CVS Health to Split Into Two Separate Public Companies

CVS Health plans to split its operations into two independent, publicly traded companies. The restructuring will result in one entity retaining the CVS Health name, focusing on healthcare solutions such as Aetna and CVS Caremark, while the second entity, CVS Pharmacy, will house roughly 9,000 retail locations, mail-order pharmacy services, and MinuteClinic operations.

David Joyner will serve as CEO of the healthcare-focused CVS Health, with Prem Shah appointed as CEO of the pharmacy division. Leadership stated that the split is intended to provide greater agility and focus, allowing both entities to better address affordability and care coordination within their respective sectors.

This move effectively unwinds the 2018 merger between CVS and Aetna. Analysts suggest that increasing regulatory scrutiny regarding the consolidation of insurance and pharmacy benefits management—already codified in several U.S. states—served as a catalyst for the separation. Following the announcement, CVS shares declined by approximately 12 percent.