CVS has been struggling with rising medical costs in its Medicare Advantage plans and slumping drugstore sales.
CVS Health CEO Karen Lynch has resigned as the company faces significant challenges and a 19 percent decline in stock value this year.
Lynch, who took over in 2021, will be replaced by David Joyner, a veteran executive who previously led CVS Caremark, the company’s pharmacy benefits management (PBM) division.
The leadership change follows a series of financial setbacks for CVS, including missed earnings targets and rising medical costs, particularly in its Medicare Advantage plans.
CVS had already lowered its earnings forecasts three times this year.
On Friday, the company warned that third quarter earnings would fall well below expectations, causing shares to drop an additional 9.9 percent, reaching $57.40 .
CVS, one of the largest U.S. drugstore chains, has struggled to balance its expansive operations, which include its Aetna insurance arm, covering 27 million people.
Increased costs from Medicare Advantage claims have significantly impacted the company’s bottom line. Analysts had predicted third quarter earnings of $1.69 per share, but CVS now expects between $1.
