Charged with three offenses, former China Regional President Wang Lei has been indicted. Is AstraZeneca's case involving insurance fraud and smuggling coming to an end?

More than a year after being taken in for investigation, there is a new development in the case involving Wang Lei, the former “number one” in AstraZeneca (AZN.US) China, related to insurance fraud and smuggling.

On February 12, media reports stated that Wang Lei (Leon Wang), former Global Executive Vice President, Chairman of International Business, and President of China at AstraZeneca, has been officially indicted by Chinese authorities. AstraZeneca has confirmed the contents of the indictment to the media.

Market sources indicate that the charges include illegal drug importation, illegal collection of personal information, and medical insurance fraud.

On February 12, Times Finance interviewed AstraZeneca regarding the authenticity of the news and whether the company has disclosed any further information. As of press time, there has been no response.

Public records show that Wang Lei, born in 1972, joined AstraZeneca in March 2013 and was under investigation until October 2024. He worked at AstraZeneca for over ten years, holding multiple key positions including Vice President of the China Gastrointestinal, Respiratory, and Anesthesia Business Units, President of China, and Global Executive Vice President.

In the latest annual report, AstraZeneca stated that in November 2025, the Shenzhen Procuratorate completed its review, and AstraZeneca China, along with a former Executive Vice President and a former senior employee, are facing formal criminal charges for suspected illegal collection of personal information, illegal trade, and medical insurance fraud.

The company did not disclose the specific names of those involved in the report, but multiple media outlets confirmed that the “former Executive Vice President” referred to Wang Lei.

AstraZeneca stated that these two former employees will be tried at the Shenzhen Intermediate People’s Court, with the trial date yet to be determined.

From a Legend to a Prisoner

Since Wang Lei was investigated starting in October 2024, the high-level executive closely tied to AstraZeneca China has been a hot topic, and his era has abruptly ended amid the controversy.

Public records show that Wang Lei, born in 1972, is not a medical professional. A graduate of Shanghai Foreign Studies University, he was originally a foreign language tour guide. In 1996, he joined Roche as an assistant to the general manager, and spent 16 years there, working across various departments including HR, R&D, and marketing.

In 2013, Wang Lei joined AstraZeneca as head of the Gastrointestinal, Respiratory, and Anesthesia Business Units. Over a year later, he achieved his long-held goal: “Since entering the industry on the first day in 1996, my goal has been to become the President of a multinational pharmaceutical company’s China operations.” By the end of 2014, he was promoted to President of AstraZeneca Greater China; in January 2017, he was further promoted to Global Executive Vice President, responsible for strategy and business development in Asia-Pacific.

Under Wang Lei’s leadership, AstraZeneca’s performance in China soared, especially in the respiratory field. The company aggressively expanded into county markets, establishing respiratory nebulization centers at the grassroots level, which helped make AstraZeneca’s inhalation drugs well known among the public. Along with the rising performance, AstraZeneca China’s position within AstraZeneca’s global footprint also improved, becoming the second-largest single market for the company.

In 2024, AstraZeneca achieved revenue of $54.073 billion, with China’s revenue reaching a record high of $6.413 billion, an 11% increase year-over-year. This success earned AstraZeneca China the top spot among multinational pharmaceutical companies in China.

However, on the evening of October 30, 2024, AstraZeneca’s global and China official websites announced that Wang Lei was in China cooperating with an investigation.

In fact, even before Wang Lei was taken in for investigation, AstraZeneca was already embroiled in scrutiny and public controversy. Besides the ongoing insurance fraud case that began in 2021, there were also suspicions involving employees in smuggling cases.

Regarding illegal trade, the annual report states that in October 2025, AstraZeneca China received the final assessment opinion from Shenzhen Customs, which indicated that AstraZeneca China owed RMB 24 million (about USD 3.5 million) in unpaid import taxes for drugs including Durvalumab (brand name: Imfinzi), Tislelizumab (brand name: Imjudo), and Trastuzumab deruxtecan (brand name: Enhertu; Chinese name: Youhede).

AstraZeneca stated that it voluntarily paid the full amount of the assessed taxes. However, if AstraZeneca China is found responsible for illegal trade, it could be fined between one and five times the amount of the paid import taxes.

Regarding the suspected invasion of citizens’ personal information, AstraZeneca China received a “Notice of Case Transfer for Review and Prosecution” from the Bao’an Branch of Shenzhen Public Security Bureau. However, it is reported that AstraZeneca China was not accused of illegally profiting from the collection of personal data.

Additionally, AstraZeneca China was not prosecuted for insurance fraud.

Zhang Wenbo, senior partner at Beijing Jundu Shanghai Law Firm and head of the Life Sciences and Healthcare Legal Department, told Times Finance that this case involves a multinational pharmaceutical company, multiple charges, and extensive evidence, making it a complex and significant case. He expects the trial to take a long time. If evidence is complex, involves cross-regional investigations, or requires supplementary inquiries, the trial period could extend to six to nine months or longer.

He noted, “The series of controversies surrounding this case could lead to global market doubts about AstraZeneca’s compliance system in China. It may also prompt the company to overhaul its compliance framework in China, strengthening oversight of sales and data management. This could impact its innovation drug deployment and market expansion plans in China, and even lead to adjustments in its global strategy.”

AstraZeneca to Invest 100 Billion RMB in China

Following Wang Lei’s investigation, AstraZeneca quickly initiated organizational and personnel adjustments in China, distancing itself from Wang Lei.

On December 4, 2024, AstraZeneca appointed Iskra Reic as Global Executive Vice President and Head of International Business, overseeing markets including China, Asia, Eurasia, the Middle East, Africa, Latin America, Australia, and New Zealand.

Amidst these upheavals, AstraZeneca has accelerated its investment in China.

In October 2025, AstraZeneca officially launched its new global strategic R&D center in Beijing, its second such center in China, part of a core project involving an investment of approximately RMB 18 billion (about USD 2.5 billion) made in March 2025.

Over the past few years, AstraZeneca has continuously expanded its presence in China, including building global strategic R&D centers, upgrading manufacturing bases in Wuxi, Taizhou, Qingdao, and Beijing, and announcing plans to establish new production facilities. The company’s workforce in China is expected to exceed 20,000 employees, accounting for about 20% of AstraZeneca’s total global staff.

On January 29, 2024, AstraZeneca announced plans to invest over RMB 100 billion (about USD 15 billion) in China by 2030 to expand its pharmaceutical manufacturing and R&D footprint. AstraZeneca’s global CEO, José Baselga, stated that this investment would mark a new chapter in AstraZeneca’s development in China.

Additionally, AstraZeneca has been actively acquiring innovative drugs in China. Over the past year, the company has partnered with Chinese firms including Xibiman Biotech, CSPC Pharmaceutical Group (01093.HK), Polymed (02142.HK), GSK (01167.HK), and Yuan Si Sheng Tai.

According to the latest financial report, AstraZeneca’s revenue in China continues to grow. In 2025, AstraZeneca’s total global revenue reached $58.739 billion, an 8% increase year-over-year, with product revenue at $58.64 billion, up 10%. Revenue from the Chinese market was $6.654 billion, a 4% increase, accounting for about 11%. Industry media Pharma Magic reports that based on disclosed financials, AstraZeneca has once again become the leading multinational pharmaceutical company in China.