Sapphire Digital / TheStreet Illustration
Heyward Donigan

Rite Aid (RAD - Get Report) named Heyward Donigan as CEO, saying in a press release that Donigan was the right person to lead the company in capitalizing on the opportunities in the evolving healthcare environment."

Donigan will replace John Standley, who will step down as CEO in connection with the announcement.

"Over the past several months the Rite Aid Board conducted a thorough search, and Heyward's strong senior executive experience, proven leadership capabilities and consistent track record of driving profitable growth, as well as her broad healthcare knowledge and digital shopping technology expertise set her apart," said Bruce Bodaken, chairman of Rite Aid's board. "Her skillset will be invaluable as we work to deliver on the full potential of our business and create additional long-term value for our shareholders, associates, customers and patients."

Donigan, 58 years old, most recently served as the president and CEO of Sapphire Digital (formerly Vitals), which designs and develops omnichannel platforms that help consumers choose their best fit healthcare providers, Rite Aid said.

Donigan becomes one of about 34 women leading Fortune 500 companies, according to The Wall Street Journal.

"I recognized the opportunity to really revitalize Rite Aid," Donigan said in an interview with the Journal.

Rite Aid is the third-largest U.S. pharmacy chain. The stock has declined more than 49% so far this year.