China detains five AstraZeneca staff for breaching 'data privacy', importing unlicensed drugs
- In Reports
- 01:03 PM, Sep 06, 2024
- Myind Staff
Chinese police have reportedly detained five current and former AstraZeneca employees as part of an investigation into potential breaches concerning data privacy and the importation of unlicensed medications.
The detentions happened earlier this summer and targeted Chinese citizens who marketed cancer drugs for AstraZeneca's oncology division, according to Bloomberg. Police are investigating whether these employees were involved in importing a drug intended for liver cancer treatment that had not been approved for distribution in mainland China.
The investigation, led by police in the Shenzhen region, is also examining how AstraZeneca collected patient data to determine if it may have violated China’s privacy laws.
AstraZeneca said in a statement, “We are aware a small number of our employees in China are under investigation and we have no further information to share at this point.”
The investigation is part of a broader anti-corruption drive by Beijing over the past year, aimed at cracking down on kickbacks and the misuse of public funds in the pharmaceutical and healthcare sectors.
AstraZeneca, which has about 16,000 staff in China and generates 13% of its revenues from the country—around $6 billion of a total of $44 billion (£33 billion)—is China’s largest overseas drugmaker by sales. The British firm, known for its COVID-19 vaccine developed with Oxford University, has about 90,000 employees worldwide and had previously targeted Chinese biotech firms for acquisitions and growth strategies.
In 2020, AstraZeneca acquired the rare disease specialist Alexion for $39 billion and identified China as a key market for expansion. However, last year, the company reportedly considered spinning off its Chinese operations and listing its shares in Hong Kong or Shanghai to mitigate rising tensions between China and the US and its allies.
The move was intended to shield the company, led by Pascal Soriot, the highest-paid chief executive in the FTSE 100, from potential crackdowns on foreign businesses by Chinese authorities.
Amid growing speculation about increased geopolitical tensions, particularly if Donald Trump wins the US presidential election in November, comments by Trump's running mate and prospective vice-president, JD Vance, have been notable. Vance, in a May interview with CBS, expressed his discontent with China, directly attributing problems in the US jobs market to the country.
Image Source: Reuters
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