CVS Health (CVS) made headlines on Friday with the announcement of a new CEO, David Joyner, taking the reins from Karen Lynch. Lynch, who stepped down from her position amidst challenges facing the healthcare giant, agreed with the board on the move.
This development sent shockwaves through the market, with shares of CVS tumbling 11% in premarket trading, currently priced at $57.
Joyner, a company veteran with experience as president of CVS Caremark, will assume the role of president and CEO effective immediately. This shift in leadership comes after a series of profit forecast revisions this year, primarily due to difficulties in the insurance segment grappling with increasing medical costs.
In a statement, Chairman Roger Farah expressed confidence in Joyner’s ability to navigate CVS through these turbulent times, stating, “The board believes this is the right time to make a change, and we are confident that David is the right person to lead our company.”
Aside from these changes, CVS is also streamlining its operations by phasing out its core infusion services business and initiating plans to either shutter or divest 29 regional pharmacies connected to the segment. Recent reports by Reuters and The Wall Street Journal have shed light on these strategic moves.
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