CVS Health to split off its retail pharmacy business
CVS Health is planning one of the largest corporate separations in history as it looks to separate its retail pharmacy operations from its insurance and pharmacy benefits business.
The retail and healthcare giant, whose total revenues increased to a record high of $402.1 billion in 2025, intends to separate into two independent, publicly traded companies, with the split expected to be completed by the first half of 2028. The decision follows a “comprehensive strategic review by the CVS Health board,” the company said.
The planned breakup would spin off CVS’ retail pharmacy business — including its roughly 9,000 drug stores, mail-in pharmacy operations and in-store MinuteClinics — into a new company called CVS Pharmacy. The unit would also include Health100, a health technology services subsidiary it launched earlier this year.
[READ MORE: CVS expands pharmacy-focused concept as part of overall expansion]
The second company will be made up of insurance giant Aetna and pharmacy benefits manager Caremark as well as CVS’ health care businesses and specialty drug business. Described as a “healthcare solutions company,” it will retain the name CVS Health.
When the split is completed, David Joyner, currently chairman and CEO of CVS Health, will lead the healthcare solutions company. Prem Shah, currently group president of CVS Health, will be the CEO of CVS Pharmacy. Additional leadership positions and board members will be announced at a later date, CVS said.
"Over the last two years, we have made meaningful progress: we built a world-class leadership team, strengthened our financials, revitalized operations across the enterprise, and drove total shareholder return,” Joyner said. “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 added that both companies “will continue to advance innovative technology solutions to improve the healthcare experience as we deliver on our purpose to simplify healthcare, one person, one family and one community at a time."
Upon completion, CVS Health shareholders will own shares in both companies.
CVS Health has been increasing scrutiny from lawmakers, regulators and others who say the company — along with peers UnitedHealth Group and Cigna — has grown too dominant, according to a report by the New York Times.
CVS announced the split the same day it released earnings and revenue for its third quarter that topped Wall Street estimates. Total sales rose to $108.40 billion, from $102.87 billion in the year-ago quarter. Adjusted earnings of $2.09 per share easily topped estimates of $1.65 per share.
