BUSINESS

AstraZeneca Faces Intensified Probe in China as Tax Evasion Amount Grows

Published: May. 1, 2025 6:07 a.m. GMT+8

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AstraZeneca facility in Gaithersburg, Maryland on Aug. 26, 2024. Photo: Bloomberg

British-Swedish pharmaceutical giant AstraZeneca plc is facing increasing scrutiny in China, with authorities accusing the company of evading more than $1.6 million in import taxes as part of a widening smuggling investigation that now includes a top-selling breast cancer drug.

In its first-quarter earnings report released Tuesday, AstraZeneca confirmed it had received a new official notice from Shenzhen Customs’ anti-smuggling bureau concerning allegations of unlawful drug imports. The notice identified Enhertu, a HER2-targeting antibody-drug conjugate co-developed with Japan’s Daiichi Sankyo Co. Ltd., as part of the broader probe.

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AstraZeneca is under investigation in China for alleged evasion of over $1.6 million in import taxes, involving its top-selling breast cancer drug Enhertu and two other oncology medicines.
Enhertu's global sales reached $1.98 billion in 2024, with $478 million from emerging markets; China accounted for $1.805 billion of AstraZeneca's $13.59 billion Q1 2025 global revenue.
Despite legal challenges, AstraZeneca is investing $2.5 billion in a Beijing R&D hub and remains committed to the Chinese market.

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Who’s Who

AstraZeneca plc: AstraZeneca plc is a British-Swedish pharmaceutical giant with a large presence in China, facing scrutiny for alleged tax evasion related to oncology drugs like Enhertu, Imfinzi, and Imjudo. Despite legal challenges, it remains committed to China, which is a key growth market. In 2024, China contributed $6.4 billion to AstraZeneca’s global revenue, and the company is investing $2.5 billion in a new R&D hub in Beijing.

Daiichi Sankyo Co., Ltd.: Daiichi Sankyo Co., Ltd. is a Japanese pharmaceutical company that co-developed Enhertu, a HER2-targeting antibody-drug conjugate, with AstraZeneca. Enhertu is now under investigation in China as part of a broader probe into AstraZeneca’s drug imports.

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