CVS Health $CVS is splitting into two companies! Shares are down 12%.
Pharmacies—that’s another way to describe this company. CVS released its results today. I held it in my portfolio when it fell below $50 and sold everything above $90.
And now, the news:
By the first half of 2028, a network of roughly 9,000 pharmacies will be spun off from the group. The new company will be called CVS Pharmacy and will be led by Prem Shah.
Under the CVS Health name and led by David Joyner, the remaining businesses will include insurer Aetna, PBM Caremark, Oak Street Health, Signify Health, and the pharmacy services business.
Shareholders will receive stakes in both companies. CVS is unwinding the vertical integration it built through its acquisitions of Caremark in 2007 and Aetna in 2018.
But it’s also due to regulation, as Arkansas and Tennessee have already passed laws prohibiting PBMs from owning pharmacies.
The figures in the report were otherwise strong.
Interesting things are still happening in the market.