CVS Plans to Split Its Drugstores From Aetna and Other Health Businesses
The proposed separation would create two public companies by the first half of 2028, with CVS saying prescriptions, care and benefits will continue without interruption.
CVS Health announced Wednesday that it plans to separate into two independent, publicly traded companies, placing its roughly 9,000 pharmacies in a business separate from Aetna and its other health services operations.
The retail pharmacy company would be named CVS Pharmacy. It would include CVS stores, mail pharmacy, MinuteClinic, including virtual care, and the Health100 technology services business.
The other company, referred to for now as CVS Health, would include Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health.
CVS expects the separation to be completed in the first half of 2028. It is not a completed transaction: the plan remains subject to conditions including final board approval, a registration statement becoming effective and confirmation of the intended tax treatment.
Shareholders would own shares in both companies after the separation, which CVS intends to structure as tax-free for the company and its shareholders for U.S. federal income tax purposes.
CVS said customers, patients and clients will continue receiving their medicine, care, benefits and services without interruption. Until the separation is completed, the company will continue operating and serving customers as it does today.
David Joyner, CVS Health's current chairman and CEO, would lead the healthcare solutions company. Group President Prem Shah would become CEO of CVS Pharmacy.