CVS Health breakup will create separate pharmacy and health care companies as industry expert weighs the impact on prescription drug prices, pharmacies and patients.
The company is splitting its drugstore and insurance businesses amid mounting regulatory pressure.
Analysts say that after a roughly two-year turnaround the company's retail pharmacy business and other units may be strong enough to stand on their own.
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In a breakup planned for 2028, CVS Health intends to split off its pharmacies into a new company, while keeping together its businesses in insurance and pharmacy benefits.
Plus, the Democrats’ election blowout; CVS will break off its namesake pharmacies.
The healthcare giant surprised analysts with the decision to separate its business.
The move would reverse the company's $78 billion acquisition of Aetna, and dismantle the vertically integrated healthcare conglomerate it created in 2018.
CVS Health raised its full-year guidance on gains in its health-care benefits and pharmacy segments, but said it remains cautious amid high costs and potential macroeconomic headwinds.
Plus, Iran turns to guerrilla tactics to try to stop the flow of oil leaving the Strait of Hormuz, and CVS Health decides to split in two.
