AZ confirms its China president is under investigation

The head of AstraZeneca's Chinese operations has been placed under investigation by the authorities in Beijing, although the reasons for the probe remain unclear.

In a brief statement, AZ confirmed that Leon Wang, who is also executive vice president, international, at the pharma group, is "cooperating with an ongoing investigation by Chinese authorities." The statement was published after local media reported that Wang had been taken into custody, which has not been confirmed.

The company added that, in the meantime, its Chinese operations are being led by the unit's general manager, believed to be Michael Lai, and that it will "fully cooperate with the investigation […] if requested."

The investigation into Wang may be the latest development in an ongoing probe into the Chinese healthcare sector, which is the second-largest in the world after the US. Last year, the authorities instigated a major crackdown on suspected corruption in the medical, pharma, and insurance sectors – along with other sectors – which has resulted in dozens of senior figures coming under scrutiny.

The country has been contending with rising healthcare costs at the same time as it deals with an economic slowdown, rising unemployment, and a fall in foreign investment tied to the amplification of geopolitical tensions.

Earlier this year, AZ reported that some of its current and former employees had been taken into custody in China as part of an investigation into data privacy breaches and the import of unlicensed medicines. It is unclear if Wang's investigation is related to that case.

According to Wang's LinkedIn profile, he has been with AZ for more than a decade and previously held senior positions with Roche. He is a prominent figure in China's pharma sector and has steered a major expansion of AZ's Chinese operations over that period.

The company's presence in China is thought to be the largest of any overseas pharma group, with sales there reaching $5.9 billion in 2023, and earlier this year grew further with a $1.2 billion acquisition of local cell therapy developer Gracell Biotechnologies.

It operates a headquarters and R&D centre in Shanghai and has a network of supply sites in Wuxi, Taizhou, and Qingdao, employing around 16,000 people.

Shares in AZ fell nearly 3% after news of the investigation into Wang emerged.