CVS Health has a point person for the difficult task of integrating the company’s extensive technology infrastructure with that of insurer Aetna, in the wake of the companies’ $69 billion megamerger.
Roshan Navagamuwa has been promoted to the position of executive vice president and chief information officer of CVS Health where he will be tasked with leading technology operations for the combined company.
When Investment Rhymes with Canada
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Navagamuwa has been serving as CVS Health’s interim CIO since 2017 taking over from former CIO Stephen Gold. He joined CVS in 2012 and was initially responsible for the company’s government services business.
CVS Health has previously estimated it will save $750 million over the next two years in streamlined business operations and lower corporate costs.
The two companies are waiting for final approval from U.S. District Judge Richard Leon to close the deal. Last month, the U.S. Department of Justice made a formal request to Judge Leon to give the merger the go-ahead.
The company’s fourth-quarter earnings picture (the first with Aetna on the books) left Wall Street cold, along with 2019 EPS estimates much lower analyst projections.
Besides the potential issues with the Aetna integration, the company’s core pharmacy business is also facing problems. Two major potential business risks are pharmacy reimbursement pressures from slower generic medication price growth and the Trump Administration proposal to end the existing rebate system between drugmakers and PBMs in Medicare Part D and Medicaid managed care programs.
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