CVS Health Announces Plan to Split into Two Separate Public Companies by 2028
CVS Health has announced plans to dismantle its vertically integrated healthcare model by splitting into two separate publicly traded companies by early 2028. This strategic reversal effectively undoes the company's $78 billion acquisition of Aetna, separating its approximately 9,000 retail pharmacies from its insurance and pharmacy benefit manager (PBM) operations. The restructuring aims to isolate the insurance and PBM business—which will include Oak Street Health and Signify Health—from the standalone retail pharmacy unit. This move follows a period of significant turnaround efforts under CEO David Joyner, which have seen shares rise 70% since October 2024. Analysts suggest the split may also serve to mitigate increasing legislative scrutiny regarding vertical integration and PBM pricing practices in the United States.
Topics: corporate split healthcare industry insurance PBM pharmacy retail
Part of the story CVS Health Exceeds Third Quarter Estimates and Announces Strategic Split into Two Companies (8 articles)