CVS announced a plan to split into two publicly traded companies
CVS Health plans to split into two publicly traded companies by the first half of 2028, separating its pharmacy business, including roughly 9,000 retail locations, from its insurance business and pharmacy benefit manager Caremark.
More context
Under CVS’s announced plan, its retail pharmacy operations would be carved away from its insurance and pharmacy benefit manager businesses, creating two publicly traded companies by the first half of 2028. The pharmacy company would include about 9,000 retail locations, while the other would hold Aetna and Caremark, CNBC reported. CVS Specialty will remain in the healthcare solutions division rather than the pharmacy business, Fox Business reported. The outlet quoted an industry expert saying that its specialty mail-order operations for high-cost medicines would stay with the insurance and PBM businesses. CVS said the separation follows a strategic review and is intended to give each business greater focus and flexibility. The move marks a departure from the integrated healthcare strategy CVS had promoted as a way to coordinate care. The company spent roughly $70 billion to acquire Aetna in 2018.
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Reporting
- CNBC — Why CVS Health plans to split pharmacy and Aetna, Caremark
- Fox Business — CVS to split into separate pharmacy and health care companies; expert weighs in | Fox Business
- healthcareuncovered.substack.com — CVS Is Spinning Off Its Drugstores. The Parts Critics Worry About Most Are Staying Together
Verifier’s note
CNBC and Fox Business report CVS’s plan to separate its pharmacy business from its insurance and pharmacy-benefit businesses, and Healthcare Uncovered also reports the planned pharmacy split. The reports concern the same recent announcement and do not contradict the central claim.