CVS Health to split in two by 2028, separating 9,000 pharmacies from Aetna and Caremark

CVS Health, the biggest US drugstore chain, plans to split into two separately listed companies by the first half of 2028, separating its roughly 9,000 retail pharmacies from its Aetna insurance business and its pharmacy benefit manager, Caremark, the company announced on Wednesday 4 November, CNBC reported. The Financial Times first reported the plan on Tuesday.

The two new companies

Shareholders will own shares in both companies. More leadership and board names will follow.

Why CVS is breaking up

CVS spent two decades building a one-stop health company and bought Aetna for $78 billion in 2018. The split reverses that. Joyner said the company was acting "from a position of strength" to create two focused businesses. Since he took over in October 2024 the shares have risen about 70%, giving CVS a market value of about $117 billion, roughly Rs 32 trillion at today's dollar rate.

Leerink Partners analyst Michael Cherny called the move "a complete shock" but said the retail pharmacy business is winning market share and could stand on its own. He also suggested it may help CVS avoid state scrutiny of how much of the health chain it controls. Pharmacy benefit managers, which negotiate drug prices for insurers and employers, face pressure from both parties in Washington, and Congress passed PBM reforms in February.

Results on the same day

CVS also reported third-quarter sales of $108.40 billion, up from $102.87 billion a year earlier, beating Wall Street estimates.

Why readers in Pakistan should care

CVS does not operate in Pakistan, so nothing changes at pharmacies here. Pakistanis who hold US shares through an international broker will receive shares in both companies; any gain is taxable here, which our capital gains tax calculator can estimate.