Long time ago CFS health CEO David Joyner has replaced Karen Lynch as CEO as the company struggles to generate higher profits and stock performance, CVS announced Friday.

The move, which takes effect Thursday, the day before the announcement, comes as CVS shares are down nearly 20% this year. Shares fell about 13% in premarket trading on Friday.

CVS has faced challenges as higher medical costs weigh on its insurance arm, Aetna, and consumer spending at its pharmacies falls. In August, the company lowered its full-year profit forecast and said it would cut $2 billion in costs over the next few years.

In its press release Friday, CVS also said it expects adjusted earnings between $1.05 and $1.10 per share in the third quarter. It expects higher medical costs than previously expected, with a so-called medical benefit ratio of 95.2% in the quarter.

“In light of continued high medical cost pressures in the healthcare benefits segment, investors should no longer rely on the company’s previous guidance provided on August 7, 2024 on its second quarter 2024 earnings call,” CVS said in a statement. the press release.

The company will report third-quarter results on November 6.

Last month, CVS major shareholder Glenview Capital began making a significant push for changes at the company, CNBC previously reported.

CNBC reported last month that CVS’s board had retained strategic advisors to weigh options, including the potential of splitting its insurance and retail businesses.

Joyner most recently oversaw the company’s pharmacy services business as president of CVS Caremark, a position similar to the one Lynch held before taking the top job in February 2021. He began his career at Aetna in pharmacy benefits services and previously held the role of executive vice president of sales and marketing at CVS Health.

“We believe David and his deep knowledge of our integrated business can help us more directly address the challenges our industry faces, accelerate the operational improvements our business needs and leverage the value we can uniquely create fully realized,” said chairman Roger Farah. a statement.

Lynch also stepped down from the company’s board of directors this week, the company said Friday. Joyner will serve on the board and Farah will take on the role of executive chairman.

– CNBC’s Annika Kim Constantino and Rohan Goswami contributed to this report.