Events leading up to CEO Lynch’s departure from CVS Health

(Reuters) – CVS Health CEO Karen Lynch is stepping down after nearly four years at the helm as the health care group faces pressure from shareholders to improve its business performance.

Lynch, who led Aetna’s insurance division before taking over as CEO, will be replaced by company veteran David Joyner.

CVS stock has lost nearly 26% of its value this year due to multiple cuts to the company’s annual profit forecast.

Here is a timeline of major events for CVS during Lynch’s tenure:

February 1, 2021

Karen Lynch begins her role as CEO in the midst of the COVID-19 pandemic.

February 9, 2022

The company’s shares are trading near seven-year highs as its drugstores benefit from high demand for COVID-19 vaccines.

August 3, 2022

CVS Health is raising its full-year forecast for COVID-related revenue as the company expects over-the-counter testing sales to more than double during the year.

September 5, 2022

CVS agrees to acquire home health services provider Signify Health for approximately $8 billion in cash.

February 8, 2023

CVS says it will buy Oak Street Health for about $9.5 billion in cash as the pharmacy giant looks to expand into the urgent care business.

May 3, 2023

CVS says it will pause acquisitions to focus on integrating purchases of healthcare provider Signify Health and primary care provider Oak Street Health.

August 2, 2023

CVS is cutting 5,000 non-customer-facing jobs and ending its clinical trial services as part of a cost-cutting plan.

November 1, 2023

CVS is lowering its profit forecast issued in August to reflect potentially higher medical costs in its insurance unit.

Dec 5, 2023:

CVS forecasts 2024 revenue above market estimates and says it will simplify the structure by which its pharmacies are reimbursed for medicines to provide transparency amid intense scrutiny over rising healthcare costs.

February 27, 2024:

CVS lowers its 2024 profit forecast due to a rise in Medicare-related costs.

April 2, 2024:

The U.S. government’s final Medicare Advantage payment rates in 2025 point to a reduction, sparking concerns about a margin squeeze among investors in the sector.

May 1, 2024:

CVS lowers its profit forecast again.

August 7, 2024:

Stocks plunge after another cut in earnings guidance. CVS expects medical costs to remain high throughout the year.

August 14, 2024:

A regulatory filing shows investment firm Sachem Head Capital Management built a new stake in CVS in the second quarter.

September 29, 2024:

The Wall Street Journal reports that hedge fund Glenview will meet with top CVS Health executives to suggest ways to improve operations. Reuters later reported that the company was exploring options to improve performance.

(Reporting by Christy Santhosh in Bengaluru; Editing by Devika Syamnath)