AstraZeneca has announced plans to invest £2 billion in Beijing, just months after Chinese authorities detained the head of its China division over alleged illegal activities.
The British pharmaceutical giant said it will spend $2.5 billion (£2.1 billion) over the next five years to establish a new research hub in the Chinese capital. AstraZeneca has also signed new licensing agreements with Chinese biotech firms Harbour BioMed, Syneron Bio, and BioKangtai as part of its expansion.
The investment will see AstraZeneca’s Beijing workforce nearly triple, growing from around 600 employees to 1,700.
Already the largest pharmaceutical company in China, AstraZeneca relies on the country for 12% of its global revenue. However, the company is currently facing scrutiny over a scandal involving alleged illegal drug imports.
Last year, Leon Wang, president of AstraZeneca’s China operations, was detained along with several employees amid an investigation into the importation of the cancer drug Imjudo, which has not been approved for sale in China.
Last month, AstraZeneca CEO Pascal Soriot confirmed the company is cooperating with Chinese authorities, adding that he wished “Leon the very best” in reference to Leon Wang, the detained head of its China operations.
However, Soriot admitted, “We have no new information to share about Leon. Actually, we don’t receive information.”
In a separate development, over 100 former sales employees in China have reportedly been jailed in connection with alleged medical insurance fraud. The National Healthcare Security Administration has accused AstraZeneca staff of participating in schemes to defraud insurance providers.
These controversies have taken a toll on AstraZeneca’s share price, at one point erasing over £15 billion in market value. While some of those losses have since been recovered, the situation continues to cast a shadow over the company.
Despite the setbacks, Soriot remains optimistic about AstraZeneca’s future in China. “This $2.5 billion investment reflects our belief in the world-class life sciences ecosystem in Beijing, the extensive opportunities for collaboration and access to talent, and our continued commitment to China,” he said.
As part of the company’s expanded footprint in Beijing, Soriot has also been invited to join the Beijing International Business Leaders Advisory Council (IBLAC), a prominent business advisory group.
The move to deepen ties with China comes just weeks after AstraZeneca abandoned plans for a £450 million vaccine manufacturing facility in Liverpool. The decision followed a reduction in government support, with Sir Keir Starmer’s administration reportedly offering £80 million in public funding—less than the £90 million previously pledged by the Conservatives.
