AstraZeneca flags possible $4.5m Chinese tax fine

AstraZeneca could face a fine of up to $4.5m in China over suspected unpaid taxes related to the import of two of its cancer drugs, the pharmaceuticals giant said on Thursday as it continues to gauge the effect of ongoing investigations in the key growth market.

The company said that, to the “best” of its knowledge, the taxes related to the drugs Imfinzi and Imjudo, adding that it continues to co-operate fully with authorities.

A fine of between one and five times the unpaid tax of $900,000 could be levied if the company is found liable, AstraZeneca said in its fourth-quarter earnings statement, where it also forecast 2025 sales above analyst expectations.

Last December the company named Iskra Reic as its new international executive vice-president, who took over from Leon Wang in efforts to stabilise operations in China after Wang was detained by Chinese authorities in October.

Wang’s arrest was followed by other revelations, including that more than 100 former sales staff in China had been sentenced to jail time in a large medical insurance fraud case.

In November the company reported a third investigation in China involving two current and two former senior executives, relating to the import of AstraZeneca cancer drugs from Hong Kong. It has said the investigation targeted the individuals only, not the company.

AstraZeneca’s shares plunged after the initial news of Wang's detention, wiping about $18bn off the company’s value. They have since recovered and are up about 6% since the start of the year.

The company said on Thursday that 2025 revenue is expected to increase by a high single-digit percentage, with core earnings projected to grow by a low double-digit percentage.

Analysts are expecting 2025 sales growth of 6.5% and profit to rise by 12.6%, an LSEG poll of more than 20 analysts shows.

Reuters