CVS is splitting into two separate publicly traded companies by 2028
CVS Health just announced plans to split into two separate companies.
The short version
- One company will run Aetna and the other will run 9,000 pharmacies.
- David Joyner will lead the healthcare side and Prem Shah the retail side.
- The major corporate breakup is expected to finish in early 2028.
Why it matters to you. For shoppers and insurance members, the massive corporate shift aims to reshape how millions access daily prescriptions and medical care.
Check your local shopping trips and insurance cards. CVS Health, the massive pharmacy and healthcare corporation, just announced on Wednesday that it plans to separate into two independent, publicly traded companies following a strategic review by its board of directors. The huge corporate breakup will divide the retail drugstores from the insurance and healthcare services.
To be known as CVS Health in the interim, the healthcare solutions company will comprise the Aetna insurance arm, CVS Caremark, CVS Specialty, Oak Street Health, and Signify Health. Meanwhile, the retail company will operate approximately 9,000 CVS pharmacies, mail pharmacy, MinuteClinic, and the Health100 technology services business, and will be named CVS Pharmacy.
David Joyner, currently chairman and CEO of CVS Health, will lead the healthcare solutions company, while Prem Shah, currently group president of CVS Health, will become CEO of CVS Pharmacy, according to Connect CRE. “Our history is defined by proactively evolving to stay ahead of what’s next in healthcare, and in today’s environment, that means delivering more affordability, greater access and a simpler experience,” said Joyner.
Goldman Sachs, the giant investment bank, is serving as lead financial advisor to the company, alongside Consello. The separation is expected to be finalized in the first half of 2028, with additional leadership positions and board members to be announced later.
