Investing.com– CVS Health Corp (NYSE:CVS) plans to separate its retail pharmacy business from its insurance business, potentially unraveling one of the largest vertical integration deals in the U.S. healthcare industry, the Financial Times reported Tuesday, citing people familiar with the matter.
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Under plans being discussed, CVS would spin off its roughly 9,000 pharmacies into a separate publicly traded company, while insurer Aetna and pharmacy benefits manager Caremark would remain together, according to the report.
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The retail pharmacy division is expected to generate about a third of CVS’s $417 billion in revenue this year, the FT reported.
The proposed restructuring would undo CVS’s $78 billion acquisition of Aetna in 2018, amid growing political pressure to separate pharmacy benefit managers from pharmacies and insurers.
The company could announce the move alongside its third-quarter results, although the structure and timing remain subject to change, the report said.
Original article
CVS Health to split into two publicly traded companies by 2028, FT reports
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