CVS Health® today announced plans to split into two independent, publicly traded companies. The decision follows a comprehensive strategic review by the CVS Health Board of Directors.
Upon separation, David Joyner, currently Chairman and CEO of CVS Health, will be the Chairman and CEO of the healthcare solutions company, and Prem Shah, currently Group President of CVS Health, will be the CEO of CVS Pharmacy. Additional leadership positions and Board members will be announced at a later date.
“Our history is defined by proactively evolving to stay ahead of what’s next in healthcare, and in today’s environment, that means delivering more affordability, greater access, and a simpler experience,” said Joyner in a press release Wednesday. “Over the last two years, we have made meaningful progress: we built a world-class leadership team, strengthened our financials, revitalized operations across the enterprise, and drove total shareholder return. From a position of strength, and a focus on the long term, we plan to create two focused companies to improve consumer engagement, affordability, and care coordination.”
Joyner continued, “Aetna, CVS Caremark and CVS Specialty, along with our value-based care and in-home health businesses, will advance together as a leading healthcare solutions provider, delivering differentiated, comprehensive benefits to clients, members and patients. CVS Pharmacy will build on its position as America’s leading retail pharmacy, serving as the front door to health and care in our country as the most frequently accessed consumer health touchpoint. Both companies will continue to advance innovative technology solutions to improve the healthcare experience as we deliver on our purpose to simplify healthcare, one person, one family and one community at a time.”
The move would undo the company’s $78 billion acquisition of insurer Aetna and dismantle the vertically integrated healthcare conglomerate it created in 2018. It would also separate CVS’s roughly 9,000 retail pharmacies from its major insurance business and Caremark, its pharmacy benefit manager and one of the nation’s three largest PBMs.
Since Joyner took the helm in October 2024, shares have climbed roughly 70%, lifting the company’s market value to $117 billion.
CVS shares rose almost 4% following the announcement.
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By CEO NA Editorial Staff
