PARIS/DARMSTADT (dpa-AFX) - Pharmaceutical giant Sanofi has unexpectedly replaced its current CEO Paul Hudson. The executive will depart the company as early as February 17, the French drugmaker announced on Thursday. A successor has already been named: outgoing Merck CEO Belén Garijo. She is set to assume the top role at Sanofi following the annual general meeting on April 29. In the interim, executive committee member Olivier Charmeil will steer the company. Following the announcement, Sanofi shares came under pressure on the stock market, with the stock recently losing almost 6 percent.
Hudson joined Sanofi from Novartis in September 2019. Under his leadership, the company initially managed to emerge from its then crisis in the insulin business. As the former market leader was increasingly overtaken by providers of more modern insulin products, Hudson decided to exit the diabetes business. Instead, he refocused the company on immune diseases, vaccines, and innovative therapies. Last year, Sanofi also sold its consumer health division Opella, narrowing its focus exclusively to prescription drugs.
Lately, however, Hudson has been under pressure. With the blockbuster drug Dupixent—used, among other indications, for asthma and neurodermatitis—facing potential revenue declines due to an impending patent expiration, concerns have mounted. The search for new potential revenue drivers and Hudson's ambitious plans to bring more new drugs to market have so far met with only limited success. Several key drug studies failed at the final and decisive phase, or delivered mixed results.
For instance, Sanofi recently saw disappointing results with the active ingredient Tolebrutinib in the so-called primary progressive form of multiple sclerosis (PPMS). Similarly, Amlitelimab for neurodermatitis—which some had seen as a potential successor to Dupixent—did not fully convince in trials.
Analysts, meanwhile, expressed surprise at the leadership shake-up. After recent research setbacks, the sudden change only adds to uncertainty, noted Graham Parry of Citigroup. While he highlighted Garijo's extensive experience in the pharmaceutical industry, he had expected a candidate from a large research-driven pharma company. It now remains to be seen what measures the new CEO will take.
Michael Leuchten of Jefferies wrote that while Garijo had not attained the profile of a top pharma manager at Merck, he credited her with skillfully managing an aging drug portfolio in Darmstadt.
Sanofi board chairman Frédéric Oudéa, meanwhile, praised Garijo's expertise: "She is a recognized leader in our industry with an undisputed reputation. She knows the Sanofi group very well, having held key positions there for 15 years and achieved many successes." In addition to Sanofi, Garijo's career has also included a stint at pharmaceutical company Abbott, where she worked in research for several years.
The physician by training has led the pharmaceutical and technology group Merck since May 2021. The succession at Merck has been planned for some time: according to previous announcements, current head of the electronics division Kai Beckmann will succeed Garijo at the top of the company on May 1. The DAX-listed Darmstadt company announced the change last September.
Garijo guided Merck through the coronavirus pandemic. She also managed acquisitions, most recently overseeing the takeover of US cancer specialist Springworks Therapeutics./tav/niw/stk
