Oct 1, 2024 - Business
CVS reportedly considers a breakup
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CVS Health is weighing various strategic options, including a possible breakup of the company, as first reported by Reuters.
Why it matters: CVS is America's largest pharmacy operator and one of its top health care companies, but is being hammered by increased costs at its Aetna insurance unit.
State of play: The company last month slashed its financial forecast and announced $2 billion in cost cuts.
- It also was scheduled yesterday to meet with hedge fund Glenview Capital, which owns around 1% of CVS outstanding stock and wants changes.
- As of May, CVS was looking for a private equity partner to back new Medicare Advantage-focused Oak Street Health clinics, Axios Pro's Claire Rychlewski notes.
The bottom line: CVS may wait to see how the Medicare Advantage market shakes out next year, which could be impacted by who controls with White House and Congress.
