BEIJING’S mayor called on AstraZeneca to expand its research and development investment in the Chinese capital, signalling that a probe against some of its executives will not affect business ties with the UK drugmaker.
The call for investments came during a virtual meeting between Astra’s chief executive officer Pascal Soriot and Mayor Yin Yong on Thursday (Dec 19) afternoon, according to the Communist Party-backed Beijing Daily.
During the call, Yin sought greater scientific collaborations between AstraZeneca and universities, research institutions and corporations in Beijing, to which Soriot responded positively, according to the report.
China aims to attract more investment in key industries and encourage foreign companies to set up research and development centres in the nation, as it seeks to bolster the flagging economy. Astra has invested heavily in the country across R&D, manufacturing and sales of its medicines.
Over the years, the UK drugmaker has pledged billions of US dollars to build a life sciences innovation campus in the eastern city of Wuxi, an R&D centre in Shanghai and a production site in Qingdao. It also set up a US$1 billion investment fund together with a state-owned bank and struck deals with multiple Chinese biotechs.
China is also a major market for the company, with Chinese sales accounting for as much as 20 per cent of Astra’s global revenue at one point. But its sales practices came under scrutiny in September when authorities detained current and former employees over probes relating to data privacy and illegal drug importation. In October, Astra revealed that Leon Wang – the top leader instrumental in growing the company’s China business – was also detained, and it later said other executives were part of the probe.
Astra continued to rack up regulatory milestones while Wang was out of the picture. Enhertu, one of its flagship new cancer treatments, earned new approvals as well as coveted reimbursement under national insurance. That aside, company insiders now expect an “evident” revenue hit because doctors are unwilling to engage with Astra’s sales people, according to a recent Financial Times report.
The company named a new executive vice-president of its international business in early December to replace Wang – including his China responsibilities – while he’s on “extended leave”. BLOOMBERG
