CVS Health announced Friday that longtime executive David Joyner has replaced Karen Lynch as CEO, effective immediately. The leadership shake-up comes as the company struggles with declining profits and a near 20% drop in share price this year. CVS shares plunged an additional 13% in premarket trading following the news.
The pharmacy giant has faced financial challenges, including higher medical costs in its Aetna insurance unit and decreased consumer spending at its retail pharmacies. CVS has also engaged strategic advisors to consider splitting its insurance and retail businesses. Joyner, who previously led CVS Caremark, is expected to guide the company through operational improvements and address industry challenges. Lynch also stepped down from the board of directors, with Joyner taking her seat.
CVS will report third-quarter earnings on Nov. 6.
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