China charges former AstraZeneca executive – what it means for global pharmaceutical firms

AstraZeneca’s former China head has been formally charged with medical insurance fraud, illegal trading and unlawful collection of personal information, more than a year after he first came under investigation – casting a shadow over the Swedish-British drug maker’s expansion in its second-largest market.The pharmaceutical giant confirmed to the Financial Times and Reuters that Leon Wang was one of two individuals indicted, as referenced in its latest earnings report published on Tuesday. The company did not name him in the report, stating only that a former executive vice-president and “senior employee” had been charged.AstraZeneca also said it was not alleged to have received any illegal gains from Wang’s offences.The company did not respond to a request for comment from the China-morning-post" class="entity-link entity-organization" data-entity-id="12558" data-entity-type="organization">South China Morning Post.The case, reminiscent of the 2013 GlaxoSmithKline bribery scandal, underscores broader regulatory shifts in the country’s healthcare sector and foreign investment landscape. China is the world’s second-largest pharmaceutical market, driven by an ageing population and rising healthcare spending.The charges come as AstraZeneca deepens its commitment to the Chinese market. In January, it announced plans to invest US$15 billion in the country through 2030 to expand pharmaceutical manufacturing and research and development (R&D).