Leon Wang, AstraZeneca’s Executive Vice President International and President of AstraZeneca China, is currently under investigation by Chinese authorities, the drugmaker confirmed today.
The company has stated that Wang is fully cooperating, though details about the nature of the investigation remain undisclosed. AstraZeneca’s operations in China will continue as usual under the leadership of its General Manager.
The announcement adds another layer to mounting scrutiny faced by AstraZeneca’s China operations. Last month, Chinese authorities detained five current and former AstraZeneca employees in the oncology division as part of an ongoing investigation into alleged illegal activities, as reported by Bloomberg.
The employees, all Chinese nationals, were reportedly detained in Shenzhen earlier this summer over two suspected violations: potential breaches of China’s stringent data privacy laws through misuse of patient data and involvement in importing an unapproved liver cancer drug into China. AstraZeneca confirmed that a small number of its employees are under investigation but withheld further details, and Chinese authorities have not commented on the case.
AstraZeneca’s challenges with Chinese regulatory bodies are not unprecedented. In 2022, the company was accused of tampering with gene-testing data, allegedly to make certain treatments eligible for government health insurance, adding to AstraZeneca’s already complex regulatory landscape in China. This latest probe comes amid a broader crackdown on data security and compliance in foreign companies operating in China.
These investigations highlight a growing regulatory risk for multinational companies in China. Recently, a Japanese executive from Astellas Pharma faced similar challenges when he was detained in China on espionage charges, sparking concern among foreign firms navigating the country's newly intensified data and anti-spying regulations.