The leader of troubled telemedicine provider Teladoc Health has resigned effective immediately, the company announced Friday.
Teladoc did not provide a reason for Chief Executive Officer Jason Gorevic's resignation. The 52-year-old executive heads the company and has been on its board since 2009.
Teladoc said Chief Financial Officer Mara Murthy will serve as acting CEO while it searches for a permanent replacement.
Teladoc lost $220 million last year, and its stock price has fallen more than 90% since peaking above $300 at the height of the coronavirus pandemic in early 2021.
Teladoc stock initially soared as the coronavirus outbreak forced clinics to close and telemedicine to explode in popularity.
But the company hasn't been able to maintain that momentum as competition has increased and interest in virtual care has waned, fueled by the pandemic.
Teladoc is shifting its focus from emergency department visits due to fever and the threat of streptococcal infections to patient health management. This includes providing mental health care, weight loss, and support for other chronic conditions.
Teladoc furthered this approach by spending more than $18 billion in 2020 to acquire technology company Livongo Health.
BTIG analyst David Larsen said in a research note that the leadership change is not surprising given the “very significant slowdown” the company has faced over the past few years.
Jefferies analyst Glenn Santangelo said in a separate note that Gorevic's departure could be viewed positively as the company's change in strategic direction is welcome.
Shares of New York-based Teladoc Health Inc.'s acquisition rose 14 cents to $14.39 in midday trading.
