Sanofi Shares Slide as Board Ousts CEO Hudson for Merck’s Garijo

The transition, finalized during a Feb. 11 board meeting, marks a significant pivot for the company. While Hudson is set to depart on February 17, Garijo will not officially take the helm until April 29, following the group’s annual general meeting. In the interim, Olivier Charmeil, Sanofi’s executive vice president of general medicines, will serve as acting CEO to manage the transition period.

Investors reacted sharply to the uncertainty, with Sanofi shares dropping more than 6% in midday trading. The decline brings the company’s total losses over the last 12 months to more than 25%. Analysts at Jefferies noted that a leadership change had been a subject of internal debate for some time, particularly as the company's research-and-development strategy hit several high-profile obstacles.

Navigating the Post-Dupixent Era

A primary challenge for Belen Garijo will be addressing the heavy concentration of revenue in Dupixent, the anti-inflammatory blockbuster that accounts for over one-third of Sanofi's total sales. With the drug eventually facing patent expiration, the board is seeking a leader who can accelerate the commercialization of new innovative medicines. According to a company statement, Garijo is expected to bring "increased rigor" to the implementation of Sanofi’s long-term growth strategy.

During his tenure, which began in September 2019, Hudson attempted to modernize the firm by offloading consumer-healthcare assets and focusing on rare diseases. However, the company famously lagged behind peers in the race to develop Covid-19 vaccines, a delay that weighed heavily on its reputation for innovation.

Garijo’s appointment represents a homecoming; she previously spent 15 years at Sanofi before moving to Merck KGaA in 2011. Her return is seen as an attempt to stabilize a pipeline that has recently struggled to deliver. The company’s strategic priorities under new leadership will likely include:

• Accelerating the development of next-generation immunology treatments.
• Optimizing the R&D budget to focus on high-margin rare disease therapies.
• Restoring investor confidence following a year of significant market underperformance.