CVS Health said on Wednesday it will split into two companies, separating retail pharmacy from its insurance and pharmacy-benefit operations in a major unwinding of the healthcare conglomerate it spent years building through acquisitions.
\n\nThe split comes amid growing scrutiny from lawmakers and regulators of vertically integrated healthcare companies such as CVS.
\n\nYears of consolidation across the industry have raised concerns that companies controlling multiple parts of the healthcare supply chain could face conflicts of interest, limit competition and contribute to rising healthcare costs.
\n\nCVS said the separation of its units was expected to be completed in the first half of 2028. The split would mark a significant reversal of the company’s strategy of combining retail pharmacy, health insurance and pharmacy-benefit management under one roof.
\n\nCVS built the conglomerate through a series of acquisitions, including its roughly $78 billion purchase of health insurer Aetna in 2018.
\n\nShares of the company were down more than 10% in early trading Wednesday.
\n\nLeerink Partners analyst Michael Cherny attributed the premarket decline partly to deal-related uncertainty and broader volatility in healthcare stocks following the midterm elections.
\n\nFollowing the split, the healthcare solutions company will be referred to as CVS Health in the interim. CVS…
Original source: https://www.nbcnews.com/business