AstraZeneca’s CEO, Pascal Soriot, asserts the company’s strong compliance policies in China, following the detention of several employees. The Chinese government’s probe into the company’s data collection practices and drug importation activities marks another challenge for the pharmaceutical giant.
AstraZeneca Plc, under the leadership of CEO Pascal Soriot, maintains robust compliance policies in China. This assertion comes in the wake of several employees’ detention in the country. Soriot, in a recent interview, stated that the Chinese government’s probe involves eight or nine employees out of the 12,000-strong workforce in the country. He emphasized that it’s “impossible” for every employee to act as a compliance officer.
Cooperation with Chinese Authorities
AstraZeneca is “working very closely” with Chinese authorities on the matter. Soriot noted that the government’s actions are not exclusive to AstraZeneca but are affecting other companies as well. He welcomed these actions, stating, “It’s a good thing, because we need to make sure we can operate in a very compliant environment.”
Investigations into Data Privacy and Drug Importation
Chinese authorities are investigating the company’s patient data collection practices to determine any potential infringement on data privacy laws. Additionally, the authorities are probing the involvement of some AstraZeneca employees in importing a liver cancer drug not yet approved for distribution in mainland China.
Impact on Stock and Future Outlook
The China probe is the latest challenge for the U.K. company, whose shares have already been affected by disappointing data from a late-stage study of a lung cancer drug. Despite the setbacks, Soriot remains optimistic about the company’s drug portfolio and the potential of Dato-DXd, a cancer drug currently under trial. He believes that the market is reacting to short-term events rather than assessing long-term trends.
