CVS Health (CVS) on Friday named company veteran David Joyner as its new CEO, succeeding Karen Lynch, who resigned as head of the struggling healthcare giant after an agreement with the board.
The company’s shares fell 11% to $57 in pre-market trading.
Joyner, who is CVS Caremark’s chief pharmacy benefits officer, will assume the role of president and CEO effective Friday, the company said.
This change comes against the backdrop of repeated cuts in profit expectations this year as the company’s insurance sector suffers from rising medical costs.
“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,” said Roger Farah, Chairman of the Board of Directors.
Reuters reported earlier this week that the healthcare giant is also exiting its core infusion services business and plans to either close or sell 29 related regional pharmacies in the coming months.
The Wall Street Journal first reported news of Joyner’s appointment on Friday.
(Reporting by Leroy Liu in Bengaluru; Editing by Maju Samuel)