CVS Plans Split Into Two Independent Companies by 2028

CVS has announced a plan to split its operations into two distinct companies by 2028. The current structure will be divided between a unit focused on health plans and benefits management and another entity dedicated exclusively to the retail pharmacy chain.

The new organization will feature CVS Health, which will integrate healthcare services and drug management. The second entity, named CVS Pharmacy, will be responsible for operating approximately 9,000 retail locations across the country.

Shareholders of the current organization will receive stakes in both businesses after the process concludes. The two new companies will have their shares listed and traded on the stock exchange independently.

The company is facing operational challenges linked to the federal 340B program, which offers drug discounts to hospitals and community clinics. Executives warned that the negative effects of this initiative may persist until 2027, creating uncertainty regarding future financial performance.

Investors are awaiting the release of third-quarter results for more details on the impact of this federal program. The market is seeking clarity on how the split will affect the profitability of the two new structures amid the current operational pressure.