CVS appoints new CEO David Joyner as profits and share price decline.

• CVS has replaced CEO Karen Lynch with longtime executive David Joyner.
• CVS is struggling to drive higher profits and better stock performance.

David Joyner, a longtime executive, has been appointed as CEO in place of Karen Lynch, as the company faces challenges in increasing profits and stock performance, CVS announced on Friday.

CVS shares plummeted nearly 20% this year, with a 11% drop in premarket trading on Friday.

Aetna, the insurance unit of CVS, has been facing challenges due to rising medical costs and decreasing consumer spending at its retail pharmacies. In August, CVS reduced its full-year profit guidance and announced plans to cut $2 billion in costs over the next few years.

CVS announced on Friday that it expects adjusted earnings of between $1.05 and $1.10 per share in its third quarter. The company also stated that it anticipates higher medical costs than previously expected, with a medical benefit ratio of 95.2% in the quarter.

Due to ongoing high medical cost pressures in the Health Care Benefits segment, investors should no longer rely on the Company's previously provided guidance on its second quarter 2024 earnings call on August 7, 2024, as stated in the release.

Lynch previously held a similar position to Joyner as president of CVS Caremark, overseeing the company's pharmacy services business.

This week, the company announced that Lynch resigned from its board of directors, and Joyner was appointed to take his place. Farah, who is the chairman, will now assume the role of executive chairman.

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