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

    Shares of the health care conglomerate dropped after the sudden departure of Karen Lynch and a downbeat update on the state of the company’s finances.CVS Health abruptly ousted its chief executive, Karen S. Lynch, on Friday as the pharmacy and health care conglomerate struggled with sluggish growth and faced pressure from investors.The company appointed David Joyner, the head of CVS Caremark, its successful unit overseeing prescription drug benefits, as the new chief. The management change was accompanied by a dour financial update, with the company scrapping its previous forecasts because of “elevated medical cost pressures.” Shares of CVS fell sharply in early trading.The company’s earnings have disappointed investors in recent quarters, in part because of rising costs at Aetna, the company’s insurance arm. Activist investors have pushed the company for changes, prompting CVS to explore breaking itself up, potentially by separating its pharmacy business from its insurance unit.CVS employs about 300,000 people. Its sprawling portfolio includes the branded pharmacy chain, with more than 9,000 retail locations; Aetna, which it acquired in 2018, which has nearly 40 million policyholders and other customers; Caremark, the country’s largest pharmacy benefit manager, hired by employers and governments to oversee prescription drug benefits; and Oak Street Health, which runs more than 200 primary care centers for Medicare recipients.Ms. Lynch took over as the group’s chief executive in February 2021, after running Aetna. “I don’t want people to think about CVS Health as just that drugstore,” she told The New York Times in 2022. “I want them to think about it being a health care company.”Roger Farah, the chairman of CVS Health, said in a statement on Friday that “the board believes this is the right time to make a change.” He added that Mr. Joyner’s “deep understanding of our integrated business” would help steer the company through its challenges.During his tenure at Caremark, which he rejoined in 2023 after a few years away from the company, Mr. Joyner faced increased scrutiny of pharmacy benefit managers. He appeared at a Congressional hearing this summer, facing questions from lawmakers about the role of pharmacy benefit managers in rising drug costs for millions of Americans.This month, CVS said it would cut almost 3,000 jobs, mostly corporate employees. Its rival chains are also under pressure to cut costs: This week, Walgreens said it would close about 1,200 stores over the next three years.Shares of CVS, which dropped 7 percent on Friday, have fallen more than 25 percent this year. More

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    Stanley Goldstein, Who Helped Make CVS a Pharmacy Giant, Dies at 89

    The small chain that he, a brother and a third partner opened in 1963 had become the nation’s largest by the time he retired as its chief executive three decades later.Stanley P. Goldstein, who in the early 1960s helped start a retail chain named Consumer Value Stores, which, after shortening its name to CVS — because, he said, fewer letters meant cheaper signs — grew into the largest drugstore chain in the United States, died on Tuesday at his home in Providence, R.I. He was 89.The company, which is headquartered in Rhode Island, announced his death. Family members told The Providence Journal that the cause was cancer, diagnosed about a month ago.Mr. Goldstein was frequently described as informal and no-nonsense — much like the airy, brightly lit outlets that he, a brother and a third founder opened in 1963 to sell cut-price toothpaste, aftershave, Band-Aids and other personal care products.When he retired as chief executive in 1998, the company had more than 4,000 stores. Today, it has more than 9,000 outlets in the United States and its territories, and its revenues are larger than those of Exxon Mobil, Microsoft and Ford.Mr. Goldstein, who graduated from the Wharton School at the University of Pennsylvania in 1955, at first had little enthusiasm for retail sales, a business that he knew, from the experience of his father, Israel Goldstein, was cutthroat. Instead, he became a stockbroker.But when Mr. Goldstein’s father died, his brother Sidney persuaded him to help take over the father’s struggling enterprise, which had begun by selling bags and other paper products to grocery stores and had branched out to offer sundry health and beauty aids, displayed near the cash registers.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More