CVS Health announced that it plans to separate its retail pharmacy chain from its health care services business units into two distinct companies.
The move comes as retail pharmacies broadly face competition and other pressures. It would walk back two decades of expansion and mergers, including CVS’s 2007 Caremark acquisition and Aetna acquisition in 2018.
The two companies emerging from the split would be called CVS Health and CVS Pharmacy.
Currently, CVS Health is No. 101 in the Top 1000 Database. The market research tool tracks North America’s largest online retailers, ranking them by annual ecommerce sales and more.
CVS Health is also No. 201 in Digital Commerce 360 and ReFiBuy’s AI Commerce Rankings. That set of rankings is available in the Top 1000 Pro with AI Database.
CVS Health web sales by year
Why CVS Health is splitting into two companies
“Our history is defined by proactively evolving to stay ahead of what’s next in healthcare, and in today’s environment, that means delivering more affordability, greater access, and a simpler experience,” said David Joyner, chairman and CEO at CVS Health. “Over the last two years, we have made meaningful progress: we built a world-class leadership team, strengthened our financials, revitalized operations across the enterprise, and drove total shareholder return.”
Joyner became CEO at CVS in 2024. He is expected to be chairman and CEO at the new incarnation of CVS Health following the separation. Meanwhile, Prem Shah, who now serves as group president at CVS Health, is slated to become the new CEO of CVS Pharmacy.
“From a position of strength, and a focus on the long term, we plan to create two focused companies to improve consumer engagement, affordability, and care coordination,” Joyner said in a released statement.
What happens next for CVS business units
“Aetna, CVS Caremark and CVS Specialty, along with our value-based care and in-home health businesses, will advance together as a leading healthcare solutions provider, delivering differentiated, comprehensive benefits to clients, members and patients,” Joyner said. “CVS Pharmacy will build on its position as America’s leading retail pharmacy, serving as the front door to health and care in our country as the most frequently accessed consumer health touchpoint.”
The company expects to complete the separation in the first half of 2028, it noted in a press release. In the meantime, the transition will go before the CVS Health Board of Directors for final approval, setting the process up to advance. As it does, CVS Health will still operate as a combined entity.
“Both companies will continue to advance innovative technology solutions to improve the healthcare experience as we deliver on our purpose to simplify healthcare, one person, one family and one community at a time.”
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