Markets US
CVS Health plans to split into two public companies by 2028, reversing its $78 billion Aetna acquisition and dismantling its healthcare conglomerate structure.
CVS Health announced plans to split its drugstore business into two separate public companies by the first half of 2028, undoing its 2018 $78 billion acquisition of Aetna. The split will separate its 9,000 retail pharmacies from its insurance and pharmacy benefit manager (PBM) business, Caremark, one of the nation’s largest PBMs. The decision follows a strategic review by the board and comes amid regulatory scrutiny of PBMs and efforts to improve consumer engagement.
CVS’s pharmacy business generated $37.66 billion in 2025 sales, while its insurance unit reported $36.29 billion in revenue. The healthcare services segment contributed $51.24 billion, pushing total sales to $108.40 billion in 2025, up from $102.87 billion in 2024. Shares have risen ~70% since CEO David Joyner took over in October 2024, boosting the company’s market value to $117 billion.
The split aims to address regulatory pressures on PBMs and improve operational efficiency by allowing each entity to focus on innovation. It may also reshape competition by separating a major pharmacy chain from its insurance operations, potentially benefiting rivals like Walmart and UnitedHealth Group. However, regulatory challenges and the insurance unit’s pricing practices face bipartisan scrutiny.
Direct stakeholders include CVS shareholders, pharmaceutical and insurance investors, and regulators. Indirect stakeholders include patients, healthcare providers, and employers. The split’s success hinges on maintaining CVS Pharmacy’s scale and negotiating power in the pharmaceutical market, while the insurance unit could benefit from Medicare Part D reforms enacted in February 2026.
CVS will announce leadership roles and operational details for the new entities. Regulatory reforms targeting PBMs, including Medicare Part D changes, will continue to shape the industry.
CVS’s split seeks to navigate regulatory pressures and enhance focus, but its success depends on balancing market dynamics and compliance risks.
Topics: Healthcare, Pharmaceuticals, Insurance, Regulatory Compliance, Market Strategy, PBMs, Medicare Reforms, Corporate Restructuring
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Source: CNBC
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