CVS Health To Split Into Two Publicly Traded Companies By 2028
CVS Health To Split Into Two Publicly Traded Companies By 2028
Melissa Masters Sat, November 7, 2026 at 1:03 PM UTC
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CVS (File)
CVS Health announced Wednesday plans to split into two independent, publicly traded companies after a strategic review by its board of directors.
The proposed transaction, expected to close in the first half of 2028, will divide the healthcare giant into a healthcare solutions business and a standalone retail pharmacy and community care business. Company officials said the split is intended to be tax-free for CVS Health and its shareholders.
Under the plan, the healthcare solutions business will retain the name CVS Health for now. It will include insurance provider Aetna, pharmacy benefit manager CVS Caremark, CVS Specialty, Oak Street Health and Signify Health.
David Joyner, the current chairman and chief executive officer of CVS Health, will lead the healthcare solutions firm as chairman and CEO.
“Our history is defined by proactively evolving to stay ahead of what’s next in healthcare, and in today’s environment, that means delivering more affordability, greater access, and a simpler experience,” Joyner said in a statement. “Over the last two years, we have made meaningful progress: we built a world-class leadership team, strengthened our financials, revitalized operations across the enterprise, and drove total shareholder return. From a position of strength, and a focus on the long term, we plan to create two focused companies to improve consumer engagement, affordability, and care coordination.”
Pinellas Park CVS
The second entity, to be named CVS Pharmacy, will encompass roughly 9,000 retail drugstore locations, mail pharmacy operations, MinuteClinic walk-in clinics and virtual care, alongside the Health100 technology services unit. Prem Shah, current group president of CVS Health, will serve as chief executive of the standalone retail company.
“Aetna, CVS Caremark and CVS Specialty, along with our value-based care and in-home health businesses, will advance together as a leading healthcare solutions provider, delivering differentiated, comprehensive benefits to clients, members and patients,” Joyner said. “CVS Pharmacy will build on its position as America’s leading retail pharmacy, serving as the front door to health and care in our country as the most frequently accessed consumer health touchpoint.”
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Both businesses will share access to products developed under Health100, an initiative focusing on artificial intelligence tools for patient and customer services. CVS Pharmacy also plans to expand services handled by its approximately 30,000 pharmacists and seek broader commercial ties with insurers, drug manufacturers and competing pharmacy benefit managers.
CVS Health stated that customer operations, prescriptions and patient care will continue without disruption during the transition period.
Upon completion, current shareholders will receive stock in both corporations. CVS Health said it expects both entities to carry investment-grade credit ratings, generate positive cash flow and offer regular shareholder dividends.
The split remains subject to final board approval, regulatory filings with the U.S. Securities and Exchange Commission, and confirmation of its tax-free status under federal law.
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CVS Health To Split Into Two Publicly Traded Companies By 2028
Source: “AOL Money”
