CVS plans to split its pharmacy stores from insurance and services
The proposed breakup would create two public companies in the first half of 2028. It is a plan, not a completed separation.
CVS Health plans to separate into two publicly traded companies, putting its roughly 9,000 retail pharmacies in a different company from Aetna and its pharmacy benefit manager. The company expects the separation in the first half of 2028.
The proposed CVS Pharmacy would include the stores, mail pharmacy, MinuteClinic and Health100 technology services. The remaining healthcare company would include Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health.
David Joyner would lead the healthcare solutions company, while current group president Prem Shah would lead CVS Pharmacy. Existing shareholders would own stock in both companies after the split.
The separation still needs final board approval, an effective registration statement and confirmation of its intended tax treatment. CVS said it would continue to operate as it does today until completion. Its expected timing and benefits are not guarantees.
The announcement came alongside third-quarter revenue of $108.4 billion. CVS raised its full-year adjusted earnings forecast to at least $8.20 a share. The breakup puts a different question beside the quarterly results: whether separate businesses can deliver more value than the combined company. That remains to be tested.
