CVS Health to split off drugstore chain from insurance arm

· Health · United States

CVS Health, the largest US healthcare conglomerate valued at $117 billion, announced it will split off its pharmacy chain from its health insurance and benefits businesses, which house insurer Aetna and benefits manager Caremark. The move would reverse the company's $78 billion acquisition of Aetna and dismantle the vertically integrated conglomerate it created in 2018. Shares fell 10% after the announcement. Analysts said that after a roughly two-year turnaround, the retail pharmacy business and other units may now be strong enough to stand on their own.

Why it matters：One of the biggest experiments in combining insurance and pharmacies is being unwound, a signal about where US healthcare consolidation may be heading.

Key points

  • CVS is valued at $117 billion
  • The split reverses the $78 billion Aetna deal
  • Shares fell 10% after the announcement

Sources (original reporting)

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