Rite Aid picks former insurance executive as new CEO

Rite Aid has chosen former insurance executive Heyward Donigan to replace long-time CEO John Standley as the struggling drugstore chain's next leader

Rite Aid has chosen a former insurance executive to replace long-time CEO John Standley to try to right the struggling drugstore chain.

The company said Monday that Heyward Donigan will take over immediately for Standley, who's been CEO since 2010.

The 58-year-old Donigan is a former executive with Premera Blue Cross. She most recently served as CEO of Sapphire Digital, which runs a technology platform that helps people shop for care.

Donigan takes over a company that runs nearly 2,500 drugstores and lost $99.7 million in its first quarter. Rite Aid's board approved a reverse stock split this year to lift plummeting share prices and keep them on the New York Stock Exchange.

Shares of Rite Aid Corp., based in Camp Hill, Pennsylvania, rose almost 3% at the opening bell.