British pharmaceutical giant AstraZeneca has named Iskra Reic as its new head of operations in China, succeeding Leon Wang, who is currently on extended leave due to an investigation by Chinese authorities. Reic, known for her leadership in the development of AstraZeneca’s Covid-19 vaccine, will relocate to Shanghai to assume her expanded role, the company announced on Wednesday.
Investor concerns have risen since October, when AstraZeneca first disclosed Wang’s status, drawing parallels to the 2014 bribery scandal involving GlaxoSmithKline, which resulted in a $489 million fine in China.
Reic, a seasoned executive with the company, will continue to lead AstraZeneca’s vaccines and immune therapies division alongside her new responsibilities, according to Reuters. AstraZeneca remains the most valuable company on the FTSE 100 index, which tracks the largest firms listed on the London Stock Exchange.
The case involving Wang is part of a broader pattern in China, where several high-profile executives have faced legal scrutiny. In February 2023, prominent investment banker Bao Fan disappeared amid an anti-corruption campaign, and no formal charges have been announced more than a year later.
Chinese state-owned media outlet Yicai reported that Wang and other AstraZeneca employees are under investigation for alleged violations related to insurance fraud. Additionally, the company’s CFO, Aradhana Sarin, recently acknowledged ongoing probes into medical insurance fraud—resulting in convictions for around 100 former employees—as well as inquiries into the unauthorized importation of cancer drugs into mainland China.
