Shares of retail pharmacy chain CVS Health (CVS) are down 13% on media reports that the company is replacing its chief executive officer (CEO).
According to multiple news reports, CVS has appointed long-time company insider David Joyner as its new CEO, succeeding Karen Lynch.
David Joyner is currently president of CVS’ pharmacy-benefit manager called “CVS Caremark” and takes over as the new CEO effective immediately.
Karen Lynch reportedly stepped down from the struggling pharmacy chain immediately after a meeting with the board of directors.
The leadership change at CVS Health comes following repeated profit forecast cuts by the company this year as its insurance segment grapples with rising medical costs.
The pharmacy chain has announced plans to close or sell 29 outlets in the coming months as it tries to improve its financial situation.
CVS stock has declined 21% so far in 2024 and is down 4% over the last five years. The company’s share price is currently at $55.56 U.S.
