CVS Health announced Wednesday that it will split into two separate publicly traded companies by the first half of 2028. The breakup reverses CVS' 2018 acquisition of insurer Aetna for $78 billion.
The split separates CVS' roughly 9,000 retail pharmacies from its insurance business and Caremark, one of the nation's three largest pharmacy benefit managers. CVS shareholders will receive shares in both companies after the separation.
The company retained the CVS Health name for the insurance and PBM unit, which will be run by CEO David Joyner. The retail pharmacy business will operate as CVS Pharmacy under Prem Shah, currently group president of CVS Health.
CVS shares fell roughly 11% on Wednesday following the announcement. The stock had climbed roughly 70% since Joyner took over in October 2024, bringing the company's market value to $117 billion.
CVS' pharmacy business generated $37.66 billion in 2025 sales. The insurance unit posted $36.29 billion in revenue, and the healthcare services segment produced $51.24 billion.
Joyner told CNBC on Wednesday that the decision to split comes "out of a position of strength," pointing to recovery in Aetna's Medicare business and solid retail pharmacy performance. He told analysts that synergies between the two businesses "are going to be preserved in commercial agreements between the two organizations," adding that "we don't need the integration of an operating structure."
The split reflects mounting scrutiny of pharmacy benefit managers over pricing practices and conflicts of interest. Republicans in Tennessee and Arkansas passed laws banning co-ownership of PBMs and pharmacies, though CVS and other companies have challenged these laws in court.