Exclusive: CVS explores options including potential break-up, sources say [View all]
Source: Reuters
October 1, 2024 9:26 AM EDT Updated a min ago
NEW YORK, Sept 30 (Reuters) - CVS Health (CVS.N) is exploring options that could include a break-up of the company to separate its retail and insurance units, as the struggling healthcare services company looks to turn around its fortunes amid pressure from investors, people familiar with the matter told Reuters. CVS has been discussing various options - including how such a split would work - with its financial advisers in recent weeks, the sources said, requesting anonymity as the discussions are confidential.
The plan to potentially split the company's pharmacy chain and the insurance business has been discussed with the board of directors, which is yet to decide on the best course of action for CVS to pursue, the sources said, cautioning that the plans have not been finalized and CVS may opt for a different strategy.
CVS is also discussing whether its pharmacy benefits manager unit, which manages drug benefits for health plans, should be housed within the retail unit or under insurance, if it were to proceed with a separation that could result in two publicly traded companies, the sources said.
Such a move would effectively unwind CVS's landmark $70 billion takeover of healthcare insurer Aetna in 2017 and come as CVS attempts to navigate one of the most challenging periods in its six-decade history. A CVS spokesperson declined to comment on whether it is holding talks to explore options.
Read more: https://www.reuters.com/business/healthcare-pharmaceuticals/cvs-explores-options-including-potential-break-up-sources-say-2024-09-30/
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