(Bloomberg) – 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.
Additionally, Jonathan Mayhew was named executive vice president, transformation, and Alec Cunningham was named president and chief operating officer for the Aetna business.
The Aetna acquisition, announced in December , was a bet that the US health-care system is shifting to a more integrated model. Former Aetna Chief Executive Officer 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 was renominated.
CVS CEO Larry Merlo told analysts on a conference call that the executive changes “really reflect the specifically that we have today, the opportunity and excitement around these products and services coming to market and the opportunity to get them in the hands of more and more people as much as we possibly can. ”
“We’re very pleased with where we’re at today and we’re excited about what’s in front of us, ”Merlo said.
(billion to $) . billion, above analysts’ average forecast of $ billion. The company pharmacy-services business is expected to be a critical plank of that growth, with projected (sales of $
billion to $ (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 HealthHUBs, the company said in its presentation.
(Updates stock-price information in fourth paragraph)
To contact the reporter on this story: Angelica LaVito in New York at [email protected]
To contact the editors responsible for this story: Drew Armstrong at darmstrong @ bloomberg.net, Timothy Annett
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