Chinese authorities have detained five current and former employees of AstraZeneca Plc as part of a wider investigation into alleged illegal activities within the pharmaceutical sector. The investigation centers around potential breaches of data privacy laws and the importation of unlicensed cancer medications.
The detained individuals, all Chinese nationals, were involved in the marketing of oncology drugs in China, a market that accounts for approximately 13% of AstraZeneca’s global revenue.
The inquiry, led by police in the Shenzhen region, is examining whether these employees imported a liver cancer treatment that had not been approved for use in mainland China. The investigation is also scrutinizing the methods AstraZeneca used to collect patient data, looking for any violations of China’s strict privacy regulations.
This crackdown is part of Beijing’s broader anti-corruption initiative, targeting the misuse of public funds and unethical practices within the healthcare sector.
Amidst rising geopolitical tensions and concerns over foreign business operations in China, AstraZeneca had previously considered strategies to safeguard its interests, including a potential spin-off of its Chinese business.
The investigation into AstraZeneca’s marketing strategies coincides with China’s intensified efforts to combat drug smuggling. Despite Beijing’s regulatory reforms to expedite the approval of critical medicines, many new treatments remain unavailable or face delayed approvals compared to other developed countries. This gap has led patients to seek medications from abroad, sometimes resorting to illicit means.
The detention of AstraZeneca employees highlights the complexities of navigating China’s regulatory landscape, particularly in the pharmaceutical sector. It also underscores the growing scrutiny of foreign companies operating in China and the importance of adhering to local laws and regulations.
