The drugstore chain and pharmacy benefit manager said Friday that
The company also reported a better-than-expected third quarter and raised its 2020 forecast.
The 64-year-old Merlo has led the company for a decade. He oversaw the company's roughly
Merlo, who began his career as a pharmacist, guided the company through a big change a few years ago when CVS stopped selling tobacco products and took a revenue hit because of it.
More recently, CVS health has started opening stores it calls “HealthHubs” that have dietitians and are geared toward helping customers monitor chronic conditions like diabetes and stay on top of their health.
On the pandemic front,
Merlo said Lynch has a “deep understanding” of the company’s strategy and has been a key leader during the evolution of
Lynch, 57, is the president of the company’s
Lynch will take over a business that brought in about
There were 34 female CEOs among companies in the S&P 500 as of late September, according to the executive data firm
Investors will likely react positively to the leadership change due to Lynch's experience in health care,
In the third quarter, revenue at CVS climbed more than 3% to
Both topped expectations on
Net income dropped 20% to
The pandemic hit drugstores hard earlier this year when the economy shutdown and customers stayed home. But there are now signs of a recovery.
Operating income grew nearly 17% for the company's pharmacy benefit management business but fell on the health insurance side, due partly to pandemic-related costs.
For the full year, analysts project, on average, earnings of
Company shares climbed nearly 7% to
The stock has fallen 17% this year.
Follow
Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission., source