LONDON, Oct 29 (APM) - Sanofi's board of directors sacked its chief executive Christopher Viehbacher on Wednesday and chairman Serge Weinberg will take on the additional role of CEO until a successor is appointed, the company said in a statement.
It said the directors held a meeting with him at 8am this morning and decided "unanimously to remove" him as CEO. It said that as a consequence, he has resigned as a director.
The sacking comes a day after Sanofi presented third-quarter results and a warning that its leading diabetes business would stall next year due to tough competition on prices in the U.S. That warning caused its shares to plummet 9%. (APMMA 40241).
In a brief statement on Wednesday, Sanofi said the board thanked Viehbacher "for all the work done during the last six years, which has enabled the group to move through a sensitive and important transition phase".
It said it now needs to pursue its development "with a management aligning the teams, harnessing talents and focusing on execution with a close and confident cooperation with the board".
The board confirms its commitment to continuing the strategy and the international expansion of the group based on research and innovation "and its growth platforms", it said.
During his six-year tenure, Sanofi ended a number of unpromising research projects, cut jobs and shut plants in France, and made acquisitions in the U.S., notably the $20.1 billion purchase of biotech Genzyme in 2011.
He is reported to have criticised the company’s research and development operation for not developing enough new medicines, and said he wanted Sanofi to operate more like Genzyme.
It is also understood Viehbacher clashed with some directors recently over efforts to sell an $8 billion drugs portfolio, his move to base himself in Boston and his management style in general.
This week’s share fall has wiped 13.4 billion euros off the value of Sanofi, France’s second-biggest company by market value.
Viehbacher, a citizen of Canada and Germany who previously worked at GlaxoSmithKline, relocated to the Boston area this year, joining three other members of the 12-person executive committee who have their primary residence in the U.S.
French government officials said they were concerned corporate decision-making was leaving the country, illustrated most recently by General Electric’s attempt to buy Alstom, a French multinational company with interests in the electricity generation and rail transport markets.
Viehbacher lost out to Andrew Witty to become CEO of GSK in May 2008 following the retirement of Dr Jean-Pierre Garnier.
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