CVS Health Explores Potential Split Amid Investor Pressure

CVS Health is examining options to potentially split its retail and insurance units due to investor pressure. The healthcare company is discussing the prospective break-up with financial advisers and its board of directors. This move follows CVS lowering its profit forecast for 2024, highlighting financial challenges.

CVS Health 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, according to sources familiar with the matter.

Recent discussions with financial advisers have focused on the logistics of such a split. The plan, which has been presented to the company's board, remains undecided, and CVS might consider alternative strategies. The potential split would entail separating the pharmacy chain from the insurance business, potentially creating two publicly traded companies.

If the split proceeds, it would reverse CVS's $70 billion acquisition of Aetna in 2017. CVS is also assessing whether its pharmacy benefits manager unit should stay with retail or insurance. The company, which has faced investor pressure and a lowered profit forecast, remains committed to creating shareholder value through high-quality healthcare services.

(With inputs from agencies.)