CVS Health announced Friday that CEO Karen Lynch has been replaced by David Joyner, who currently serves as the healthcare company’s acting CEO and president.
Mr. Lynch resigned in agreement with the board of directors of the major pharmacy chain. press release Reading published on Friday. Third-quarter profit was lower than analysts expected. Reuters Reported. CVS stock was down 6% to 7% as of early Friday afternoon.
Breaking news: CVS Health announces CEO has resigned
Following this news, CVS has fallen ~50% from its 2022 highs and is down ⬇️7% today, with its earnings forecast revised downward.
This means that Walgreens will close approximately 1,200 stores by 2027 and 7-Eleven…
— TripleNet Investor (@TripleNetInvest) October 18, 2024
“The Board believes now is the right time to make change, and David is the right person to lead the company in the interest of all stakeholders, including customers, employees, patients, and shareholders. ” said the CVS Board of Directors. Chairman Roger Farrar, who has just taken on the title of Executive Chairman, said in a press release:
Joyner brings 37 years of healthcare and pharmaceutical experience to his new role, according to a press release. The new CEO previously served as executive vice president of CVS Health and president of CVS Caremark. (Related article: America’s largest turkey company has drastically simplified its Thanksgiving meal. But what do traditionalists think?)
“There is no greater honor than leading a company whose mission and purpose are completely focused on improving health,” said Joyner. “I returned to CVS Health in 2023 because I believed I could contribute even more to the company, and I am taking this opportunity today for the same reason.”
According to Reuters, Wall Street analyst Michael Wiederhorn was not surprised by the company’s leadership changes, saying Lynch’s departure comes after CVS failed to optimize the integration of various acquired businesses. He said he expected it to come.
“This move has been in the works for some time, as CVS has struggled under Mr. Lynch’s leadership following the failed Aetna merger,” he said.
