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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Health

CVS reportedly ready to the 'splits'

CVS Health Corp (NYSE:CVS) is exploring options to split its retail and insurance divisions in response to investor pressure, according to a Reuters exclusive.

The potential separation, which may lead to two publicly traded entities, would reverse CVS's $70 billion acquisition of Aetna.

The company is reportedly in discussions with financial advisers and its board, but no decision has been finalised.

According to Reuters, CVS is also debating the future of its pharmacy benefits manager unit.

The company has been under pressure after lowering its 2024 profit forecast, prompting calls for strategic changes from investors like Glenview Capital.

CVS's shares have underperformed, falling nearly 25% this year amid rising costs in its Medicare business and overall operational challenges.

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