CVS to split off drugstore business

Key Points:

• CVS Health announced plans to split into two separate publicly traded companies by the first half of 2028, reversing its 2018 acquisition of insurer Aetna and separating its retail pharmacy business from its insurance and pharmacy benefit manager (PBM) operations.
• The insurance and PBM company will retain the CVS Health name under CEO David Joyner, while the retail pharmacy business will be called CVS Pharmacy and led by Prem Shah, with existing shareholders owning shares in both entities.
• The split follows a strategic review and aims to create more focused companies to improve consumer engagement, affordability, and care coordination, while allowing greater innovation and efficiency in each business segment.
• CVS's pharmacy business generated $37.66 billion in 2025 sales, with insurance and healthcare services also contributing significant revenue; the company recently reported third-quarter earnings and revenue that exceeded expectations.
• The breakup comes amid increasing regulatory scrutiny of PBMs over pricing transparency, market power, and conflicts of interest, with recent federal and state reforms targeting PBM practices and ownership structures.