CVS Health to Split Pharmacy Business From Aetna and Caremark by 2028

The separation is expected to be completed in the first half of 2028, subject to closing conditions, the company announced Wednesday.

CVS Health plans to separate its retail pharmacy business from its insurance, pharmacy benefit management and healthcare services operations, creating two independent companies as part of a broader restructuring strategy. The separation is expected to be completed in the first half of 2028, subject to closing conditions, the company announced Wednesday.

Under the proposed structure, the first company, CVS Pharmacy, will include the company's retail pharmacy operations and Health 100 technology businesses. The second entity, which will operate under the CVS Health name on an interim basis, will house Aetna, Caremark, Oak Street Health and Signify Health.

Current CVS Health CEO David Joyner will lead the new CVS Health entity, while Prem Shah, group president of CVS Health, will become CEO of CVS Pharmacy.

The company said the decision follows a comprehensive strategic review by its board of directors. Until the separation is completed, both business groups will continue operating jointly.

In its announcement, Joyner said the company had made progress in its turnaround efforts over the past two years and would pursue the separation from its current position.

"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 said.

According to CVS Health, the restructuring will allow each company to pursue more focused business strategies and respond to its respective market requirements. CVS Pharmacy will focus on expanding the reach of its pharmacists and developing partnerships across the healthcare sector. The new CVS Health entity will concentrate on serving its clients through its insurance, pharmacy benefit management and healthcare services businesses.

The company's existing strategy is centered on four priorities: improving execution, rethinking the consumer experience, strengthening its role as a healthcare partner and leveraging capabilities across its businesses. Both entities are expected to continue working around these priorities following the separation.

The announcement coincided with CVS Health's third-quarter earnings report. The company posted $2.2 billion in profit and $108.4 billion in revenue for the quarter. Its shares were up approximately 3% in premarket trading at around 7:30 a.m. ET on Wednesday.

The proposed separation remains subject to closing conditions, with the first half of 2028 set as the expected completion timeline.

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