CVS Health Considers Breakup Amid Pressures

CVS Health is exploring the possibility of breaking up its retail and insurance divisions amid increasing pressure from investors and ongoing financial difficulties. The company has engaged financial advisers to assist in a strategic review, which has been underway for several weeks, though no immediate decision is expected. Discussions have included how a potential split might be structured, including the future of its pharmacy benefits manager unit. This move could reverse the company's $70 billion acquisition of Aetna in 2017, as CVS aims to enhance shareholder value and operational performance. The decision comes after CVS cut its 2024 earnings outlook for the third consecutive quarter, reflecting challenges in its Medicare business and retail operations. CVS currently holds a market value of about $79 billion, with pressure mounting from investors seeking substantial changes.