CVS Health to Split Into Two Companies by 2028, Separating 9,000 Pharmacies From Aetna and Caremark
CVS Health said it will split into two publicly traded companies by the first half of 2028, unwinding the combination of retail pharmacies, health insurance and pharmacy benefits it built through years of acquisitions.
CVS Health said on Wednesday it will split into two independent, publicly traded companies, separating its retail pharmacy business from its health insurance and pharmacy-benefit operations. The company said it expects to complete the separation in the first half of 2028.
One company will keep the CVS Health name for now and hold Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health. The other, to be named CVS Pharmacy, will hold about 9,000 retail pharmacies, the mail pharmacy, MinuteClinic and the Health100 technology business. Shareholders will own shares in both companies, and the company said it intends for the separation to be tax-free for U.S. federal income tax purposes.
Two companies, two chief executives
David Joyner, the current chairman and chief executive of CVS Health, will lead the health care solutions company. Prem Shah, the current group president, will become chief executive of CVS Pharmacy. The company said the decision followed a comprehensive review of its strategy by its board of directors.
“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 Reuters.
The split reverses years of dealmaking. CVS bought health insurer Aetna for about $78 billion in 2018, combining a retail pharmacy chain, a pharmacy-benefit manager and a health insurer under one roof. The company had also explored a possible breakup in 2024, Reuters reported.
The deal comes as lawmakers and regulators increase their scrutiny of vertically integrated health care companies. Reuters reported that years of consolidation have raised concerns that companies controlling several parts of the health care supply chain could face conflicts of interest, limit competition and add to rising health care costs.
Drugstores under pressure
CVS drugstores face pressure from competition with Amazon and a shift toward prescription delivery that has reduced store visits, Reuters reported. The company’s Pharmacy and Consumer Wellness segment, which holds its roughly 9,000 retail pharmacies, generated $139.4 billion in revenue in 2025. Its health benefits segment reported revenue of $143.4 billion in 2025, while its pharmacy-benefit unit brought in $190.4 billion.
Rival Walgreens sold its Boots pharmacy business and was bought by private equity firm Sycamore Partners last year after a long sale process, Reuters reported.
Barclays analysts viewed the possible split in a positive light, Reuters reported, saying the timing was favorable as the pharmacy business had returned to growth after years of underperformance.
What happens next
The separation still needs final approval from the CVS board, an effective Form 10 registration statement filed with the Securities and Exchange Commission, and confirmation of its tax-free treatment, the company said. Goldman Sachs is serving as lead financial adviser, and the law firm Wachtell, Lipton, Rosen and Katz is serving as legal counsel.
CVS also reported third-quarter results on Wednesday. Profit per share of $2.09 beat the average analyst estimate of $1.65, according to data compiled by LSEG, and the company raised its annual adjusted profit forecast to at least $8.20 per share. Shares were up 1.7% in premarket trading, Reuters reported.
Reporting based on coverage by Reuters and CVS Health.
