The board of Sanofi, France’s largest pharmaceutical company, has placed its bet on a familiar face to navigate one of the most turbulent periods in its history. On Thursday, the company announced that Belén Garijo, the current Chair of the Executive Board and CEO of German science and technology group Merck KGaA, will take the helm as Sanofi’s new Chief Executive Officer at the end of April.
For Garijo, 65, the move is technically a homecoming. She served as Sanofi’s President of Commercial Operations for Europe before departing for Merck in 2011. However, the Sanofi she returns to is a different beast than the one she left—and the reception from the market has been anything but a warm embrace.
Following the announcement, Sanofi shares saw muted activity as investors and analysts began to voice concerns over whether the appointment represents the bold, long-term strategic pivot the company desperately needs, or merely a safe, interim solution for a drugmaker facing a “huge task” ahead.
The “Safe Pair of Hands” Dilemma
The primary source of investor skepticism appears to stem not from Garijo’s capability, but from the timeline and the nature of the challenge. At 65, Garijo is taking on a role that typically demands a 5-to-10-year runway to see through the long cycles of pharmaceutical research and development (R&D).
“Belén Garijo is an undisputed heavyweight in the European pharma sector, with a stellar track record at Merck KGaA,” noted Jean-Luc Ferrand, a senior healthcare analyst at AlphaOne Partners in Paris. “But Sanofi is at an inflection point that requires a complete reinvention of its R&D engine. The question investors are asking is: Is this an appointment for stability, or for revolution? Sanofi needs the latter, but Garijo’s profile suggests the former.”
The “huge task” referenced by market watchers involves Sanofi’s over-reliance on its blockbuster immunology drug, Dupixent. While Dupixent has been a cash cow, driving revenue growth for years, the looming specter of patent expirations later in the decade means Sanofi is racing against the clock to diversify its pipeline. Investors have been clamoring for a CEO who can aggressively pursue mergers and acquisitions (M&A) or ruthlessly cut underperforming units—strategies that require aggressive, long-horizon leadership.
A Track Record of Modernization
Despite the murmurs of discontent regarding her age and the conservative nature of the choice, Garijo’s resume is formidable. During her 15-year tenure at Merck KGaA—the last five as CEO—she is credited with transforming the Darmstadt-based company from a traditional chemicals and pharmaceuticals firm into a vibrant science and technology powerhouse.
Under her leadership, Merck KGaA successfully integrated major acquisitions, streamlined its healthcare division, and expanded its footprint in the lucrative life sciences sector (providing tools and supplies for biotech research). Her supporters argue that this is exactly the kind of discipline Sanofi needs: a leader who understands how to optimize a complex, sprawling conglomerate.
“She knows the culture, she knows the European regulatory landscape, and she has proven she can modernize legacy businesses,” said a source close to the Sanofi board. “The idea that she is just a ‘caretaker’ manager underestimates her tenacity. She reshaped Merck. She intends to reshape Sanofi.”
The Sanofi Stumble
Garijo’s return comes as Sanofi attempts to recover from a series of strategic stumbles. The company famously lagged behind its peers in the race for a COVID-19 vaccine in 2020-2021, a failure that bruised its reputation as a global vaccine leader. Since then, the company has been in a state of restructuring, recently spinning off its consumer healthcare unit to focus purely on innovative medicines and vaccines.
However, the “pure-play” strategy exposes the company to the high risks of drug development. Recent late-stage clinical trial setbacks have left the pipeline looking thinner than competitors like AstraZeneca or Novartis.
The incoming CEO will face immediate pressure to deploy Sanofi’s balance sheet. Analysts expect Garijo to be grilled on her M&A strategy from Day 1. Will she pursue “bolt-on” acquisitions to patch holes in the pipeline, or will she look for a transformational merger? Her history at Merck suggests a pragmatic approach, favoring deals that offer clear synergies rather than speculative, high-priced biotech bets.
The “Homecoming” Narrative
Inside Sanofi’s headquarters on Avenue de France, the mood is reportedly cautiously optimistic. Garijo is remembered as a decisive leader during her previous stint as head of European commercial operations. Her medical background—she is a medical doctor by training, specializing in clinical pharmacology—gives her credibility with the R&D division that a purely financial CEO would lack.
“She speaks the language of the scientists, which is critical right now,” said one Sanofi executive who worked with her in the early 2010s. “Sanofi has often been accused of being run by accountants. Belén is a doctor. She understands that at the end of the day, if the molecule doesn’t work, the spreadsheet doesn’t matter.”
Looking to April
As Garijo prepares to take the reins at the end of April, the clock is already ticking. Her first 100 days will be scrutinized intensely. Wall Street and the Paris Bourse will be looking for three things: a clear plan to reduce dependence on Dupixent, a strategy to revitalize the R&D culture, and guidance on how she plans to navigate the increasingly hostile drug pricing environment in the United States, Sanofi’s largest market.
For now, the skeptical headlines dominate. The “huge task” ahead is undeniable. Whether Garijo is viewed as the architect of Sanofi’s future or merely a bridge to the next generation of leadership will depend entirely on how boldly she moves in her first year.
“The honeymoon period will be short,” analyst Ferrand warned. “She is walking into a storm. Experience is her shield, but execution will be her sword.”