CVS Health will break up into two firms, dividing its retail pharmacies from its insurance coverage and pharmacy-benefit operations, the Wall Street Journal reported Tuesday.
One of the two firms will retain the CVS Health identify and be led by present CEO David Joyner, the Journal reported, citing the company.
CVS Health, which is set to report quarterly outcomes on Wednesday, did not immediately reply to a Reuters request for remark.
CVS Health will break up into two firms, dividing its retail pharmacies from its insurance coverage and pharmacy-benefit operations, the Wall Street Journal reported. ZUMAPRESS.com
A separation would mark a vital reversal of CVS’ strategy of building an built-in healthcare business through acquisitions, including its roughly $78 billion buy of health insurer Aetna in 2018.
Shares of the company were up 1.2% in prolonged trading.
The Financial Times earlier reported that CVS was contemplating spinning off its retail pharmacy business, which operates about 9,000 pharmacies, into a individually listed company, while Aetna and its pharmacy-benefit supervisor, Caremark, would stay collectively.
The potential shakeup comes as pharmacy benefit managers face growing political and regulatory scrutiny over their function in the US drug provide chain, spotlighting healthcare firms that mix insurance coverage, drug-benefit management and pharmacy operations.
The company reported document income of $402.1 billion in 2025, up 7.8% from the prior 12 months.
One of the two firms will retain the CVS Health identify and be led by present CEO David Joyner. REUTERS
CVS had explored choices including a potential breakup in 2024, Reuters reported at the time, as the healthcare giant grappled with challenges across its companies.
Shares of CVS have rebounded under Joyner, who took over in October 2024, serving to raise the company’s market worth to about $117 billion.
