Report: CVS Health Corporation (CVS.US) Said to Plan Spinoff of Retail Pharmacy and Insurance Businesses, Marking Major Reversal of Integrated Strategy

Report: CVS Health Corporation (CVS.US) is reportedly set to split into two companies, separating its retail pharmacy business from its insurance and pharmacy benefit management operations. One of the companies will retain the CVS Health Corporation name and be led by current Chief Executive Officer David Joyner. CVS Health Corporation is scheduled to report quarterly results on Wednesday and did not immediately comment. The spinoff would mark a major reversal of CVS Health Corporation's strategy of building an integrated healthcare business through mergers and acquisitions, including its approximately US$78 billion acquisition of health insurer Aetna in 2018. According to the report, CVS Health Corporation is considering spinning off its retail pharmacy business, which operates about 9,000 pharmacies, into a separately listed public company, while Aetna and its pharmacy benefit manager Caremark would remain together. Following the news, CVS Health Corporation shares rose 1.2% in after-hours trading. The potential restructuring comes as pharmacy benefit managers (PBMs) face growing political and regulatory scrutiny over their role in the U.S. drug supply chain, putting healthcare companies that simultaneously operate insurance, pharmacy benefit management and pharmacy businesses under the spotlight. Data shows that CVS Health Corporation's 2025 revenue reached a record US$402.1 billion, up 7.8% year over year. CVS Health Corporation reportedly explored options including a potential breakup in 2024, when the healthcare giant was grappling with challenges across its businesses. After Joyner took over in October 2024, CVS Health Corporation's shares rebounded, helping the company raise its market capitalization to approximately US$117 billion.