Woonsocket-based CVS Health plans to split into two publicly traded companies, separating its retail pharmacy and community-care operations from Aetna and its insurance and health-services businesses.
The company announced the plan Nov. 4. It expects completion in the first half of 2028, subject to conditions including final board approval, a Securities and Exchange Commission registration statement taking effect and confirmation of the intended tax treatment.
One company, called CVS Health during the transition, would include Aetna, CVS Caremark, CVS Specialty, Oak Street Health and Signify Health. Caremark manages prescription benefits for health plans and employers; those services would remain grouped with the insurance and care-delivery businesses.
The other, CVS Pharmacy, would include roughly 9,000 retail pharmacies, mail pharmacy, MinuteClinic and the Health100 technology-services business.
David Joyner, CVS Health's chairman and chief executive, would be chairman and chief executive of the healthcare solutions company. Group President Prem Shah would become chief executive of CVS Pharmacy. Further leadership and board appointments will come later.
Existing CVS Health shareholders are expected to own shares in both companies when the separation is completed. The company intends the transaction to be tax-free for U.S. federal income-tax purposes, but says that treatment remains subject to confirmation.
CVS says customers will continue receiving medicines, benefits and care without interruption during the process. Its announcement does not set out a Rhode Island staffing plan or the headquarters arrangements for both future companies.
The company says there is no assurance the separation will occur, or that it will occur on those terms or that timeline.
