Sanofi Ousts CEO Hudson as Turnaround Efforts Stall

French pharmaceutical giant Sanofi abruptly ousted CEO Paul Hudson on Thursday, citing a stalled turnaround and mounting pressure from vaccine market headwinds. Hudson, who took the helm in 2019 with a mandate to revive the company’s drug pipeline, will step down on February 17 after failing to reduce Sanofi’s dependence on its flagship asthma drug Dupixent.

Leadership Transition and New Direction

The company appointed Belén Garijo, current head of German drugmaker Merck KGaA, as its new chief executive, effective after the shareholder meeting on April 29. Garijo brings 15 years of prior Sanofi experience and previously served on the board of French cosmetics giant L’Oreal. Board member Olivier Charmeil will serve as interim CEO during the transition period.

Performance Concerns and Market Challenges

Hudson’s tenure has underperformed relative to industry peers, delivering only a 33% shareholder return since September 2019, significantly lower than competitors AstraZeneca’s 133% and GSK’s 65% returns. The ouster reflects investor frustration with underwhelming trial results and Sanofi’s struggle to build a sustainable growth strategy beyond Dupixent, which faces patent expiration in the early 2030s.

Sanofi recently warned that vaccine sales would be “slightly negative” in 2026, attributed partly to U.S. policy changes under the Trump administration. JPMorgan analysts expect Garijo to bring greater operational discipline and accelerate R&D productivity to prepare for the company’s post-Dupixent future.