Sanofi, the French pharmaceutical company, has announced the appointment of Belén Garijo as its new CEO, effective from the end of April. Garijo, who previously served as the CEO of the German pharmaceutical firm Merck, replaces Paul Hudson, who will step down on February 17. This leadership change comes as Sanofi faces significant difficulties in replacing its best-selling drugs that are set to lose patent protections, which has adversely affected its market standing.

In recent months, Sanofi's stock has seen a concerning decline, dropping over 25% in the past year and experiencing a more than 6% fall on the announcement day. The company has acknowledged the urgent need to revive its operational momentum as it tackles the challenges posed by the expiring patents of key medications. The market reaction indicates a broader anxiety about the company's ability to maintain its growth trajectory and competitive edge in the pharmaceutical sector.

The appointment of Garijo is seen as a strategic move to reinvigorate Sanofi's business operations and restore investor confidence. With a market capitalization hovering around €95 billion, Sanofi is under pressure to make significant adjustments to its strategy. Garijo brings experience from her tenure at Merck, where she has been credited with successful leadership, and her transition to Sanofi is hoped to align the company back towards a path of sustainability and profitability amidst a transitioning pharmaceutical landscape.