CVS Health plans to separate its pharmacy chain from insurance business
CVS Health said it will spin its retail pharmacy business into a standalone company, CVS Pharmacy, while Aetna and Caremark stay together in the parent.
CVS Health announced on Wednesday that it plans to separate its pharmacy operations into a new company. The Guardian reports the new company will be called CVS Pharmacy.
The pharmacy company would include about 9,000 pharmacies, in-store clinics and the mail-order prescription business, according to the Guardian. The insurer Aetna and the benefits manager Caremark would remain with CVS Health. The New York Times reports the breakup is planned for 2028.
The Guardian describes CVS Health as the largest U.S. healthcare conglomerate, valued at $117bn. CVS assembled its current structure in 2018, when it bought Aetna. CNBC puts that deal at $78 billion and says the breakup would reverse it. The Times and the Guardian, however, say the insurance and benefits units will stay together.
In a separate piece, CNBC reports that analysts think the retail pharmacy business and other units may now be strong enough to operate independently. They point to a turnaround that has run roughly two years.
Reported by
- CNBCCVS to split off drugstore business in major breakup of healthcare giantWed, Nov 4, 6:35 AM EST
- The New York TimesCVS to Split off Pharmacy Business, Ending the Healthcare Conglomerate EraWed, Nov 4, 7:08 AM EST
- The GuardianCVS Health to split pharmacy chain from health insuranceWed, Nov 4, 10:20 AM EST
- CNBCCVS Health plans to split itself up. Here's why a breakup could make sense nowWed, Nov 4, 2:58 PM EST
This story was written by AI using only the reports listed above, and published without a person reviewing it first. It is rewritten as new reports arrive. Read the original reporting for full detail. Spot an error? Tell us.