French drugmaker Sanofi on Thursday announced the appointment of Belén Garijo as its new chief executive, after choosing not to renew the mandate of outgoing CEO Paul Hudson. The company said the change highlights mounting pressure from U.S. vaccine headwinds and a turnaround that has struggled to gain momentum since Hudson assumed the role in 2019.
Garijo, 65, returns to Sanofi with a long history at the firm. She spent 15 years at Sanofi, serving as vice president of pharmaceutical operations for Europe and Canada and holding a seat on the executive committee, according to the company. During that period her responsibilities included leading the integration of Sanofi’s Genzyme rare diseases unit in the United States.
In 2021 Garijo moved from Merck KGaA, where she had been head of its pharmaceuticals unit, to become CEO of the German maker of pharmaceuticals and specialty materials. Her time as Merck KGaA CEO coincided with volatile markets affected by the COVID-19 pandemic and involved strategic moves such as the acquisition of SpringWorks Therapeutics and a series of portfolio divestitures.
Sanofi noted that Garijo's contract with Merck KGaA is ending as planned. Observers point to a mixed record in the pharmaceuticals business under her leadership; the German company experienced numerous setbacks in the development of new drugs during her tenure.
Outside of industry operating roles, Garijo has held board positions. She served on the board of French cosmetics group L’Oreal from 2014 until 2024, and she currently sits on the board of Spanish bank BBVA.
Analysts offered measured assessments of her fit for the Sanofi role. Berenberg analyst Luisa Hector said Garijo’s experience is broad but not particularly linked to improvements in R&D productivity at large pharmaceutical companies. Jefferies added in a client note that Garijo likely would not have been the leading candidate on many succession lists, arguing that at Merck KGaA she arguably did not attain the profile of some of her predecessors.
Market reaction was immediate: shares in Sanofi were down almost 3% by around 08:45 GMT on Thursday.
Key points
- Sanofi has appointed Belén Garijo as CEO after choosing not to renew Paul Hudson’s mandate; the change follows U.S. vaccine headwinds and a stalled turnaround since 2019.
- Garijo has deep ties to Sanofi, having worked there for 15 years and led the integration of the Genzyme rare diseases unit; she most recently served as CEO of Merck KGaA.
- Her tenure at Merck KGaA included pandemic-era market turbulence and strategic moves such as the acquisition of SpringWorks Therapeutics and portfolio divestitures; the company also faced multiple drug development setbacks during that period.
Risks and uncertainties
- Uncertainty over whether Garijo’s background will address R&D productivity challenges cited by analysts - pertinent to large-cap pharmaceutical R&D and biotech markets.
- Potential investor concerns reflected in an immediate share price decline - relevant to equities and investor sentiment in the healthcare sector.
- Questions about leadership fit given commentary that Garijo may not have matched prior executive profiles at Merck KGaA - a governance and strategic execution risk for Sanofi.