NEW YORK – CVS Health Corp. unveiled a series of management changes, including appointing a new chief for its pharmacy-benefit management business, as the health giant absorbs insurer Aetna, its biggest-ever acquisition, and makes over more of its drugstores.
The company said in a statement Wednesday that Dr. Alan Lotvin had been named president of CVS Caremark, taking the reins from Derica W. Rice, who will depart CVS. Rice, a former Eli Lilly & Co. executive who joined the company in 2018, will remain through this month to help ensure a smooth transition.
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Lotvin had served as executive vice president and chief transformation officer for CVS Health.
Additionally, Jonathan Mayhew was named executive vice president, transformation, and Alec Cunningham was named president and CEO for the Aetna business.
Shares of CVS were up 2.8% in premarket trading in New York after the company projected better-than-expected revenue for 2020.
The Aetna acquisition, announced in December 2017, was a bet that the U.S. health-care system is shifting to a more integrated model.Former Aetna CEO Mark Bertolini stepped down from CVS’s board last week. Bertolini said he had offered to remain on the board past his current term but that he wasn’t renominated.
In a separate investor presentation on Wednesday, CVS said it expects 2020 revenue of $261.97 billion to $265.48 billion, above analysts’ average forecast of $256.89 billion. The company’s pharmacy-services business is expected to be a critical plank of that growth, with projected 2020 sales of $137.50 billion to $139.45 billion.
Same-store sales for CVS’s pharmacy business rose 4.1% year-over-year in the fourth quarter. By the end of 2020, CVS plans to complete as many as 650 HealthHUBs, the company said in its presentation.
Read PBN’s breakdown of CVS’ 2019 financial results here.
Angelica LaVito is a reporter for Bloomberg News.
