CVS Health moves to dismantle its $117bn healthcare empire

· Finance · United States

CVS Health is moving to dismantle its $117 billion healthcare empire, with a potential spin-off of its drugstore business, according to a report. The move comes as political pressure mounts on pharmacy benefit managers and health insurers, the businesses CVS has built alongside its retail pharmacies. A newcomer should know that CVS combines a drugstore chain, a pharmacy benefit manager and an insurer under one roof, a structure critics have targeted over drug pricing. The immediate effect would be a break-up of one of the largest integrated healthcare companies in the US, separating retail pharmacy from the insurance and benefits operations and potentially reshaping how the sector is valued by investors.

Why it matters：It would break up a flagship example of vertical integration in US healthcare, a model regulators and lawmakers are scrutinizing over drug pricing.

Key points

  • CVS Health is weighing a spin-off of its drugstore business.
  • Its combined empire is valued at $117bn.
  • Political pressure on pharmacy benefit managers and insurers is mounting.

Sources (original reporting)

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