British drugmaker AstraZeneca has appointed Iskra Reic as the new head of its operations in China, replacing former executive Leon Wang who is currently on extended leave while under investigation by Chinese authorities. Reic, who played a key role in overseeing the development of the company's Covid vaccine, will be relocating to Shanghai to take up her new responsibilities.
Investors have been closely monitoring AstraZeneca since Wang's situation came to light in October, drawing comparisons to a major bribery scandal involving another British pharmaceutical company, GlaxoSmithKline, a decade ago. AstraZeneca, the most valuable company on the FTSE 100 index, has confirmed that Wang is cooperating with the ongoing investigation but has provided no further details on the case.
Reports suggest that Wang and other AstraZeneca employees are being probed by Chinese officials for alleged violations related to insurance fraud. The company has acknowledged the medical insurance fraud investigation, which has already led to the sentencing of approximately 100 former employees. Additionally, there is a separate investigation into the illegal importation of cancer drugs into mainland China.
This development comes amidst a broader crackdown on corruption in China, with notable figures like investment banker Bao Fan also reported missing in recent months. Despite his disappearance in February 2023, no formal charges have been brought against him so far.
AstraZeneca's decision to appoint Reic as the new head of its China operations reflects its commitment to maintaining stability and continuity in the face of ongoing challenges. The company continues to navigate these turbulent waters while striving to uphold its reputation as a leading provider of pharmaceutical products globally.
