Longtime CVS Health executive David Joyner has replaced Karen Lynch as CEO as CVS struggles with lower profits and stock performance. The move comes as CVS shares have fallen nearly 20% this year, with challenges including higher medical costs at its insurance unit, Aetna, and a drop in consumer spending at its retail pharmacies. CVS recently slashed its profit guidance and announced plans to cut costs by $2 billion over the next few years. The company expects adjusted earnings between $1.05 and $1.10 per share in the third quarter, citing higher medical costs than previously anticipated. Major shareholder Glenview Capital has been pushing for changes at CVS, prompting the company’s board to engage strategic advisors to explore options, including potentially breaking up its insurance and retail businesses. Joyner, who previously oversaw the company’s pharmacy services business, will take over as CEO and join the board, while Lynch stepped down from the board. Chairman Roger Farah expressed confidence in Joyner’s ability to address industry challenges and drive operational improvements. CVS is set to report third-quarter earnings on November 6.
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