China import tax fine could cost AstraZeneca up to US$8 million

AstraZeneca CEO Pascal Soriot

British-Swedish drugmaker AstraZeneca could find itself facing fines of up to US$8million in China due to suspected unpaid import taxes on breast cancer drug Enhertu.

AstraZeneca has made recent headlines in the Chinese market in the last few months concerning investigations into former China country president Leon Wang over alleged medical insurance fraud and potential illegal drug importation, as well as contending with continuing trade wars between China and the US. Despite these challenges, AstraZeneca has also announced plans to invest US$2.5 billion in R&D centres in Beijing.

The latest news from AstraZeneca and its operations in the China market concerns import issues, with probes conducted by the Chinese Customs Office and Public Security Bureau investigating potential fines of up to US$4.5 million for the import of Imfinzi and Imjudo, two cancer drugs. The probe may also extend to the import of Enhertu as of this week, with a suspected unpaid amount of approximately US$1.6 million. Fines could range between 1-5x the unpaid amount if AstraZeneca is found liable.

Despite these challenges, AstraZeneca CEO Pascal Soriot stated that the company is working to manage both the tariff issues and the claims of unpaid taxes, though the company still saw shares drop by as much as 5.4%. The reported total revenue for Q1 of US$13.6 billion feel below analyst expectations of US$13.8 billion, which may have been impacted partly due to US Medicare price negotiations for key oncology drugs from the drugmaker.

Source:

AstraZeneca says potential US tariffs manageable, faces another China fine [Accessed 29 April 2025] https://www.reuters.com./business/healthcare-pharmaceuticals/astrazeneca-says-may-face-further-import-tax-fine-china-2025-04-29/