CVS plans to separate pharmacy and health businesses

CVS Health plans to separate its retail pharmacy business from its insurance and pharmacy-benefit operations, forming two publicly traded companies in a restructuring the company expects to complete in the first half of 2028. The planned CVS Pharmacy company would include about 9,000 retail pharmacies, mail-order pharmacy operations and MinuteClinic. CVS Health would retain insurer Aetna, pharmacy-benefit manager Caremark, specialty pharmacy operations and health-care providers Oak Street Health and Signify Health. CVS said shareholders would own shares in both companies after the separation. The transaction remains subject to approvals and other conditions. CVS said completion requires final board approval, an effective Form 10 registration statement and confirmation of tax-free treatment. The company said its businesses would continue operating as they do now until the separation is complete. David Joyner, CVS Health’s chairman and chief executive, is expected to lead the company retaining the CVS Health name. Prem Shah, currently a CVS Health group president, is expected to become chief executive of CVS Pharmacy. CVS has not announced all leadership and board appointments...