CVS Health (CVS) has announced plans to split into two separate publicly traded companies by the first half 2028.
The move, which will be one of the largest corporate splits in American history, reverses the company’s $78 billion U.S. acquisition of insurer Aetna.
The plan will see CVS Health spinoff its 9,000 retail pharmacy outlets into a new company that is separate from its insurance business and pharmacy benefit manager unit called “Caremark.”
The board of directors at CVS said they decided to split the company into two following a comprehensive strategic review.
The split is a reversal for CVS Health, which has spent two decades turning itself into a one-stop healthcare giant.
The move also comes amid a turnaround plan at CVS Health, with the company pursuing $2 billion U.S. in cost cuts through store closures and efforts to lower Medicare costs.
In a news release, the company said that the insurance and benefits management unit will retain the “CVS Health” name after the breakup.
The retail pharmacy chain will be known as “CVS Pharmacy” after it is spun off into a new publicly traded company.
Existing CVS shareholders will own shares in both companies following the split, according to the company.
The pharmacy chain posted $37.66 billion U.S. in 2025 sales, while the insurance unit booked revenue of $36.29 billion U.S., and the benefits management unit generated $51.24 billion U.S.
CVS stock has gained 17% over the past 12 months to trade at $91.41 U.S. per share.
