Longtime CVS Health executive David Joyner has replaced Karen Lynch as CEO as the company faces challenges in driving higher profits and stock performance. CVS shares have fallen about 20% this year and the company has cut its full-year profit guidance and announced $2 billion in cost-cutting measures. CVS expects adjusted earnings of $1.05 to $1.10 per share in the third quarter, citing higher than expected medical costs. The company’s board has engaged strategic advisors to consider options, including a potential breakup of its insurance and retail businesses.
Joyner, who most recently oversaw the pharmacy services business, will bring his deep understanding of the integrated business to address industry challenges and advance operational improvements. Lynch also stepped down from the board of directors, with Joyner taking a seat and Chairman Roger Farah assuming the role of executive chairman. CVS is set to report third-quarter earnings on Nov. 6.
Major CVS shareholder Glenview Capital has initiated changes at the company, leading to Lynch’s replacement. The company is hopeful that Joyner’s leadership will help address the current challenges and realize the unique value CVS can create. Joyner’s experience in pharmacy benefit services and previous roles at Aetna and CVS Health position him well for the CEO role.
Photo credit
www.nbcnews.com