China has officially charged AstraZeneca’s former regional head, Leon Wang, who was detained by authorities in the country more than a year ago in relation to probes into the drugmaker’s business.
The company confirmed Wang’s indictment to Reuters 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.
They were both charged with “unlawful collection of personal information, illegal trade and medical insurance fraud,” the company said on Tuesday.
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 has also overhauled local leadership in China. It named a new international executive vice president to replace Wang in December 2024.
The company said last November it had prepaid about $3.5 million in compensation for the unpaid import taxes, but cautioned that it could face additional fines.
AstraZeneca’s shares rose as much as 4% to a record high of 147.32 pounds ($201.21) on Wednesday, after the company forecast steady profit growth in 2026.
The company has been investing heavily in China. Last month, it pledged $15 billion in commitments and signed a multi-billion-dollar licensing deal with CSPC for weight loss drugs.
The Financial Times first reported on Wang’s charges.
Almost three years ago, in May of 2023, a circuit court judge in Lee County, Florida, sharply criticized a restoration contractor, accusing him of concealing the true cost of condominium roof work in an assignment-of-benefits claim with Tower Hill insurance.
Six months later, the state Department of Financial Services and local prosecutors brought criminal fraud charges against the contractor, Ricky McGraw, of South Florida Restoration Services, charging him with insurance fraud and grand theft. Florida’s chief financial officer at the time, Jimmy Patronis, now a Congressman, called the alleged fraud “despicable” and a reason behind rising premiums in the state.
Last week, just before the McGraw case was set to go to trial, it was dismissed. The move has left some property insurance carriers and their advocates frustrated that the man who had been called the “poster boy” for questionable claim amounts—and for hundreds of AOB lawsuits against insurers—will not see jail time.