The authorities in China have officially charged AstraZeneca’s former regional head, Leon Wang, for medical insurance fraud, among other charges.
Wang was detained by Chinese authorities more than a year ago in connection with probes into AstraZeneca’s business.
The drugmaker confirmed Wang’s indictment 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, according to a report by news agency Reuters.
The company had on Tuesday said that the two executives were charged with “unlawful collection of personal information, illegal trade and medical insurance fraud,”.
AstraZeneca’s shares sharply fell after Wang’s detention was announced in October 2024, following probes by China into the company’s executives, and alleged medical insurance fraud and importation of cancer drugs from Hong Kong.
The stock has recovered since, after signs that the impact of the probes could be minor and a series of robust results.
AstraZeneca’s overhaul in China
AstraZeneca had already overhauled its local leadership in China after probes into its irregularities began in the country. The drugmaker named a new international executive vice president to replace Leon Wang in December 2024.
The company said in November last year that it had prepaid about $3.5 million in compensation for the unpaid import taxes. But it also cautioned that it could face additional fines.
AstraZeneca’s shares rose as much as 4 per cent to a record high of £147.32 or $201.21 on Wednesday, after the company forecast steady profit growth in 2026.
The company has been investing heavily in China in recent years, especially after the COVID-19 pandemic. Last month, it pledged $15 billion in commitments and signed a multi-billion-dollar licensing deal with CSPC for weight loss drugs.