Belén Garijo, the current CEO of Merck, will become the new chairwoman of Sanofi, replacing Paul Hudson whose contract will not be renewed; Hudson will step down February 17 and Garijo will take the helm after Sanofi’s AGM at the end of April.

Sanofi is undergoing a high-stakes leadership transition amid a strategic push to accelerate growth, pursue acquisitions, and counter the risk from patent cliffs, notably for Dupixent, whose protection expires in the early 2030s.

Frédéric Oudéa, Sanofi’s chairman, said Garijo’s experience will help accelerate execution and lead the company through its next growth cycle.

The report notes industry conversations with policymakers in the U.S. on potential pricing reforms, as manufacturers seek tailor-made arrangements amid possible policy changes.

Hudson’s tenure since 2019 focused on expanding R&D and pursuing a successor for Dupixent, but investor concerns grew over a thinner blockbuster slate and a lagging share price.

Hudson pushed to diversify Sanofi’s pipeline and bolster R&D, aiming to replace Dupixent as patents near expiration, while navigating recent clinical setbacks.

Sanofi cited ongoing vaccine business headwinds in the U.S. and regulatory/policy headwinds as factors shaping the portfolio’s outlook.

Sanofi posted a 6.2% year-over-year sales gain to 43.6 billion euros, but has faced drug development challenges and a weaker share performance in the past year.

Analysts say the leadership transition reflects ongoing R&D hurdles and a broader push to improve drug development outcomes and governance.

Garijo’s mandate at Sanofi would emphasize strengthening R&D productivity and governance, with a long-term revenue target around €25 billion by 2025 tying back to prior ambitions amid post-pandemic slowdowns.

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Dupixent has delivered substantial sales but faces patent protection ending in five years, raising concerns about future growth.