.
百济神州有限公司 - BeiGene Ltd., a renowned innovative pharmaceutical company, was mentioned in the article when its Greater China Chief Commercial Officer, Yin Min, was investigated. Yin Min, who worked at AstraZeneca for 15 years and was the head of the oncology business, became linked with AstraZeneca's insurance fraud case. However, BeiGene asserted that the investigation into Yin Min was unrelated to their company.
- Roche
罗氏制药 - The article mentions that Wang Lei worked at Roche Pharmaceuticals for 16 years before joining AstraZeneca in 2013. Roche is a well-known multinational healthcare company, but the article does not provide further details about Roche's involvement or actions related to the ongoing investigation into AstraZeneca's operations in China.
- Novartis
诺华 - Novartis is mentioned in the article as a company where former AstraZeneca employees, including Zhu Jiakang and Chen Bin, moved to after leaving AstraZeneca. Zhu Jiakang joined Novartis as the head of the innovative medicine oncology sector in China in July 2022, and Chen Bin joined as an assistant vice president, focusing on sales.
- Sanofi
赛诺菲 - Sanofi is mentioned in the article as the company where Chen Bin worked as a medical representative after leaving the Shanghai Fifth People's Hospital. It is referred to as a multinational pharmaceutical company. Chen Bin's role involved pharmaceutical sales.
- Eisai
卫材药业 - Eisai is mentioned as one of the well-known multinational pharmaceutical companies where Chen Bin, a central figure in the AstraZeneca insurance fraud case, previously worked. He was responsible for the sales of various drugs during his time at Eisai, before moving on to other companies, including AstraZeneca.
- Geneway Biotech
健路生物科技 - Geneway Biotech, mentioned in the article, is involved through allegations that its reports were used to falsely show positive T790M mutation results, facilitating insurance fraud. The practice, known as the "Star Plan," involved marking reports with a star to obtain false positive results, impacting insurance claims, and involving multiple individuals, including intermediaries and AstraZeneca employees.
- AccuraGen
睿昂基因科技股份有限公司 - AccuraGen is mentioned as one of AstraZeneca (China)'s partners, providing T790M liquid biopsy services in deep cooperation. AccuraGen's involvement is linked to the genetic testing project central to the AstraZeneca insurance fraud case, where some testing reports were allegedly falsified to enable patient reimbursement for drugs like Tagrisso, which were otherwise ineligible under their insurance conditions.
- AmoyDx
厦门艾德生物医药科技股份有限公司 - AmoyDx, referred to in the article as "厦门艾德医学检验所," is a company involved in gene testing and test reagent sales. Salesperson Ma Teng from AmoyDx reportedly modified eight patient gene test reports by himself, even creating a fake stamp for authentication. Ma Teng was sentenced to three years in prison for fraud, highlighting AmoyDx's alleged involvement in report modification in the AstraZeneca "insurance fraud" case.
- July 2021：
- Shenzhen Municipal Medical Insurance Bureau discovered AstraZeneca staff suspected of insurance fraud.
- August 2021：
- Zuo Yingquan informed colleagues about a case filed by public security authorities related to the insurance fraud investigation.
- September 15, 2021：
- Several AstraZeneca representatives were detained by Shenzhen police.
- December 27, 2021：
- National Healthcare Security Administration and Ministry of Public Security held a meeting with AstraZeneca regarding the insurance fraud case.
- Late December 2021：
- Yin Min left AstraZeneca and Chen Bin was promoted within AstraZeneca's oncology division.
- January 7, 2022：
- Zuo Yingquan was detained by Shenzhen police.
- January 29, 2022：
- National Healthcare Security Administration published a statement disclosing details of the AstraZeneca insurance fraud case.
- February 10, 2022：
- Shenzhen Municipal Medical Insurance Bureau announced dismantling of a fraud ring involving AstraZeneca.
- June 2022：
- Several AstraZeneca representatives in Fujian were detained by police; Kang Yuling was questioned.
- June 20, 2022：
- AstraZeneca announced expansion of investment in China at the Qingdao Multinational Summit.
- August 2023：
- Zuo Yingquan sentenced to prison for insurance fraud; further investment announced by AstraZeneca in Qingdao.
- September 2024：
- Pascal Soriot confirmed AstraZeneca's collaboration with the Chinese government on insurance fraud investigation.
- October 25, 2024：
- News broke that Yin Min was under investigation.
- October 30, 2024：
- AstraZeneca announced Leon Wang's cooperation with the investigation in China.
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