On October 30, AstraZeneca China issued a statement confirming that Mr. Wang Lei, the company’s Global Executive Vice President, President of International Business, and President of China, is cooperating with Chinese authorities in an investigation. According to reports by The Paper, Wang Lei was arrested on October 30 by Shenzhen police for suspected smuggling of general goods and items. He is currently detained at a local detention center. Several of Wang’s subordinates were also taken in for questioning on similar charges, with some released on bail.
On December 4, AstraZeneca announced the appointment of Iskra Reic as Global Executive Vice President and Head of International Business to replace Wang Lei, who remains on leave due to the ongoing investigation. In AstraZeneca's 2024 Q3 report, Wang Lei’s status was updated from “cooperating with the investigation” to “detained.” The company stated that it is aware of investigations into current and former employees involving allegations such as health insurance fraud, illegal drug imports, and personal data breaches.
Sources close to the case disclosed that although Wang Lei’s initial charge was for smuggling, further allegations may arise based on police investigations and subsequent prosecution decisions.
Across China, multiple AstraZeneca employees have been convicted in insurance fraud cases. The earliest case was identified in Shenzhen in July 2021, where the city’s Medical Insurance Bureau, in collaboration with the police, uncovered a fraud scheme involving the alteration of genetic test results for cancer patients to claim medical insurance funds. Seventeen individuals were arrested and subjected to criminal measures.
A review of over ten criminal verdicts from 2023 and 2024 revealed similar fraud cases in Henan, Anhui, Jilin, and Qinghai provinces. For example:
In 2020-2021, employees Zhai Moumou and Wang Moumou manipulated genetic test reports to allow non-eligible patients to use medical insurance to purchase Osimertinib Mesylate, causing a loss of 158,772.25 yuan to the national health insurance fund. They were sentenced to three years imprisonment (suspended for five years) and two years and six months imprisonment (suspended for three years) respectively, along with fines of 20,000 yuan each.
In Hubei Province, an employee Du Moumou was convicted of defrauding the national health insurance fund of 112,238.78 yuan by altering patient test results.
In Fujian Province, former AstraZeneca sales manager Luo Mousheng was sentenced to 10 years and six months imprisonment and fined 300,000 yuan for fraud. Luo testified that altering genetic test reports was a common practice within AstraZeneca, implicating the company’s systemic responsibility.
Legal experts have stated that whether AstraZeneca will be held accountable as a company depends on the investigation results. If evidence implicates the company, prosecutors may charge it with unit crimes. AstraZeneca’s previous quarterly reports noted that the company has not received any investigation notices and is fully cooperating with authorities.
At an investor briefing on November 6, AstraZeneca revealed that in addition to Wang Lei, two current and two former executives are under investigation, including Yin Min, former General Manager of AstraZeneca China’s Oncology Division. Yin joined BeiGene as Chief Commercial Officer for Greater China in January 2022. BeiGene confirmed on October 25 that one of its employees is cooperating with related investigations.
On December 10, Realbio Gene Technology Co., Ltd. (688217.SH) announced that its chairman, general manager Xiong Hui, and vice general manager Xiong Jun were arrested on suspicion of fraud. Realbio’s main business involves in vitro diagnostic products and has a close collaboration with AstraZeneca in EGFR-T790M liquid biopsy tests. Public records show that Xue Yuwei, a former AstraZeneca employee, has frequently been linked to fraudulent cases involving Realbio’s testing units.