Sanofi (-4.52%, at 78.83) tumbled sharply, posting the steepest drop on the CAC 40 index after the board of directors decided not to renew Paul Hudson's term as director.
As a result, Hudson will step down as CEO on the evening of February 17 and will be replaced by Belén Garijo as Chief Executive Officer. She will assume her duties following the group's general meeting on April 29, with Olivier Charmeil, Executive Vice President of General Medicines and a member of the executive committee since 2011, serving as interim CEO until then.
Frédéric Oudéa, Chairman of the Board, stated: "The Sanofi Board of Directors thanks Paul Hudson for his work and the strategic initiatives he launched during his tenure. The Board is delighted to welcome Belén Garijo as Chief Executive Officer. A recognized leader in our industry, she enjoys an undisputed reputation. She knows Sanofi very well, having held key positions at the Group for 15 years and achieved many successes."
Her main objective will be to bring greater rigor to the implementation of the group's strategy and to accelerate preparations for the company's future. The priority will notably be to strengthen productivity, governance, and the innovative capacity of R&D.
According to Jefferies, the possibility of a leadership change at the pharmaceutical group had been discussed for some time, as the group's R&D strategy had encountered obstacles. Analysts also noted that Belén Garijo was not featured on many lists of potential successors. However, they consider her achievements to include very effective management of an aging pharma portfolio and maintaining the KGaA structure while balancing the interests of the Merck family shareholders. She joined the German company in 2011 before being named CEO in 2021, thus becoming the first woman to lead a DAX 40 company in Germany.
Among the issues to watch, Jefferies points out that Sanofi needs a capital allocation that would allow it to inject its assets into the joint venture with Regeneron, enabling the partner to add its own assets and thus extend the longevity of the Dupixent joint venture. According to analysts, this scenario would have been difficult to envisage under Paul Hudson, but now seems achievable.
Another factor to monitor is whether there will be further management changes (notably in R&D). Jefferies analysts conclude by stating that "from what we know of Garijo, once a strategy is set, she pursues it with unwavering determination."
Mr. Paul Hudson is a Chief Executive Officer & Director at Sanofi, a Chairman at Novartis Pharma KK and a Chief Executive Officer & Director at Sanofi Clir SENC. He is on the Board of Directors at Sanofi and Sanofi Clir SENC. Mr. Hudson was previously employed as a Chief Executive Officer by Novartis Pharmaceuticals Corp., a President-AstraZeneca US & EVP-North America by AstraZeneca Plc, a President by AstraZéneca Farmacéutica Spain SA, a President & Director by AstraZeneca KK, a Member-Executive Committee by Novartis AG, and a Head-Global Marketing by Schering Plough Holdings France SAS. He received his undergraduate degree from Manchester Metropolitan University of.
Sanofi is the largest European pharmaceutical group. Net sales by family of products break down as follows:
- pharmaceutical products (81.8%): prescription drugs for the treatment of multiple sclerosis, neurological diseases, inflammatory diseases, autoimmune diseases, rare diseases, cancers and rare hematological diseases;
- human vaccines (18.2%): pediatric vaccines, vaccines for flu, meningitis, and polio, booster vaccines, and vaccines for travelers and endemic areas.
At the end of 2025, the group had 37 production sites worldwide.
Net sales are distributed geographically as follows: France (3.9%), Europe (17.1%), the United States (50.8%), China (6%) and other (22.2%).
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