CVS Health (CVS) on Friday named company veteran David Joyner as its new CEO, succeeding Karen Lynch who relinquished the helm of the struggling healthcare giant following an agreement with the board.
The company’s shares fell 11% to $57 in premarket trading.
Joyner, chairman of CVS Caremark, the company’s pharmacy benefits manager, will take over as president and CEO effective Friday, the company said.
The change follows repeated cuts to earnings estimates this year as the company’s insurance segment struggles with rising medical costs.
“The board believes that now is the right time to make change, and we are confident that David is the right person to lead our company,” said Chairman Roger Farah.
The healthcare giant is also exiting its core infusion services business and plans to close or sell 29 related regional pharmacies in the coming months, Reuters reported earlier this week.
The Wall Street Journal first reported Joyner’s appointment on Friday.
(Reporting by Leroy Leo in Bengaluru; Editing by Maju Samuel)
