CVS is under pressure and considering a breakup. Here’s why that could be risky

CNBC October 4, 2024
Annika Kim Constantino

Key Points

– CVS has engaged advisors in a strategic review of its business, CNBC has reported Monday. One option being weighed is splitting up its retail pharmacy and insurance units.

– It would be a stunning reversal for the company, which has spent tens of billions of dollars on acquisitions over the last two decades to turn itself into a one-stop health destination for patients.

– CVS risks losing customers and revenue if it splits up its vertically integrated business segments, which includes health insurer Aetna and the major pharmacy benefits manager Caremark.

It’s time for a wellness check at CVS Health.

Shares of the company are down more than 20% this year as it grapples with higher-than-expected...

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