AstraZeneca overhauls management of its scandal-hit China division

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AstraZeneca has revamped its local management in China to move on from recent scandals and restore sales after sales Arrest of its president in the country

D FTSE 100 Group It has hired new executives to lead its Chinese oncology business, which has come under intense scrutiny over two incidents including alleged illegal sales practices for cancer drugs.

The scandal ensnared China’s President Leon Wang, who the company announced in November had been detained along with several other employees. AstraZeneca has cut more than £15 billion from its market capitalization following reports of a local authority investigation.

Alex Lin is replacing Michael Lai as country general manager, according to two people with direct knowledge of the matter. Lai Wang was one of its senior managers. Lai has moved to the United States to be in charge of AstraZeneca’s chief cancer drug and reports to the head of oncology, according to people close to the company. Lai did not respond to requests for comment.

The drugmaker has promoted Mary Guan, formerly of its Chinese general medicine unit, to lead the oncology division in China to deal with the division, according to a person familiar with the matter.

AstraZeneca declined to comment. It has previously said it will fully cooperate with Chinese authorities and is cooperating with Wang’s investigation.

The drugmaker – China’s largest foreign pharmaceutical group by revenue in 2023 – is trying to relaunch its business in China where insiders report that they Expect a dip in sales Because the hospital is unwilling to deal with the company. New management will be key to getting AstraZeneca back on track in its most important growth markets. China will contribute 13 percent of global sales in 2023.

The company “wants to show that a clean cut has been made with the old management,” said a person familiar with the position.

“Many changes in China’s leadership team are expected but not yet announced,” said another.

AstraZeneca Executive Iskra Sales He was appointed in early December to take over from Wang, who also ran the international region, which includes other emerging markets.

“OstraZeneca has distanced itself from Leon and other affected employees,” said a person close to the company.

They added that Wang was under “a lot of pressure to revive growth” after China’s revenue declines in 2022.

AstraZeneca leadership has received no formal explanation from Chinese authorities and has not been able to contact Wang, according to people familiar with the matter. The agency concluded that the investigation was about the alleged illegal importation of the cancer drug Imjudo into China through Hong Kong – where the drug is not approved – as authorities also detained Yin Min, AstraZeneca’s former head of oncology, who was in charge of the division. At the time of the alleged offense.

Separately, several salesmen were convicted of medical insurance fraud over the past two years after courts tampered with genetic test results to ensure lung cancer patients were eligible for the drug Tagriso under a national reimbursement scheme.

The drugmaker is pinning much of its hope in China on its breast cancer drug Enhartu, which authorities recently said will be included in the state health insurance scheme.