CVS Health on Friday replaced CEO Karen Lynch with David Joyner, a CVS veteran who retired before returning to the company last year, after investors including activist Glenview Capital pressured the company to improve its stagnant share price.
It also withdrew its 2024 forecast and gave an outlook for third-quarter earnings far below analyst estimates.
CVS shares closed down 5% at $60.34 on Friday.
They are down by nearly half from their 2022 highs, in part due to quarter after quarter of repeated profit forecast cuts related to rising costs in its large health care insurance business and competition for its vast network of retail pharmacies.
Its third business — pharmacy benefit management — has been profitable but a focal point for US government efforts to bring down drug prices.
