Teladoc CEO departs the corporate after stock’s 95% fall from 2021 highs

Teladoc Health on Friday announced the sudden departure of CEO Jason Gorevic, who’s leaving his role as head of the corporate effective immediately, in keeping with a release.

The corporate’s board of directors has temporarily appointed Mala Murthy, chief financial officer, as Gorevic’s substitute and hired an executive search firm to find out a everlasting successor.

Shares of Teladoc closed up greater than 1% Friday but are down about 33% year-to-date. The stock has also fallen about 95% from a high of $294.54 in February 2021 to around $14 as of Friday, a level it hasn’t traded at in about eight years.

“We thank Jason for his many achievements and contributions through the 15 years he led Teladoc Health. We wish him success in his future endeavors,” David Snow Jr., Teladoc board chair, said in the discharge.

Teladoc is a virtual health care company that gives telehealth appointments with doctors, therapists and specialists.

Gorevic joined the corporate as CEO in 2009, steering Teladoc through the Covid-19 pandemic that left most health care providers scrambling to adapt to a virtual format.

“I’m happy with the impact we have made on the healthcare system, and our many accomplishments in advancing innovation and remodeling virtual health care from an unrealized promise right into a valued reality for our 90 million members,” Gorevic told CNBC in a press release.

Murthy has led Teladoc’s finance organization since 2019. She previously held executive positions at American Express and PepsiCo. Murthy said in a letter to employees Friday that she’s focused on honoring Teladoc’s commitments to clients and members and ensuring the “company continues to operate effectively.”

Teladoc’s board reaffirmed that the corporate is heading in the right direction to satisfy its guidance for the primary quarter and full 12 months. It didn’t share every other details in regards to the reason behind Gorevic’s departure.

The corporate didn’t offer any additional comment.