CVS Health plans to split itself up. Here's why a breakup could make sense now
CNBC · Annika Kim Constantino ·
Analysts say that after a roughly two-year turnaround the company's retail pharmacy business and other units may be strong enough to stand on their own.
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.