UPDATE 2-CVS aims to find new PBM leader by year-end

* CEO says focused on outsiders for new PBM leader

* Says aims to find PBM leader by end of this year

* Says PBM executives meeting with consultants this week

* Shares fall 0.8 percent to $29.75 (Adds details on PBM, leadership plans, updates stock activity)

CHICAGO, Nov 12 (Reuters) - CVS Caremark Corp (CVS.N) is trying to fix problems in its pharmacy benefits management business and wants to find a new leader to run the unit by the end of this year, Chief Executive Tom Ryan said on Thursday.

The company is talking with various candidates to take on the role of the president of the pharmacy benefits management (PBM) business, Ryan said at a Credit Suisse Healthcare Conference in Arizona.

Last week, CVS said that Caremark Pharmacy Services President Howard McLure was stepping down after the PBM renewed and signed up fewer clients than it had anticipated and would not meet its targets for 2010 [nN05502370].

"We know what needs to be fixed," Ryan said.

The PBM administers prescription drug benefits for employers and health plans and operates a large mail-order pharmacy.

CVS is also working on improving its relationship with PBM consultants, who advise companies on which plans to choose.

"Caremark never had a great relationship with consultants over the years," Ryan said. CVS, which had a small PBM operation along with its drugstore business, bought Caremark Rx Inc in March 2007.

This week, top executives from the company's PBM business are holding half-day meetings with major consultants in the industry, he said. Ryan said he has heard feedback that while CVS Caremark has some messaging and service issues, it is in "pretty good shape."

Ryan also said that besides a new marketing executive, announced last week, CVS also brought in a new vice president of sales to handle health plan business such as Blue Cross.

Ryan said he is focused on finding someone from outside CVS who understands the nuances of the PBM business to lead the company's division. Most candidates are from the PBM side of the industry, while one or two are from the health plan side and have PBM experience, he said.

CVS shares were off 0.8 percent to $29.75 in late morning New York Stock Exchange trading. (Reporting by Jessica Wohl, editing by Gerald E. McCormick)