Sanofi Appoints Belén Garijo as CEO to Revive Stalled Growth Strategy

2026-02-13 companies

Paris, Friday, 13 February 2026.
Following severe R&D setbacks and a 25% stock decline, Sanofi replaces CEO Paul Hudson with former Merck KGaA chief Belén Garijo to instill rigor and accelerate its turnaround.

Leadership Shakeup Amid Strategic Impatience

In a decisive move to address stalling growth and pipeline setbacks, the board of Sanofi (NASDAQ: SNY) has voted not to renew the mandate of CEO Paul Hudson, effectively terminating his tenure on February 17, 2026 [1][3]. The announcement, made on February 12, 2026, follows a board meeting held the previous day where directors opted for a leadership change to instill greater “rigor” into the company’s strategy implementation [3][8]. Belén Garijo, the former CEO of German pharmaceutical and technology group Merck KGaA, has been appointed to take the helm following the company’s Annual General Meeting on April 29, 2026 [3][4]. Until Garijo formally assumes the role, Olivier Charmeil, the current head of general medicines, will serve as interim CEO [2][3].

Market Reaction and Financial Context

The leadership transition occurs against a backdrop of investor dissatisfaction. Sanofi shares fell 3.5% on the day of the announcement and have declined approximately 25% over the past year, significantly underperforming the broader European pharmaceutical index [1]. While Hudson successfully scaled revenue from €32 billion to €44 billion during his six-year tenure—representing a growth of 37.5%—shareholder returns have lagged behind competitors [6]. Since September 2019, Sanofi generated a 33% return including dividends, a stark contrast to the 133% return from AstraZeneca and 65% from GSK over the same period [1][2]. The market’s frustration was further compounded when Hudson admitted to analysts in late January 2026 that the company’s turnaround plans had not progressed as quickly as anticipated [1][2].

Pipeline Setbacks and Strategic Stalls

The board’s decision appears driven by a series of late-stage failures in Sanofi’s research and development pipeline, which Hudson had been tasked with revitalizing to reduce reliance on the blockbuster immunology drug Dupixent [4][5]. The company faced significant setbacks in 2025, including an FDA rejection of the multiple sclerosis drug tolebrutinib in December and disappointing data for the COPD candidate itepekimab [4][8]. Additional pipeline disappointments involved the Escherichia coli vaccine ExPEC9V and the rare disease treatments venglustat and losmapimod [4]. Analysts noted that the R&D transformation was perceived as either failing or progressing too slowly, leaving the company vulnerable as major patents approach expiration [1][5].

A Return to Rigor: Garijo’s Appointment

Belén Garijo, who will become the first female CEO of Sanofi, brings a reputation for operational discipline. A Spanish national and medical doctor, Garijo previously served as CEO of Merck KGaA from 2021, where she was the first woman to lead a DAX40 company [7]. Her appointment marks a return to familiar territory; she spent 15 years at Sanofi prior to joining Merck in 2011, holding senior roles including Vice President of Pharmaceutical Operations for Europe and Canada [3][7]. Sanofi Chairman Frédéric Oudéa emphasized that Garijo possesses the experience to “accelerate the pace” and strengthen the execution of the company’s strategy [7]. However, reaction to her appointment remains mixed; some analysts have expressed skepticism regarding her R&D track record at Merck, suggesting the move reflects a governance failure rather than a guaranteed fix for Sanofi’s innovation challenges [5][8].

Sources

Sanofi Belén Garijo