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David Joyner has taken over as CEO of CVS Health, replacing Karen Lynch as the company aims to improve profitability and stock performance. The leadership change, effective as of Thursday, comes amid a nearly 20% decline in CVS shares this year, with a 13% drop in premarket trading on Friday.
Challenges have arisen for CVS due to higher medical costs impacting its insurance unit, Aetna, and decreased consumer spending at its retail pharmacies. In response, the company has revised its full-year profit guidance and announced plans to reduce costs by $2 billion over the coming years.
CVS forecasts adjusted earnings of $1.05 to $1.10 per share for the third quarter, citing higher than expected medical costs with a medical benefit ratio of 95.2%. The company will report its third-quarter earnings on Nov. 6.
Major shareholder Glenview Capital has been pushing for changes at CVS, prompting the board to engage strategic advisors to explore potential options, including separating its insurance and retail businesses.
David Joyner, who previously led the pharmacy services business as president of CVS Caremark, has been selected as the new CEO. Lynch has stepped down from her position and the board, with Joyner joining the board and Roger Farah assuming the role of executive chairman.
“We believe David’s expertise in our integrated business can help address industry challenges, drive operational improvements, and unlock unique value,” stated Chairman Roger Farah.
Please note that this is a developing story, and updates will be provided as they become available.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.