CVS Health has undergone a significant leadership change, with CEO Karen Lynch being replaced by David Joyner, the head of its pharmacy benefit manager, Caremark.
The transition comes as the company faces financial struggles, including a declining stock price and rising medical costs in its Aetna health benefits segment.
Lynch, who previously led Aetna, stepped down following an agreement with the company's Board of Directors.
The announcement led to a sharp decline in CVS' stock.
The company has also announced plans to lay off employees and cut costs in an effort to address its financial challenges.
CVS' struggles are particularly evident in its Aetna segment, which has been dealing with high medical costs.
The company has made strategic decisions to streamline its operations, including discontinuing certain services and closing or selling pharmacies.
David Joyner, the newly appointed CEO, brings extensive experience to the role.
Analysts have noted that while his promotion may provide continuity, investors may have been looking for new leadership to address the company's issues.
CVS' financial outlook has been complicated by an increase in its medical loss ratio and a charge for a premium deficiency reserve.
The market has reacted negatively to these developments, and investors are closely watching how CVS will navigate its financial challenges under Joyner's leadership.