Largest US Pharmacy Chain Splits In Two, Separates Selling Drugs And Insurance

CVS plans to split into two publicly traded companies, separating its pharmacy retail operations from businesses including health insurance and pharmacy benefits. The move follows a strategic review and comes as the company faces pressure from changing regulations and government drug-pricing policies.

The proposed retail company, CVS Pharmacy, would include about 9,000 pharmacies, mail-order services, MinuteClinic and Health100. An interim healthcare solutions company would include Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health. CVS shares fell 12.5% to $79.96 after the announcement, reducing its market value by nearly $15 billion; separately, CMS estimates its 2027 changes to the 340B drug discount programme will cut drug spending by about $5.45 billion.