Feb 12 (Reuters) - French drugmaker Sanofi said on Thursday it had appointed Belén Garijo as its new chief executive after deciding not to renew the mandate of current CEO Paul Hudson. It said in a
Sanofi Replaces CEO Hudson Amid Challenges in Vaccine Sector
Sanofi's Leadership Change and Future Strategy
By Alessandro Parodi and Bhanvi Satija
Impact of CEO Transition
LONDON, Feb 12 (Reuters) - French drugmaker Sanofi abruptly ousted its CEO Paul Hudson on Thursday, underscoring rising pressure from U.S. vaccine headwinds and a stalled turnaround since he took the reins in 2019 to replace blockbuster drugs.
Financial Performance Comparison
The company said it had appointed Belén Garijo, head of German drugmaker Merck KGaA, as its new chief executive, adding she would take over in late April.
Future Growth Prospects
Hudson, who was pushed out just two months before his tenure was up for renewal, did not respond to a Reuters request for comment.
Sanofi, among the world's largest vaccine makers, released a string of underwhelming trial updates last year while pursuing bolt-on acquisitions in search of new medicines to help drive growth once its blockbuster asthma drug Dupixent loses key patents in the early 2030s.
Hudson had been hired with a mandate to revive the company's drug pipeline and share price but has struggled to reduce Sanofi's dependence on its star eczema treatment Dupixent, drawing pressure from investors.
Shareholders have seen a 33% return on their investment, including dividends, since September 2019 when Hudson took over, according to LSEG data.
That is significantly lower than UK-based rivals AstraZeneca and GSK, which saw returns of 133% and 65% respectively during the same period.
Sanofi said in late January that its vaccines sales would be "slightly negative" this year, partly due to U.S. policy changes under President Donald Trump.
SANOFI SEEKS ITS 'NEXT GROWTH CYCLE' UNDER NEW CEO
Sanofi said in a statement that Hudson would step down as of February 17, while Garijo will take the role at the end of the group's shareholder meeting on April 29. Sanofi board member Olivier Charmeil will serve as acting CEO during the transition.
Garijo previously worked for 15 years at Sanofi and was a board member at French cosmetics giant L'Oreal.
"She has the experience and profile to accelerate the pace, strengthen the quality of execution of strategy and lead the next growth cycle of the company," Sanofi chairman Frederic Oudea said in a statement.
JPMorgan analysts said that Garijo was expected to bring in greater discipline at Sanofi and speed up preparations for the drugmakers future beyond Dupixent, with a focus on boosting R&D productivity.
Hudson had said in January that 2026 would be a good time for dealmaking after the firm forecast high-single-digit overall sales growth this year, despite an expected drop in vaccine sales linked to vaccine scepticism in the United States.
(Reporting by Alessandro Parodi in Gdansk and Bhanvi Satija in London; Editing by Matt Scuffham, Adam Jourdan and Joe Bavier)
