Good morning. CVS Health has abruptly appointed a new CEO as its stock performance has sagged amid a rise in medical costs. The company, No. 6 on the Fortune 500, announced on Friday that Karen Lynch, CEO since February 2021, stepped down in agreement with the company’s board of directors. David Joyner was promoted to president and CEO, effective Oct. 17. Joyner was most recently EVP of CVS Health and president of CVS Caremark.
Headquartered in Woonsocket, R.I., CVS owns the country’s largest pharmacy chain with more than 9,000 stores. By late 2022, Lynch helped lift CVS’s share price from $70 to roughly $110, and investors were onboard with her new strategy: Making CVS a one-stop shop for basic care, Fortune’s Shawn Tully reports. And for preventative care, CVS planned to store tons of data on the patients’ condition at its Aetna insurance unit.
