China Accuses Ex-AstraZeneca Regional Chief of Insurance Fraud
China has officially charged AstraZeneca’s former regional head, Leon Wang, who was detained by authorities in the country more than a year ago in relation to probes into the drugmaker’s business.
The company confirmed Wang’s indictment to Reuters on Wednesday, a day after disclosing that Chinese prosecutors had charged a former executive vice president and a former senior employee in November, without naming them.
Both individuals were charged with “unlawful collection of personal information, illegal trade, and medical insurance fraud,” the company stated on Tuesday.
AstraZeneca’s shares experienced a sharp decline following the announcement of Wang’s detention in October 2024. This was part of broader investigations by Chinese authorities into the company’s executives, which included allegations of medical insurance fraud and the importation of cancer drugs from Hong Kong.
However, the stock has shown signs of recovery since then, buoyed by indications that the impact of these probes might be less severe than initially feared, alongside a series of robust financial results.
In response to the ongoing challenges, AstraZeneca has also made significant changes to its local leadership in China. In December 2024, the company appointed a new international executive vice president to succeed Wang.
Last November, AstraZeneca reported that it had prepaid approximately $3.5 million in compensation for unpaid import taxes, while also warning that it could face additional fines in the future.
On Wednesday, AstraZeneca’s shares rose as much as 4%, reaching a record high of 147.32 pounds ($201.21), following the company’s forecast of steady profit growth for 2026.
The company has been making substantial investments in China. Just last month, AstraZeneca committed $15 billion and signed a multi-billion-dollar licensing agreement with CSPC for weight loss drugs.
The Financial Times was the first to report on Wang’s charges.
($1 = 0.7322 pounds)
(Reporting by Maggie Fick in London and Raechel Thankam Job in Bengaluru; writing by Pushkala Aripaka; editing by Shinjini Ganguli)
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China has officially charged AstraZeneca’s former regional head, Leon Wang, who was detained by authorities in the country more than a year ago in relation to probes into the drugmaker’s business.
The company confirmed Wang’s indictment to Reuters on Wednesday, a day after disclosing that Chinese prosecutors had charged a former executive vice president and a former senior employee in November, without naming them.
Both individuals were charged with “unlawful collection of personal information, illegal trade, and medical insurance fraud,” the company stated on Tuesday.
AstraZeneca’s shares experienced a sharp decline following the announcement of Wang’s detention in October 2024. This was part of broader investigations by Chinese authorities into the company’s executives, which included allegations of medical insurance fraud and the importation of cancer drugs from Hong Kong.
However, the stock has shown signs of recovery since then, buoyed by indications that the impact of these probes might be less severe than initially feared, alongside a series of robust financial results.
In response to the ongoing challenges, AstraZeneca has also made significant changes to its local leadership in China. In December 2024, the company appointed a new international executive vice president to succeed Wang.
Last November, AstraZeneca reported that it had prepaid approximately $3.5 million in compensation for unpaid import taxes, while also warning that it could face additional fines in the future.
On Wednesday, AstraZeneca’s shares rose as much as 4%, reaching a record high of 147.32 pounds ($201.21), following the company’s forecast of steady profit growth for 2026.
The company has been making substantial investments in China. Just last month, AstraZeneca committed $15 billion and signed a multi-billion-dollar licensing agreement with CSPC for weight loss drugs.
The Financial Times was the first to report on Wang’s charges.
($1 = 0.7322 pounds)
(Reporting by Maggie Fick in London and Raechel Thankam Job in Bengaluru; writing by Pushkala Aripaka; editing by Shinjini Ganguli)
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