CVS will split its pharmacy business into a separate company with about 9,000 stores
U.S. company CVS Health announced on Wednesday that it will split its pharmacy business into a separate company, in a reorganization that will create two focused businesses: one for health solutions and one for retail pharmacy and community care.
The first will be CVS Health, a 'healthcare solutions company' made up of Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health. The second will be CVS Pharmacy, a 'retail pharmacy and community healthcare company' bringing together around 9,000 CVS pharmacies, mail pharmacy, MinuteClinic, including virtual care, and the Health100 technology services business.
Upon separation, current CVS Health CEO David Joyner will become chairman and CEO of the healthcare solutions company, while Prem Shah, the current president of CVS Health, will become CEO of CVS Pharmacy, according to the company's announcement.
'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,' Joyner said. He added that, after two years of strengthened finances and operations, the company is creating two focused companies to improve consumer engagement, affordability and care coordination.
Both companies will keep investing in healthcare technology, citing Health100, an artificial intelligence-based platform developed with Google Cloud and designed to support consumers through doctors, pharmacies and insurers.
The announcement follows years of upheaval in the U.S. retail pharmacy sector: CVS opened 60 stores in 2026 after four years of contraction, having closed 1,100 locations in recent years, in a context in which Rite Aid filed for bankruptcy and Walgreens was acquired by a private equity firm.
For consumers, the split points to more coordinated care across insurance, pharmacy and clinics, although the announcement covered on Wednesday did not detail the exact timetable for the separation or immediate changes in its stores.
Photo: Archivo A Lo Claro
Source: PYMNTS