CVS to split off drugstore business in major breakup of healthcare giant; shares fall 10%
CNBC · Annika Kim Constantino ·
The move would reverse the company's $78 billion acquisition of Aetna and dismantle the vertically integrated healthcare conglomerate it created in 2018.
CVS Health plans to split into two separate public companies by the first half 2028 in what would be one of the largest corporate breakups in history, the company announced Wednesday.
The move would reverse the company's massive $78 billion acquisition of its insurer, Aetna, and dismantle the vertically integrated healthcare conglomerate it created in 2018. The plan would specifically separate CVS' roughly 9,000 retail pharmacies from its major insurance business and pharmacy benefit manager, Caremark, one of the nation's three largest PBMs.
The decision follows a "comprehensive strategic review" by the company's board of directors, according to a news release. Shares of CVS closed more than 12% lower on Wednesday.