CVS Health to split in two, separating pharmacy business from insurance
Shareholders will receive stock in both companies as CVS says the tax-free breakup is expected to close in early 2028.
- On Wednesday, CVS Health announced it will split into two independent companies, marking one of the largest shakeups in the healthcare industry. CEO David Joyner said the move aims to create two focused entities to improve consumer engagement and care coordination.
- The separation partially unwinds the 2018 $69 billion acquisition of Aetna and reverses the 2007 merger strategy with CVS Caremark. Lawmakers in Arkansas and Tennessee enacted measures over the past two years restricting companies from simultaneously owning pharmacy storefronts and managing drug coverage.
- One company will retain Aetna, CVS Caremark, Oak Street Health, and Signify Health. The second entity, CVS Pharmacy, will operate 9,000 locations and MinuteClinic, with Prem Shah, group president of CVS Health, becoming its CEO.
- Shareholders will receive stock in both companies in a tax-free transaction expected to close in early 2028. Shares of CVS Health fell 2% in premarket trading after initially ticking up following the announcement.
- Separately, the company raised its full-year 2026 earnings forecast to a minimum of $8.20 per share, up from the earlier $7.90 to $8.10 range. CVS Pharmacy plans to expand services from its nearly 30,000 pharmacists and pursue partnerships with payers and manufacturers.
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CVS to split into two companies in major breakup of its $117 billion healthcare empire
CVS Health announced Wednesday it is splitting into two companies, marking one of the largest shakeups in the healthcare industry.
CVS Health to split in two, separating pharmacy business from insurance
CVS Health said on Wednesday it will split into two companies, separating retail pharmacy from its insurance and pharmacy-benefit operations in a major unwinding of the healthcare conglomerate it spent years building through acquisitions.
CVS Health Split: Healthcare giant to separate 9,000 stores in one of the industry's biggest-ever breakups
CVS Health plans to separate its roughly 9,000 retail pharmacies into a publicly traded company, CVS Pharmacy, in the first half of 2028. CVS Health will retain Aetna and Caremark. The move follows a strategic review as the company pursues cost cuts and works to improve its business.
CVS to split into two companies, in major breakup of its $117 billion healthcare empire
CVS Health said Wednesday it is splitting into two companies, marking one of the largest shakeups in the healthcare industry. It’s a major reversal of the mergers that brought together the nation’s largest drugstore retailer along with health insurance giant Aetna and pharmacy benefit manager Caremark.
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