CVS Ousts Karen Lynch as C.E.O. and Shares Fall

CVS Health tapped industry veteran David Joyner to become CEO and turnaround the struggling business.

Shares fell 11% in premarket trading, adding to this year's losses, as CVS also forecast quarterly adjusted profit below estimates. Shareholders have become increasingly nervous about repeated profit forecast cuts this year as its drugstores face reimbursement pressures and high costs hit the health insurance industry. Investor Glenview Capital said earlier this month it was working with CVS to help improve operations as the company faces one of the most challenging periods in its six-decade history.

Retail pharmacies will never be obsolete, according to an analyst. But the industry needs to take a hard look at how many stores are needed and what items they should sell.