AstraZeneca Appoints New Head for International Operations During Investigation into China Executive
AstraZeneca has made a significant leadership change, appointing Iskra Reic as the new executive vice president for its international operations amidst ongoing investigations related to Leon Wang, the former International head, who is currently on extended leave.
Reic, who previously led AstraZeneca’s Vaccines and Immune Therapies division, is responsible for steering the company’s development of innovative products focused on disease prevention, including their COVID-19 and respiratory syncytial virus initiatives. A representative from AstraZeneca confirmed that Reic will relocate to Shanghai while maintaining oversight of the Vaccines and Immune Therapies unit, as reported by Reuters.
In her new capacity as International lead, Reic’s role will encompass formulating strategies for sustainable growth across AstraZeneca’s markets outside the U.S., which include regions such as the Middle East, Africa, Australia, New Zealand, and Latin America, as well as China and other Asian and Eurasian territories.
AstraZeneca’s CEO, Pascal Soriot, praised Reic’s extensive international experience and leadership skills, believing they will significantly contribute to advancing the rapidly growing International sector.
This excerpt was originally published on November 8, 2024
Original headline: Reports Indicate AstraZeneca’s China Head Taken Into Custody by Authorities
According to various reports, China’s President Leon Wang has been detained by local authorities.
The circumstances surrounding Wang’s arrest remain uncertain; this follows recent disclosures about an investigation into alleged medical insurance fraud involving the pharma’s China head. In a prior communication, an AstraZeneca spokesperson emphasized that “none of our current or former senior executives are under investigation for Medical Insurance Fraud.”
BioSpace has reached out to AstraZeneca for clarification regarding Wang’s detention and will update the article as additional details emerge.
The news of Wang’s investigation led to an 8% decline in AstraZeneca’s stock value, resulting in a substantial loss of billion in market capitalization, according to information from Reuters. AstraZeneca responded by describing these media narratives as “speculative,” while asserting that its operations in China would persist under General Manager Michael Lai.
“AstraZeneca will fully cooperate with any investigation if requested,” the company mentioned.
China is one of the largest pharmaceutical markets globally and is especially significant for AstraZeneca. In the past year, the company reported a 7% increase in revenue from China, amounting to .9 billion. Popular products there include the cancer drug Tagrisso and the breast cancer treatment Enhertu, both of which have experienced strong demand.
Earlier in April 2023, AstraZeneca allocated 0 million to expand its presence in China with a new facility aimed at addressing chronic obstructive pulmonary disease.
The pharmaceutical giant has also collaborated with several Chinese biotech firms to create innovative therapeutics. Notably, in November 2023, AstraZeneca invested billion in Shanghai’s Eccogene for its obesity candidate ECC5004, which yielded promising early results showing body weight reduction of 5.8% in participants after a month of treatment.
In addition, AstraZeneca recently agreed to a potential billion deal with CSPC Pharmaceutical Group to develop a pre-clinical asset targeting lipid-lowering therapy for dyslipidemia.
Wang’s detainment arrives against a backdrop of heightened geopolitical strain between China and the U.S. This situation is reflective of the BIOSECURE Act, proposed legislation that aims to restrict biopharmaceutical companies from collaborating with Chinese partners, which would ultimately shield U.S. funds from companies considered security risks.
Concerns have been raised about the implications of this legislation, which passed overwhelmingly in the House and is now under consideration in the Senate, with experts warning it could disrupt an already vulnerable drug supply chain.