David Joyner has replaced Karen Lynch as CEO of CVS Health as the company faces challenges in driving higher profits and stock performance. CVS shares have fallen nearly 20% this year, and the company has struggled with higher medical costs at its insurance unit, Aetna, and a drop in consumer spending at its retail pharmacies. In August, CVS slashed its full-year profit guidance and announced plans to cut $2 billion in costs over the next few years. The company expects adjusted earnings of between $1.05 and $1.10 per share in the third quarter, citing higher than expected medical costs.
Major CVS shareholder Glenview Capital has pushed for changes at the company, and the board has engaged strategic advisors to consider options, including potentially breaking up the insurance and retail businesses. David Joyner, who most recently oversaw the pharmacy services business as president of CVS Caremark, has taken over as CEO. Lynch stepped down from the board of directors, with Joyner joining the board and Chairman Roger Farah assuming the role of executive chairman.
Farah expressed confidence in Joyner’s ability to address industry challenges and drive operational improvements. Joyner has a background in pharmacy benefit services at Aetna and previously held a leadership role at CVS Health. CVS is set to report third-quarter earnings on November 6.
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