CVS Health has announced that it will be dividing into two separate, publicly-traded companies, with the separation expected to be complete in the first half of 2028.
One of the companies, which will have the interim name CVS Health, will offer healthcare solutions. It will consist of Aetna, CVS Caremark, CVS Specialty, Oak Street Health, and Signify Health. The other, CVS Pharmacy, will be a national retail pharmacy and community healthcare company. It will consist of around 9,000 CVS pharmacies, mail pharmacy, MinuteClinic, and the Health100 technology services.
CVS Health Chairman and CEO David Joyner will lead the healthcare solutions company as chairman and CEO following the separation. Prem Shah, currently group president of CVS Health, will become CEO of CVS Pharmacy. Additional leadership appointments and board members will be announced at a later date.
The company said the decision follows a strategic review by its board of directors and is intended to give each business a more focused operating strategy, independent capital structure and greater flexibility to pursue investments and growth opportunities. The separation will be structured as tax-free, and shareholders will own shares in both companies upon its completion.