Executive musical chairs at Sanofi and Bayer

Shares of French pharma major Sanofi (Euronext: SAN) rose 1.23% to 75.53 euros by early afternoon today, after it announced that it will change the organizational structure of two of its Global Business Units (GBU) to provide greater focus on its operations in mature markets and across emerging markets.

The company will create a new Primary Care GBU that combines the product portfolios of Sanofi's existing Diabetes and Cardiovascular (DCV) GBU with Established Products, which are currently part of the General Medicines & Emerging Markets (GEM) GBU. The new Primary Care unit will focus exclusively on mature markets.

To help build and lead the new Primary Care business, Sanofi is appointing Dieter Weinand, as executive vice president. Effective November 1, Mr Weinand, who has been a member of the board of management of Germany’s Bayer (BAYN: DE) and head of the Pharmaceuticals Division since 2016, will report directly to Sanofi chief executive Olivier Brandicourt (himself a former Bayer executive) and become a member of the executive committee. He will be based in the Bridgewater, New Jersey, USA.

While Stefan Oelrich moves to Bayer

Meantime, Stefan Oelrich, currently head of the DCV GBU, has decided to leave Sanofi and will join Bayer as a member of the board of management and head of the Pharmaceuticals division, replacing Mr Weinand effective November 1.

Sanofi is also creating a second new global business unit called China & Emerging Markets to be led by Olivier Charmeil, currently head of the GEM GBU. This newly-formed business will focus on the unique characteristics and tremendous growth opportunities in emerging markets, particularly in China which is Sanofi's second largest market after the USA. Mr Charmeil will continue to be a member of the Executive Committee reporting directly to Dr Brandicourt.

Sanofi expects to launch the new Primary Care and China & Emerging Markets global business units by the beginning of 2019. Sanofi's other GBUs - Sanofi Genzyme, Sanofi Pasteur and Consumer Healthcare - remain unchanged.