CVS Health (CVS-6.50%) announced a Change in CEO and warned that upcoming earnings would likely disappoint Wall Street forecasts, sending shares down more than 7% in early trading.

David Joyner has been named president and CEO and will assume the role on October 17. He will succeed Karen Lynch.

Joyner has nearly four decades of experience in the healthcare industry and previously served as executive vice president and president of CVS Caremark. He also held key positions at Aetna, one of the company's currently struggling divisions. Joyner will join the board while current chairman Roger Farah takes on the role of executive chairman.

“The board believes this is the right time for change and we are confident that David is the right person to lead our company for the benefit of all stakeholders, including customers, employees, patients and shareholders,” said Farah.

The pharmacy giant has tried to navigate a competitive pharmacy and healthcare landscape, especially after acquiring Aetna in 2018. The integration was intended to streamline services and improve patient care, but it resulted in operational inefficiencies and Regulatory pressure have hindered progress.

In early October, CVS Health announced it planned to eliminate around 100% 2,900 jobs as part of a multi-year effort to save $2 billion. The initiative focuses on reducing costs while increasing investment in technology.

However, these challenges were compounded by higher-than-expected medical costs and significant expenses related to premium deficit provisions, leading the company to revise its third-quarter outlook. Because of these issues, investors should not rely on previous forecasts. Further updates will be provided in the upcoming earnings release, CVS said.

Joyner's deep understanding of CVS Health's integrated business model is expected to help address industry challenges and accelerate operational improvements. His leadership could be instrumental in transforming CVS Health into a more agile and responsive organization aimed at meeting evolving consumer needs.

In his first statement as CEO, Joyner emphasized his commitment to CVS' health mission: “There is no greater honor than leading a company whose mission and purpose are entirely focused on improving health.”