SNY Stock Falls After Board Suddenly Makes Leadership Change

Core Viewpoint - Sanofi has announced a leadership change, appointing Belén Garijo as the new CEO effective April 29, 2026, following the decision not to renew the mandate of current CEO Paul Hudson, which has led to a 4.5% drop in shares on February 12, 2026 [1][7]. Leadership Change - Paul Hudson's last day as CEO will be February 17, 2026, and Olivier Charmeil will serve as interim CEO until Garijo takes over [2]. - Belén Garijo, a Spanish national, previously served as CEO of Merck KGaA and has held roles at Abbott Laboratories and Sanofi [2]. Market Reaction - Investors have reacted negatively to the sudden CEO change, expressing concerns over Garijo's lack of a proven track record in leading large companies [3]. Stock Performance - Over the past six months, Sanofi's shares have declined by 4.1%, contrasting with a 28.4% increase in the industry [4]. Company Challenges - Sanofi is recognized as a major vaccine manufacturer and has a significant immunology drug, Dupixent, expected to generate around €22 billion in sales by 2030 [5]. - The company has faced setbacks in its research and development (R&D) efforts and pipeline innovation, which may have contributed to the decision for a leadership change [8][9]. - Sanofi has lagged in mergers and acquisitions compared to peers, impacting its growth and diversification [9]. Future Focus - Garijo's primary objectives will include enhancing R&D productivity, governance, and innovation, with the potential to turn around the company's fortunes [10].