Why CVS Health plans to split pharmacy and Aetna, Caremark
CVS Health has announced plans to split into two separate publicly traded companies by 2028, separating its retail pharmacy business from its Aetna insurance and Caremark PBM units. The decision follows improved financial performance and stability across both segments, allowing them to operate independently.
Why it matters
This restructuring represents a major shift in the US healthcare landscape, potentially unlocking shareholder value and changing how pharmacy and insurance services are integrated for consumers.
CVS Health plans to break itself up — and this time, the bet looks a lot more viable.
The healthcare conglomerate on Wednesday announced plans to split into two publicly traded companies by the first half of 2028. CVS would separate its pharmacy business – including roughly 9,000 retail locations – from its major insurance business and pharmacy benefit manager, Caremark.
The move comes more than two years after CVS considered a breakup but ultimately walked away from the idea. At the time, analysts questioned whether the retail pharmacy business could survive on its own.
“Back then, the idea of retail standing alone was unthinkable,” Brian Tanquilut, senior equity research analyst at Jefferies, told CNBC.
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