CVS Health plans to split into two public companies, with close expected in 2028
Aetna and CVS Caremark stay with David Joyner at CVS Health, while Prem Shah will run a new CVS Pharmacy built around roughly 9,000 pharmacies.
Chart: CVS, one-minute prices, three sessions
CVS Health plans to separate into two independent, publicly traded companies, in a transaction intended to be tax-free to the company and its shareholders. The business that keeps the CVS Health name will hold Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health. David Joyner will remain its Chairman and CEO.
The other company, to be called CVS Pharmacy, will comprise roughly 9,000 CVS pharmacies, mail pharmacy, MinuteClinic and the Health100 technology business. Prem Shah will be its CEO.
CVS also reported stronger third-quarter results this morning and raised its 2026 cash flow guidance to at least $15.5bn. Guidance is management's own forecast, and the split is still only a plan.
The separation is expected to close in the first half of 2028. It needs board approval and a Form 10 registration with the SEC, which are the next checkpoints. The tax-free structure is meant to keep value from leaking away in the process.
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- · From the wire
CVS Health chief executive David Joyner will run the company that retains the CVS Health name, with the two resulting companies from a CVS Health breakup both to be publicly traded, the Wall Street Journal reports.