CVS Health CEO Karen Lynch has resigned from her position as company shares have dropped by 19% and the national drugstore chain is facing challenges. David Joyner will be taking over as the new CEO, aiming to guide the health care giant through a tough environment of increasing medical costs.
In August, CVS revised its financial expectations for the third time as major pharmacy chains are trying to adapt to a rapidly changing landscape, dealing with online competition and other challenges. Joyner, who previously served as the executive vice president of CVS Health and president of CVS Caremark, brings 37 years of experience in health care and pharmacy benefit management to his new role.
CVS Health also announced that Chairman Roger Farah will now serve as the executive chairman. Farah expressed confidence in Joyner's ability to address industry challenges, drive operational improvements, and maximize the company's value.
The company's initial forecast for third-quarter adjusted earnings is between $1.05 to $1.10 per share, attributing the lower projection to higher-than-expected medical cost trends. Analysts surveyed by FactSet had predicted earnings of $1.69 per share, leading to a more than 12% drop in CVS shares before the market opened.
