CVS Health Announces Major Corporate Breakup Plan to Separate Pharmacies from Insurance
The Story
CVS Health announced plans to divide its business units into two separate, publicly traded companies by the first half of 2028.
Current CVS Health Chief Executive David Joyner will become the chief executive of the new CVS Health entity housing the insurance and PBM businesses, while Prem Shah will lead the separate CVS Pharmacy unit. The corporate breakup reverses the 2018 acquisition of Aetna for $78 billion that created the current $117 billion vertically integrated conglomerate.
Following the announcement, shares of CVS fell roughly 11 percent on Wednesday. Joyner stated that the decision follows a comprehensive strategic review by the board of directors and is undertaken from a position of strength following turnaround efforts and cost cuts initiated since 2024. The move comes as healthcare conglomerates face increasing regulatory scrutiny and political pressure in Washington.
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