Sanofi shares plunged over 6% after BofA Securities downgraded the French drug giant to a neutral rating, citing uncertainty following the departure of CEO Paul Hudson. The brokerage also slashed its price target from €102 to €92, citing a lack of near-term catalysts and a heavier emphasis on long-term pipeline risks.

The abrupt leadership change, effective February 17th, replaced Hudson with Belén Garijo, the former CEO of Merck KGaA, a move investors had anticipated but now view as introducing fresh volatility. The downgrade reflects concerns about a thin pipeline catalyst path extending into 2027, particularly as BofA highlighted underwhelming Phase III data from the COAST-2 and SHORE studies and flagged regulatory risks for tolebrutinib in multiple sclerosis. Sanofi's stock reacted sharply, closing down 6.00% on the news, underscoring investor unease about the transition's immediate impact on value. The brokerage's revised multiple of about 10x 2027 EPS, down from a prior 12x, further signals diminished near-term optimism.