WOONSOCKET – CVS Caremark Corp. on Monday said Per Lofberg, president and chief executive officer of genetic-benefits manager Generation Health Inc., will take over its troubled pharmacy-benefit management (PBM) division on Jan. 4.

CVS also said it was increasing its stake in Upper Saddle River, N.J.-based Generation Health, but did not offer further details. CVS said last month it had purchased a minority stake in the smaller firm, which will remain independent.

Lofberg, 62, will succeed Howard McClure, who retired last month after CVS disclosed that the Caremark PBM division he ran had lost $4.8 billion in contracts for next year. CVS Chairman, President and CEO Thomas M. Ryan has been running the PBM unit on an interim basis.

Lofberg previously ran CVS rival Medco Health Solutions Inc. when it was owned by Merck & Co. “Per is widely respected in the PBM and health care industry,” Ryan said in a statement. “He brings a wealth of experience in working with key clients to understand the needs of the marketplace and produce meaningful results. His expertise, along with his demonstrated ability to execute growth strategies, makes him the perfect person to guide our PBM in the evolving health care environment.”

Lofberg told Bloomberg News that CVS planned to increase the use of genetic testing to help Caremark patients choose medications. “This is the next frontier of how pharmacy will be practiced and how pharmaceuticals will be brought to market,” he said.

Separately, Goldman Sachs Group Inc. released a report Monday that said the Senate health reform bill, which is being voted on this week, does not contain an excise tax on PBM providers that was discussed last week.