Why market doesn’t like David Joyner as new CEO of CVS?

The market has shown skepticism regarding David Joyner’s appointment as CEO of CVS Health due to several concerns. Joyner, who has a background as the executive vice president at CVS Health and president of CVS Caremark, is closely associated with the company’s pharmacy benefit management (PBM) division. The PBM industry, including CVS Caremark, has faced increasing scrutiny and criticism for practices perceived as anti-competitive, such as driving up drug prices and putting pressure on independent pharmacies. These practices have drawn negative attention from lawmakers and regulatory bodies, leading to ongoing discussions about potential reforms and increased oversight of PBMs  .

Additionally, the market may be wary of CVS’s current strategic direction under Joyner, given the broader challenges the company faces, including a shortage of pharmacists and other workforce-related issues impacting operations . Furthermore, CVS has been trying to diversify its business by venturing into primary care and expanding healthcare services, and some investors might question whether Joyner’s PBM-focused background aligns with this strategic shift .

These factors contribute to a cautious market outlook on Joyner’s leadership, as investors remain concerned about his ability to navigate regulatory pressures and steer the company through its ongoing transformation.